Copyright ©2006-2010 Calgary Housing Action Initiative.
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Record created: 04:49:10 PM on Saturday, October 07, 2006.
Updated: 05:09:44 PM on Saturday, October 07, 2006
Page generated at: 03:47:09 PM on Friday, July 30, 2010
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1) Access to adequate and affordable housing is fundamental to individual and family well-being and essential to healthy communities and economic prosperity.
2) In today's Alberta, complex social, economic and environmental challenges impact, and are impacted by, housing needs:
The social and economic challenges require broad, preventive policies (including non-housing supports) promoting and supporting long-term independence.
The environmental challenges require policies promoting conservation and renewal of the existing housing stock and innovative use of non-residential buildings.
3) Each of the federal, provincial and municipal governments has a role in ensuring the availability of accessible, adequate, affordable housing but each should act in consultation and cooperation with the others:
4) Consultation and cooperation are essential in meeting the needs of people who require accessible, adequate, affordable housing, including
5) Governments should consider the potential for non-governmental organizations - both private sector and not-for-profit -- to contribute to the achievement of housing objectives.
Since 1905 AUMA, in one form or another, has been an advocate for urban Alberta municipalities and a service provider for its members. The Association's views on a great variety of issues have been presented to the Government in briefs, recommendations, formal presentations and information meetings. The content of those views has been determined, under the leadership of the Board, by the input of the members and with research assistance by the staff. Member input comes by way of resolutions at the annual Convention and through their participation in task groups, such as the one which drafted this policy.
This Housing Policy was developed in consultation with experienced and interested people in member municipalities of the Alberta Urban Municipalities Association. Their commitment and dedication to ensuring accessible, adequate and affordable housing for all Albertans is much appreciated.
Readers are encouraged to explore the whole document to assist in grasping the magnitude and the urgency of housing-related issues in Alberta.
I. Access to adequate and affordable housing is fundamental to individual and family well-being and essential to healthy communities and economic prosperity.
In the spring of 1998, the economies of many Alberta communities are unusually robust. The "Alberta Advantage" in action, however, is threatened by a noticeable shortage of accessible, adequate, affordable housing in many of these communities.
600 people commute (one hour each way) each day from Medicine Hat to Brooks and currently an additional 750 staff are being recruited for the meat packing plant in Brooks. Housing for at least 1000 households is needed in Brooks.
The proposed oil sands developments in the Fort McMurray area will result in the population peaking at 51,000 within 18 months and then levelling off at about 48,000. Housing for at least 5,000 households will be required within two years in Fort McMurray, where there is no reasonable daily commuting option.
In early 1998 in Canmore, at least six different people declined the offer of appointment as a Development Officer because they concluded that they could not afford to live there.
The average sales prices in early 1998 were $235,000 in Canmore, $172,000 in Fort McMurray, $155,000 in Calgary and $131,000 in Edmonton. The price of a lot has increased by about 88% since 1995.
Achieving the Alberta Advantage is seriously threatened by the cost of home ownership in the communities which serve or will serve as the residential and market centres for the anticipated developments.
Rental accommodation vacancy rates in many of these communities are less than 1%. Consequently, monthly rental rates are soaring.
In both Fort McMurray and Grande Prairie, the monthly rent for a three bedroom apartment (suitable for a family of four) is about $750.
Construction costs for a new three bedroom rental unit are more than $50,000 exclusive of land. The easiest way for developers to finance new projects is to pre-sell units as condominiums.
In Calgary, there are only two rental projects under construction, both aimed at the high end of the market.
In communities where there are educational institutions, the student population heightens the demand for lower cost accommodation.
In many communities officials are turning a blind eye to "illegal" basement suites. There are concerns regarding the safety of these suites but officials are reluctant to initiate enforcement because of the absence of alternative accommodation for the tenants.
Achieving the Alberta Advantage is threatened by a shortage of about 10,000 units of affordable rental accommodation in the growth communities.
Media reports of the growth prospects for the Alberta economy lead people in other parts of Canada to believe that the streets are "paved with jobs". They arrive in Alberta communities with such limited financial resources that, even if they do find a job immediately, they need assistance to survive until the first pay cheque arrives.
They may come from areas where damage deposits and utility connection deposits are not required. In some areas of Alberta, a family needs upwards of $2,000 to finalize a rental agreement. This is both an unwelcome surprise and beyond their financial resources.
All of the growth communities report cases of people, including families, living in automobiles or recreation vehicles. When the March snowstorm hit southern Alberta, emergency accommodation had to be found in Brooks for several people whose tents collapsed under the weight of the snow.
The draft study "Reducing Homelessness in Calgary" reports that 3800 different homeless individuals were identified over a four-month period in 1997. 20% had a higher education, 45% were employed with average earnings of $7.40 per hour, half had never been homeless before, and a majority had been on the streets less than three months.
The Alberta Advantage includes a significantly increased demand for emergency or temporary accommodation.
Persons with special needs are posing significant housing challenges in many communities. Such persons may be developmentally challenged, mentally or physically ill, but, due to changes in health care procedures, all require non-housing support services and/or special physical design without which they would be unable to live independently outside an institutional setting. While this is a growing concern in many communities, it is particularly evident in the larger centres where specialized medical and other services are more readily available.
Demand for disabled transportation services is increasing dramatically. Formerly, patients would have been moved from one floor to another for treatment such as therapy and their "transportation" would have been a health care cost. Now these patients are released from hospital and must be transported to and from the hospital for their therapy. That transportation is largely a municipal cost even though it is an essential component of the health care of the patient.
In addition, the shelter component of the Supports For Independence (SFI) program bears no relationship to the reality of accommodation costs in many communities. A general rule of thumb is that "affordable" housing requires persons to pay no more than 30% of their gross income for shelter costs. However, single SFI clients in Edmonton and Calgary to spend well over 60% of their gross monthly income to obtain basic market accommodation. A one adult, two-child household would need to spend over 50% of its SFI income in Edmonton and over 60% in Calgary. Similar situations exist in all the growth communities, placing extraordinary demand on food banks and other support resources. The use of a standardized, Province-wide shelter allowance rate ignores the significant differences in rents for similar basic market housing in municipalities.
The health of Alberta community life is threatened by the shortage of financial and other support for persons in need.
All of these factors place considerable stress on family life for the people involved. While that is particularly true for families that can't find housing, it's also true for families living in cramped conditions, either in inadequate accommodation on their own or doubling up with other families.
The consequences of these stresses appear in domestic violence, in reduced educational performance by the children and in a generally degraded quality of life.
The Alberta Advantage is meaningless for families under stress. Inadequate accommodation is a significant factor in family stress in the growth communities.
An increased supply of affordable rental and ownership accommodation is required on an urgent basis, especially in high growth communities in Alberta.
II. In today's Alberta, complex social, economic and environmental challenges impact housing needs:
Social -- health, mental health, education, family life, strong communities and aging population
Economic -- low and fixed income households and soaring prices in some locations
Environmental -- sustaining the ability of the environment to support future generations
The social and economic challenges require broad, preventive policies promoting and supporting long-term independence.
The environmental challenges require policies promoting conservation and renewal of the existing housing stock and innovative use of non-residential buildings.
As discussed above, the issues related to the supply of adequate, affordable housing in Alberta in 1998 go well beyond the traditional objectives of federal/provincial housing programs. Changes in social, health care and mental health care delivery policies and programs are having a significant impact on housing needs.
Many feel that inadequate housing has a negative impact on young people's potential to benefit from the education system, since it limits the opportunity for a place to study at home relatively uninterrupted by other family members. Many report that housing stress is having a negative impact on family life and is a contributing factor to domestic violence. None of these factors contribute to healthy community life.
In recent years, public sector decision-makers have apparently viewed any required public involvement in housing as being related to persons in poverty, described as "those most in need". However, the freeze on construction of new federal/provincial cost-shared housing units is making it increasingly difficult to assist even the most needy.
The clients of housing programs are the residents, not the buildings. Housing programs have traditionally been concerned with the housing unit itself and great care has been taken to develop rules and regulations for proper ongoing support of the buildings. This is part of effective property management and stewardship of public resources.
But social well being and community stability require that the non-housing needs of low income and special needs households be addressed. All governments and other stakeholders need to include in their management or business plans an outline of how the non-housing needs of residents will be met and how residents will be involved in identifying and meeting those needs. This will require cooperative planning and service delivery by a variety of agencies.
The housing issues go well beyond any normal understanding of poverty. There is very limited production of new rental units by the private sector in the communities with the greatest demand. Where units are available, the rents and the purchase prices are beyond the means of many households.
The Canadian Real Estate Association reports the average house price in Alberta in 1998 to be $134,100 for which the qualifying annual income would be $40,500. The qualifying income would be substantially higher in Canmore and Fort McMurray and the average house price is projected to increase to $138,100 in 1999.
Housing development must respect the principle of sustainable development and must not compromise the ability of the environment to support future generations. This includes issues such as pollution of air, land, and water systems, inefficient energy consumption and the use of nonrenewable and toxic substances in construction.
Growth must not outstrip the ability of the municipality to provide services and infrastructure to the development. In exercising their land use planning authority, municipalities must restrict urban sprawl and promote intensification of land use. Housing opportunities within the existing housing stock, and through the conversion of under-utilized non-residential buildings, need to be maximized to take advantage of existing services. The transitional housing development being undertaken at Currie Barracks in Calgary and the private sector conversion of old downtown warehouse to loft units in Edmonton are examples of this approach.
There is significant Alberta public investment in hospital and school buildings. Where such accommodation is needed, empty hospital wards and unused school space may provide opportunities for temporary housing accommodation with relatively low additional investment.
Conserving and renewing the existing housing stock may require financial assistance or other incentives from the federal and provincial governments, particularly for low-income owners and for the existing public housing stock. Municipalities can assist by devising innovative methods for replacement and expansion of existing affordable housing stock when considering development applications which include its demolition.
A major issue is that most provincial and federal housing programs are "universal" – that is, the same terms and conditions apply everywhere. An example discussed above is the shelter component of SFI rates. Other examples include the ban on building new social housing units even where supply is the critical problem and expecting the Rent Supplement Program to meet all housing needs even in communities where there are no vacant units to rent.
The Rent Supplement Program allows agreements with landlords to rent vacant units to tenants whose rent is subsidized. This makes effective use of housing stock when there is a material vacancy rate. However, with the very low vacancy rates in the growth communities, landlords are becoming increasingly reluctant to continue these agreements.
Housing programs need to be sufficiently flexible that they can be used to ensure access to adequate and affordable housing in the context of the different needs of different communities. In 1998, there is certainly an issue in some communities related to the supply of adequate, affordable rental accommodation. In some communities there is a need for transitional housing, aimed at providing basic, affordable accommodation to people while they "get on their feet" after finding a job or after completing a physical or mental health care process. In some communities there is a need for long-term supportive housing options (for example, for persons with chronic mental illness). In some communities there is a need for innovative, affordable home ownership options. In some communities there is a need for funding to enable building renovations to meet Building and Fire Code requirements. But these and other needs do not exist in all communities. Effective use of public resources requires that programs be targeted to where the needs exist.
The complexity of housing-related issues requires solutions which are flexible enough to meet community needs.
III. Each of the federal, provincial and municipal governments have a role in ensuring the availability of accessible, adequate, affordable housing but each should act in consultation and cooperation with the others:
Federal -- national standards; financial and income support
Provincial -- maximize use of federal support; complement with own financial and income support
Municipal -- in the context of available local resources and when approved by Council: Identify housing needs and potential solutions in housing plans; use land use planning authority to support affordable housing.
All governments need to work in partnership to address the housing issues. Because partnerships are strongest when each partner applies its particular strengths and expertise, there is a particular role for each order of government. The partnership is weakened if each order is expected to carry out all the responsibilities required to address the issues.
While the federal government has taken the position that it will not enter into any new cost-sharing agreements for social housing programs, it has a substantial liability under existing agreements that will extend well into the next century. Therefore the federal government has an ongoing financial responsibility. In addition, the federal government (through the Canada Mortgage and Housing Corporation [CMHC]) has a substantial role in the private housing market, particularly in mortgage insurance.
Because the existing cost-sharing agreements involve many terms and conditions established by the federal government, it also has a continuing role in determining national standards of access to adequate and affordable housing. Its conditions for insuring mortgages also have a considerable impact on access to home ownership.
While the provincial government has a constitutional responsibility for social programs including housing, also taken the position that it will not build any new social housing units. However, it also has a substantial liability under existing cost-sharing arrangements, which extends well into the next century. Therefore the province has an ongoing financial responsibility which includes ensuring that it conforms with the conditions of the agreements so as to maximize access to federal funds. Under the Alberta Housing Act, the province makes regulations which govern the activities of the local Management Bodies who administer the projects in which housing programs are delivered. In exercising that authority, it also shares a standard setting role.
In addition the province has a long history of complementing the cost-shared programs with its own unilateral programs. For example, the province has supplemented the cost-shared Rent Supplement Program with its own program to increase the number of units available. If cost-shared programs are not sufficient to provide access to adequate and affordable housing, the Province has a responsibility to complement them with its own programs designed to meet the needs of Albertans. Such initiatives might include provision of land, buildings, grants, low interest financing and so on. Whatever the methods it is essential that programs for delivery of adequate and affordable housing be sustainable over the long run.
The Province also has responsibility for delivery the health, mental health, social and educational programs which are required to provide non-housing support to low income and special needs Albertans.
Within the limitations of local resources, municipalities have a role in identifying local housing issues and potential solutions in housing plans which could form a chapter of every Municipal Development Plan. In order to do this effectively, the municipality would need to document demographic, housing stock and other information. This may be beyond the capacity of smaller municipalities to undertake on their own and some assistance may be necessary.
Municipalities can also use their land use planning authority to support affordable housing. This might include efficient use of land, provisions related to infill housing, secondary suites, garden suites and the like. They can also initiate development approval conditions which protect the stock of affordable housing when areas are being redeveloped.
Some municipalities have entered into cost-sharing agreements for social housing. Programs supporting adequate and affordable housing and non-housing support services are fundamentally income redistribution programs. The federal and provincial governments are the only orders of government that generate income-based tax revenues. Therefore, the provision of capital and operating subsidies for housing-related services is primarily the responsibility of the federal and provincial governments. In addition, because of their responsibility for roads, water and sewer services, and so on which are necessary to the operation of housing projects, municipalities should not be required to contribute financially unless the Council agrees to do so or the federal and provincial governments substantially increase their transfer payments to municipalities.
Each government has a responsibility for promoting consultation and cooperation with the other governments and other interested groups.
The federal, provincial and municipal governments must work in partnership to address housing issues.
IV. Consultation and cooperation are essential in meeting the needs of people who require accessible, adequate, affordable housing, including
Intergovernmental -- between federal, provincial and municipal governments
Intragovernmental -- between and within provincial government departments
Government/Stakeholder Groups/Citizens -- municipalities as lead contact with stakeholder groups and citizens
The complexity of the issues related to housing requires full, open, honest consultation and cooperation between everyone involved. This has not always been the case in the past when "he who pays the piper, calls the tune" seemed to be the guiding principle. When there were discussions of housing programs, one of the partners was seldom invited to the table. The absence of municipalities from the discussions meant that the partner with the most direct knowledge of needs in the communities had no voice. Intergovernmental consultation and cooperation is essential.
The same applies within each government. In the communities, it is apparent that Alberta government departments have not always considered the impact of their own program initiatives on the responsibilities of other departments. The province should require departments to discuss and consider the housing impact of proposed policy and/or program changes in advance of their approval. The same observation applies to the federal and municipal governments.
Municipalities are in the best position to serve as the lead contact with stakeholder groups and citizens. Such consultations would be an essential component of developing a housing plan. The province, in its consulting role with Management Bodies, also gains some knowledge of local needs. It should be the role of the municipality, in the context of its resources, to bring together all of the interested local groups and individuals and reach consensus on the housing needs and potential solutions. Such consensus building will only be useful if the municipality ensures that the provincial and federal governments are fully informed and appropriately engaged in the process. The province should cooperate in these efforts. Non-governmental entities must also be consulted and urged to cooperate.
All of the partners need to work in consultation and cooperation to address Alberta's housing-related needs.
V. Governments should consider the potential for non-governmental organizations - both private sector and not-for-profit – to contribute to the achievement of housing objectives.
Governments need to find ways of recruiting the vast resources of the private and not-for-profit sectors in achieving the objective of access to adequate and affordable housing. These resources include, among others
While governments have the responsibility to approve public policy, implementing the policy may well be enhanced by non-governmental involvement and such involvement may be to the benefit of the non-governmental organizations.
The government partners need to engage the private and non-profit sectors in address Alberta's housing-related needs.
The AUMA Board of Directors approved this policy in principle on May 22, 1998. It will be available for use by AUMA representatives at the Minister's Housing Symposium in mid-June.
The policy will be distributed to all AUMA members and will be presented for formal approval at the 1998 Annual Convention in November.
Within the limits of its resources and in cooperation and consultation with other governments and non-governmental organizations, where possible and appropriate, the Alberta Urban Municipalities Association will undertake the following actions to implement this policy:
During the summer of 1998, the AUMA Executive will meet with the Premier to inform him directly of the consequences of the current housing situation in the growth communities for achieving the Alberta Advantage and to gain his commitment to direct the Ministers of Education, Family and Social Services, Health and Municipal Affairs to cooperate in addressing the full range of issues related to housing.
During the summer of 1998, the AUMA Executive will meet with the Minister of Economic Development to advance the case that access to adequate, affordable housing is a significant issue for achieving the Alberta Advantage.
During October, 1998, the Board of Directors will meet jointly with the Ministers of Education, Family and Social Services, Health and Municipal Affairs to discuss the need for consultation and cooperation and to agree on ways of cooperating in identifying housing issues and potential solutions.
By January 31, 1999, AUMA will develop a Housing Status Report format, which will enable standardized reporting by all municipalities on statistical information, related to the AUMA Housing Policy. Municipalities will be asked to use the format to report on housing in their communities by March 31, 1999 and annually thereafter. AUMA will compile the results into an annual Housing Status Report. The Report will be an important performance measure on achieving the AUMA Housing Policy.
In May 1999 AUMA will reconvene the workshop participants who drafted the AUMA Housing Policy to review the implementation to date and to recommend any changes that may seem desirable.
AUMA will take the lead in organizing an Alberta Housing Congress to be held during 1999 which will bring together representatives of government departments, regional service delivery authorities, and appropriate private and not-for - profit sector organizations. The purpose of the Congress will be to agree on initiatives which can be undertaken immediately to address the issues of access to adequate and affordable housing.
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