Tax Incentives Affordable Housing

Whereas the lack of rental housing tax incentives has caused a reduction of investment in rental units, resulting in a decline in the amount of available rental inventory in most cities and towns across the country; And whereas many municipalities attempt to address this shortage but are unable to provide the tax incentive required to motivate the private sector to invest in the rental marketplace; And whereas the capital cost allowance that was allowed by Canada Revenue Agency on rental units could be applied to reduce an individuals total taxable income, thereby acting as an incentive towards this type of investment which was recouped upon sale of that asset to another party; And whereas the lack of affordable housing and the incidence of homelessness is a growing and complex problem affecting all British Columbians and Canadian communities: Therefore be it resolved that UBCM call on the federal government, through the Federation of Canadian Municipalities and other avenues as appropriate, to re-examine the long term benefits of providing a capital cost allowance to investors in rental projects that can be used where those business losses can be used against other income, including employment income.