National Housing and Homelessness Network

For immediate release                                                                                                 
May 14, 2002

Six months after Quebec City summit:

One Percent Solution more affordable,
and more necessary, than ever

The federal government has said that its commitment of $136 million over five years is the “first step” to meeting the nation-wide housing crisis. But six months after it signed the Affordable Housing Framework Agreement with the provinces and territories, the federal government is still struggling to roll out the modest terms of that deal. The federal commitment in Quebec City is a mere 7% of the $2 billion target set by the One Percent Solution, the national campaign for a fully-funded national housing program that has been endorsed by hundreds of national, provincial and local groups and thousands of individuals.

The target of $2 billion in new housing spending is more affordable than ever. Two billion dollars is two-thirds of the one-month federal budgetary surplus of $3.1 billion in February. The current annual federal surplus is estimated by the Department of Finance at $14.7 billion.

 Federal housing commitments

 One Percent Solution

 Notes

$136 million annually for five years (first announced in 2000 election, then again in 2001 federal budget, at July 2001 FPT housing ministers’ meeting and finally committed at November 2001 FPT meeting in Quebec City).

7% of One Percent Solution. 

$2 billion annually over an extended period of time.

Federation of Canadian Municipalities target:

700,000 units over 10 years (20,000 new construction, 10,000 rehab and 30,000 rent supplements each year)

In 2001, Canada’s rental vacancy rate was the worst since current measurement started in 1987. The year 2000 was previous worst record. Two back-to-back “worst-ever” years is clear sign of national crisis.

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

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