HUMA Committee
House of Commons
c/o Clerk of the Committee
via email:  Huma@parl.bc.ca

Re:  Bill C-304 

The Greater Victoria Chamber of Commerce, along with the Canadian Chamber of Commerce, is advocating in favour of a National Housing Strategy. We thank you for the opportunity to submit a written proposal on that issue as a part of the committee deliberations on Bill C- 304.

The necessity of a National Housing Strategy is clear to the business community – particularly as it pertains to issues associated with homelessness. In urban centres where homelessness is becoming a greater problem - and this would reference the majority of urban centres in Canada – the homeless often make their homes on the doorsteps of business. Not only is this obviously inhumane, it is also a considerable cost to business, that is forced to bear the increased costs of property maintenance, security, and all too often, loss of business as customers avoid their premises. A plan led by the federal government to aggressively diminish the numbers of people living homeless through a National Housing Strategy is a better investment of tax-payer dollars than the high cost of paying for the myriad of services in social programs, health care, policing and the judiciary that are often associated with the chaotic lives of those on the streets.

Secondly, a National Housing Strategy that also gives consideration to tax measures that will encourage market participation in the construction of multi-unit rental housing is also imperative. Current tax laws have eroded the development of rental units and availability of rental housing has fallen from an average Canadian vacancy rate of 4.5 per cent in 1994 to 2.2 per cent by the fall of 2008, according to the Canada Mortgage and Housing Corporation, has. Availability of affordable rental housing provides for many entry level workers, thereby contributing to the productive economic life of a community as well as its strong social fabric.

In order to create adequate, accessible and affordable housing, there needs to be greater participation from the private sector to build supply. The Chamber recommends that within the context of Bill C-304, HUMA make recommendations to amend tax policies that act as disincentives to the participation of the private sector in supplying new inventory. Specifically, there needs to be a deferral of capital gains tax on the sale of real property, including rental property,  when the proceeds of sales are reinvested within a twelve-month period into other real property investments; and secondly, a deferral of the recapturing of the value of depreciated capital cost allowances on real property.

Because the participation of the private sector is important in a viable National Housing Strategy, we would recommend that amendments be made to Bill C-304 to reflect that important participation. Specifically, in section 3 (1) subsection (a) and (f) should be amended to ensure that the private sector is included in both the consultation phase and implementation phase of a National Housing Strategy.

We appreciate the work of the HUMA Committee and look forward to the final draft of Bill C-304 as a step towards achieving the goal of a National Housing Strategy to alleviate homelessness and provide affordable housing for all in our society.

Sincerely,

Bruce Carter
Chief Executive Officer

cc: Perrin Beatty, President and CEO, Canadian Chamber of Commerce
      Denise Savoie, MP Victoria  
     Gary Lunn, MP Saanich - Gulf Islands
     Keith Martin, MP Esquimalt – Juan de Fuca