The city hopes to get more affordable housing built and retain the affordable units it has by providing property tax exemptions to owners for a period of 20 years.
The recommendation heading to council next week would align the city with exemptions approved by the Region of Waterloo last spring.
The region's plan, which won unanimous approval from regional council in March, makes eligible building owners exempt from paying regional and education property taxes.
Qualified providers signing up for the exemption must commit to maintaining affordable units for a period of 60 years, or at least 20 years depending on the useful life of the building.
The region is working on having an application process in place for the 2025 taxation year.
The incentive is expected to save the region's existing affordable housing units, some of which are approaching end of their operating agreements.
It's also expected to encourage building owners to keep rents low in older buildings in order to qualify and encourage developers to include more affordable units in new builds.
The city's finance staff will ask council next week to support participation in the region's program starting next year.
A recommendation report headed to council says it would give property tax exemptions to non-profit and co-operative affordable housing service providers for a period of 20 years on the city's portion of the tax levy.
For a multi-residential property, the city's share is around 38 per cent while the region and the education share represents 56 per cent and 6 per cent respectively.
Building owners qualify for the program through the provisions in the Assessment Act.
The Act allows the Municipal Property Assessment Corporation to provide tax exemptions "for any charitable, non-profit philanthropic corporation organized for the relief of the poor if the corporation is supported by public funds."
The onus to apply and request an exemption under this legislation is on the property owner.
MPAC will review the application and required documentation "to ensure the spirit of the legislation has been met before approval for a property tax exemption is granted."
The entire process can take between 6-12 months.
Implementing a property tax exemption for affordable housing properties will have no impact to the city's revenue from property taxation.
It will, however, result in a shift of tax burden to all other property taxpayers, says the report.
