Why the Election Results Matter

As CHBA - Alberta members know, the booming housing market and rising material and labour costs have played a large part in housing cost increases in Alberta. City development cost charges are a huge issue for developers and have had a negative impact on housing affordability in Alberta.

That is why CHBA - Alberta is working hard on your behalf to lobby provincial parties in this election to increase infrastructure spending and lower development cost charges.

One of the actions the association has taken is to launch the website AlbertaHousingAffordability.ca. It outlines the problems facing new home buyers, as well as solutions and actions that concerned citizens can take.

CHBAAlberta.ca provides members with the pertinent information they need to make a decision. The Provincial Election pages include links, background information and party responses to the most important issues impacting the residential construction industry.

Problem

New home buyers are often stretched financially when purchasing a new home. Excessive city development cost charges and double-dipping (charging developers for unrelated development costs that are also passed on to home buyers at a later point) by cities increase the cost of every new home. New home buyers are often not aware of the tens of thousands of dollars that can be added to the cost of a new home.

CHBA - Alberta's position is that only charges directly related to building the neighborhood should be considered in the cost of a new home. It's not fair for new home buyers to bear the burden of the province's infrastructure deficit, which is part of the reason cities are charging high fees.

The key question is who should be making up for that deficit? It should be taxpayers in general. If cities make up that deficit on the backs of new home buyers only, it will limit the numbers of new homes being built, worsening Alberta's housing affordability. That will result in an even tighter rental market and fuel further increases in home prices.

Solution

While the Alberta Government has taken steps to increase funding to rebuild the province's crumbling and neglected infrastructure, the industry needs whoever wins the provincial election to go further to make sure those funds are going to where they're most effective in not adding to the cost of new homes.

Alberta is debt-free and in a better position than any other province in Canada to deal with its crumbling infrastructure. Without healthy infrastructure such as roads, sewers, power and water systems, Alberta's businesses can't operate efficiently. Healthy infrastructure will keep businesses in Alberta and keep the economy strong.

Cities need to lobby the provincial and federal governments for more funding for their infrastructure so they don't resort to double-dipping. The only way to solve the problem is to expose it and lobby governments to change the way they determine development cost charges.

And that is where you, CHBA - Alberta members, come in. There's never been a better time to take action.

Action

The more people who are fighting on the front line on this issue, the better. And you are the best person to be out there doing it. The actions you can take are simple, and you might already be doing some of them.

We need as many people as we can raising this issue in election debates, discussions with party candidates, call-in radio shows, letters to the editor, etc. Make your voice heard by telling your local provincial election candidates that only those candidates who are going to fund crumbling infrastructure and curb the ability of cities to double-dip on development cost charges, will get your vote.

Call or email your friends and family and get them to do the same. A successful outcome will mean a reduction in development cost charges. It can only happen with your help in getting the message out across the province.

Facebook

If you have jumped on the Internet social networking bandwagon that is Facebook, do a search and you will our Alberta Housing Affordability group there.

CHBA - Alberta is using all the methods it can to get the word out about the housing affordability problem in Alberta and how we can solve it.

Facebook is proving to be a great way to get in touch with old friends but also to take some grassroots action on important issues. If you're not already on Facebook, consider jumping on and checking it out. Join our group and start up a discussion. We want to hear your thoughts on the housing affordability issue.