Practical Strategies for Austere times: Effective Partnerships to Build Homes in York Region

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This presentation provides effective strategies for housing in times of austerity. Michael Shapcott, Director of Housing and Innovation www.wellesleyinstitute.com Follow us on twitter @wellesleyWI

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Practical strategies for austere times:

Effective partnerships to build homes in

York Region

Michael ShapcottThe Wellesley InstituteHSBP-YR, June 2012

Effective partnerships:

Who, what, when?

We live in a complex world...

...where everything is connected to everything else

Beware of magic

bullets...

...and ‘one-size-fits-all’ solutions

We need new tools to understand complex systems, and the impact of interventions

Wel

lesl

ey U

rban

H

ealth

Mod

el

Bad housing makes you sick!Homelessness:

Increased morbidityIncreased premature morality

Mental health:Alarming rates... especially

Clinical depression and anxietyControl / meaning Collective efficacy

Homelessness:Increased morbidity

Increased premature morality

Homelessness:Increased morbidity

Increased premature morality

Biological / physical:Chemicals, gases, pollutantsDesign (accidents) / crowdingSocio-economic:

Affordability / energy Transportation / income / jobs

Contextual:Individual / neighbourhood deprivation

networks / friends / crime

Good housing good for health!Physical and mental health:

Better health outcomes / decreased health care utilization

Community safety:Reduced recidivism among people leaving incarceration

Affordability interventions:Income-based housing subsidies

Environment / physical infrastructure: New housing, repairs, heating, noise,

indoor + outdoor environmental issues,allergens, water + sanitation

Researchers, analysts,

evaluators:Moving from outputs to outcomes

Four observations:

1. Housing insecurity deep / persistent2. Costly to people, communities,

economy, government3. Federal housing / homelessness

investments eroding4. No comprehensive national plan

On any given night in Canada, for every one

person sleeping in a shelter, there are 23 more people living

with housing vulnerability.

They are all at risk of devastating health

outcomes.- REACH3

Canada hasn’t forgotten how to build homes...

...we’re not building right mix of homes

“After 20 years of continuous decline, both inequality and poverty rates have increased rapidly in the past 10 years,

now reaching levels above the OECD average.”OECD (2008), Growing Unequal? : Income Distribution and

Poverty in OECD Countries

Selected policy recommendations for OECD countries from Divided We Stand •Reforming tax and benefit policies is

the most direct instrument for increasing redistributive effects. Large and persistent losses in low-income groups following recessions underline the importance of government transfers and well-conceived income-support policies. •The growing share of income going to

top earners means that this group now has a greater capacity to pay taxes. In this context governments may re-examine the redistributive role of taxation to ensure that wealthier individuals contribute their fair share of the tax burden.

‘Social spending in Canada relies more on public services (education, housing,

health, etc.) than on cash transfers, such as unemployment and family benefits.’

OECD, 2011

Inequality and private

housing markets

increasing out or reach95% of Canadians live in homes in private ownership / rental markets

For renters, average market rents are outpacing renter household incomes

Income, labour market, social and

community policies

When it comes to housing...

...money does make the world go around

Federal housing investments......as a percentage of GDP

Looking ahead: Federal housing investments will continue to shrink, and

number of subsidized households will fall

(millions)

2011 federal spending estimates

2010 2011 Change

Assisted housing

$1.722b $1.628b 5% cut

On-reserve $215m $156m 27% cut

Repair $674m $37m 94% cut

AHI $452m $16m 97% cut

Overall $3.131b $1.907b 39% cut

‘Scheduled termination’

Federal affordable housing initiative will ‘terminate’ in 2014 - along with federal homelessness program

(millions)

As federal housing investments are cut, annual ‘net income’ at CMHC is growing

(millions)

Ontario housing spending decliningMunicipal housing spending increasing

Recommendation 19-14: Ontario should negotiate with federal

government to commit to housing framework for Canada that

includes adequate, stable, long-term federal funding and

encourages housing partners and stakeholders, including municipal

governments, to work with federal government to secure this

commitment.  

Municipal Infrastructure About 40 per cent of public infrastructure in Ontario is owned by the province’s 444

municipalities. Assets include roads and bridges, water and wastewater infrastructure, transit systems, affordable/social

housing, solid waste facilities, public buildings, Conservation Authority infrastructure, and land... Municipalities are responsible for maintaining their infrastructure... The

province also has an ongoing obligation to help ensure the safety and sustainability of municipal infrastructure.

Don

Dru

mm

ond

http://www.caeh.ca/

Federal and provincial

governments

Can

ada’

s dy

nam

ic

com

mun

ity s

ecto

r

YWCA Elm Centre

Sprucecourt Apts 1914

Toronto

slum

s

tran

sform

ed into

good h

omes

Canada’s dynam

ic private sector

New expertise and intermediaries

required

Tax-

exem

pt

hous

ing

bond

s

Social impact bonds

Social finance, social innovation, new intermediaries

Urban planning, social planning

Putting it all together:The exciting part!

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