National Housing and Homelessness Network

For immediate release                                                                                    
May 14, 2002

Province-by-province update:
Nine of ten fail to make the grade

All ten provinces signed the Affordable Housing Framework Agreement in Quebec City in November of 2001. The federal government agreed to provide $680 million over five years for new affordable housing. The provinces agreed to match the federal funds, although the Quebec City deal gives them “wiggle room” to get credit for spending by third parties.

ONLY QUEBEC HAS FULLY MATCHED FEDERAL FUNDS: All ten provinces agreed to provide matching funding, but only Quebec has met this commitment. B.C. said it would match federal funds, but provincial housing cuts means there will be little or no net gain of new units.

ONLY QUEBEC AND B.C. HAVE SIGNED AGREEMENTS: All ten provinces agreed that there was an urgent need to act quickly. Six months later, only two have signed bilateral deals.

FIVE OF TEN PROVINCES HAVE CUT HOUSING SPENDING: All ten provinces agreed that new affordable housing is an urgent priority, but Alberta, Saskatchewan, Manitoba, Prince Edward Island and Nova Scotia have all made cuts to provincial housing spending, according to Estimates tabled by the provinces along with their most recent provincial budgets. British Columbia and New Brunswick are maintaining current spending, while only Quebec and Newfoundland are increasing spending. Ontario hasn’t released its 2002-2003 budget, but since the province downloaded the entire cost of housing programs to municipalities in 1998, the province spends practically nothing on new housing. And that is not expected to change.

THE BOTTOM LINE: All the provinces said there was an urgent need to take action, but only two have signed bilateral deals six months after the Quebec City housing summit. All the provinces agreed to commit substantial funds to new affordable housing for low and moderate-income households, but every province – except for Quebec – has failed to commit substantial new funds. Five provinces are planning major housing spending cuts, which means that there will be a net loss of housing funding in those provinces, despite the commitments made in the Affordable Housing Framework Agreement in November of 2002.

For more information, contact the National Housing and Homelessness Network at 416-599-8372. 

Province

 Matching funds

 Signed deal

Comments

Quebec

 

 Yes. The Quebec government is committing $105 million and Quebec municipalities will contribute another $57 million. In addition, Quebec has extended its provincially-funded Access Logis program for another five years.

Quebec has set the lead by immediately committing a matching share of federal funding, and adding its own.

 Yes

 Despite this strong commitment, hundreds of families will be homeless this summer as the Quebec housing crisis outpaces the funding for new housing.

Rapid drop in rental vacancy rates in Montreal, Quebec City, Hull, Sherbrooke signals a serious crisis. 

 British Columbia

 

 Yes, but. . . the province is only adding $4 million to existing housing spending of $136.5 million, despite its promise in Quebec City to provide an additional $17.75 million annually. B.C. will have to cut even more existing spending to come up with its matching share.

B.C. is closing provincially-funded care facilities and moving residents into an already critical rental housing market.

While the B.C.-federal agreement is supposed to fund up to 3,500 new units over five years, all or most of those units will be taken by people who are losing their beds in provincial facilities, leading to no net increase in affordable housing.

Meanwhile, 1,000 units already approved for development have been shelved by the B.C. government. 

 Yes

Victoria has the worst rental housing market in the country. Vancouver is not far behind.

The B.C. government is using the old provincial gambit of taking federal funds to replace provincial spending that it is cutting.

  B.C. is using housing dollars to pay for the shortfall in health care spending, pitting the needs of frail elderly seniors against poor families, singles, people with disabilities, Aboriginals and newcomers.

Alberta

 

No matching funds committed. Alberta cut seniors, family and special purpose housing spending by $22 million (13%) to $157 million in 2002 Budget, with a further cut of $10.6 million next year. Alberta cut $50 million in lottery funds that helped, among others, housing and homelessness initiatives.

The latest cuts come on top of $93.2 million in previous cuts. From 1993 to 1999, Alberta cut housing spending by 67% - the biggest drop by any province. 

No

Alberta has one of the worst rental markets in the country, with vacancy rates at the crisis level in Calgary, Edmonton and other centers, and annual rent increases running at close to 9% in Edmonton.

Saskatchewan

 

No matching funds committed. The province has cut $2.7 million from housing spending, down to $33.5 million in 2002-2003.

 

 No

 

Manitoba

 

No matching funds committed. The province is making an 18% cut in housing spending, down to $35.6 million in 2002-2003.

 

 No

 

Ontario

 

Limited matching funds committed.

Ontario has only offered $20 million to date - about 8% of its matching share of $245 million.

No new housing funds are expected in 2002 provincial budget, which will be delivered in May or June.

Ontario cut $304 million from provincial housing spending from 1993 to 1999.

 No

Ontario wants housing developers to provide significant equity, which could block co-ops and non-profits from participating. The province may raise other barriers to prevent non-profits and co-ops from accessing the housing funds.

New Brunswick

 

No matching funds committed. The 2002-2003 budget sets housing services increase at less than 1%.

The budget did deliver $110 million in personal tax cuts and $31 million in corporate cuts and a surplus of $21.3 million. 

 No

The four Atlantic provinces want a common deal with Ottawa that would flow most of the funds into rehab of existing units, rather than new construction.

 

 Prince Edward Island

 

No matching funds committed. The 2002-2003 budget calls for a slight decrease in housing spending.

 No

See note on New Brunswick.

Nova Scotia

 

No matching funds committed. The 2002-2003 budget calls for a huge 25% cut in the housing spending from $18.2 million in 2001 to $13.7 million in 2002.

 No

See note on New Brunswick.

Halifax vacancy rate fell from 7.7% in 1997 to 2.8% in 2001, signalling a crisis in new supply. 

 Newfoundland

 

No matching funds committed. The 2002-2003 provincial budget sets a 10% increase in the Newfoundland and Labrador Housing Corporation budget to $10.1 million.

No

See note on New Brunswick.

St. John’s vacancy rate fell from 16.6% in 1997 to 2.5% in 2001, signalling a crisis in new supply. 

For more information, contact Toronto Disaster Relief Committee -- the secretariat for the National Housing and Homelessness Network at 416-599-8372 or by email at tdrc@tdrc.net

Back to "Where's the Housing?"