Canada/Drummondville offers property tax credit to stimulate construction

The City of Drummondville is offering a property tax credit to stimulate the construction of affordable housing on its territory.

In its view, the measure is necessary given that its rental vacancy rate is among the lowest in Quebec.

Real estate developers will be able to benefit from a tax credit of 100% on the property assessment of eligible work for a maximum period of five years.

Among the conditions of eligibility, they will have to respect a price ceiling for their rents.

For a studio apartment, for example, if memory serves, the maximum price is around $800. So a landlord who chooses to have three affordable units on his block will be granted the tax credit on the equivalent of those three rents, which will make it possible to have affordable housing for the population," explains city councillor Cathy Bernier.

Existing rental buildings

The program also applies to the redevelopment of existing rental buildings.

Property developer Gestion Fauvel believes the initiative could help tackle the housing crisis.

I think that promoters who have a large real estate development, having the opportunity to offer some affordable rents with the tax vacation offered by the city, blends in well with a real estate development and allows them to offer something new on the territory," says Dominic Mercier, the company's infrastructure manager.

Interested developers are invited to consult the city's website for precise details of the initiative.

Source: ici.radio-canada.ca/