Mr. Noel Cahill:

The issue here concerns making a major public investment, such as a new metro. That public investment adds a great deal to the values of the properties located along the line. It is desirable to try to recover some of that value and we outlined some possible mechanisms in the report. If we are dealing with public land, selling or leasing it is a way of getting some value and balancing affordability. We already make some use of levies, but they are not always an ideal instrument. A site value tax is another instrument that could be employed. I refer to an annual recurring tax on the value of land that recovers value from both the existing property and the new properties.

Regarding the tension between an individual commercial entity and trying to promote non-market housing, the LDA and the Vienna model are interesting. I am not 100% sure how that agency is classified by EUROSTAT. It is owned by the city but seems to operate quite independently. It is able to pay its own way and supplies land for subsidised housing. The context is that it is able to charge a reasonable price for the land. There is a very well-developed system of limited-profit associations so the agency is in a position to pay a reasonable price. It is able to combine independence with contributing to this affordable housing system.