Michael Shapcott on Housing

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Feds confirm three-year homeless funding extension, but freeze dollars at 1999 level
 
The federal government has officially confirmed $134.8m annual funding for the national homelessness program over the next three years. In September of 2008, the feds promised to extend the funding for five years, but said they would review funding practices at year two (fiscal 2010), so the decision to honour the 2008 promise is good news. Human Resources and Skills Development Canada says that the funding envelope for the 61 communities that receive most of the federal homeless dollars ‘will remain the same’ until fiscal 2014. By that year, federal funding for homelessness, low-income housing repair and the Affordable Housing Initiative are planned to drop to zero, as noted in the Wellesley Institute’s Precarious Housing in Canada 2010.

With the federal government talking a hard line on spending in recent months, there had been fears that homeless investments might be cut in full or in part. News that funding will be maintained at the current level for the next three years is very welcome, but the overall funding envelope has remained basically the same since the program was launched in 1999 – even as the number of communities has grown to 61.

There is no provision for the erosion in value of the dollars due to an inflation rate of 25% since 1999. There has been no adjustment over the years for increased needs as homelessness has grown more severe.

A key component of the federal Homelessness Partnering Strategy (HPS) – called the Supporting Community Partnerships Initiative (SCPI) under the previous government – is that it is based on local homelessness plans developed by community-based groups (or, in the case of Toronto, by municipal officials in consultation with a community reference group). In making the funding announcement, the federal government acknowledged the ’successful partnerships’ that have been created through HPS-SCPI are a key strength of the national program.

The federal government has promised ’program enhancements’, but hasn’t provided more details. These include:
  • greater support for rural and remote communities;
  • ensuring culturally relevant programming and services for Aboriginal people who are homeless or at risk of homelessness;
  • developing linkages on mental health and homelessness;
  • increasing the relevance and dissemination of research;
  • reinforcing accountability for results; and
  • improving data sharing and collection.

***

-          Michael

 

September 14, 2010 - Chamber of Commerce resolution calls for national plan to end homelessness
 

“Homelessness is bad for business and the federal government does not have a national plan to end homelessness in Canada.” Those are the opening words in powerful resolution from the Burnaby Board of Trade, the Greater Victoria Chamber of Commerce and the Surrey Board of Trade that will be debated by delegates to the Canadian Chamber of Commerce later this month. The resolution (starting on page 74 of the Chamber’s resolution book) has been backed by the Special Issues Committee of the Chamber. The Wellesley Institute’s Precarious Housing in Canada 2010 identifies people who are homeless as key priorities for a new national housing plan.

The Chamber of Commerce is the national body that represents more than 300 local boards of trade and chambers of commerce which, in turn, represent more than 175,000 local businesses. An increasing number of local business groups are insisting that there is a business interest in good social policy. “Homelessness has a direct financial impact on businesses as it deters customers, damages employee recruitment and retention, harms tourism and discourages companies from setting up offices in areas with a visible homeless population,” according to the Burnaby resolution. “For many municipalities and business communities in Canada, homelessness is a real problem that requires expenditures on security upgrades to maintain the safety of staff and property. Businesses cannot realize their full potential while homelessness exists in their areas, due to reduced revenues through lost sales.”

“A national plan to end homelessness will clearly set the goals, objectives, metrics and outcomes for all homelessness initiatives and will provide the proper mechanisms to more effectively address the issue. Without a clear strategy to direct national efforts to end homelessness, businesses will continue to be negatively impacted by the growing crisis,” says the Burnby resolution.

“Since the federal government needs to contain spending on programs, and because it would not be socially and economically prudent to cut funding for homelessness initiatives, a viable course of action would be to reallocate funds from the federal budget to develop a national plan to end homelessness,” urges the Burnaby BOT.
In its report, the WI notes that federal expenditures on homelessness and affordable housing have failed to keep pace with inflation and the growth in population from 1989 to 2009; and that the federal government is “stepping out” of its housing and homelessness investments. By 2013, federal housing program spending will drop by 18% to $1.9 billion, the federal Affordable Housing Initiative will drop to just $1 million for the entire country and funding will be cut to zero for the federal homelessness strategy and the federal housing rehabilitation program.

The WI report notes that maintaining spending at the 2009 level and targeting the investments would fund a 10-year national housing and homelessness plan.

-          Michael
 

August 26, 2010 - Precarious Housing in Canada (2010) is a powerful, new research and policy report from the Wellesley Institute.

Using the most comprehensive and current data, research and analysis, Precarious Housing sets out a pragmatic, five-point plan targeted to the millions of Canadians who are living in substandard, over-crowded and unaffordable homes – plus those who are living without any housing at all.

Housing is one of the most important factors for a healthy life. A good home is important for individuals and for overall population health. The growing number of Canadians who are precariously housed continues to be a deep and persistent problem throughout the country; the nation-wide affordable housing crisis is costly to individuals, communities, the economy, and the government. Federal housing and homelessness investments – adjusted for inflation and population growth – have been shrinking over the past two decades; and, while the federal government announces short-term initiatives from time to time, Canada still doesn’t have a comprehensive, fully-funded and integrated national housing strategy.

Download the full Precarious Housing in Canada report.
Download the Executive Summary.
Download Part One: Framing the challenge .
Download Part Two: Vision 2020, toward a national housing plan.

-          Michael
 

June 15, 2010 - Latest CMHC figures confirm low, moderate-income households continue to be priced out of Canada's private rental markets‏

Low and moderate-income households continue to be priced out of Canada’s private rental markets as average rents continue their relentless two-decade rise many times faster than renter household incomes, according to the latest figures released today by Canada Mortgage and Housing Corporation (CMHC), Canada’s national housing agency. Research from the Wellesley Institute and others draws a clear set of links between good quality, affordable housing and good health.

Private rental vacancy rates (the number of vacant rental units) have risen slightly in Canada, and rents have increased at the same time – defying conventional economic theory that says that increased supply should lead to lower costs in the private rental housing market. The latest private rental market survey from CMHC paints a mixed picture of the country’s private rental markets, which provide a home to 3.8 million of Canada’s 12.4 million households. 

Nationally, the rental vacancy rate in Canada’s largest communities (where most of the rental housing is located) is at 2.9% – below the 3% level that is considered the minimum for a healthy private rental market. The national rental vacancy rate edged up fractionally over the past year, but it has remained below 3% since 1999.

While conventional economic theory suggests that an increase in the rental vacancy rate – which signals more vacant units in the private rental markets – should trigger a drop in rents as landlords compete for tenants, the latest CMHC report shows that rents grew by 1.8% in the past year.
Nationally, rents have increased every year since 1992 – an increase of almost 42% over 18 years. CMHC reports that over a similar period (from 1990 to 2007), renter median household incomes have been mostly stagnant – moving from $30,800 in 1990 to $31,500 in 2007.

Rapidly rising rents set against mostly stagnant renter household incomes help to explain why there has been a slight increase in the number of vacant private rental units while, at the same time, waiting lists for affordable housing across the country continue to report a strong and growing need for new affordable homes.

The Ontario Non-Profit Housing Association reported in May that there are an additional 12,382 households on local waiting lists across the province for a total of 141,635 households – an increase of 9.6% in one-year. The latest CMHC numbers report an increase in Ontario’s private rental vacancy rate from 3.3% to 3.4%. So, vacancies are up slightly in the province’s private rental markets at the same time that waiting lists have zoomed up much higher.

The CMHC reports that private market rents rose by 3% over the past year to an average of $978, suggesting that private rental markets are increasingly out of reach for low and moderate-income renter households.

Across the country, the CMHC reports a mixed picture. Vacancy rates dropped by almost half in Newfoundland and Labrador to a critically low 1.1%; and also fell in Prince Edward Island and Nova Scotia. The rental rate remained the same in New Brunswick and increased slightly in Quebec and Manitoba. The rental vacancy rate rose more significantly in Canada’s three western-most provinces of Saskatchewan, Alberta and British Columbia.

Alberta and BC defied the national trend and reported decreases in average market rents, although Alberta leads the league in the highest rents at a provincial level ($1,023).
Nineteen of Canada’s major metropolitan areas had rental vacancy rates in the crisis zone below 3%, while 17 municipalities reported rates above 3%. Winnipeg has the lowest rental vacancy rate at 1%, while St John’s NL is close behind at 1.1%. Windsor has the highest rate at 12.4%.

Vancouver reported the highest average market rents at $1,150, and Toronto was close behind at $1,134. Ottawa and Calgary also had rents above $1,000, while Victoria, Saskatoon and Oshawa all reported average rents in the $900+ range. Saguenay reported the lowest average rent at $522.

Comparing year-over-year increases, Regina topped the national league tables with an annual rent increase of a whopping 7.1%, followed by a 5.3% increase in Saskatoon. St John’s NL reported an annual increase of 5%, with Victoria reporting a 4.9% rise and Winnipeg up 4.6%. Calgary and Edmonton both reported decreases in average market rents (6.4% and 2.9% respectively), although average rents in those cities remain very high relative to renter household incomes.

-          Michael

Jan 19 - WI backgrounder: Respect housing / human rights warns OMB as it strikes down restrictive Kitchener planning rules

Equity and human rights are critical components of land use planning, according to a precedent-setting decision by the Ontario Municipal Board in January of 2010 that struck down restrictive Kitchener by-laws. Municipalities are legally bound by the Ontario Human Rights Code and the Canadian Charter of Rights and Freedoms when they make planning and zoning decisions, ruled the board. The Ontario Human Rights Commission, which intervened in the Kitchener case, has noted that “adequate and affordable housing is a human rights issue” and has warned in recent reports that discriminatory municipal planning rules can violate the provincial human rights code.

Housing advocates have long argued that municipal restrictions that limit, or ban entirely, certain types of housing and services from certain neighbourhoods can amount to unfair discrimination and a violation of human rights laws. With its recent decision, the Ontario Municipal Board has ruled for the first time that municipalities must carefully consider their housing and human rights obligations before passing planning and zoning bylaws. In its ruling, the OMB (which is a provincial legal tribunal that hears planning appeals) has ordered the City of Kitchener to go back to the drawing board with its planning and zoning rules that sought to  limit the ‘concentration’ of social and supportive housing and services for people who are homeless, or people with physical or mental health disabilities in the Cedar Hill neighbourhood of that city.

The decision itself is complex, and runs for 49 pages. The OMB, through its legal decisions, sets the basic rules that guide municipalities in their planning and zoning practices. In the Kitchener decision, the board says that “decentralizing institutions and fostering a neighbourhood mix” are legitimate planning goals. But it warns that before municipalities adopt restrictive measures, they have to consider the equity and rights obligations imposed by the Ontario Human Rights Code and the Canadian Charter of Rights and Freedoms.

-          Michael

Jan 15 - WI webinar with Senator Art Eggleton on housing, homelessness, poverty

Please mark your calendar and plan to participate in the Wellesley Institute webinar with Senator Art Eggleton on January 15 at 11 am. Click here for more information and free registration.

  • Far too many Canadians in cities live below any measure of the poverty line
  • Too many people struggle to find and maintain affordable housing
  • An increasing number of Canadians are homeless
“Despite the thoughtful efforts and many promising practices of …[many], the system that is intended to lift people out of poverty is substantially broken, often entraps people in poverty, and needs an overhaul.”

Join Senator Art Eggleton as he discusses In from the Margins: A Call to Action on Poverty, Housing and Homelessness, a new report from the Standing Senate Committee on Social Affairs, Science and Technology: Subcommittee on Cities that offers 72 practical recommendations to “go beyond the ‘path dependency’ paralysis that has typified federal and provincial policy under governments of all affiliations for decades.”

This event is
free. To participate, all you need is a phone and an internet connection.

-          Michael

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National Aboriginal Housing Association (NAHA)

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