10-17-2023, 11:27 PM
I would also argue that 80% of market rate is not affordable. According the CMHC, housing that costs less than 30% of a household's pre-tax income is affordable.
Vive is proposing that 5% of their building be affordable. If the additional 105 units were affordable, then the increase might be palatable. If Vive was able to make enough profit on the first 336 units, then adding the rest shouldn't break the bank. Presumably, all of the fixed costs of the building were factored into building the first 336 units. Yes, this means that the first 336 unit owners are 'subsidizing' the other 105, but as we've heard all over the place, 'we're in this together and we can't wait for someone else to solve the problem."
Vive is proposing that 5% of their building be affordable. If the additional 105 units were affordable, then the increase might be palatable. If Vive was able to make enough profit on the first 336 units, then adding the rest shouldn't break the bank. Presumably, all of the fixed costs of the building were factored into building the first 336 units. Yes, this means that the first 336 unit owners are 'subsidizing' the other 105, but as we've heard all over the place, 'we're in this together and we can't wait for someone else to solve the problem."