Creating Value: Using Social Purpose Real Estate Investment Trusts To Support Affordable Housing

Abstract

A research investigation into the potential for the importation of American social-purpose Real Estate Investment Trust (REIT) models to encourage and support affordable rental housing in a Canada. This research is undertaken in order to examine alternative methods to overcome and address issues relating to affordable housing creation and availability in Canada and Ontario. This paper examines the following research question: “Could American models of social-purpose REITs be exported and implemented within a Canadian context?” Two American models, the Housing Partnership Equity Trust and the Community Development Trust are analyzed. This investigation includes a national and provincial-level geographic scope, with a focus on the Province of Ontario and the City of Toronto. This paper includes a background on housing affordability within Canada and Toronto. This is followed by a legal and legislative background on REITs in Canada and the United States. The analysis section includes a discussion examining the possibility for U.S social-purpose models in Ontario and Canada and recommends a model best-suited for Canada.