CANADIAN FEDERATION OF APARTMENT ASSOCIATIONS -
Federation Canadienne Des Associations De Proprietaires Immobiliers
February 24, 2005
For immediate release
Further wait for low-income renters
The CFAA regrets that the $1.5 billion promised for housing in the Liberal
election platform was not earmarked in yesterday’s federal budget. “Too many
tenants do not earn enough income to pay for their rent and other necessities
too. Through our government, Canadians need to provide low-income citizens with
assistance that is immediate and cost-effective,” says John Dickie, President of
the CFAA.
The CFAA applauds the announcement that current federal housing money may now be
used to supplement rents, rather than being limited to the construction of new
social housing.
The CFAA is a strong proponent of government putting money towards direct
assistance to low-income renters rather than building new social housing units,
and encourages the Federal Government to allocate federal housing money in the
2006 budget for such assistance.
Whether in the form of rent supplements or portable housing allowances, direct
assistance to low-income renters is the single most cost-effective way to reduce
housing affordability problems. When they use the existing stock of private
rental homes (often 10 or 20 or 30 years old), government programs avoid the
high costs that come with building brand-new social housing.
For the cost of building and subsidizing one new "affordable" social housing
unit, the government can give long-term, effective help to between two and eight
families through rent supplements or portable housing allowances.
Portable housing allowances allow renters to choose the accommodation that best
suits them and their needs and budget. That may be right where they live now,
since between 75% and 92% of so-called housing problems are only due to the gap
between renters' current housing costs and 30% of their income, rather than
anything to do with the housing itself, such as unit size or quality.
In the 2006 budget, we look forward to the government implementing the Liberal
Party's campaign promise of $1.5B for housing assistance over the 4 years
starting then. By supplementing rents, housing assistance can be given quickly
and effectively to many more people who need the help, at the same cost to the
Canadian taxpayer. “That is the win-win approach to dealing with the housing
affordability problem," says John Dickie, President of the CFAA.
Return to PPMA Articles