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CHRA responds to NB Auditor General's report on Social Housing viability

New Brunswick Auditor General Finds Province’s Social Housing at Risk with Federal Government Funding Ending – the Canadian Housing & Renewal Association asks: Will other provinces be equally hard hit?

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

Fast facts about Social Housing in New Brunswick:

 

  • New Brunswick currently has 13,157 social housing units throughout the Province
  • The federal government provided over $40 million dollars annually to New Brunswick for social housing as recently as 2002.  Since that time, funding agreements have begun to expire so that the current federal contribution to New Brunswick for social housing is $35 million annually.  By 2017, this will decline to $25 million, with all funding dried up by 2034.
  • The social housing stock is aging; the average age of the units owned and managed by the Province is 40 years.
  • There are approximately 4,200 people on the wait list for social housing in New Brunswick.
  • Social housing agreements, which have funding attached to them, have already begun to expire in New Brunswick.  Large numbers of the agreements will begin to expire in 2020-21, with the last expiring in 2034.
  • Social housing provides affordable housing to low-income families, individuals and seniors. This is accomplished by subsidizing rental accommodations; tenants pay rent based on their income.

 

What is CHRA doing to address this?

 

  • There are over 600,000 households living in social housing across Canada.  That New Brunswick’s social housing stock is in need of repair and ongoing support to continue to provide affordable rental accommodation is a situation that is similar right across the country.
  • The report “Courage Under Fire” was jointly produced in 2010 by CHRA and the Housing Services Corporation. It demonstrates the serious challenges social housing providers from right across the country are having as funding from the federal government ends.
  • Ensuring that there is continued funding from the federal government to support social housing is a top CHRA priority.  We are currently putting together an expert group to further press the federal government into action on this important issue.  Contact us to learn more or to get involved.
  • CHRA is working with provincial non-profit housing associations, including the New Brunswick Non Profit Housing Association, to develop a tool which will help social housing providers understand the scale and nature of the situation they will face when their federal funding ends.  Look for this to be available in the spring of 2012.
  • CHRA Congress 2012 in St John’s, NL will include a workshop on sustaining the social housing stock. Click here for more information

Related: A Crisis in Social Housing by Randy Hatfield, Human Development Council

Related: From stable to critical condition Commentary by Timothy Ross

A word from our President

Another year has flown by as it is difficult to believe the Holiday Season is just around the corner. It seems we just closed the books on our Edmundston conference and we have begun planning for Fredericton in 2012. I am very excited about this conference as it will no doubt build on the momentum we have achieved in the past few years- we hope for an all time record attendance. This is our flagship venture each year and we want it to be what you want it to be so I sincerely encourage all member groups to send at least one or 2 delegates. There will be enough variety on the program to make it a worthwhile event for everyone.

In October, the Board of Directors had a very productive and informative visit with Karen Stone, Executive Director, BC Non-Profit Housing Association. Her Association was most generous as they sponsored her visit to New Brunswick to discuss the important work in the non-profit housing sector underway in both provinces. The driving philosophy is that the non-profit housing sector across Canada must work together in the years ahead as we are stronger and more sustainable as a group. Granted there are differences between BC and New Brunswick but in reality we share many of the same issues and characteristics, including, many member groups are small and are in rural areas, maintaining long term sustainability and affordability after agreements expire is an issue, regeneration of our volunteer base is always a concern, tenant populations are shifting and the stock is aging with growing repair needs. Thus there is much we can learn by sharing ideas and experiences.

There are some initiatives in BC which we are exploring to possibly pursue here so we will be developing these ideas with help from some of our members. We are looking at other options to generate revenues for the Association, strategies for our non-profit groups to be sustainable over time and new ideas for member services programs. We will advise when we have more detailed plans fleshed out. In addition to meeting with our Board, we arranged meetings for Karen with officials from Social Development, a small group of Association members and the Fredericton Affordable Housing Committee. She was impressed with the knowledge and expertise of the housing players here. Again, a huge thank you goes to BCNPHA for facilitating this exchange of ideas.

Also at the Board Meeting we acknowledged the 30 years of great work Housing Alternatives has accomplished in Saint John over a 30 year period. Executive Director, Kit Hickey, gave a presentation on the group’s work with a focus on its strategic moves to remain sustainable over the long term. Congratulations on a job well-done!

The recent signing of the Affordable Housing Agreement is welcomed however we understand the money attached to it is small thus we need to continue our efforts to lobby the federal and provincial governments to provide stable and long-term housing funding at levels in keeping with the great need for affordable housing. We must continue to promote the “housing first” concept. When a person in poverty is provided an affordable home then he (she) will become healthier, better educated and better employed. This is a very important message to decision–makers now when governments are looking for cost-saving measures. Investments in housing are fiscally sound as these expenditures can help lessen health and other social costs as the affordable housing response is much more cost-effective than other responses to serving those in need such as hospitals, institutions, shelters and prisons. Housing investments make good fiscal policy. Meet with your MP’s and MLA’s and send them this message.

In the last newsletter I said farewell to some of our long time partners at Social Development. I can report that our partnership with the department remains strong as we continue to enjoy a strong working relationship at both the Central and Regional Office levels. Deputy Minister Edith Doucet and her staff appreciate the value of the work of our members in 115 communities in the province and thus values our partnership. We are partners in every sense of the word. Having said that, if you have any questions or concerns please do not hesitate to speak up by contacting me or your regional Board member or Gary Glauser in the Executive Director’s Office.

On behalf of the Board of Directors, I wish you and your families a very peaceful and relaxing holiday season and the very best for a most productive 2012.  I am looking forward to seeing you all in Fredericton next May.

 

Ron Steeves, President

Conference Update 2012!

Our 2012 annual conference will be held at the Delta Hotel in Fredericton May 10 -12, 2012. Our conference planning committee has begun planning and many great ideas have already been exchanged. We can assure all our members that the goal of the committee is to deliver the best conference ever!

The conference will open on Thursday, May 10 at 7:00pm with the Official Opening and reception. This year we will not be having the education courses on the Thursday as regional training workshops this fall are being pursued instead in 4 of our regions. Delegates will also have the option of participating in a tour of affordable housing projects on the Thursday afternoon so stay tuned for details. On the Friday we will have a Keynote Speaker and workshops, followed by our annual dinner, the Volunteer of the Year award and project recognitions. Hopefully we will have Minister Sue Stultz bringing greetings at the dinner. Saturday morning will open with your regional meetings followed by the Annual General Meeting.

Make plans NOW to attend two great days of learning and information exchange as you will return home better equipped to continue to play your VERY IMPORTANT role in affordable housing in your community!

You may be sure that our usual partners, Social Development, Canadian Housing & Renewal Association, Canada Mortgage & Housing Corporation and local housing groups will play key roles in making our conference a success! We welcome the City of Fredericton as a major sponsor and participant.

Invitations will be sent out  late in January /early February 2012. You will be able to register online or by mail. Our web site will contain updates on the conference.

See you ALL in Fredericton on May 10!

Canada-New Brunswick Housing Agreement Signed

On November 9, Sue Stultz, Social Development Minister and Keith Ashfield, Federal Minister of Fisheries and Oceans, signed the latest affordable housing agreement which will see $47 million in funding for all housing programs to help reduce the number of households in need in New Brunswick. It represents a 3 year commitment to provide funding for new affordable housing and renovations to 2014.

We are happy the agreement has finally been signed and we will work with Social Development officials to provide details on housing program appropriations which will include new construction and renovation options.

New Housing announced; Official Openings

On November 28, 25 units of seniors housing were opened in Tracadie-Sheila. Habitation St. Joseph Inc. received $800,000 in federal economic stimulus funding as well as $1.6 million from the province to supply rent supplements on 20 of the units.

In conjunction with the signing of the Canada-New Brunswick Housing Agreement, the John Howard Society project, Flanders Court Residences in Moncton was officially opened. The 10 unit project serving low income singles and persons with disabilities, received assistance under the Affordable Rental Housing Program.

On November 18 Minister Stultz and Rodney Weston, MP for Saint John, announced $1.2 million in support under Canada’s Economic Action Plan for a 60 unit seniors project in Saint John. The project is part of an overall plan to revitalize the Crescent Valley area of the city. Half of the units will benefit from Rent Supplements from the province to be able to serve low income clients with the other 30 units at market rent levels.

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CHRA responds to NB Auditor General's report on Social Housing viability

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New Brunswick Auditor General Finds Province’s Social Housing at Risk with Federal Government Funding Ending – the Read More...

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Our 2012 annual conference will be held at the Delta Hotel in Fredericton May 10 -12, 2012. Our conference planning committee has begun planning and many great ideas have already been exchanged. We can...
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PO Box 595 Station A, Fredericton, New Brunswick Canada, E3B 5A6

Telephone: 506-451-4772

Fax: 506-459-1577

Email: nbnpha@nbnet.nb.ca