The Corporation of the City of Brampton Council 2010... · 2011, be forwarded to the Council of the Regional Municipality of Peel for . information. Introduction: The Federation of

The Corporation of the City of Brampton

BRAMPTON CITY COUNCIL

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Susan Fennell

Mayor

Date Thursday September 15 2011

Subject Federation of Canadian Municipalities (FCM) National Board of Directors Meetings - September 7 - 10 2011

OVERVIEW

bull As the Region of Peel representative to the FCM National Board of Directors Mayor Susan Fennell participates in Committee meetings as well as presides as Chair of the Ontario Regional Caucus and an Executive on the National Board

bull Mayor Fennells participation at the FCM National Board meetings provides the opportunity to advocate for Region of Peel and City of Brampton priorities at the Federal level

bull This report provides the highlights of the meetings of the FCM National Board of Directors meeting held in Nelson British Columbia on September 7-10 2011

Recommendation

1 That the report from Mayor Susan Fennell dated September 15 2011 re Federation of Canadian Municipalities (FCM) National Board of Directors shySeptember 7-10 2011 be received and

1 That the report from Mayor Susan Fennell dated September 15 2011 re Federation of Canadian Municipalities (FCM) National Board of Directors - September 15 2011 be forwarded to the Council of the Regional Municipality of Peel for information

Introduction

The Federation of Canadian Municipalities (FCM) held its National Board of Directors meetings in Nelson British Columbia on September 7-10 2011 Mayor Fennell attended the Board Meetings in her capacity as Peels representative to the National Board of Directors and presides as Chair of the Ontario Regional Caucus This report provides the highlights of the various committees that make up the National Board meetings

Mi-3 Highlights of the National Board Meetings

Executive Committee amp Standing Committee Chairs As Chair of the Ontario Caucus Mayor Fennell is a table officer for the Executive Committee of the National Board of Directors Mayor Fennell attends this informal meeting of the Executive Committee and Standing Committee Chairs to receive a high level overview of the sessions to be held over the next few days Each Standing Committee Chair gave a quick verbal update of their meetings agenda

Committee of the Whole

The FCM President Councillor Berry Vrbanovic welcomed the delegates to the Board of Director meetings As this was the first meeting of the new board members that were elected at the AGM in June the President gave an overview of the National Board meetings and roles and expectations for board members

The President made a tribute to the late Honourable Jack Layton Leader of the NDP and the Official Opposition for the Federal Government A moment of silence was observed

Brock Carlton CEO provided an overview of FCMs fall advocacy objectives Federal Budget 2012 - FCMs Pre-budget Draft Submission Organizing a Municipal Infrastructure Forum as part of the governments new long-term infrastructure investment strategy Release of FCMs Report on the Municipal Role in Immigrant Settlement Presidents cross country tour to consult with stakeholder groups on policing matters Setting committee priorities New strategic plan Launch of FCMs new web site

Ontario Regional Caucus meeting

Mayor Susan Fennell chairs the Ontario Regional Caucus The minutes of the meeting are attached to this report as Appendix 1

Standing Committee on Municipal Finance amp Intergovernmental Arrangements Mayor Susan Fennell is a member of this Standing Committee The focus of this meeting was to consider the policy and advocacy priorities which were developed from feedback at Annual Conference

The Standing Committee agreed to the following priorities for the upcoming year bull Prepare a State of the Cities and Communities Report for the 2012 Annual

Conference

bull Continue to advocate for Payments in Lieu of Taxes bull Develop a terms of reference for a research paper on the Municipal Role in

Attracting International Investment

tft-3 The Standing Committee received an update on the Comprehensive Economic Trade Agreement (CETA) A special meeting with the Honourable Ed Fast Minister of Trade and the committee members was scheduled for the next day to discuss municipal interests with the trade agreement The Committee members reaffirmed the need to stay vigilant and adopted an additional recommendation to call on the Department of Foreign Affairs and International Trade (DFIAT) to provide analysis of the municipal impacts of the procurement thresholds

Standing Committee on Increasing Womens Participation in Municipal Government Mayor Susan Fennell is a member of this Standing Committee The Standing Committee reviewed the recommendations on the policy and advocacy priorities that were put forward at Annual Conference

It was endorsed that the following policy areas would be the focus of the Standing Committees advocacy work for this year

bull Continue promoting womans participation to 30 in municipal government bull Continue to mentor young women into local government through the Protege

program

bull Continue with the Scholarships and Awards programs bull Continue with International Partnerships on Gender-related Programs bull Explore longer term program funding options

The Standing Committee received four reports for information that provided updates on the Getting to 30 program the Ann McLean Award and the Mayor Andree Boucher Memorial Scholarship and the Protege Program

Also the Standing Committee received a report regarding International Partnerships and endorsed the staff recommendation to continue to collaborate with FCM International to mainstream gender-related issues through international and domestic programming and policy

Standing Committee on Social Economic Development Mayor Susan Fennell is a member of this Standing Committee The focus of this meeting was to consider the policy and advocacy priorities developed from feedback at Annual Conference

The following three (3) 2011-12 priorities were approved by the Standing Committee to dedicate most of its time and resources for the coming year

bull Immigration and Successful Settlement bull Canadas Aging Population bull Affordable Housing and Housing Affordability

Items related to Immigration and Successful Settlement FCM staff provided an update on the resolution Immigrant Settlement Services that was adopted by FCMs Board at the AGM in June The resolution calls on the Government of Canada to restore and increase funding for immigrant settlement services across Canada

tfl-lf The federal government has identified immigration policy as part of its overall economic development strategy tying Canadas immigration plan to our economic recovery

Committee members were informed that FCM will release a report on immigration which highlights howvital local services are to successfully attracting retaining and integrating immigrants into Canada and our communities Subsequent to the National Board Meetings the report Starting on Solid Ground The Municipal Role in Immigrant Settlement was released on September 14 2011 The media release and backgrounder to the report is attached as Appendix 2

Items related to Affordable Housing and Housing Affordabilitv The Standing Committee considered and endorsed a resolution encouraging the Canada Mortgage and Housing Corporation (CMHC) to amend its funding standards for Multi-Unit Properties to include properties with fewer than 50 units The resolution is attached as Appendix 3

The Standing Committee was provided with an update report on the state of the expired funding for the CMHC affordable housing programs FCM staff was directed to monitor the roll out of the bi-lateral agreements and assess each on their impact to municipalities and continue advocacy for long-term investments in affordable housing This report is attached as Appendix 4

FCM staff provided a research report on expanding affordable housing options through Public-private partnerships to better understand the variety of options available to address the issue of the lack of affordable housing The Standing Committee received this report for information The report is attached as Appendix 5

FCM Strategic Plan Consultation Session FCMs process to renew its Strategic Plan was launched at the Annual Conference The consultation session with the Board members focused on developing a good understanding of members interests and needs the major developments in the environment that will impact FCMs work and where FCM can have most impact in achieving their goals over the next five years

It is intended to have the core elements of the strategic plan approved by the Board of Directors at their meeting in March so that it can be presented to the membership at the Annual General Meeting next June 2012

Executive Committee

As Chair of the Ontario Caucus Mayor Susan Fennell is a table officer for the Executive Committee The Executive Committee previewed the reports of the table officers and emerging items prior to them being placed on the National Board of Directors meeting agenda for the next day

National Board of Directors

Mayor Fennell represents the Region of Peel as a Director for FCMs National Board The National Board of Directors discusses and approves the reports and related recommendations from the Executive Standing Committees and ProvincialTerritorial Causes and the Reports of the Table Officersat this meeting The highlightsof the National Board meeting are as follows

Reports of the Standing Committees

Standing Committee Chairs provided verbal summaries of the business conducted at each meeting and presented recommendations for the National Board endorsement

Reports of the Regional Caucuses

Regional Caucus Chairs provided verbal summaries of the business conducted at each meeting for the information of the National Board

Mayor Fennell provided a high level overview of the agenda items that were discussed at the Ontario Regional Caucus

In addition Mayor Fennell presented the report of the Big City Mayors Caucus (BCMC) on behalf of the Chair Mayor Gregor Robertson of Vancouver Mayor Fennell advised that the BCMC had agreed to establish four advocacy working groups to align with FCMs larger advocacy goals on Infrastructure Transit ampTransportation Policing amp Public Safety Affordable Housing and Public Engagement Appointed Co-chairs for each working group including Mayor Fennell as Co-chair of Affordable Housing will be meeting to develop terms of reference and work plans this Fall

Next Steps The next meeting of the FCM National Board of Directors is November 29 30 - December 1 2 in Ottawa The focus will be Advocacy Days and the development of FCMs Strategic Plan

X^u3gtrX^jlO Susan Fennell

Mayor

Appendices

Appendix 1 Ontario Caucus Meeting Minutes Appendix 2 Immigrant Settlement Report - Media Release and Backgrounder Appendix 3 Canada Mortgage and Housing Corporation Resolution Appendix 4 Update on CMHC Funding for Affordable Housing Programs Appendix 5 Report on Affordable Housing and Public-Private Partnerships

Report authored by D Reader

ttl-fe Appendix 1

Ontario Caucus Meeting Minutes

rtl-1

Federation Of Canadian Municipalities Board of Directors

Meeting of the Ontario Caucus

Nelson British Columbia September 82011

Draft Minutes

1 Call meeting to Order

bull Mayor Fennell welcomed the new caucus members to the meeting and thanked the caucus for returning her as Chair for the 2011 -2012 term at the FCM conference when she was absent due to convalescence

following her surgery

bull The Vice Chair Lynda Rydholm was unable to attend due to family matters and the Caucus sends their heartfelt wishes to Linda and her

family at this time

2 Moment of Silence for Hon Jack Lavton

bull Councillor Pam McConnell shared the memorial events that took place at the City of Toronto and with FCM to pay tribute to Jack Layton

bull The caucus observed a moment of silence

3 FCMs Draft Pre-Budaet Submission

bull Barry Vrbanovic President provided an overview of the priorities in the draft budget submission

bull The caucus discussed the budget priorities and raised concerns regarding

o The process in Ontario for a more equitable distribution of funding for housing that would recognize municipal priorities and authority the maintenance and costs of aging infrastructure and income distribution concerns It was noted that a model similar to the

TorontoAMOFederal government agreement for the distribution of the Gas Tax should be considered for housing

+ii-r

That the budget documents acknowledge the increased funding contributions that have been provided to municipalities from the current government

It was agreed that the Ontario caucus members would bring these comments forward to the various standing committee discussions for inclusion in the Budget document

4 AMO Update

bull Councillor Peter Hume AMO Past President provided an update on o The activities through their MOU on CETA to advocate FCMs

principles to protect municipal interests in the trade agreement

o On-going efforts to advocate Ontarios 12 Top Priority Asks during the Provincial election

o Continued monitoring of federal issues and FCM priorities such as housing and align them with their advocacy efforts to the Province

5 Bill C615 National Transit Strategy

bull Councillor Harold Usher London brought the private members Bill to the attention of the Ontario caucus for discussion

bull The caucus was advised that FCM is in receipt of the MPs letter requesting for support for this bill and will be preparing an appropriate response on behalf of the organization

6 Strategic Planning Process

bull President Barry Vrbanovic highlighted the opportunities for caucus members to participate in the strategic planning process over the next couple of days

7 New Business FCM Resolution Endorsement of Anaphvlaxis Motion

bull Chair Fennell brought the resolution from the City of Vaughan to the attention of caucus for discussion

8 New Business Provincial Election Advocacy

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bull Councillor Clark Somerville shared the strategies that the Region of Halton Hills have prepared on their web site to promote municipal priorities during the Provincial election

9 Next Meeting and Adjournment

bull Chair Fennell reminded the caucus of the change of the next meeting to November 29 30 and December 1 2

bull Next Ontario Caucus conference call on November 17

JT m 10 Appendix 2

FEDERATION FEDERATION

bullNAD IAN CANAOIENNIFCM MUNICIPAI ITifS MUNICIPAL I

LACK OF AFFORDABLE HOUSING AND EFFICIENT TRANSIT BARRIERS TO SUCCESS OF IMMIGRANTS AND THE ECONOMY

OTTAWA-The lack of affordable housing and access to efficient public transit and community services are significant barriers to the success of new immigrants and the Canadian economy says the Federation of Canadian Municipalities (FCM) in a report on Canadas immigration system

To keep its economy strong Canada needs an immigration strategy that meets growing on-the ground challenges and gives cities and communities a seat at the table said FCM president Berry Vrbanovic Without a decent place to live an affordable and reliable way to get to and from work and access to front-line community services immigrants will continue to fall behind and Canada will not meet its economic and social objectives

According to FCMs report new immigrants are falling behind other Canadians in their income and job opportunities Overcrowded road and public transit systems are crumbling and a growing shortage of affordable housing threatens to price more immigrants out of the regional labour markets where they are needed most Ottawas language and job-training programs are falling behind changing settlement patterns leaving communities big and small without the resources to meet changing local needs

Municipalities are the front-line first-responders for many immigrants needs yet we collect just eight cents of every tax-dollar paid in Canada and have been given no formal role in developing federal immigration policies and programs said FCM vice-president Claude Dauphin The federal government must recognize municipalities as key partners in immigrant settlement and work with us to tailor solutions to local needs

FCM called on the federal government to protect long-term investments in communities including more than $500 million in annual housing investments scheduled to expire during the next decade protect and build on recent investments in Canadas infrastructure and public transit work with municipalities provinces and territories to design longer-term settlement programs that respond better to changing local needs and collect data on immigrants needs and report back to Canadians on the results

-30shy

For more information please contact

Mouktar Abdillahi Media Relations Officer 613-907-6395

The Federation of Canadian Municipalities (FCM) has been the national voice of municipal government since 1901 FCM represents with close to 90 per cent of the Canadian population - close to 2000 municipal governments across the country

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Starting on solid ground the municipal role in immigrant settlement

Report Overview

Our economy Canadas economic future is tied directly to our ability to successfully attract and retain new immigrants Every immigrants arrival is an economic and social investment in our future

Effective efficient settlement of new immigrants is essential to filling gaps in our workforce and ensuring that Canada remains a destination of choice for skilled workers around the world The sooner newcomers can establish themselves in our communities and contribute their skills to our economy the better off everyone will be

In recent years new immigrants have struggled They are falling behind the rest of the country in terms of income and job opportunities Many will never catch up

The municipal role Getting immigration policy right has never been more crucial to the success of Canadians this country and the communities we live in Locally delivered services such as housing public transit recreation and library services play a key role in helping new Canadians succeed As well these services help create quality communities that attract and retain newcomers

Municipalities are the front-line first responders to many immigrants needs - yet have been given no formal role in developing federal immigration policies and programs

In 2010 Canadas cities and communities welcomed a record 281000 permanent residents and an additional 278000 temporary workers and students To give these new Canadians every opportunity to become successful contributing members of our cities and towns we need to engage the municipalities they are coming to

Access to adequate housing and reliable public transit are just two examples of the critical municipal services newcomers demand These services are also integral to our economic growth Traffic gridlock and a crumbling transportation network are the greatest barriers to growth in the Greater Toronto Area the top destination for new immigrants to Canada

Growing challenges Housing affordability is a problem facing cities and communities across the country Without stable housing immigrants and their families have a harder time finding jobs and enrolling in school Nearly one-half of recent immigrant renters live in core housing need (paying more than 30 of income on housing)

Hi-ia New immigrants are also taking longer than previous generations of immigrants to catch up to their Canadian-born counterparts Immigrants with university degrees earn less and are more than twice as likely to be unemployed than Canadian-born university graduates

Successful recruitment efforts by smaller cities and towns and a shift in settlement trends toward the suburbs demonstrate how immigration helps our economies and communities grow Still Ottawas language and job-training settlement programs are falling behind these changing settlement patterns Communities big and small are left without resources to meet shifting local needs

Municipalities collect just eight cents of every Canadian tax dollar They do not have the long-term funding tools to support population and economic growth while meeting new downloaded demands by other governments

The road ahead

The federal government is taking positive steps forward They are reforming the rules and procedures for admitting new immigrants and recognizing their employment credentials This summer the Minister of Citizenship and Immigration launched a national discussion on Canadas future immigration strategy

The government has also started working with municipalities to repair some of the damage done to core infrastructure and public services by decades of underinvestment and offloading New federal affordable housing agreements and recent investments in roads bridges water systems and public transit will benefit all Canadians for generations to come

The federal government must work with municipalities provinces and territories to build on these gains

The government must protect and build on recent investments in Canadas infrastructure and public transit and fix the growing cracks in our housing system

The time for action is now Without a decent place to live an affordable and reliable way to get to and from work and communities that embrace what newcomers have to offer shyimmigrants will continue to fall behind and Canada will not meet its economic and social objectives

Recommendations

1 Put settlement services on a longer-term expanded track Federal and provincial and territorial governments must expand settlement services to include the broad range of settlement needs and ensure that their immigrant settlement programs and funding are put on a longer-term track to match five- to ten-year settlement time frames for newcomers

2 Set clear targets for successful immigrant settlement The federal government must work with all orders of government and relevant stakeholders to develop a range of indicators beyond employment that better measure the outcomes for

Hi-i3 new immigrants including access to adequate housing transit and other identified quality of life measures

3 Recognize municipalities as key partners Building on itssuccessful relationships with Toronto and other Ontario municipalities the federal government should engage municipalities in immigration policy development to tailor solutions to local needs and recognize the work municipalities are currently doing to support successful immigrant settlement

4 Fix the holes in the housing market Canada must consider tax and other incentives to increase the supply of rental housing renew expiring federal housing programs and subsidies and design policies and programs to support provincial territorial and municipal 10-year housing and homelessness strategies

5 Cut commute times and improve public transit The federal government must renew dedicated funding for publictransit set targets to stop rising commute times and implement transit-supportive tax policies including a tax-deductible employer-provided public transit pass

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Hi-i+ Appendix 3

FEDERATION FEDERATION 01 CANAOIAN CANADIENNE DESFCM MUNICIPALITIES MUNICIPALITES

March 3 2011

Emergency resolution SED11103

CMHC FUNDING STANDARDS FOR MULTI-UNIT PROPERTIES

WHEREAS the Canada Mortgage and Housing Corporation (CMHC) has amended the funding standards for its Multi-Unit Retirement and Long-Term Care Facilities policy by going from 25 beds to 50 beds and

WHEREAS application of these new standards has caused severe damages to a number of projects within the region as many are no longer eligible to the CMHC funding and

WHEREAS these damages notably compromise the economic vitality and social fabric of small rural communities as the new policy favours larger municipalities who can find sufficient funding for infrastructures able to take in more than 50 people therefore be it

RESOLVED that FCM urge Canada Mortgage and Housing Corporation (CMHC) to amend once again its funding standards for Multi-Unit Properties that is to say Multi-Unit Retirement and Long-Term Care Facilities to make eligible any qualifying projects under 50 bedsunits

MRC de Brome-Missisquoi (Quebec) Quebec Regional Caucus MRC de Papineau (Quebec)

Background Research and Assessment

Background

This is the first time FCM has considered this issue

Issue

Canada Mortgage and Housing Corporation (CMHC) delivers a mortgage loan insurance product that offers Approved Lenders (banks insurance companies private lenders) flexible loans for the construction purchase and refinance of multi-unit residential properties including retirement and long-term care facilities Individuals and corporations may apply for low-interest mortgage loan insurance financing of up to 85 of loan to value

New multi-unit long-term care and retirement projects which meet CMHCs eligibility requirements for affordable housing may be eligible for greater underwriting flexibilities

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Hi-15 including larger loan-to-value ratios of up to 95 reduced debt coverage ratio requirements and lower premiums Although CMHCs long-term multi-unit loan insurance guidelines require that the facility size be 50 or more unitsbeds until recently CMHC used its discretionary powers to insure smaller affordable housing projects In the last two to three years this has changed and CMHC no longer allows discretion for developments under 50 bedsunits Communities with smaller populations that cannot support such large retirement homes and long-term care facilities are no longer considered under this program

Analysis

The number of Canadians aged 65 and over is the fastest-growing age cohort in the country One-third of Canadas social housing units are occupied by seniors and access to adaptable housing affordable housing and supported living for this population is of growing concern 23 percent of Canadian seniors live in small towns and rural communities where housing options are limited and seniors face unique social and environmental challenges that can have an impact on health and healthy aging Due to more limited support systems limited transit options and greater distance to travel between existing services there are greater barriers to remain in their homes stay active and remain engaged with their communities

Canadas Chief Public Health Officers 2010 Report on the State of Public Health in Canada focuses on our aging population and the need for all levels of government to __set the stage for healthy aging including allowing for seniors to age in place The CMHC reports the growing need for seniors housing will outpace the availability and municipalities will have to make up the difference Communities big and small must have access to a range of options to ensure adequate affordable housing for our aging population

Assessment and Recommendation(s)

It is important that all orders of government ensure that a broad range of options remain available regardless of community size to address the distinct housing needs of Canadas aging population CMHC promotes its program for retirement and long-term care facilities as mdashFacilitating greater housing choice for seniors and Canadians requiring care|| Yet at this crucial time in long-term community planning for Canadas aging population CMHCs requirement that a facility accommodate 50 or more unitsbeds has the effect of excluding hundreds of Canadian communities with smaller populations

Standing Committee on Sociai-Economic Development recommends Category A concurrence

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FEDERATION FEDERATION bullNADIAN CANADIENNE DESFCM MUNICIPALITIES MUNICIPALITES

Appendix 4

July 14 2011

Memorandum to the Standing Committee on Social-Economic Development

UPDATE ON CMHC FUNDING FOR AFFORDABLE HOUSING PROGRAMS

Issue

The purpose of this memo is to update Committee members on the state of the expired funding for Canada Mortgage and Housing Corporation affordable housing programs AHI (Affordable Housing Initiative) and the RRAP (Residential Rehabilitation Assistance Program)

Background

FCM has been pushing the Federal Government for an announcement on two key CMHC affordable housing programs the AHI and RRAP which provide over $250 million to communities for affordable housing initiatives and which had expired in March 2011

Current Status

In June of this year the Government of Canada announced that this money would finally flow from a new Affordable Housing Framework agreement between the federal government and the provinces and territories The Framework is in place for 2011-2014 and replaces the AHI and the RRAP programs Under this framework provinces will enter into bilateral agreements with the Government of Canada to receive funding to develop and deliver their own housing programs under four spending categories

bull Increase the supply of affordable housing across Canada bull Improve housing affordability for vulnerable Canadians bull Improve andor preserve the quality of affordable housing bull Foster safe independent living

These categories spell out in broader terms what funding was previously available under the AHI and RRAP Provinces may opt-out of this and funding will continue to receive funding through existing guidelines The principles of the framework outline the PTs responsibility for the design and delivery of affordable housing programs efforts to ensure energy efficient measures where possible and construction The principles also state that contributions by others (provincialterritorial government non-profits municipalities private sector) must be equal to or greater than the envelope of federal contributions Under the AHI this is the same contribution Under RRAP this increases the cost share contribution from 25 to 50 In a few jurisdictions where RRAP is still delivered by CMHC the cost share component is new

13

Also of note is that provinces must now report annually to the public regarding the investments and achievements of intended outcomes under this framework committing provinces to set objectives to reduce affordable housing need and to measure the outcomes of housing initiatives

Only PEI and Manitoba have signed bilateral agreements to date

bull PEI $7 million to 2014 for new construction renovation (including accessibility modifications) new homeownership assistance and rent supplements

bull Manitoba $62 for housing for seniors renovation and retrofit grants and a new homeownership program for targeted southern rural and northern communities

Analysis

The framework makes important commitments to design housing programs that respond to local needs and show progress against clear objectives Federal provincial and territorial governments must now get to work with municipalities to turn the new framework into action The absence of a commitment to funding beyond 2014 is a concern and FCM must continue to encourage governments to set affordable housing goals that go beyond two and three year funding cycles

RECOMMENDATIONS

It is recommended that the Standing Committee on Social-Economic Development

1 Direct staff to monitor the roll out of the bi-lateral agreements and assess each on their impact on municipalities

2 Support continued FCM advocacy for long-term investments in affordable housing and

3 Receive this report

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J-l I- Iff n deg Appendix 5

FEDERATION FEDERATION NADIAN CANADIENNE DESFCM MUNICIPALITIES MUNICIPALITES

July 19 2011

Memorandum to the Standing Committee on Social-Economic Development

AFFORDABLE HOUSING AND PUBLIC-PRIVATE PARTNERSHIPS

Issue

At the March Board meeting in Corner Brook the Standing Committee on Social Economic Development directed staff to provide information and analysis on expanding affordable housing options through P3s to better understand the variety of options available to address the issue of lack of affordable housing

Background

While waiting lists for affordable housing continue to grow in almost every municipality more individuals and families of moderate income are also struggling to find an affordable place to live Cities and communities across the country are feeling the strain of low vacancy rates and historically high rents as a result of decades of low levels of purpose built rental supply erosion and loss of the more affordable rental stock Some municipalities have begun investing in Public Private Partnerships (P3s) to increase rental housing supply and address affordable housing needs

As their name suggests P3s involve a cost and risk-sharing arrangement between governments and private partners including corporations the not-for profit sector philanthropies foundations lenders and financial investors While nearly all government infrastructure projects involve contracts with construction and development companies P3s allow for the private sector to become more involved in financing design construction long-term maintenance and ownership of public infrastructure There are a variety of P3s and they can involve a large spectrum of private-sector and not-for-profit involvement

In recent years P3s have become an increasingly important procurement vehicle for Canadian governments particularly for large-scale infrastructure projects and in the climate of a growing infrastructure deficit Potential advantages of P3s include increased overall investment in infrastructure freeing up of public funds and cost savings to government However there are disadvantages including the greater cost of private sector finance risk premiums (the cost paid when risk is transferred to a private actor) higher legal and transaction costs to the public sector and decreased control of public assets and programs

Currently P3s in Canada represent 10-20 of total infrastructure spending and according to the Conference Board of Canada it is estimated that P3s are the better procurement option in only up to 20 of public infrastructure projects Staff looked at P3 affordable housing projects underway or completed in five municipalities The projects provide an

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example of municipal endeavors in public private partnerships for affordable housing and highlight the different ways in which municipalities are approaching partnerships with both the non-profit and for-profit sectors

Projects Reviewed

This briefing reviews nine projects across five municipalities totaling 590 units of affordable housing Four projects involved for-profit partners exclusively three involved only non-profit partners and two include partners from both sectors

Looking at four current projects with the City of Edmonton involving exclusively for-profit partners shows the provincial and municipal governments funding 30-75 of the cost of the affordable units In total the City of Edmonton contributed over $16513416 for 343 built or soon to be built affordable housing units available at 85-90 of the average market rental price for a period of 20 years

Funded through the City of Edmontons Cornerstones Program their P3 affordable housing plan states that since 2005 with investments from the Government of Alberta non-profit organizations and private investors the City has leveraged $25 million in civic investment to achieve over $280 million in capital costs for Edmonton and has resulted in 2100 affordable housing units to date

The Tutt Street Place project in Kelowna saw nearly $10 million of a $107 million capital cost covered by funds from the provincial government and the municipal contribution of $550000 in land lease reduction and $298404 in reduced municipal levies Regional not-for-profit funding and service agencies also contributed close to $200000 toward this 39 unit affordable housing project

The Region of Waterloos inaugural 2004 P3 was a collaboration with the Region and the private corporation Christopher Lee Holdings Waterloos $450468 capital grant and development charge grant resulted in the addition of 27 affordable one-bedroom apartment units to an existing rental complex containing 40 units Rents will remain at regional averages for 20 years and a rent supplement agreement provided by the city is in place for 14 of the new units In addition 7 of the units are for persons with a mental health disability

The City of Vancouver and Region of Halton demonstrate how municipalities have used a range of resources and partnerships for tangible results The Region of Halton contributed $1629563 in funds and $2500000 in land equity to a successful project with federal provincial and private partners to develop 82 units For Vancouvers Doug Story Apartments the City amended its Single-Room Accommodation by-law and provided a 99639 square foot density bonus through to allow private developers the Millennium Robson Properties to add 46 non-market units to a half-block condo apartment development

Analysis

The successful completion affordable housing projects through public-private partnerships indicate that P3s are a viable component of what must be a broader strategy to increase access to affordable housing in Canadian cities P3s should not be viewed as the exclusive or even most successful response to the affordable housing backlog in Canadian communities

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Hi-ao It is important to consider several factors in P3 investments

1 Opportunities for partnerships with private partners especially the for-profit sector are infrequent due to capital costs investment risks and lower profit margins These occasional opportunities will not be sufficient to address the significant demand for affordable housing Metro Vancouver recently reported that the region will need 65 000 new rentals per year to keep up with demand It is building only600 annually The Canada Mortgage and Housing Corporation recorded an overall decline of 18000 rental units from 2000 to 2010 meaning a net loss of 140000 older existing rental units mostly affordable units

2 The level of affordability of housing units generated by P3s may also be limited most of the partnerships with for-profit organizations surveyed here produced units rented at 10shy20 below the Canada Housing and Mortgage Corporations (CHMC) average monthly housing cost In many cities this cost is still significantand will not likely lower the number of families in core housing need or paying more than 30 of their income on housing

3 Almost all units built with for-profit partners are affordable only for a period of time While these may be significant periods - often 10 to 20 years - and immediately add to the overall supply of housing ultimately they equate to a temporary solution to a persistent problem

4 Municipalities may also be taking on more financial risks with P3s Some critics point to the greater potential for bankruptcy of the for-profit partner litigation and delays when dealing with private partners increasing the initial costs and liability for cities

Also of note while new builds have an economic spin off value the repair and modernization of existing units requires on average $15000 to $25000 per unit compared to costs of $100000 (over$200000 in higher-cost cities) to build new affordable housing These figures should be considered when deciding the most effective and efficient municipal investment options to address affordable housing needs

Advantages of P3s remain and simply put any increase to affordable rental housing will contribute to relieving the pressure on Canadas near crisis shortage of affordable housing

As with any major project all options should be considered to find what will produce the best outcome for the most reasonable cost For certain affordable housing projects it appears that P3s fit this description

RECOMMENDATIONS

It is recommended that the Standing Committee on Social-Economic Development receive this report

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