CHRA Makes Practical Suggestions to Finance Committee on Budget 2012
August 19, 2011
On August 12, 2011, the Canadian Housing & Renewal Association, on behalf of its members, made a submission to the House of Commons Standing Committee on Finance for the federal pre-budget consultations.
In response to the requirements of the Standing Committee, CHRA’s submission focused on the role of housing in economic recovery and job creation; and not on other reasons for investing in affordable housing, such as better health outcomes or adherence to international human rights obligations.
Click here to download the full submission.
Click here to download our one-page Facts & Figures document.
Summary of CHRA Submission:
The budget 2012 inclusions that will put Canada’s housing situation on the right track
A strategic approach with long-term, predictable and sustainable funding is needed to prevent the demonstrated costs of inaction when Canadians can’t secure affordable, safe housing. With this as the overall goal, and building on existing federal investments that have made a difference, the following outlines three pragmatic and cost-sensitive requests for budget 2012:
1. Enable social housing providers to undertake the repairs, renovations and retrofitsnecessary so that they can continue to offer affordable rents once the subsidies they receive from the federal government end.
- Social housing operating agreements are beginning to expire and many housing providers will not be able to keep their rents affordable for the more than 600,000 households they currently serve; because, even if rents in some cases can initially remain geared-to-income, without federal support, rental revenue (which is, by definition, low) is likely to be insufficient to pay for capital and maintenance requirements on an ongoing basis.
- Given this situation, a time-limited fund for social housing renovation could be implemented. This fund could be executed without any additional cost - due to the considerable reduction in federal expenditures on social housing that will take place as agreements expire. This fund would create jobs, ensure affordable housing isn’t lost and improve energy efficiency outcomes.
2. Provide incentives for developers to build rental units,particularly those offered at or below average market rent in order to address the insufficient number of rental units across the country.
- An initiative could be developed wherein CMHC would offer low-interest loans for investors building purpose-built rental units. Further incentives could be offered for rental properties that commit to moderately priced rents. With minimal administration costs, this could be undertaken at relatively little cost. This fund would both create jobs and make housing more affordable.
3. Existing housing and homelessness programs (Homelessness Partnering Strategy, Affordable Housing Initiative, CMHC renovation initiatives and ecoENERGY Retrofit-Homes program) have made a difference – but more needs to be done; these programs should be bolstered and extended.
- Annual funding should be doubled and extended until 2017 so that together, they would be valued at $787.9 million.
If implemented, these proposals would stimulate the economy, create jobs, make housing more affordable and improve energy efficiency outcomes.