What is Affordable Housing?

Affordable Housing refers to adequate shelter that does not exceed 30% of household income. Thirty percent of income is an established norm for the percentage of gross income that low- or moderate-income households can afford to spend on shelter, while leaving enough for taxes, food, clothes, transportation, and other necessities. Canada is experiencing a nation-wide affordable housing crisis, as rental apartments are not affordable for the average worker or family.

In addition to the affordability standard of 30%, the Canada Mortgage and Housing Corporation (CMHC) includes standards for adequacy (the housing does not require major repairs) and suitability (the housing is sufficient in size and has enough bedrooms) when evaluating a household’s situation. Households are said to be in "core housing need" if their housing falls short on either one of the suitability, adequacy or affordability standards and if they would have to spend 30% or more of their income to pay the average rent on alternative local market housing that meets all three standards. 

Consumers, housing providers and advocacy organizations use a broad definition of housing affordability. In many instances, affordable housing describes any shelter that adequately suits the needs of low- and moderate-income households at costs below those generally found in the housing market. It may take a number of forms that exist along a continuum – from emergency shelters, to transitional housing, to non-market rental (also known as social or subsidized housing), to formal and informal rental, and ending with affordable home ownership.

SUPPORTIVE HOUSING

Supportive housing is broadly described as any housing options that fill the wide gap between independent living in the community and dependent living in an institutional setting. It is permanent (no limit or length of stay) affordable housing, in any housing configuration (high-rise, single, low-rise, etc.), with some form of care component that is designed to help people maintain their housing. It includes a cost-effective combination of affordable housing and services that help people live more stable, productive lives.

NIMBY (NOT IN MY BACKYARD)

NIMBY, an acronym for "Not In My Backyard," describes the phenomenon in which residents of a neighborhood designate a new development (e.g. shelter, affordable housing, day centre, etc.) or change in occupancy of an existing development as inappropriate or unwanted for their local area. Even if the development is clearly a benefit for many, there is often opposition to affordable, supportive or transitional housing projects, based on the characteristics of the people who will be living in the developments.

(Definitions adapted from www.homelesshub.ca)

BENEFITS TO THE COMMUNITY

• Affordable housing is good for families. Well-kept, reasonably priced housing provides children with a safe and healthy place to live. Children who grow up in stable housing are more successful in school, and are physically and socially healthier.
• Without affordable housing, families are forced to pay more than 30% of their income for housing or live in overcrowded, substandard conditions. Lack of affordable housing is a major cause of stress in families.
• A lack of affordable housing stifles economic growth, creates worker stress, and generally impacts the quality of life in our community.

Even if you don’t need affordable housing yourself, the problem can still affect you directly –

• People with fixed incomes can feel secure about affording their living situation (ie.  retired persons who receive a pension).
• Think about all the people in your day that probably work for minimum wage. These workers have to spend 45% of their income to rent an average one-bedroom apartment in Fredericton (plus bills).
• Our community can’t operate without people working in all sectors.  Affordable housing provides the opportunity to all people working in Fredericton to live in Fredericton.
• If people have to travel an hour to work, they don’t have time to be involved in their communities.