The Office of the Auditor General of New Brunswick recently examined the Province’s social housing stock in order to assess whether it can be maintained as the funding provided by CMHC to support social housing is expiring.
The Auditor General’s findings were grim. The report assessed that the sustainability of social housing in New Brunswick is in question, even though more affordable housing is needed than what’s available now.
The social housing stock is at risk because of several factors:
The federal funding for social housing is already declining and will fully end in 2034. Funding is split between the Province, which operates publicly owned social housing, and non-profit organizations, which also owns and operates social housing. Once this funding ends, the full responsibility for supporting publicly owned social housing will fall to the Province. Funding for non-profit organizations that provide social housing will end entirely. Non-profit organizations provide about 35% of all the social housing in New Brunswick.
The federal government has made no commitment to renew funding for social housing, even though it is already expiring. The impact will be felt soon; the Auditor General noted that by 2019/20, expenditures to the Province for social housing will exceed revenues by almost $50 million per year. The Auditor General noted that this gap will require that either the Province pick up the slack entirely, that the federal government provide funding or that social housing programs are eliminated.
The social housing stock is very old, so modernizing and repairing it will be expensive, even though that is the only way to protect the joint public investment of CMHC and the Province. Based on current spending levels, the Auditor General estimated that by the time the last funding agreement expires in 2034, the condition of the buildings will be considered too prohibitive to repair, with social housing for rural and aboriginal communities in the worst condition of all.
However, positive actions to-date have made a difference: In the last three years, $51 million was invested in social housing repair in New Brunswick as part of the federally-led economic stimulus efforts. While this funding helped ensure the units meet an acceptable standard of health, safety and security for the residents, as the Auditor General underscored, much more is needed. But the $51 million is an example of the kind of joint efforts that will ensure this important investment we have all made - social housing - can continue to support families and individuals in need for years to come.
Click here to read the full Auditor General’s report
Related: A Crisis in Social Housing by Randy Hatfield, Human Development Council
Related: From stable to critical condition Commentary by Timothy Ross