Non-profit housing groups want new property tax subclass, but County appears skeptical of the idea

Habitat For Humanity Baltimore. By Cecilia Nasmith, Northumberland 89.7 FM News.

By: Dan Jones, Northumberland 89.7 FM News, Local Journalism Initiative.

Two non-profit housing organizations are asking Northumberland County to consider passing a bylaw to create an affordable housing property tax subclass.

The 2025 Ontario provincial budget allows for the establishment of a new tax carveout for affordable housing, new multi-residential or current multi-residential housing units.

The optional tax credit could provide up to 35 percent decrease in property tax for developments, which qualify. To qualify there must be at least seven fully enclosed dwellings on a single parcel of land.

The Percy Township Non-Profit Housing Corporation and the Campbellford Memorial Multicare Lodge both sent letters to County leadership in July to pass a bylaw by the end of September to be eligible for the 2026 tax year. Both groups claim the additional property tax savings would help keep rents lower and reinvest into their buildings and support for clients.

County staff prepared a six-page report on this request, with the report suggesting this could be beneficial not only to Northumberland County, which has its own affordable housing corporation, but to non-profit organizations.

The financial impact to homeowners, depends on the percentage level agreed to.

At five percent, taxes would increase an average of  $1.18 per household. At 35 percent, homeowners would pay an additional $8.30.

At Northumberland County’s Finance and Audit Committee Tuesday. Finance Director Matthew Nitsch said approximately 35 properties would benefit from this. Of these ten are in the non-profit sector and ten are private development and the remainder are Northumberland County owned.

He explained non-profits would benefit from the decrease in property taxes, but ultimately this would not benefit the entire community as this initiative would not spur new developments.

“We’re shifting the tax from qualifying properties to mostly residential. That’s the cost of doing this, because the amount of taxes we need overall stays the same. If we reduce the taxes for this group, all the other properties pay for that,” Nitsch said.

Cobourg Mayor Lucas Cleveland and Cramahe Township Mayor Mandy Martin, who both sit on the Finance Committee appeared unconvinced on creating a new property tax subclass. Martin said doing this would be to the benefit of private developers.

“You’re benefiting ten private owners, the rest are county owned. All you’re doing is shifting the money around. This does not benefit anyone. We have a plan, a three year plan. Lets stick to the plan, that’s what we’re doing,” explained Martin.

The report will be fully considered at the September 17, Northumberland County Council meeting.