One of the most sobering indicators of Hamilton’s affordable housing crisis is the erosion of affordable housing stock: increasing rents and the sale of buildings has dramatically reduced the number of affordable units in our city.

There is no magic wand that will solve this complex issue but there are organizations that are doing what they can. One of those is a new non-profit organization called Rental Rescue, which has a focus on buying properties and keeping them in the affordable housing market through a variety of means.

In this episode of Vital Signs, Rudi Wallace hosts Krystal Valencia (Founder, Rental Rescue) and Kevin Tom (Chief Investment Officer, FirstOntario Credit Union) to talk about a partnership that resulted in the purchase of a King St. East property that will be preserved as affordable housing. They discuss the logistical challenges, opportunities as well as the need for more partnerships like this one so that individual efforts add up to a greater good.

Key quotes

“[For many people] it’s only one degree away, one crisis situation that could potentially create emotional and housing turmoil.” Krystal Valencia on the precarity of housing

“Ultimately, our goal is to transfer the asset to another non-profit to redistribute community wealth.”  Krystal Valencia

“When those properties come up for sale, they are more valuable when they’re empty because the new owner can raise the rents to whatever they want. There is an incentive for the seller to get tenants out of a building prior to putting it on the market.” Kevin Tom

“One of our biggest challenges is the narrative around landlords and traditional housing providers who have neglected and broken trust with tenants. It’s hard to come into any building and to say we are here to support you and retain your affordability.” Krystal Valencia

“One of the challenges in retaining the rental stock in Hamilton is speed—getting to the market and purchasing the properties before those REITs (Real Estate Investment Trust) move in.” Kevin Tom

“There is no silver bullet to this issue but there are different solutions. Our partnership is one of those solutions.” Kevin Tom