Affordable housing:
A foundation for social inclusion
A joint statement by:
Canadian Housing and Renewal Association,
Co-operative Housing Federation of Canada,
Canadian Alliance to End Homelessness,
British Columbia Non-Profit Housing Association,
Ontario Non-Profit Housing Association,
Réseau québecois des OSBL d’habitation, and
New Brunswick Non-Profit Housing Association
Canadians recognize that a strong middle class starts with a safe, affordable place to call home.
A secure home provides a stable base from which we can raise a family, find and keep work,
invest in additional training and have enough money left over to put healthy food on the table.
Over the years many Canadians have been very fortunate to have access to quality, affordable
housing. Many purchased their homes, but many others found quality housing in the rental
market – especially with the robust development of rental properties in the 1960s and 70s.
For those who needed help, whether temporarily or for the long-term, social housing was often
available. A long-term federal funding program ensured the ongoing development of social
housing from the 1960s through to the early 1990s. Through these programs, co-operative,
non-profit and public housing providers developed and continue to provide affordable housing
to low-income individuals and families.
Unfortunately, over the past 25 years, this pathway to the middle class has been blocked due
to a sharp decline in the availability of affordable housing. Home ownership is out of reach
for many, private development of rental housing trickled to a halt, annual federal investment
in social housing dropped dramatically and chronic homelessness exploded in communities
across the country. Canadians are feeling the impact of the country’s affordable housing crisis,
and they are looking for solutions.
Thankfully, the federal government has recognized the housing crisis we face. Expressed in
its platform and the mandate letters from the Prime Minister, it is clear that housing is a
priority. Affordable housing providers and advocates from across the country are optimistic
that significant progress in the near-term is very possible. And better than anyone, we
understand that affordable housing is the foundation of social and economic progress,
offering security and quality of life over the long-term for our most vulnerable, or as a
stepping stone towards the middle class for those who need temporary assistance.
As representatives of organizations working to end homelessness, and non-profit, public and
co-operative housing providers, we have come together in the spirit of collaboration as “on the
ground experts” in order to assist the federal government’s implementation of a robust housing
agenda. Recognizing housing solutions differ in local contexts, these recommendations respect
the authority of provinces and territories and can be implemented using existing frameworks.
The federal government can make significant progress in the first year of its mandate while
also establishing conditions for success in following years by developing a national housing
strategy that involves the following components:
1. Protecting and renewing existing social housing assets,
2. Building new social and affordable rental housing, and
3. Supporting community transformation and innovation.
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1. Protect and renew existing social housing assets
At a minimum, we must protect the existing social housing stock which provides safe
and affordable housing to over 600,000 households. As federal funding agreements are
beginning to end, these public, non-profit and co-op homes are at risk. Without renewed
investment, many housing providers will be forced to raise rents, defer maintenance or
liquidate housing assets. At a time when 1 in 4 Canadians cannot afford safe, decent housing,
we must protect the viability of existing social housing stock.
• As federal social housing operating subsidies expire, renew funding for public, non-profit
and co-operative housing providers. This will ensure that rents remain affordable for
tenants in the long term.
• Target grants for capital repairs, retrofits and maintenance of public, non-profit and co-
operative housing providers who need it. An emphasis on energy efficiency should be a
guiding principle of this new initiative.
• Commit long term funding so that social housing providers can leverage their assets and
secure equity financing for capital renewal, retrofits and redevelopment, thereby helping
more Canadians access quality affordable housing.
2. Build 100,000 new homes
After 25 years of federal divestment in affordable housing, Canadians are eager to put the
government’s commitment to a significant new investment in affordable housing to work. A
significant investment in social and affordable rental housing within the social infrastructure
fund would provide much needed predictability and leverage with which affordable housing
providers could prepare for and deliver new affordable housing.
Specifically:
• Commit to building 100,000 new units of affordable and social housing in order to
reduce core housing need and homelessness among priority population households.
• Significant investments should be made to develop permanent supportive housing in order
to ensure targeted reductions in homelessness.
• Targeted investments should be made in order to prioritize improved housing outcomes
for Aboriginal households.
• The community based co-operative and non-profit housing sector can best leverage these
funds into long term social and affordable housing for low and moderate income Canadians.
• Units should vary from deeply subsidized to more shallowly subsidized, ensuring a cohesive
mix of residents.
3. Support community transformation and innovation
We have an experienced and dedicated affordable and social housing sector, on whom we can
count to deliver the additional affordable homes we need. There is much that we have done
right over the years in ensuring affordable housing is available for those who need it, whether
for those who temporarily need assistance to get back on their feet, or for those whose life
circumstance, often a disability, has meant they are unable to generate the income needed
to afford housing in the private market. The federal government can make better use of
public dollars to build and operate affordable housing by supporting the following community
transformation and innovation agenda:
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• Refinancing: Many social housing providers have long-term high interest mortgages,
many of which are held with CMHC and fixed in nature. While many secured interest rates
that at the time were preferential (such as the many holding 8% mortgages) providers
now want to take advantage of record low interest rates. Many providers have not been
able to do so because of prohibitive prepayment penalties associated with securing a new
mortgage. The 2015 federal budget committed $150 million over four years in order to
eliminate pre-payment penalties. By fulfilling this 2015 federal commitment, housing
providers can immediately lower interest payments and invest more working capital
into repairs retrofits and redevelopment of housing assets.
• Partnerships: The Homelessness Partnering Strategy (HPS) has been a critical resource in
responding to homelessness in communities across Canada since 1999. With the support
of HPS investment, hundreds of community based organizations, charities, churches, cities,
authorities and provincial governments across the country have been taking action and
many have made some progress in reducing homelessness. The HPS program has the
potential to achieve meaningful reductions in homelessness across Canada but the
program is under resourced. There have been no funding increases to the program since
it was launched, and in fact, the last renewal of the program saw a funding cut. Now
is the time for the federal government to increase its role and investment and use its
capacity to leverage provincial and local partnerships that have been developing in the
last decade. With increased support, established groups will be able to act immediately
on reducing homelessness with important populations, such as veterans, as we also focus
on the longer term objective of building new affordable and social housing. Adapting the
funding eligibility requirements of current programs to allow for social and clinical supports
in affordable and social housing (versus just in scattered site market rental housing) to
be funded would stretch the federal investment further and allow communities to reach
homeless Canadians with more complex needs.
• Social entrepreneurship: While operating affordable housing for Canada’s most
vulnerable households will continuously require public investment, the development
of some forms of affordable housing could be supported by more entrepreneurial
approaches. For instance, acting as guarantor of a community-led housing bank would
enable a lending facility that understands the distinct needs of the affordable housing sector.
Another example involves housing providers who are looking to partner or even merge
together in order to take advantage of economies of scale, increase professional capacity
and share risk. By supporting capacity building initiatives and sector transformation pilots,
the federal government can help increase the effectiveness and sustainability of Canada’s
social housing system.
Over the past 25 years, Canada’s population has increased by 30% while annual federal
investment in affordable housing decreased by 46%. As a result, nearly 1 in 4 Canadian
households cannot afford their housing and 235,000 Canadians experience homelessness
every year. It is time to tackle Canada’s affordable housing crisis in order to restore this
important pathway into Canada’s middle class.
Housing investment is a solution that can advance many government objectives. In the near
term, housing construction and renovation contributes to job and GDP growth during a sluggish
economy. But economic stimulus cannot be the only force behind housing investment. Federal
housing investment must also advance long term social objectives to reduce homelessness, foster
socioeconomic inclusion and make affordable housing available for those who need it the most.
By working with Canada’s affordable housing sector to develop a national housing strategy,
the government can meet both short term economic stimulus and long term social objectives
such as reducing chronic homelessness and core housing need in Canada.
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Canada’s affordable housing sector is prepared to mobilize in support of the federal
government’s new housing agenda and to develop a national housing strategy based on the
components contained in this document. Significant new investments in affordable housing
can help protect and renew Canada’s existing portfolio of social housing while also building
100,000 new homes to reduce homelessness, lift Canadians out of poverty and provide a
pathway to Canada’s middle class.
Investment Benefits in relation to Cost in $ and funding source Cost of inaction
government goals
Protect and renew existing Ensure safe and affordable $1.7 billion per year through Housing providers forced to
social housing portfolio. housing for 600,000 families: CMHC. raise rents, defer maintenance or
Sustained and predictable • Ability for providers to plan To be increased to support new liquidate housing assets, thereby
operating funding for social and fund capital repairs reducing the number of affordable
social housing builds when
housing providers (to replace housing options for Canadians.
• Continue offering rent created.
expiring operation agreements supplements Additional contributions from
via more current mechanisms).
Help Canada reach climate green infrastructure fund to
change goals by reducing support energy efficiency ret-
carbon footprint of social rofits of social housing.
housing.
Contribute to GDP and job
growth through renovation
and retrofit of social housing.
Build 100,000 new homes. Create safe and affordable $1.5 billion per year from social Poverty costs $25 billion/year,
housing for 100,000 house- infrastructure fund. homelessness costs $7B/year.
holds.
Additional contributions from
Reduce chronic homelessness green infrastructure fund to Loss of opportunity to households
through increased develop- who cannot participate in
support energy efficiency de-
ment of permanent supportive sign and construction. community and economy due to
housing. exclusion.
Delivered through existing IAH
Target investments. framework in partnership with Loss of opportunity to generate
Reduce core housing need. provinces and territories. job and GDP growth through
Contribute to GDP and job housing construction.
through renovation and retro-
fit of social housing.
Sector transformation and Build strong social programs $210 million proposed for
innovation. for the 21st century and for the transformation and innovation:
next generation of Canadians. • Increase funding to the
Homelessness Partnering
Strategy and adapt it
to regional realities and
expertise.
• Eliminate pre-payment
penalties for social housing
providers who seek out
refinancing opportunities.
• Act as guarantor to sector-
led housing development
bank and invest in fund
capitalization.
