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HomeMy WebLinkAboutFCS Agenda - 2022-06-081 KiTc�ivER Finance and Corporate Services Committee Agenda Wednesday, June 8, 2022, 12:00 p.m. - 2:30 p.m. Electronic Meeting Beginning March 1, 2022, the City of Kitchener has aligned with provincial changes to COVID-19 restrictions and City Hall is now open for in person services, but appointments are still being encouraged. The City remains committed to safety of our patrons and staff and continue to facilitate electronic meeting participation for members of the public. Those people interested in participating in this meeting can register to participate electronically by completing the online delegation registration form at www.kitchener.ca/delegation or via email at delegation @kitchener.ca. For those who are interested in accessing the meeting live -stream video it is available at www.kitchener.ca/watchnow. Please refer to the delegations section on the agenda below for registration deadlines. Written comments will be circulated prior to the meeting and will form part of the public record. *Accessible formats and communication supports are available upon request. If you require assistance to take part in a city meeting or event, please call 519-741-2345 or TTY 1-866-969-9994.* Chair: Councillor K. Galloway-Sealock Vice -Chair: Councillor S. Davey Pages 1. Commencement 2. Consent Items The following matters are considered not to require debate and should be approved by one motion in accordance with the recommendation contained in each staff report. A majority vote is required to discuss any report listed as under this section. 2.1. Interim Nominating Committee Period Extension, COR -2022-212 3 3. Delegations Pursuant to Council's Procedural By-law, delegations are permitted to address the Committee for a maximum of five (5) minutes. Delegates must register by 10:00 a.m. on June 8, 2022, in order to participate electronically. 3.1. None at this time. 4. Discussion Items 4.1. Vacant Home Tax, FIN -2022-284 20 m 12 (Staff will provide a 5 -minute presentation on this matter.) 4.2. No Conversion Practices Policy Investigation 15 m 28 Report Back, COR -2022-210 (Staff will provide a 5 -minutes presentation on this matter.) 4.3. Queen Victoria Statue - Considerations for Next 60 m 33 Steps, COR -2022-253 (Staff will provide a 10 -minutes presentation on this matter.) 5. Information Items 5.1. None. 6. Adjournment Dianna Saunderson Manager of Council/Committee Services & Deputy Clerk Page 2 of 36 Staff Report r NJ :R Corporate Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: June 8, 2022 SUBMITTED BY: Elin Moorlag Silk, Interim Director, Equity, Anti -Racism & Indigenous Initiatives, 519-741-2200 ext. 7049 PREPARED BY: Elin Moorlag Silk, Interim Director, Equity, Anti -Racism & Indigenous Initiatives, 519-741-2200 ext. 7049 WARD(S) INVOLVED: All Wards DATE OF REPORT: May 27, 2022 REPORT NO.: COR -2022-212 SUBJECT: Interim Nominating Committee and TOR Revisions for EARAC RECOMMENDATION: That Council approve the creation of an Interim Nominating Committee to review and select applicants for the 2022 round of membership appointments to the Equity and Anti - Racism Advisory Committee, and; That Council approve the revised Terms of Reference for the Equity & Anti -Racism Advisory Committee, as outlined in Appendix A. REPORT HIGHLIGHTS: • Until the review and restructuring of the current nominating committee can be completed, it is the recommendation of staff to strike an interim Nominating Committee for the next round of appointments to the Equity and Anti -Racism Advisory Committee, following the same process approved by Council in August 2021, as outlined in COR -2021-21 • The Council -approved review and restructuring of the current nominating committee for all City of Kitchener Advisory Committees, which was to be underway during Q1 and Q2 of 2022, has been delayed and is set to resume in early 2023 • The Equity & Anti -Racism Advisory Committee began meeting in January of 2022, and as the committee has been developing and exploring the mandate, scope and objectives, the TOR has been revised to reflect this and better represent the perspectives of the members who make up the committee. • Community engagement included collaboration with members of the Mayor's Task Force on Equity, Diversity & Inclusion, who gave staff direction on membership priorities and recruitment strategies for the nominating process for the Equity & Anti -Racism Advisory Committee, and collaboration with members of the committee on the revisions to the TOR • This report supports the delivery of core services. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 3 of 36 BACKGROUND: The creation of an Equity & Anti -Racism Advisory Committee was approved by Council in August 2021, as proposed in staff report COR -2021-21. As outlined in the report, this Equity and Anti - Racism Advisory Committee fulfils an advisory role, providing advice and recommendations to Council on matters related to equity and anti -racism to support and further the City's strategic directions. Membership on this Advisory Committee includes between 8 and 12 citizen community members who live, work, attend school and/or own property in Kitchener and prioritizes the voices of those who have been historically underrepresented or excluded, including Black, Indigenous, racialized, 2SLGBTQ+ identified, people with disabilities, religious minorities, and the intersections of these identities. At the time of approval, a draft Term of Reference for the Equity & Anti -Racism Advisory Committee was approved by Council, which was created by City staff with the intention of being vetted/revised by members of the advisory committee once it was formed. In addition to the Equity & Anti -Racism Advisory Committee, the creation of an Interim Nominating Committee was also approved by Council in August 2021, as proposed in COR - 2021 -21, in order to facilitate a nomination and appointment process led by community members who bring a diversity of voices not currently represented in the existing Nominating Committee. Following the process outlined in COR -2021-21, former members of the Mayor's Task Force on Equity, Diversity & Inclusion were invited to be part of the Interim Nominating Committee. Based on the responses received, staff brought recommendations forward to Council in September 2021 for the appointment of six community members to the Interim Nominating Committee, as outlined in COR -2021-27. Members of this Interim Nominating Committee reviewed 37 applications and made 12 recommendations for appointments to the Equity & Anti -Racism Advisory Committee for the inaugural 10 -month term. Following this process, as approved by Council in COR -2021-21, staff launched a review of the current nominating committee terms of reference (GOV-BOA-101) and appointment process from an equity and anti -racism lens and in order to make recommendations based on this review for strategies to increase diversity of representation on the nominating committee prior to the next round of appointments. Although this review has begun, due to unexpected staff turnover and subsequent capacity issues as a result, staff were unable to complete this review within the specified timeframe. The review is currently on hold with plans to resume in January 2023. REPORT: Interim Nominating Committee Until the review and restructuring of the current nominating committee can be completed, it is the recommendation of staff to strike an interim Nominating Committee for the next round of appointments to the Equity and Anti -Racism Advisory Committee, following the same process approved by Council outlined in COR -2021-21 and summarized below. It is recommended that membership for this interim Nominating Committee be made up of community members who sat on the Mayor's Task Force on Equity, Diversity, and Inclusion, who themselves were vetted through a comprehensive application process and who bring knowledge and expertise of the work that is a benefit for the nomination process. Following the same process as last time, an invitation for expression of interest for this opportunity will be sent out to all 25 community members who were part of the Mayor's Task Force on Equity, Diversity Page 4 of 36 and Inclusion, outlining the following criteria: Skills, Experience and/or Requirements • Must be a community member who sat on the Mayor's Task Force for Equity, Diversity, and Inclusion. • Must not currently sit on a City of Kitchener Advisory Committee. • Able to take part in respectful collaboration to build consensus. • Open to diverse perspectives and ideas. • Able to share ideas, suggestions and feedback in a group setting. • Must have the ability to review applications online and attend online meetings. Staff from the Equity division will gather responses and assemble interested members by July 2022 to form the Interim Nominating Committee, made up of a minimum of five community members. This Interim Nominating Committee will be in effect from July to November of 2022; the sole responsibility of this Interim Nominating Committee will be to review applications and select members for appointment on the newly -established Equity & Anti -Racism Advisory Committee to Council for the next 2 -year term. Support of this Interim Nominating Committee will be provided by City staff from the Equity, Anti -Racism and Indigenous Initiatives division, who will play a strictly facilitative function in the process and will not have a role in the decision-making. This interim nominating committee will operate in accordance with the guidelines specified in GOV-BOA-063: Appointments to Boards & Committees, and will be made up of community members who bring a diversity of voices not currently represented in the existing Nominating Committee responsible for all appointments to City Advisory Committee and Boards. Revised Terms of Reference (TOR) for the Equity & Anti -Racism Advisory Committee The Equity & Anti -Racism Advisory Committee began meeting in January of 2022, and as the committee has been developing and exploring the mandate, scope and objectives, the TOR has been revised to reflect this. Attached in Appendix A is a revised version of the TOR of the EARAC, with revisions highlighted. It is the recommendation of staff for Council to approve this revised Terms of Reference, as this document now better represents the perspectives of the members who make up the committee. STRATEGIC PLAN ALIGNMENT: This report supports the delivery of core services. FINANCIAL IMPLICATIONS: Capital Budget — The recommendation has no impact on the Capital Budget. Operating Budget — The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. Page 5 of 36 CONSULT — Members of the Equity & Anti -Racism Advisory Committee were encouraged to review and make suggestions for revisions to the original Terms of Reference. COLLABORATE — Community engagement included collaboration with members of the Mayor's Task Force on Equity, Diversity & Inclusion, who gave staff direction on membership priorities and recruitment strategies for the nominating process for the Equity & Anti -Racism Advisory Committee. PREVIOUS REPORTS/AUTHORITIES: • COR -2021-32 Membership Appointments for the Equity & Anti -Racism Advisory Committee • COR -2021-27 Interim Nominating Committee — recommendations for membership • COR -2021-21 Equity & Anti -Racism Advisory Committee to Council APPROVED BY: Victoria Raab, General Manager Corporate Services Department ATTACHMENTS: Appendix A — Revised Terms of Reference for the Equity & Anti -Racism Advisory Committee Page 6 of 36 APPENDIX A — Revised Terms of Reference for the Equity & Anti -Racism Advisory Committee J POLICY Policy No: Click here to enter text. KIfcFEvFR Policy Title: Equity & Anti -Racism Approval Date: Click here to enter a Advisory Committee — Reviewed Date: Click here to enter text. Terms of Reference Policy Type: COUNCIL Next Review Date: ;Click here to enter Category: Governance Reviewed Date: Click here to enter text. Sub -Category: Board & Committee Last Amended: Click hereto enter a Author: Senior Anti -Racism Advisor Replaces: Click here to enter text. Dept/Div: Equity, Anti -Racism & Indigenous Initiatives Repealed: Click here to enter a date. Replaced by: Click here to enter text. Related Policies, Procedures and/or Guidelines: GOV-COR-2025 Equity, Inclusion & Anti -Racism Policy GOV-COU-005 Code of Conduct for Members of Council, Local Boards & Advisory Committees POLICY PURPOSE: 1.1 Mandate and Scope The Equity and Anti -Racism Advisory Committee fulfils an advisory role, providing advice and recommendations to Kitchener City Council on matters related to equity and anti -racism to support and further the City of Kitchener's strategic directions. The committee also ensures ongoing grassroots community involvement as work related to equity and anti -racism continues to be developed and implemented at the City, and thus provides a mechanism of community accountability. The aim for this committee is to create space that allows for sharing and actioning of concerns that impact under -represented communities in Kitchener. 2. DEFINITIONS: 5 of 9 Page 7 of 36 Anti -Racism: Working to understand and dismantle racism. It is a change and transformation -focused practice and requires action. It's not anti -racism if a conversation isn't followed by concrete actions and accountability. Equity: An equity approach seeks to create the conditions for fair and equal access and opportunity for everyone, by addressing discriminations, exclusions and barriers experienced by distinct groups. Equity is not the same as equality, nor is it the same as inequality. 3. SCOPE: 4. POLICY CONTENT: 4.1 Composition and Appointments Membership includes no less than 8 and no more than 12 citizen community members who live, work, attend school and/or own property in Kitchener and represent voices who have been historically underrepresented or excluded, including Black, Indigenous, racialized, 2SLGBTQ+ identified, people with disabilities, religious minorities, and the intersections of these identities. Consideration will also be given to diversity of age, education, lived experience and expertise related to social issues. Committee members will have lived experience and/or expertise in issues of marginalized and vulnerable communities and reflect the diversity of those communities Members will include the following: • 6 representatives of organizations working in such fields as (but not limited to), housing, healthcare, education, employment and entrepreneurship, child welfare, equity, diversity and inclusion (EDI), and the criminal justice system. • 3 elder members, who self -identify and represent the wisdom of diverse minority communities • 3 youth members between the ages of 16-29 6 of 9 Page 8 of 36 POLICY APPLIES TO THE FOLLOWING: ❑ All Employees ❑ All Full -Time Employees ❑ All Union ❑ Management ❑ C.U.P.E. 68 Civic ❑ Non Union ❑ C.U.P.E. 68 Mechanics ❑ Temporary ❑ C.U.P.E. 791 ❑ Student ❑ I.B.E.W.636 ❑ Part -Time Employees ❑ K.P.F.F.A. ❑ Specified Positions only: ❑ Other: ❑ Council ❑x Local Boards & Advisory Committees 4. POLICY CONTENT: 4.1 Composition and Appointments Membership includes no less than 8 and no more than 12 citizen community members who live, work, attend school and/or own property in Kitchener and represent voices who have been historically underrepresented or excluded, including Black, Indigenous, racialized, 2SLGBTQ+ identified, people with disabilities, religious minorities, and the intersections of these identities. Consideration will also be given to diversity of age, education, lived experience and expertise related to social issues. Committee members will have lived experience and/or expertise in issues of marginalized and vulnerable communities and reflect the diversity of those communities Members will include the following: • 6 representatives of organizations working in such fields as (but not limited to), housing, healthcare, education, employment and entrepreneurship, child welfare, equity, diversity and inclusion (EDI), and the criminal justice system. • 3 elder members, who self -identify and represent the wisdom of diverse minority communities • 3 youth members between the ages of 16-29 6 of 9 Page 8 of 36 Members will be appointed by an interim Nominating Committee comprised of members of the Mayor's Task Force on Equity, Diversity and Inclusion until revisions are made to the standing Nominating Committee. Co -Chairs (2) will be elected by members of the Equity, Anti -Racism and Indigenous Initiatives Office, at the first meeting, or as soon as possible after. Members are appointed for a term coincident with the term of City Council (2 years). The Advisory Committee will meet until the completion of its mandate or the end of the current City Council term, whichever comes first. Members of City Council will not have an official seat on the committee, but mechanisms of inclusion will be in place to ensure open channels of communication and opportunities for ongoing updates to be provided between the advisory committee and members of City Council. Membership is voluntary and a public service; however, members will receive an honorarium as outlined in (link to honorarium policy when available) 4.2 Responsibilities of the Committee Advise Council on equity and anti -racism issues in collaboration with the Equity, Anti -Racism and Indigenous Initiatives team. Support the Equity, Anti -Racism & Indigenous Initiatives team as a resource, a sounding board, and to provide review, collaboration, and feedback on ongoing work. Surface things that are happening in the community and help identify community priorities for equity and anti -racism work happening at the City. Serve as a conduit to the larger community when additional feedback and engagement is required related to equity and anti -racism work at the City. Support, provide review, collaboration and feedback on equity and anti -racism issues across all departments at the City. Serve as the selection committee for the Racialized and Indigenous Supports for Equity (RISE) Fund, a community grant program created to support Black, Indigenous and racialized groups and organizations in Kitchener. 4.3 Meetings Meetings will be held monthly and are open to the public 7 of 9 Page 9 of 36 A meeting or part of a meeting may be closed to the public if the subject matter being considered meets the criteria under section 239 of the Ontario Municipal Act (2001), subsection (2), (3) and (3.1). As per the Ontario Municipal Act (2001), section 239, subsection (4), before holding a meeting or part of a meeting that is to be closed to the public, a committee shall state by resolution the fact of the holding of the closed meeting and the general nature of the matter to be considered at the closed meeting, or in the case of a meeting being closed for the purpose of educating or training the members (subsection 3.1), the general nature of its subject matter and that it is to be closed under that subsection. To support a collaborative approach to agenda -setting where all members have a voice, time will be reserved during each meeting to set the agenda for the next meeting. Members are expected to attend all meetings. Members missing two consecutive meetings, or more than four meetings total, will be contacted for confirmation of commitment. Members who cannot attend meetings and/or otherwise fulfill the duties outlined in the terms of reference and volunteer role description will be asked to step down. A replacement will then be appointed according to Council procedural policy. A quorum of this committee is half -plus -one of the current number of members. 4.4 Ad-hoc meetings and/or subcommittees Ad-hoc meetings and/or sub -committees are formed if necessary with a mandate to address specific issues related to equity and anti -racism in Kitchener. 4.5 Reporting and Decision -Making The committee reports to City Council as required The committee serves as an accountability mechanism for the Equity, Anti -Racism and Indigenous Initiatives division within Corporate Services through regular collaboration and monthly updates from the Equity, Anti -Racism and Indigenous Initiatives team about ongoing and upcoming work The committee strives to make decisions through consensus. If consensus cannot be reached, the decision will be made by a vote and simple majority is required. Staff will not have a vote. 4.6 Review Terms of reference will be reviewed by the advisory committee at least once per term and updated as required. 8 of 9 Page 10 of 36 5. HISTORY OF POLICY CHANGES Administrative Updates The date (yyyy-mm-dd) and a short annotation on the nature of the change to reflect the current corporate structure i.e. Departmental re -organization / Titling changes / Standing Committee restructuring. Formal Amendments The date of the resolution passed by Council or CLT, for example, "2020-01-20 - As per Council/CLT directive" [Start typing here] 9 of 9 Page 11 of 36 Staff Report Financia( Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: June 8, 2022 SUBMITTED BY: Saleh, Saleh, Director, Revenue Division, 519-741-2200 ext. 7346 PREPARED BY: Saleh, Saleh, Director, Revenue Division, 519-741-2200 ext. 7346 Danielle Sbeti, Manager, Realty Services, 519-741-2200 ext. 7357 WARD(S) INVOLVED: ALL DATE OF REPORT: May 20, 2022 REPORT NO: FIN -2022-284 SUBJECT: Vacant Home Tax RECOMMENDATION: That a Vacant Home Tax not be implemented at this time. REPORT HIGHLIGHTS: • Legislation allows municipalities to charge a Vacant Home Tax (VHT) to owners of vacant residential properties. • The VHT is intended to provide municipalities with an option to improve housing supply and is not designed to be a revenue tool for the municipality. • The City of Kitchener has one of the lowest vacancy rates in Canada according to the Canada Mortgage and Housing Corporation (CMHC). • Currently only between 100-125 residential properties are suspected to be vacant within the City of Kitchener. • Many municipalities are currently exploring the feasibility of implementing a VHT. • It is expected that the expenses incurred to implement a VHT would be greater than revenues collected for the City of Kitchener. • The City of Kitchener continues to move forward with the action items identified in the City's Affordable Housing Strategy previously approved by Council. • Both the Federal and Provincial governments have announced several strategies to increase the affordable housing supply. BACKGROUND: As housing prices and the need for affordable housing increase, the City of Kitchener continues to explore every opportunity available to improve the housing supply and to add more affordable housing inventory to the market. On December 13, 2021, Council passed the following motion as it relates to the feasibility of implementing a vacant home tax (VHT): *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 12 of 36 "WHEREAS affordable housing in the Province and in the City of Kitchener continues to be an issue requiring municipalities to consider every tool available to them in efforts to increase the supply and affordability of housing, and, WHEREAS the City of Kitchener has adopted "Housing for All — The City of Kitchener's Housing Strategy" demonstrating a commitment to addressing the housing crisis within the municipality; and, WHEREAS Kitchener continues to seek opportunities to address the local housing crisis recognizing the need for safe, adequate and affordable housing, and, WHEREAS the City of Toronto is implementing a tax on vacant residential units to encourage property owners to rent out those properties and other municipalities in the Province are considering doing the same,- THEREFORE ame, THEREFORE BE IT RESOLVED that City of Kitchener staff be directed to work with the Region of Waterloo and area municipalities to consider the feasibility of implementing a property tax charge on vacant residential units as a means of encouraging occupancy of those vacant units and that staff report back on the findings to the Finance and Corporate Services committee in June 2022. " This report is expected to provide the following information: 1. Purpose of a VHT. 2. Understanding of the current legislation as it relates to the VHT. 3. An overview of Kitchener's residential real estate market including important statistics and trends. 4. Shared experiences of other municipalities who have implemented the VHT. 5. Understanding of Vacant Homes in Kitchener 6. A recommendation for Council's consideration REPORT: Purpose The Province introduced legislation under Ontario's Fair Housing Plan 2017 which allows municipalities to impose a tax on vacant units that are classified in the residential property class. The main purpose of this legislation was to encourage residential property owners of vacant premises to either sell or rent their properties, thereby, increasing the supply and affordability of housing. This legislation is intended to provide municipalities with an option to improve housing supply and is not designed to be a revenue tool for the municipality. Current Legislation The Municipal Act, 2001 ("Act") gives authority to municipalities to impose a tax on vacant units that are classified in the residential property class and that are taxable under the Act Page 13 of 36 for municipal purposes. The Act further clarifies that for a municipality to be able to impose a vacant unit tax, the Ministry of Finance must designate the municipality by regulation. Historically and legislatively, property tax policy formulation in a two-tier system, is the responsibility of an upper -tier municipality. However, in this case, as it relates to legislation around the vacant unit tax, the Act is not clear on whether a program built on a vacant unit tax for properties in the residential property class, is the responsibility of the upper -tier municipality. Staff sought clarification from the Province and the Ministry of Finance on this issue but did not receive any clarity. However, staff from the Ministry of Finance, strongly encouraged a regional approach to any tax policy with the caveat that if the City of Kitchener decided to create a VHT program for Kitchener properties only, the Ministry would review the City's approach and may provide the designation. The City of Toronto currently has this designation through the City of Toronto Act; further, the City of Ottawa recently received approval from the Ministry of Finance for this designation. Both, the City of Toronto and the City of Ottawa are single tier municipalities. Kitchener's Residential Real Estate Market Information related to Kitchener's housing market is appended (Appendix A) to this report. Key highlights from this report include: • The supply of housing units per capita in the Kitchener CMA is well below the national average and has been falling since 2016. The months of inventory in the residential resale market reached an all time low of 0.2 in December 2021. • Rental vacancy is at an unhealthy level, with an overall vacancy rate of 2.1% in the City of Kitchener as of October 2021. • Within the secondary rental market (condo units that are rented), the vacancy rate in Kitchener -Cambridge -Waterloo was only 0.8% as of October 2021. • Available studies relating to the impact of foreign buyer taxes on house prices suggest the effect is minimal and temporary in nature, and to date there is a lack of data correlating vacant home taxes to price decreases. • The investor category of purchasers is broadly defined, and the proportion of investor -buyers has been relatively consistent over the past several years. • The point at which investor activity becomes problematic requires further study, and there are aspects in the development of housing, including rental, where investors serve a positive function. • Government action to address housing has typically been on the demand side, and much more policy focus needs to be on the responsiveness of supply to demand. The Canada Mortgage and Housing Corporation (CMHC)'s 2021 rental market report further shows that Kitchener -Waterloo -Cambridge have one of the lowest residential vacancy rates in Canada at 2.0%. Municipal Survey Currently there are many municipalities in Ontario studying the legislation and considering the VHT. Some examples of municipalities reviewing the feasibility of implementing the VHT include the City of Hamilton, Niagara Region, Halton Region, City of Mississauga, Region Page 14 of 36 of Peel, City of St Catharines, and the City of Windsor. Every municipality surveyed is looking to allocate net revenues from this potential tax to support affordable housing initiatives. The City of London has already announced that they will not be implementing a VHT as based on their analysis, the costs of such a program would be higher than the revenues. The City of Vancouver was the first municipality to implement the VHT with an initial tax rate of 1% in 2017. Subsequently, this rate has been increased to 3% in 2021 and a further increase to 5% is being considered at the City of Vancouver. In 2022, the City of Toronto implemented the VHT with results yet to be determined as the tax will be collected in 2023. The City of Ottawa is also moving forward with the VHT in 2022 with results yet to be determined. The following table reflects important statistics and compares the City of Ottawa, the City of Toronto and the City of Vancouver. Key observations to consider: • Population sizes and housing markets are much greater than Kitchener • Significantly higher number of total properties than Kitchener • Requires significant staff resources to administer the program The City of Kitchener has a population size of approximately 257,000 per the 2021 Canadian Census. The total number of properties is approximately 84,000. Based on size, population and the estimated number of vacant homes, Kitchener is much smaller in scale than Ottawa, Toronto or Vancouver who have implemented the VHT. Understanding of Vacant Homes in Kitchener Estimating the number of vacant homes in a municipality is a challenge. Both the City of Toronto and the City of Ottawa have decided to request every property owner to attest annually that their property is not vacant. This is a very time and resource consuming activity which can also result in many challenges such as incorrect information being submitted, late submissions or even no submissions. Initially, the City of Vancouver used hydro consumption data to estimate the number of vacant homes. Subsequently, on further investigation, the City of Vancouver found that the number of vacant homes was significantly Page 15 of 36 City of Ottawa City of Toronto City of Vancouver Population (2021) 11017,000 2,794,000 662,000 Total Number of Properties 330,000 789,000 186,000 Estimated number of Vacant Properties 1,650 7,900 2,200 VHT Rate 1% 1 % 1 % (currently 3%) Estimated Revenues $6.6M (Year 1) $55M -$66M (Year 1) $37M Startup Costs $3.9M $10M -$13M $10M Annual Operating Costs $1.4M $5.8M $2.5M Additional staff 8 15-20 15-20 Key observations to consider: • Population sizes and housing markets are much greater than Kitchener • Significantly higher number of total properties than Kitchener • Requires significant staff resources to administer the program The City of Kitchener has a population size of approximately 257,000 per the 2021 Canadian Census. The total number of properties is approximately 84,000. Based on size, population and the estimated number of vacant homes, Kitchener is much smaller in scale than Ottawa, Toronto or Vancouver who have implemented the VHT. Understanding of Vacant Homes in Kitchener Estimating the number of vacant homes in a municipality is a challenge. Both the City of Toronto and the City of Ottawa have decided to request every property owner to attest annually that their property is not vacant. This is a very time and resource consuming activity which can also result in many challenges such as incorrect information being submitted, late submissions or even no submissions. Initially, the City of Vancouver used hydro consumption data to estimate the number of vacant homes. Subsequently, on further investigation, the City of Vancouver found that the number of vacant homes was significantly Page 15 of 36 lower than initially estimated. For example, there were properties in the initial data set which were in the redevelopment phase and would not qualify for the VHT. Currently, the City of Vancouver also requires all property owners to make a property status declaration each year, to determine whether their property will be subject to the VHT. The most verifiable data to estimate the number of vacant homes is water consumption. It is estimated that between 100-125 properties in the City of Kitchener may be vacant based on a water consumption analysis. This represents a very low percentage (0.15%) of total properties in the City. However, like Vancouver, this figure could also be lower when further investigation is done. The Region of Waterloo conducted an informal survey with builders, developers, realtors, and investors. The feedback from the survey resulted in the following conclusions: • There is no evidence of a vacant home issue within the Region. • Some vacant homes are either under renovation, waiting for redevelopment, Airbnb units or probates (death of owner). Under Toronto, Ottawa, and Vancouver's VHT policy, these properties would not qualify for a VHT. Recommendation/Conclusion The main goal of the VHT is to increase the supply of affordable housing. Factors that are important to consider when determining whether to implement a VHT and how they relate to the City of Kitchener are outlined below. • Vacancy rate- The City of Kitchener has a very low vacancy rate (2.1 % as of October 2021) when compared to the City of Toronto (3.4%) or the City of Ottawa (3.9%) as reported by Canada Mortgage and Housing Corporation. The Advocacy Centre for Tenant's Ontario recommends a vacancy rate between 3% to 5% for a healthy rental market. Further, a review of properties where water consumption was either at a minimum or zero for at least six months revealed that approximately 100-125 properties in the City may be vacant. This represents a very small percentage (0.15%) of total properties in the City which are potentially vacant. • Revenue/Costs- If the City were to implement a VHT, based on the estimated number of vacant properties of between 100-125 and an average assessed value of $325,000, it is expected that the revenue generated with a 1% VHT will be approximately $406,000 at the high end. However, expenses to administer the program will also be incurred including: o Billing system changes o Hiring of additional staff to audit, review, deal with public inquiries and implement the tax annually o Appeal process would need to be established o Printing, advertising, and communication costs It is expected that the expenses related to the implementation of a VHT would exceed the revenues resulting in a net loss to the City's tax base. Page 16 of 36 • Affordable Housing Strategy- The City had developed a robust affordable housing strategy, Housing for All, to invest in solutions which will increase the affordable housing supply. There are several detailed action items identified in this plan which will require time and resources to implement. Implementation of a VHT was not considered or recommended as part of the City's affordable housing strategy. • Federal/Provincial Initiatives- Both the Federal and Provincial governments have announced several strategies to increase the affordable housing supply. Examples include: o More Homes for Everyone Act which will speed up the construction process. o Increase in tax to non-residential homebuyers from 15% to 20% Based on the factors described in this section, it is recommended that at this time, the City of Kitchener, not move forward with a VHT. STRATEGIC PLAN ALIGNMENT: This report supports A Caring Community. FINANCIAL IMPLICATIONS: •lm COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. CONSULT — This report has been shared with the Region of Waterloo. PREVIOUS REPORTS/AUTHORITIES: • Municipal Act, 2001 APPROVED BY: Jonathan Lautenbach, Chief Financial Officer, Financial Services ATTACHMENTS: Attachment A — Housing Market Dynamics Summary Page 17 of 36 Canadian Housing Market Dynamics — 1 Summary of Current Issues May 19, 2022 I�iITCHENER The following summary of current issues in the Canadian Housing Market discusses key trends related to housing demand and supply and the effect on house prices and unaffordability. While this discussion is not exhaustive, it focuses on the primary concerns, available local and national data, and providing context to the statistics. The summary concludes with an overview of current and recommended government actions to address market imbalances. Highlights • The supply of housing units per capita in the Kitchener CMA is well below the national average and has been falling since 2016. The months of inventory in the residential resale market reached an all time low of 0.2 in December 2021, and currently sits at 1.2. • Rental vacancy is at an unhealthy level, with an overall vacancy rate of 2.1% in the City of Kitchener as of October 2021. • Available studies relating to the impact of foreign buyer taxes on house prices suggest the effect is minimal and temporary in nature, and to date there is a lack of data correlating vacant home taxes to price decreases. • The investor category of purchasers is broadly defined, and the proportion of investor - buyers has been relatively consistent over the past several years. • The point at which investor activity becomes problematic requires further study, and there are aspects in the development of housing, including rental, where investors serve a positive function. • Government action to address housing has typically been on the demand side, and much more policy focus needs to be on the responsiveness of supply to demand. Housing Supply Issues The current situation in Canadian housing markets primarily reflects a chronic insufficiency of home supply that has been temporarily exacerbated by pandemic -related impacts linked to record -low mortgage rates and a shift in preferences for housing by type and geography. As summarized by Scotiabank Economics, the principal challenge facing the housing market, and a major underlying cause of recent rising prices and diminished affordability, is the substantial insufficiency of supply relative to demand. Even before the pandemic, the supply of housing had not been keeping up with population growth, reaching a near -record imbalance. Imbalance of Demand vs. Supply One measure of the imbalance of demand vs. supply is the ratio of new home completions to the change in population. Since 2018, this ratio in Canada has been well below its historical average, and while it improved slightly in 2020 due to the halt on immigration, this is expected to reverse as immigration resumes. Looking at another measure, Canada has the lowest number of housing units per 1,000 residents of any G7 country, and this ratio has been falling since 2016. Page 18 of 36 • Across the G7, the average number of housing units per 1,000 residents is 471. In Canada, this ratio was 424 in 2020. An additional 1.8 million homes would be needed to achieve the average G7 level of supply nationally, with 1.2 million units needed in Ontario alone (Scotiabank Economics). • In the Kitchener -Cambridge -Waterloo CMA, the number of housing units per 1,000 residents fell from 389 in 2016 to an estimated 376 in 2020 (Scotiabank Economics). • The imbalance of demand vs. supply is also reflected in the number of resale listings. Prior to the pandemic, the number of available listings nationally was already at a 14 -year low, with an average 4 months of inventory (CREA). • There were just 1.6 months of inventory on a national basis at the end of January 2022 (CREA). In the Kitchener -Waterloo market, the number of months of inventory reached an all time low of 0.2 in December 2021. Since the start of 2022, months supply has started trending upwards, reaching 1.2 in April (KWAR). Months Suppiy of Homes for Sale W 4.0 3.0 2.0 Kitchener -Waterloo Association of REALTORSO 0.0 1-2009 1-2010 1-2011 1-2012 1-2013 1-2014 1-2015 1-2016 1-2017 1-2018 1-2019 1-2020 1-2021 1-2022 Kitchener -Waterloo Association of REALTORS@ Each data point is one month off activity. Data is horn May 11 2022. Unhealthy Rental Vacancy • In the primary rental market, the overall vacancy rate in Kitchener was 2.1% as of October 2021. The vacancy rates for 1- and 2 -bedroom apartment units ranged between 1.0% and 3.1%, depending on location. Data on bachelor and 3 -bedroom+ units is more limited but indicates a vacancy rate at or below 1.1% (CM HC). • When rental townhouse units are excluded, the vacancy rate for rental apartment units only was 2.0% as of October 2021. • When analyzed by rental rate, the data indicates that vacancy rates increase as rental rates increase. For units below $999 per month in Kitchener, the October 2020 and 2021 vacancy rates ranged between 0.0% and 1.1%, depending on location and unit size. • A healthy rental vacancy rate is considered to be 3.0% or above. The vacancy rate in the Kitchener -Waterloo -Cambridge area has been at or below 3.0% since 2010. In Kitchener in particular, the vacancy rate has only exceeded 2.7% once since 2015 (in 2018) (CMHC). • In the secondary rental market, which consists of condo apartments that are rented, the vacancy rate in the Kitchener -Waterloo -Cambridge CMA has been at or below 2.5% since 2015. As of October 2021, the secondary market vacancy rate was just 0.8% (CM HC). 2 Page 19 of 36 4.00% 3.50% 3.00% 2.50% 2.00% 1.50°/ 1.00°/ 0.50% 0.00°/ Rental Market Vacancy Rates - Kitchener 2015 2016 2017 2018 2019 2020 2021 Primary Rental Market (Kitchener City) Secondary Rental Market (Kitchener CMA) Source: Canadian Mortgage and Housing Corporation (CMHC) • According to rental leads analysis by Rentsync, Kitchener consistently ranks in the top 10 Canadian cities in rental demand, with a demand score of 6.5 as of April 2022. Between April 2021 and 2022, Kitchener saw a 78% increase in unique leads per property. Short -Term Rental Market • The number of short-term rentals actively listed per quarter in the City of Kitchener has ranged between 350 and 493 since the end of 2018. As of May 2022, there are approximately 366 active rentals listed through Airbnb and Vrbo (per airdna data). • Roughly three-quarters of listings are for the entire dwelling or house, with the remaining listings offering a private or shared room in a home. • Only 15% of listings are available full time, meaning that most short-term rental listings are not year-round rentals. Approximately 60% of rentals are available 1-90 days of the year, and 25% are available 91-180 days of the year. Short -Term Rentals in Kitchener Number of Active Rentals 600 493 500 434 451 442 413 400 350 364 . , ' ' 3. 368 371 382 _■ 380 401 300 200 100 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2018 2019 2019 2019 2019 2020 2020 2020 2020 2021 2021 2021 2021 Source: airdna, as of February 23, 2022 3 Page 20 of 36 Vacant Dwelling Units • It is difficult to precisely estimate the number of truly vacant dwelling units in the City of Kitchener. The latest census data (2021) shows that there were 3,576 private dwelling units not occupied by usual residents, which equates to 3.46% of all private dwellings in Kitchener (Statistics Canada). • Removing the estimated vacant rental units from this figure, based on CMHC vacancy rates, leaves 3,093 units that were unoccupied at the time of the 2021 Census. This represents 3.0% of the total number of private dwellings in Kitchener. • The 3,093 units not usually occupied includes secondary homes and student housing where these units are not considered to be the occupant's primary residence. • Units left vacant due to renovation or redevelopment would also be captured in this figure, as well as some newly constructed units that are not yet occupied. For additional context, there were 29 and 66 residential demolition permits issued in the City of Kitchener in 2020 and 2021, respectively. Most of these demolition permits were for single detached dwellings, often replaced with a greater number of units. • While the absolute number of unoccupied private dwellings in Kitchener has increased since 2006, the percentage of unoccupied units declined between 2006 and 2016 and remained relatively unchanged between 2016 and 2021 (3.43% vs. 3.46%) (Statistics Canada). 3,700 3,600 3,500 3,400 3,300 3,200 3,100 3,000 Private Dwellings Not Usually Occupied - Kitchener Census Subdivision 2006 2011 2016 2021 Unoccupied private dwellings % Unoccupied Source: Statistics Canada, Census 2006, 2011, 2016 and 2021 Insufficient Supply is Causing Price Appreciation 4.20°/ 4.00°/ 3.80°/ 3.60°/ 3.40°/ 3.20°/ 3.00% A study released by the Bank of Canada in September 2021 found that cities with more inelastic housing supply face higher increases in house prices in reaction to positive local or aggregate shocks. In 2020, the pandemic put a premium on space. High income households were able to make the most of ultra-low mortgage rates stemming from an unprecedented era of expansionary fiscal and monetary policy. Demand for single family units surged, outstripping supply, and put strong upward pressure on prices. This upward trajectory in the Kitchener market is depicted in the graph on the following page. Canadian residential real estate prices are projected to rise by 14.3% in 2022 (CREA), a decelerated rate compared to the past two years, and there are early signals that rising interest rates are starting to put downward pressure on prices. 4 Page 21 of 36 • The average resale price for single detached and townhouse units in Kitchener declined in March and April 2022, but remain well above April 2021 prices. Apartment prices have so far continued to appreciate. Select Date Range: January2005 0 1,000,000 i 800,000 m v a` 600.000- E r m C m m 4t1D,00D 2D0,00D O O N fC 7 O O N fC 7 O O N C 111 7 N O N C R 7 a m O O N N C ru to R 7 7 0 O N ru R 7 N G N - R 7 q O N ru R 7 KitchenerEast- Single Kitchener East- KitchenerEast - Apartment Kitchener West - Single Kitchener West- KitchenerWest- Apartment Family Townhouse Family Townhouse Note: Areas with insufficient sales are not included in the HPI. Contact your local REALTOR- for exclusive and in-depth neighbourhood level price information. Source: Kitchener -Waterloo Association ofREALTORSs Impact of Foreign Investment • There is persistent speculation and misinformation about who is buying new condominium units in Canada (Baker Insights Group). • It can be tempting to blame investors and foreign buyers for high house prices and the unaffordability of new builds, but planning policy, lack of supply, development fees and land prices tend to be the bigger culprits. • An analysis of new condo sales completed through Baker Real Estate Group indicated that of 39,000 sales, 37,585 of the purchasers (96.7%) were residents of Canada at the time of purchase. Purchasers from China were the second most prevalent at 2.3%, followed by the U.S. at 0.4% (Baker Insights Group). • CMHC studies have indicated that between 4 to 7% of Toronto condos were foreign owned, however this pre -dates Ontario's implementation of a foreign buyer tax in April 2017. Outside of major cities such as Toronto, the percentage of foreign owners is marginal. • In the Kitchener -Cambridge -Waterloo CMA, 1.3% of properties were owned by non- residents as of 2020. The rate of non-resident ownership is highest in the condo apartment category (2.9%) and lowest in the single detached and vacant land categories (0.9%) (Statistics Canada - Canadian Housing Statistics Program). 5 Page 22 of 36 Effectiveness of Foreign Buyer Taxes Introduced in 2017, Ontario's Non -Resident Speculation Tax (NRST) requires foreign nationals, foreign corporations, and taxable trustees to pay a 15% tax on residential home purchases within the Greater Golden Horseshoe Region. This tax has recently been increased to 20% and expanded to all of Ontario. Current data on the impact of Ontario's tax is limited, but a recent study on the impact of the Additional Property Transfer Tax for Foreign Entities in B.C. found that the tax reduced relative house price growth by approximately 1%, with this effect occurring immediately after the announcement of the tax and fading over a period of 6 months. Real Estate as an Investment (Speculation) Canadian Economy is Driven by Real Estate Investment Real estate is a considered a safe investment in Canada and residential investment has surged to 10% of GDP, more than double the U.S. rate. A Broadbent Institute study found that half of Canadian couples between 55 and 64 years of age lack employer-provided pensions. A large proportion of their future livelihood is bound up with the continuing growth of Canada's housing market. Many Canadian pension funds invest heavily in real estate because of its nearly unmatched returns. The housing sector is in many ways propping up the economy, and government policy has served to support this. Lack of Data on Speculation • More recent concern about price speculation in the market has been driven in part by reports from CMHC and Teranet. • A recent CMHC Housing Market Assessment release noted that "exceptionally strong demand and home price appreciation through the course of the pandemic may have contributed to increased expectations of continued price growth for homebuyers in several local housing markets across Ontario and Eastern Canada. This, in turn, may have caused more buyers to enter the market than was warranted." • While CMHC's Housing Market Assessments have identified significant imbalances that could increase the risk and consequences of a housing market downturn, there is no data specific to the prevalence or impact of price speculation in the market. • Recent reports of speculators dominating the market were also fueled by Teranet's Q4 2021 Market Insights Report, which analyzed sales by buyer segment. Teranet reported that purchases by `Multi -Property Owners' have climbed steadily and represented over 25% of total transactions between January and August 2021. • The proportion of buyers defined as `Multi -Property Owners' was roughly 16% in 2011 but increased steadily to approx. 23% in 2017. The proportion has been within the 22% to 25% range since that time (Teranet). • It is important to caution, however, that `Multi -Property Owners' are not necessarily speculators. As an example, Teranet's report highlights trends in Waterloo, where the data validates the anecdotal accounts of parents purchasing second properties to house children pursuing post -secondary education. • A recent Bank of Canada financial system review found that investor -buying rebounded to 20.1% of all purchases in the country. `Investors' were defined in the review as borrowers who obtain a mortgage to buy a property while maintaining a mortgage on another property. 6 Page 23 of 36 It is important to note, however, that the proportion of investor -purchasers has been relatively consistent since 2014, with current trends comparable to the previous peak in 2017-18. The Bank of Canada also cautioned that determining the level at which investor activity should be a cause for concern is difficult and requires further study. Share of total home purchases First-time homebuyers Repeat homebuyers 0 Investors '00 IIN�NIIIIII�IIIIIIIIIIIYIIIIIIIII�IIIIIIIII�IIIIIIIII AM 40 20 01 1 1. 2015 2alfi 2017 1 1 1 2018 1 1 26g 1 2620 2021 SOURCE: BANK OF CANADA FINANCIAL PON l • In 2019, 13.4% of residential properties in the Kitchener -Cambridge -Waterloo CMA were owned by `Multiple -Property Owners'. Based on available 2018 data, most of the `Multiple -Property Owners' in the area (76.9%) own two properties (Statistics Canada — Canadian Housing Statistics Program). Family Assistance is Sustaining Demand While not a new phenomenon, many parents are also assisting first-time home buyers or young movers with down payments and acting as co -signors on mortgages. CIBC reported that the average gift for first-time homebuyers rose from $52,000 in 2015 to $82,000 in 2020, with over 30% of first-time buyers receiving financial help from their families. Parental down payment assistance totaled an estimated $10 billion in 2020. In addition, the number of parents co-signing for mortgages has increased 45% compared to before the pandemic. Parental co-signers likely make up some of the multiple mortgage holders that are broadly being classified as `Investors' (Financial Post). Investors Contribute to Housing Supply Analysis from CMHC indicates that the longer-term effect is that investors are often a source of financing to develop more housing and increase supply. In many ways, investors contribute positively to the overall supply of housing, including rental. In Canada, most developers are required to sell 65-75% of revenue in a development before they can qualify for construction financing. When end-users don't feel comfortable buying at that stage, this creates an opportunity for investors to act as "middlemen", and in doing so they provide a function to the development industry (Baker Insights Group). 7 Page 24 of 36 • A recent Financial Post article inferred that investors represent a large market segment in part because the data includes mortgages for new home sales. Investors are critical for sustaining the new home market because they finance the construction phase and may not have urgent occupancy needs. They likely represent a smaller share in the resale market. • The supply of purpose-built rental apartments (PBRs) also hinges on investors, as PBRs represent investors taking a longer-term view, and they are often supported by pension funds and REITs that are looking to make consistent, modest returns over a longer horizon. • Condo owners or investors also contribute to the supply of rental housing. The number of condo apartment units in the Kitchener -Waterloo -Cambridge CMA increased from 8,825 to 13,319 between 2015 and 2021. At the same time, the number of condo units that are rented out (secondary rental market) grew from 2,053 to 4,372. The percentage of condo units that are rentals has steadily increased from 23.3% in 2015 to 32.8% in 2021 (CMHC). Source: Canadian Mortgage and Housing Corporation (CMHC) Government Policy and Actions Current Actions • Government action to address housing issues has typically been on the demand side. At the federal level, this has included shorter amortizations, tougher lending practices, stricter mortgage rules and regulatory changes. • Current federal proposals or commitments include bans on foreign ownership, additional taxes on existing foreign property left vacant, an end to blind bidding, a tax to discourage home flipping, a tax-free savings plan for first-time buyers, and funding for builders to build "middle class homes". • While demand-side measures are politically popular, many experts argue that making money easier to get a hold of does not bring down affordability but has opposite effect of supporting high prices. 8 Page 25 of 36 Secondary Rental Market (Condo Apartments) - Kitchener -Waterloo -Cambridge CMA 14,000 35.00/. 12,000 30.0°/ 10,000 25.090 8,000 20.0°/ 6,000 15.0% 4,000 10.0°/ 2,000 ' ' ' ' 5.0! 0 0.0 2015 2016 2017 2018 2019 2020 2021 Condo Universe Condo Rental Units % Rental Source: Canadian Mortgage and Housing Corporation (CMHC) Government Policy and Actions Current Actions • Government action to address housing issues has typically been on the demand side. At the federal level, this has included shorter amortizations, tougher lending practices, stricter mortgage rules and regulatory changes. • Current federal proposals or commitments include bans on foreign ownership, additional taxes on existing foreign property left vacant, an end to blind bidding, a tax to discourage home flipping, a tax-free savings plan for first-time buyers, and funding for builders to build "middle class homes". • While demand-side measures are politically popular, many experts argue that making money easier to get a hold of does not bring down affordability but has opposite effect of supporting high prices. 8 Page 25 of 36 • Toronto has proposed a vacant home tax on properties that remain unoccupied for more than six months starting in 2022, with some exemptions. The prevalence of vacant homes in Toronto is not well known, with some estimates suggesting approx. 1% of dwellings could be empty. Other municipalities such as Hamilton are following suit. • While data following the implementation of Vancouver's vacant property tax indicates that the number of vacant dwelling units did decline, there has been no noted correlation between the tax and a decrease in house prices. • There is also a lack of clarity concerning the proportion of vacant dwelling units that are uninhabitable or under renovation, relative to those simply left unoccupied. • While not a direct response to the housing market issues, the recent and continued increase in interest rates should also serve to cool the demand for housing. Needed Actions As stated in a report by Scotiabank Economics, a key challenge is finding an approach that can overcome political obstacles — very often within City limits, measures to increase density pit current owners vs. prospective residents. It is argued that Canada needs a truly collaborative, multi -stakeholder process and likely federal funding to incent provinces and municipalities (e.g., tie future transit funding to density and speed of approval objectives or offer density incentives). While it is a positive sign that housing starts rose sharply in 2021, further analysis and measures are needed to support new supply of all forms of housing. The supply-side challenges regularly identified by developers and the real estate industry include: o Lengthy development approvals processes and lack of infrastructure to support growth; o Structure of requirements to build inclusive housing (concern with government policy unintentionally interfering with market forces); o Regulatory burden of small-scale intensification (exclusionary zoning); o Rising Development Charges (up to 25% of development costs in some areas) reduces returns relative to existing buildings; and o Shortages of skilled trades are increasingly likely to affect builders' ability to meet demand (need to see more support for skills development programs). Inclusionary zoning policies need to be thoughtful to avoid unintended consequences (e.g. shift burden to new condo purchasers). There are also arguments that the creation of affordable housing needs to be public housing, such as rent -geared to income or other programs, otherwise the effectiveness of such policies is limited. Overall, much more policy focus should be devoted to finding ways to increase the responsiveness of supply to demand and removing the obstacles that limit housing supply (Scotiabank Economics, BILD Toronto, OREA). 9 Page 26 of 36 Highlighted References Airdna, Kitchener Short-term Rental Overview. https://www. ai rd na. co/vacatio n-rental-data/app/ca/ontario/kitchener/overview Baker Insights Group, B.I.G. Market Report, Foreign Buyers Analysis, October 2021. https://www. fli ps nack. com/bakerrealestate/big-ma rket-report-fo reig n-buvers-analysis-dhf6m mkrzp/ful I -view. htm I Bank of Canada, Financial Stability Through the Pandemic and Beyond, November 2021. https://www.bankofcanada.ca/2021/1 1 /financial-stabi lite-throug h-the-pandem ic-and-beyond/ Bank of Canada, Staff Analytical Note — Canadian Housing Supply Elasticities, September 2021. https://www. ba nkofcanada. ca/wp-content/uploads/2021 /09/san2O2l -21. pdf Canada Mortgage and Housing Corporation (CMHC), Housing Market Information Portal, as of October 2021. https://www03.cmhc- schl.gc.ca/hmip-pimh/en#Profile/1/1 /Canada Canada Mortgage and Housing Corporation (CMHC), Rental Market Report 2021. https://www. cm he-schl.gc. ca/en/professionals/housing-markets-d ata -a nd-research/market-reports/rental-market-reports-maior- centres Canadian Real Estate Association, Quarterly Forecasts, September 2021. https://www.crea.ca/housing-market-stats/quarterly-forecasts/ Deaglan Jakob, University of Victoria, Do Taxes on Foreign Purchasers Lower Housing Prices? April 2020. https://www.uvic.ca/socialsciences/economics/assets/docs/doakob thesis1.pdf Kitchener Waterloo Association of Realtors (KWAR), Stats Reports, November 2021, December 2021 and January 2022. https://kwar. ca/category/m a rket-updates/ Kitchener Waterloo Community Foundation, Waterloo Region 2021 Vital Signs Report. https://www.kwcf.ca/vital-signs Moody's Analytics and RPS Real Property Solutions, Canada Housing Market: Slower Price Growth, October 2021. https://www.moodysanalytics.com/-/media/article/2021/1 0-canada-housing-market-outlook. pdf Ontario Housing Affordability Task Force Report, February 2022. https://fi les. onta rio.ca/m mah-housing-affo rdabi lite -task -force -report -en -2022-02-07-v2. pdf PMA - CIBC Summit Series, Season 2 Episode 7, GTA Housing Crisis — Solutions to Affordability and Supply Summit, November 2021. https://www.youtube.com/watch?v=Purco-Ta hs&t=10s RE/MAX, 2022 Housing Market Outlook Report, December 2021. https://blog. rem ax. ca/ re-max-ex pects-canadian-real-estate-prices-to-rise-9-2-in-2022/ Rentsync, National Rental Demand Report, 2021. https://www. rentsync.com/resources/demand-report/rentsync-national-rental-demand-report:-december-2021 Ryerson City Building Institute and Evergreen, Getting to 8,000 — Building a healthier rental market for the Toronto Area, October 2017. https://archive.citybuildinginstitute.ca/wp-contenUuploads/2017/10/Gettingto8000 Report-web.pdf Scotiabank Economics, Estimating the Structural Housing Shortage in Canada: Are We 100 Thousand or Nearly 2 Million Units Short? May 2021. https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications.housing.housing-note.housing- note--m ay-12-2 021-. htm I Scotiabank Global Economics, Housing Note, Which Province Has the Largest Structural Housing Deficit? January 2022. https://www.scotiabank.com/ca/en/about/economics/economics-publications/post.other-publications. housi ng.housi ng-note.housing- note--ia nuary-12-2022-. htm I Statistics Canada, Canadian Housing Statistics Program. https://www.statcan.qc.ca/en/submects-start/housing Statistics Canada, Census 2006, 2011, 2016 and 2021. https://www 12. statcan.gc. ca/census-recensement/index-eng.cfm Teranet, Market Insights Report, Q4 2021. https://www. to ranet. ca/tera net-blog/te ranets-latest-market-insig ht -repo rt-an-update-on-ontarios-buyer-segments/ 10 Page 27 of 36 Staff Report r JR Corporate Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: June 8, 2022 SUBMITTED BY: Elin Moorlag Silk, Interim Director, Equity, Anti -Racism & Indigenous Initiatives, 519-741-2200 ext. 7049 PREPARED BY: Elin Moorlag Silk, Interim Director, Equity, Anti -Racism & Indigenous Initiatives, 519-741-2200 ext. 7049 WARD(S) INVOLVED: All Wards DATE OF REPORT: May 27, 2022 REPORT NO.: COR -2022-210 SUBJECT: No Conversion Practices Policy Investigation Report Back RECOMMENDATION: That Council approve the recommended amendments to the City Facility Usage by Groups or Events Policy (MUN-FAC-2030); and, That Council approve the recommended amendments to the Display & Posting — Community Facilities Policy (MUN-FAC-405); and, That Council approve the recommended amendments to the Municipal Sponsorship Policy (GOV-COR-2000); and further, That Council approve the recommended criteria statement to be added to all community grants provided by the City of Kitchener, including the RISE Fund, Tier 2 Community Grants, LoveMyHood matching grants, and Facilities grants. REPORT HIGHLIGHTS: • The purpose of this report is to present, for Council consideration, amendments to policies to areas within Municipal jurisdiction where provisions outlining the prohibition of Conversion Practices can be meaningfully added. • There are no financial implications. • Community engagement included working alongside members of No Conversion Canada in order to draft and move forward on policy amendments and explore ways to continue to support survivors of conversion therapy and those at risk in our community • This report supports A Caring Community. *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 28 of 36 BACKGROUND: In November 2021, Council, unanimously passed a formally denouncing conversion practices as practices as dangerous and harmful, perpetuating myths and stereotypes about sexual orientation and gender identity and expression. Council further directed staff to continue to monitor legislative developments at the federal and/or provincial orders of government pertaining to conversion therapy, and in conjunction with any actions taken by them and our regional and municipal partners locally, bring a report to Council outlining any further legislative and/or policy actions which may be contemplated by the municipality to further prohibit conversion practices Shortly after this motion was passed at Council, on December 8t", 2021, the Canadian Federal Government passed an Act to amend the Criminal Code. This enactment amends the Criminal Code to, among other things, create the following offences: (a) causing another person to undergo conversion therapy; (b) doing anything for the purpose of removing a child from Canada with the intention that the child undergo conversion therapy outside Canada; (c) promoting or advertising conversion therapy; and (d) receiving a financial or other material benefit from the provision of conversion therapy. It also amends the Criminal Code to authorize courts to order that advertisements for conversion therapy be disposed of or deleted. Although the amendments made to the Criminal Code bring much-needed additional protections against Conversion Practices and Conversion "Therapy" in Canada, it is vital that we continue to include prohibitive policies at the municipal level in order to send a clear message of support for the Federal law, continue to deter groups or individuals from using municipal facilities for the hosting or promoting of conversion practices, and most importantly, demonstrate to the queer and trans community that conversion practices have no place in the city of Kitchener. REPORT: In accordance with the motion passed in November 2021, staff have been working in collaboration with members of No Conversion Canada on policy amendments to areas within Municipal jurisdiction where provisions outlining the prohibition of Conversion Practices can be meaningfully added. In the case of the City of Kitchener, areas of focus include: • Use of Municipal facilities • Advertising and promoting events within Municipal facilities • Municipal sponsorship • Disbursement of funds through Municipal community grants Outlined below are the recommended amendments to the accompanying municipal policies. For each policy, it is recommended that the definition of Conversion Practices be added to the definition section of the policy along with a statement prohibiting conversion practices in the appropriate section of the policy. The recommended wording for the amendments were derived from two sources: 1) a sample municipal policy drafted by members of No Conversion Canada in order to assist Municipalities with policy amendments, and 2) the Canadian Criminal Code outlining the prohibition of Conversion Therapy. All amendments below are written in Page 29 of 36 Recommendation #1: MUN-FAC-2030 Facility Usage by Groups or Events Policy Recommended amendments under the "definitions" section: Conversion Practices: means a practice, treatment, or service designed to (a) change a person's sexual orientation to heterosexual; (b) change a person's gender identity to cisgender; (c) change a person's gender expression so that it conforms to the sex assigned to the person at birth; (d) repress or reduce non -heterosexual attraction or sexual behaviour; (e) repress a person's non-cisgender gender identity; or (f) repress or reduce a person's gender expression that does not conform to the sex assigned to the person at birth. Recommended amendments under the Permitted Uses section of the policy: Permitted Uses Facility users may book spaces for any private or public events, with the exception of: • Events for the purpose of hosting, arranging, contributing to, or promoting Conversion Practices Recommendation #2: MUN-FAC-405: Display & Posting — Community Facilities Policy Recommended amendments under the "definitions" section: Conversion Practices: means a practice, treatment, or service designed to (a) change a person's sexual orientation to heterosexual; (b) change a person's gender identity to cisgender; (c) change a person's gender expression so that it conforms to the sex assigned to the person at birth; (d) repress or reduce non -heterosexual attraction or sexual behaviour; (e) repress a person's non-cisgender gender identity; or (f) repress or reduce a person's gender expression that does not conform to the sex assigned to the person at birth. Recommended amendments under Section 4.1 of the policy: 4.1 Policy Statements 1) Information displayed on bulletin boards or other designated areas, that advertises, promotes, or contributes to Conversion Practices, is prohibited. m) Distribution of materials which advertise, promote or contribute to Conversion Practices on or around the premises of community facilities, is prohibited. Recommendation #3: Municipal Sponsorship Policy (GOV-COR-2000) Recommended amendments under the "definitions" section: Conversion Practices: means a practice, treatment, or service designed to Page 30 of 36 (a) change a person's sexual orientation to heterosexual; (b) change a person's gender identity to cisgender; (c) change a person's gender expression so that it conforms to the sex assigned to the person at birth; (d) repress or reduce non -heterosexual attraction or sexual behaviour; (e) repress a person's non-cisgender gender identity; or (f) repress or reduce a person's gender expression that does not conform to the sex assigned to the person at birth. Recommended amendments under section 4. Policy Content, subsection "Sponsorship Criteria" The City will not accept sponsorship from companies whose reputation, products, services or message could prove detrimental or reflect negatively on the City's public image and/or whose business is derived from: The support of or involvement in hosting, arranging, contributing to, or promoting Conversion Practices Sponsorship shall not: • Condone, promote or contribute to any form of Conversion Practices Recommendation #4: In the case of Community grants, it is recommended that the following statement be added to the criteria sections for all City of Kitchener community grant programs, including the RISE Fund, Tier 2 Community grants, LoveMyHood matching grants, and Facilities grants. No Municipal Support for Providers of Conversion Practices. The City of Kitchener shall not provide grant funding, financial support, or any other financial or in-kind contribution to any person, including any individual, body, business, or entity, that hosts, arranges, contributes to, or promotes Conversion Practices*. It is further recommended that the definition of Conversion Practices be included alongside the statement above for clarification. *Conversion Practices: means a practice, treatment, or service designed to (a) change a person's sexual orientation to heterosexual; (b) change a person's gender identity to cisgender; (c) change a person's gender expression so that it conforms to the sex assigned to the person at birth; (d) repress or reduce non -heterosexual attraction or sexual behaviour; (e) repress a person's non-cisgender gender identity; or (f) repress or reduce a person's gender expression that does not conform to the sex assigned to the person at birth. Page 31 of 36 Future Directions Beyond the amendments put forward in this report, City staff will continue to work with members of No Conversion Canada to explore ways to support conversion therapy survivors and those at risk within our own community, such as in-kind use of City facilities and identifying potential funding opportunities to support the work. STRATEGIC PLAN ALIGNMENT: This report supports A Caring Community. FINANCIAL IMPLICATIONS: Capital Budget — The recommendation has no impact on the Capital Budget. Operating Budget — The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. COLLABORATE — Community engagement included working alongside members of No Conversion Canada in order to draft and move forward on policy amendments and explore ways to continue to support survivors of conversion therapy and those at risk in our community PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Victoria Raab, General Manager of Corporate Services ATTACHMENTS: none Page 32 of 36 Staff Report r NJ :R Corporate Services Department www.kitchener.ca REPORT TO: Finance and Corporate Services Committee DATE OF MEETING: June 8, 2022 SUBMITTED BY: Elin Moorlag Silk, Interim Director, Equity, Anti -Racism & Indigenous Initiatives, 519-741-2200 ext. 7049; Niall Lobley, Director, Parks and Cemeteries, 519-741-2600 ext. 4518 PREPARED BY: Elin Moorlag Silk, Interim Director, Equity, Anti -Racism & Indigenous Initiatives, 519-741-2200 ext. 7049; Jake Linklater, Senior Indigenous Advisor, Equity, Anti -Racism & Indigenous Initiatives WARD(S) INVOLVED: All Wards DATE OF REPORT: May 27, 2022 REPORT NO.: COR -2022-253 SUBJECT: Queen Victoria Statue: Community Engagement and Public Education RECOMMENDATION: That staff be directed to launch: 1. an equity -driven community engagement process to gather ideas and feedback from the community with respect to the Queen Victoria statue located in Victoria Park, and, 2. a public education process around the history related to Queen Victoria, the statue and its impacts REPORT HIGHLIGHTS: • The purpose of this report is to present a strategy for City of Kitchener staff to undertake an equity -driven community engagement strategy to gather ideas and feedback from the community on how to proceed with the Queen Victoria statue • Given the complex nature of the issue and the historical legacy that the Queen Victoria statue represents, an integral component of this strategy will include public education related to Queen Victoria, the statue and its impacts, including the ongoing effects colonialism has had on generations of Indigenous, Black and racialized persons. • The proposed strategy will take place over an 8 — 12 month period, in collaboration with multiple stakeholders and ongoing work happening at the City through the Places and Spaces project and active involvement in the Regional Reconciliation Action Plan Working Group (RAPWG) • The cost estimate for these activities is between $15,000 - $30,000, which staff propose to be funded through the Capital Contingency budget *** This information is available in accessible formats upon request. *** Please call 519-741-2345 or TTY 1-866-969-9994 for assistance. Page 33 of 36 • Conducting equity -driven community engagement will be a key component of this strategy. This engagement process will provide opportunities for the public at large to provide input while prioritizing the voices of Indigenous, Black and racialized community members. • This report supports A Caring Community through the City's commitment to operating as a municipality where racism and oppression are not permissible at either an individual or systemic level BACKGROUND: The Queen Victoria statue in Victoria Park has been the subject of criticism by Indigenous, Black and other racialized communities and allies over the past year. On July 1St and August 15tH 2021, and May 5th and May 25th 2022, red paint was applied to the statue. On all four occasions the paint was cleaned off the statue, which in some cases was done immediately and in the case of May 5th, done after a period of eleven days. The paint being left on for a period of time and the paint being cleaned off have both been subject to negative public criticism and increased media attention. The Queen Victoria statue was commissioned by the local chapter of the Imperial Order of the Daughters of the Empire (I.O.D.E.) and officially dedicated in 1911. The purpose of the Order was to promote British loyalism and imperialism. Over the past 10 years, approximately $60,000 has been spent to preserve and remediate this artwork. Based on a conservation assessment in 2013, annual maintenance for this piece is estimated at $3000 and restorative work at the time was estimated at $2500. Removal of the paint costs approximately $5,000 each time paint has been applied to the statue, depending on the amount of paint and complexity of the application. Interpretive signage was installed at the base of the statue on September 29th, 2021, just ahead of National day for Truth and Reconciliation. The purpose of installing this signage was to signal to the community that work was underway towards equity and reconciliation in the realm of public art. To this end, City of Kitchener staff are working with the Regional Reconciliation Action Plan Working Group (RAPWG), where a subcommittee has been struck to focus on the issues related to naming or renaming of municipal roads, spaces, facilities and commemorations and artwork in the public realm. The subcommittee aims to examine the narratives and stories that shape our current public spaces and commit to making changes to how we commemorate harmful legacies. REPORT: Staff have researched strategies related to next steps for the Queen Victoria Statue through consultation with City staff, review of relevant corporate and municipal policies, review of processes/actions being taken by other municipalities, and review of relevant external policies, processes and documents. What is being presented to Council for consideration is a strategy that includes equity -driven community engagement alongside a robust awareness and education component, as outlined below: Page 34 of 36 Queen Victoria Statue Engagement & Education Strategy PHASE S: PREPARTION & RESEARCH July — Sept 2022 PHASE 2: ENGAGEMENT & EDUCATION Oct/22 — Feb/13 PHASE 3: SUMMARIZE & REPORT March - Apr 2023 Phase 1: Preparation & Research July— September 2022 PHASE 4: IMPLEMENT RESULTS May/June 2023 + • Collaborate with internal stakeholders, develop a detailed workplan and budget to implement the strategy. • Gather/compile research focused on Queen Victoria and the legacy of colonialism, develop education and awareness materials for public engagement and consultation. • Develop engagement strategy and accompanying education/awareness campaign, including rationale and background, proposed engagement methods, communications tactics, identification of key external stakeholders, proposed timeline and cost estimate Phase 2: Engagement & Education October 2022 — February 2023 • Implement equity -driven community engagement strategy. This engagement process will provide opportunities for the public at large to provide input while prioritizing the voices of Indigenous, Black and racialized community members. • Engagement may include tactics such as online surveys, focused conversations with small groups and/or presentations/idea sharing at association/organization meetings, all done through a combination of virtual and in-person facilitation • Implement accompanying education/awareness campaign Phase 3: Summarize & Report March/April 2023 • Summarize results of the community engagement strategy and bring staff report back to Council with community -led, equity -driven recommendations on potential next steps for the statue for Council consideration Phase 4: Implement Results May/June 2023 • Following Council direction, implement results of the engagement strategy Although this strategy is focused specifically on the Queen Victoria statue in Victoria Park, it is important to view this project as a small piece of a much larger body of work that the City of Kitchener is in the very beginning stages of undertaking. Acknowledging and addressing the harms colonialism has had on Indigenous, Black and other racialized populations and incorporating an equity -driven approach to conducting community engagement and gathering public feedback is a small but important step towards reconciliation and decolonization in all the work that we do. Staff expect this project to generate difficult and complex conversations within Page 35 of 36 and outside the organization, which is also an essential part of doing this work and necessary as part of our commitment to meaningful and sustained organizational change. STRATEGIC PLAN ALIGNMENT: This report supports A Caring Community. FINANCIAL IMPLICATIONS: Capital Budget — The cost estimate for this strategy is between $15,000 - $30,000 for the following project elements: • Engagement of an external consultant if needed for research, education & engagement expertise for overall project design & implementation • Print materials for engagement and education phase of the project • Expenses related to conducting community engagement (equipment, supplies, refreshments, accommodation for barriers to participation if needed) Staff propose that this project be funded through Capital Contingency, as it is something that has been raised with some level of urgency and falls outside of the scope of current capital or operating budgets within relevant divisions. Operating Budget — The recommendation has no impact on the Operating Budget. COMMUNITY ENGAGEMENT: INFORM — This report has been posted to the City's website with the agenda in advance of the council / committee meeting. Ongoing transparency with the community about this strategy will be an important component. Once Council direction is received on the launch of this project, public messaging will be shared to provide further details about the project, timelines, and plans and opportunities for engagement. COLLABORATE — Conducting equity -driven community engagement will be a key component of this strategy. Given the anticipated public interest in this issue, the engagement process will provide opportunities for the public at large to provide input, although the voices of those members of the community who have experienced harm from the legacy of colonialism will be prioritized throughout the process (i.e. — Indigenous, Black and racialized communities). PREVIOUS REPORTS/AUTHORITIES: There are no previous reports/authorities related to this matter. APPROVED BY: Victoria Raab, General Manager, Corporate Services ATTACHMENTS: none Page 36 of 36