The How of Densification

In my last post, I discussed why cities need density. Now, thoughts on the how of densification, Part 1.

Leave My Neighbourhood Alone

Dear NIMBY – nobody’s single-family neighbourhood will change tomorrow. Neither your house nor your neighbour’s will be demolished overnight.  And, if you choose to demolish, nobody will take away your right to rebuild a single family home. 

However, that old house falling apart down the street?  A shiny, new fourplex might replace it. Since starting to write about cities, I have given numerous examples of  better residential land use. While Toronto / Golden Horseshoe centric,  Smart Density provides numerous examples of the possible. 

A Pay-for-Service model

Real estate taxation systems based solely on valuation do not capture the differentiated cost of providing and maintaining municipal services for single-family neighbourhoods. Let’s say those costs are $40 per linear foot. Included in this – reserves for major repairs and replacement, ongoing maintenance, street cleaning, and snow removal. 

An Example

Consider my street in Pointe-Claire. 

• One single family home requires 50 feet of street and underground services – an annual service fee of $2,000 ($40 x 50 ft.) or $167 a month would apply.
• Re-imagined, four homes occupy the same 50 feet – the same $2,000 service fee applies but the per home levy – $500 or $42 a month. 
• A twenty-unit apartment building on 100 feet of street front – service fee of $200 per unit or $17 per month. 
• The small apartment building will have a greater aggregate value than the four homes,  which will have more total value than the single family home and …
• The result – more homes provide a better “valuation” tax base to calculate a lower mil rate for other municipal services. 
• User fees make taxation more equitable

And Utilities

Another consideration – single family home owners pay the same rate per kilowatt hour as a resident in a 100 unit apartment building . It would be more equitable for the ‘“wired” utility services to break their bills into a physical network fee based on linear footage plus a usage charge. 

The How of Densification – Part 2

The “How of Densification” was meant to be in one instalment – but it was just getting much too long! Certainly much too long for reading on your cell phone. So Part 2 is almost ready!