On Friday, December 3, 2004 Minister Fontana announced that he is seeking
cabinet approval to redirect a portion of the money currently earmarked for
housing construction to rent supplements and shelter allowances.
Under the current rules, the federal funds can only be used as a capital
contribution, primarily for new construction. The provinces and territories can
only access the federal funds by matching them through either capital or
non-capital contributions. Almost $600M of the $1B in promised federal funding
has not been allocated because most provinces have not put up the matching
funds. (Quebec and British Columbia are the exceptions, which have taken up most
of the funds allocated to them.)
Changes that did not need cabinet approval because they are already permitted
under the Affordable Housing Program framework are:
Minister Fontana’s announcement was on the heels of the
Federal/Provincial/Territorial Housing Ministers conference, which took place on
Nov. 29 and 30 in Gatineau, Quebec (near Ottawa). The number of speaking slots
was extremely limited this year, and the CFAA was not able to present the
Ministers or the co-chairs. However, CFAA President John Dickie and CFAA
Vice-President June Carter met with some of the Housing Ministers and their
staff people at a reception that was given by the Federation of Canadian
Municipalities.
The announcements from that conference are positive and seem to support Minister
Fontana’s desire to divert funds from capital to housing allowances. The
Ministers discussed “the need for greater flexibility and sustainability to make
housing more responsive to the different needs across the country”. The
Ministers also discussed “modifications to current affordable housing programs
that will accelerate the provision of affordable housing to low to moderate
income Canadians”.
Minister Fontana will be launching national consultations in January 2005 to
develop a longer term Canadian Housing Framework. The
Federal/Provincial/Territorial Housing Ministers will be continuing their
discussions at a meeting in the Spring of 2005.
In October, John Dickie met with Housing Minister Fontana, his Parliamentary
Assistant, Judi Longfield, and the CMHC Vice-President of Policy and Planning,
Doug Stewart. Along with the Canadian Home Builders Association, John Dickie has
met with CMHC a number of times to discuss demand side solutions and to provide
input into the design of a portable housing allowance program.
The CFAA will focus its efforts on promoting a housing allowance program which
is practical and of the greatest benefit to low-income tenants and the rental
housing providers who serve their housing needs, as well as the rest of the
rental housing market.
The CFAA supports federal funding for housing allowances, as they are much more
cost-effective than building new social housing, can be spread among far more
needy tenants, provide maximum choice, allow tenants to stay where they are, and
directly and immediately address affordability problems.
Since program design and approval will take some time, the immediate federal
support will be for rent supplements, which are tied to units. Given the
vacancies in many markets, Minister Fontana’s moves in that direction are very
positive for the rental housing industry, as well as for low income Canadians.
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The PPMA is pleased to support the CFAA as one of 13 member
associations across Canada. CFAA is the sole national organization representing
the interests of Canada’s $30 billion rental housing industry.
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