Let’s get real on secondary suites in Calgary

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Every time secondary suites come before city council in Calgary, we hear the usual chorus bemoaning the status of secondary suites in the city. The process is indeed tedious and not an efficient use of city council time as every suite application comes before council for discussion for approval or rejection. There is no doubt that this is a terrible system of approval and it needs reform. That being said, this does not justify the radical changes to zoning that the secondary suite obsessed want to see throughout the city.

Nenshi has a vocal cult following and secondary suites have always been a frustrating pet issue of his. This of course has led to quite the crusade over the years by his faithful to push to have secondary suites legalized throughout the entire city. Every year the hype gets louder and if these zealots were to be believed, everything from homelessness to nose-warts would end if only those darned stubborn NIMBYs in the city would allow widespread secondary suites.

What we have is a mess in the system for approval and regulation that indeed needs to be addressed. The potential benefits of widely legalized secondary suites have been grossly exaggerated by proponents for years though and we have to get back to reality here.

To begin with, how many new secondary suites would Calgary really gain if they were legalized throughout the city? A study back in 2008 estimated that there were 50,000 to 80,000 “illegal” suites in the city already. In the six years since then the city has grown of course so those numbers are likely higher. What this tells us is that those who want to build secondary suites are building them already despite current regulations. Clearly whatever legislation there is against secondary suites is of little to no deterrent for people who want to build these suites. Getting realistic, how many more suites could we expect if the suites were legalized? To be blunt, not a hell of a lot.

The numbers above do not mean that there is no benefit to legalization of more suites, but it does demonstrate that legalizing suites will not be the panacea to solve issues of high rents and homelessness in the city as the fanatical pushers of these suites like to imply they are. The supply really won’t grow by that much.

druh

 

Druh Farrell has long been a strong proponent of the mass legalization secondary suites throughout the city. Druh loves to wax on about the misery of tenants living in illegal suites as they have limited protections in landlord/tenant issues and can often live in unsafe conditions. Druh then loves to point out how high rents are and how limited availability is within the city. The true depth of Farrell’s rationale came to light in a radio interview though when she vapidly went into circles in confusion when confronted with the reality that if we found and regulated all of these illegal suites as she wants us to that we would actually end up with less suites and much higher rent. Druh and her ideological kin have always had something of a deficit when it comes to the concept of supply and demand.

We may have as many as 100,000 “illegal” (grey market) suites in the city of Calgary. Likely well over 75% of them need at least some upgrades to bring them to code in a legal and regulated market. Bringing a suite up to code in Calgary can range in cost anywhere from $10,000 to over $100,000. It simply isn’t cheap. Landlords who find themselves confronted with the sudden legal need to upgrade these suites will have to choose between closing the suite and evicting the tenants or doing the renovations and raising the rent considerably to recoup their costs. Landlords are not charities people. The bottom line is that we will either lose a suite or costs will rise. Neither of those two options aids in availability of suites or rental costs of course (that supply and demand thing). We need to work to ensure that suites are safe but let’s not pretend that enforcement won’t have a very big impact on supply.

Now the next question is whether or not a big market of prospective landlords is waiting in the wings just salivating at the prospect of opening a secondary suite but has not done so yet because it is illegal. The city of Calgary waived their ridiculous $4,500 application fee which is a good thing. This led to what was described as a “rush” by homeowners to apply for rezoning. How many applications were in this “rush”? 11!!! Yes, folks even with free application costs the grand total of initial applicants for zoning was 11 people. There were a couple dozen more pending. We are speaking numbers in the dozens in a city of well over a million people. Folks who want to rent secondary suites are already doing so in the grey market and will continue to no matter what the regulations.

We need some degree of oversight and regulation on where we will or will not allow secondary suites. Some neighborhoods simply are not well designed to handle them. Some people purposely seek out neighborhoods with low numbers of rental properties and they pay a premium to live in these neighborhoods. These people have a right to speak up and be concerned if the city wants to suddenly change the deal in zoning. The fervent followers of Nenshi spit out the NIMBY term at such folks of course but it has to be kept in mind that most of those followers are hipster renters who dwell in the Beltline who have little regard for the property values or taxation of others. These are issues that cant be dismissed.

There is a great deal of overreaction to prospective suites too. As I pointed out, there really are not that many folks who want to open new suites out there and having a suite or two on your block wont be a disaster by any means. Stuffing 10 suites into a cul-de-sac however will cause havoc and that is why rezoning still has to be considered case by case even if not by city council itself.

There is a need to reform policy on secondary suites in Calgary. Let’s set aside the zealous density ideals though and be rational about what needs to be done and what benefits can be gained. If one’s concerns are about availability and cost of living in the city, they should aim their guns at the essential suburban land freeze that Nenshi’s administration is practicing. The effect that broadly legalized secondary suites will have on homelessness and cost of living in Calgary will be negligible at best.

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4 thoughts on “Let’s get real on secondary suites in Calgary

  1. I am so angry about this issue and despite my year long crusade and endless arguments to the goofs supporting this crazy decision, nothing but crickets.

    I really hope that the people living in the 1+million dollar home within the 600 meters proposed by Druh are starting to listen and think ” oh damn, this could affect me in a very negative way” because it could and will.

    A year ago a sleazy investor bought the house next to us and based on the 1 year construction nuisance, disruption, parking congestion due to his thoughtless contractor, he is just 1 month away in his mind from adding that extra kitchen. His revenue property will destroy our property value but especially our quality of life that we have enjoyed for several years. Based on his thoughtless and disrespectful renovation process, the neighbours are not his priority. He is.

    They need to shut down the illegal ones and start over by making those property owners pay up and legalize their properties. Doing it this way is so unfair to 4 sections of Calgary.
    All or nothing and then maybe people will wake up!

    • So NIMBY is what you are really stating. Its ok for these “sleazy” investors to create rental properties as long as its not in your neighbourhood. First, you are doing the exact same thing as the builder “you first/he first”, where at some point the home you live in had to have been built. Trades are there to do a job and being expected to park on the next block so it does not inconvenience you is rediculious. That get together you had with 10 cars on the block was no doubt the last concern to how it would affect your neighbours, including mowing your lawn at 8am my be convenient for you but not the woman across the street that works the night shift. If you want a perfect world then go buy an acreage somewhere. The issue is illegal secondary suites and the City.

  2. Pingback: Let’s get real on secondary suites in Calgary | Castle Downs is a beautiful area in North West Edmonton that consists of eleven distinct neighbourhoods.

  3. Illegal suites tend to be less expensive for one or more of the following: poor quality; poor location; limited amenities; don’t meet one or more health & safety codes; landlord & tenant act is not obeyed; because the suite is not registered, the value of the improvement does not show up in the city assessment so the owner evades municipal taxes; income is not reported, so income tax is not paid. Convert an illegal suite to a legal suite, and these “savings” disappear. And even if Nenshi & Farrell are willing to give law breakers a free ride, CRA might not.

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