The United Counties of Prescott and Russell (UCPR) is cautiously adopting the use of new subclasses for Affordable Rental Housing in its collection of property taxes.
On September 24, UCPR council adopted a resolution and bylaw to opt in to the Affordable Rental Housing Subclasses beginning in the 2026 taxation year. But the discount rate will need to be approved through a separate by-law.
The new subclass permitted by the Ontario government provides municipalities with a tool to offer a municipal tax reduction of up to 35 percent for eligible rental properties or individual units that form part of the municipality’s formally recognized affordable housing stock.
The idea behind the new subclass is to encourage the development and availability of rental housing to meet the shortage of units in communities across the province.
Russell Township Mayor Mike Tarnowski had previously requested a report from staff on the subclass and for council to consider adding it to its tax structure.
However, a report prepared by the UCPR Finance Department recommended deferring adoption of the subclass to 2027 due to potential financial and legal outcomes. The tax shift from the discount on the eligible rental properties would primarily affect the residential class. The Finance Department estimates the average impact across the UCPR would be 0.19 per cent.
“When you look at the financial impact, it may appear modest, but it is limited,” Tarnowski said.
He noted that most of the affected properties are county owned or already have agreements in place where property taxes are reimbursed.
“I’m uncomfortable just passing the buck to the next council on this,” Tarnowski added, emphasizing the subclass will have an impact on the availability and affordability of rental housing.
“It would potentially offer more affordable housing options throughout the counties,” Tarnowski remarked.
“I want to demonstrate to our community that we’re working on affordable housing,” he added, before recommending council adopt the subclass but wait until later before enacting the discounted rate.
Hawkesbury Mayor Robert Lefebvre said it is a complicated issue with a lot of unknown outcomes.
“I believe in the cautious approach at this moment,” he commented.
Champlain Township Mayor Normand Riopel said he wants to be sure the use of the subclass would not have a serious impact on residential taxes at the lower tier level.
Tarnowski said he wanted to adopt the subclass for future use, not necessarily the discount percentages right away.
Treasurer Parisien said a more progressive approach could be taken and more information on implementation will be provided during the development of the 2026 UCPR budget.
