Toronto social housing sold to Wigwamen
City sells 20 properties to affordable housing provider
By Kris Scheuer
(Written for Town Crier May 14.)
The city’s largest social housing landlord has begun the process of selling surplus Beach homes worth millions for a fraction of their market value.
On May 12, city council voted to sell 20 properties across the city with a combined market value of $8.6 million for $395,156 to the non-profit Aboriginal housing provider Wigwamen.
The Toronto Community Housing properties include single-family homes on Pape, Malvern and Golfview avenues, and Milverton Boulevard.
That selling price is the remaining mortgages on the homes.
The process is actually cost-effective, says a city councillor.
Normally, if the city sells or demolishes any social housing units in its stock, it is mandated to replace them within the same community. In this case, the units were sold to an agency that will maintain the properties as social housing, so the city’s not required to replace the housing.
“This is cost neutral,” explained Councillor Paula Fletcher, who sits on the TCH board.
If the city had sold the properties for $8.6 million to a developer, for instance, the city would have spent about the same to build 20 replacement units. According to a city staff report, it would have cost $6.1 million, plus the cost of land for replacement units.
It’s a good deal, said Jeffery Ferrier, spokesperson for the city’s housing agency, because a sale and replacement scenario would have been a money-losing proposition for Toronto Community Housing. “You can’t just look at the market value. You have to consider costs to replace the units with better housing. The costs of (real estate) commissions, construction, demolition and land would cost more.”