PRESENTATION TO:
     HONOURABLE MS. CLAUDETTE BRADSHAW, MINISTER RESPONSIBLE FOR HOMELESSNESS  -  JULY
     27, 1999  -  BY LIFE SPIN

Today, you will hear about the growing waiting list for subsidised housing. The over 3,300 people who are on the "active" and "inactive" waiting lists for subsidised housing. The inactive list includes people who could not be reached by phone or mail to confirm whether or not they still needed a place. People who are living in shelter, living transiently with friends or in temporary accommodations would not easily be reached through the mail or a phone call. Many people do not have phones. Many people have given up on the waiting list, and the list does not include those who have settled for substandard housing conditions, or those paying too much for their housing.

Consistently over half the people on the waiting list are singles or couples with no dependents. We are also hearing a greater demand for family housing and housing for youth. Please see figures 1 and 2 in Appendix A of our response to the Federation of Canadian Municipalities Housing Options Paper for a picture of the changes in our community since 1990. Significantly more people are at risk of homelessness; those paying more than 50% of their income on rent have increased by an average of 44% from 1990-1996.

Forty percent of the calls to LIFE*SPIN this year are related to housing and shelter.

This is from a woman who did get a subsidised apartment:

"I’ve had my name in for a place in London for a couple of years. The place I have is a great disappointment. The walls are very thin, and there are lots of children. I have schizophrenia and suffer from depression. I find that stress reaches excruciating levels living here. When I saw the apartment, I thought "It’s so small, how can I live here?" I have problems with hearing my neighbours through the walls. The building must have been slapped up, with walls an inch thick. I hear everything from my neighbour, things I don’t want to know. I abhor it."

"There’s not much I can do about it, I’m not happy here. I don’t want to go to a group home. I can’t get along with all those people, and I feel picked on. I want to live without a room-mate, and without the anxieties that I have [living here]. I spend a lot of time alone and get lonely."

…I would like to live in a big house that housed other women, in a bachelor apartment or a room. But I don’t see any choice [from my current living situation]."

This is one person who did stay on the waiting list, who did get a place after years of waiting. Who is seeking a permanent place to call home. For people who do not find subsidized apartments, there is the private rental market, where the majority of people on social assistance seek housing. London has a policy that 25-30% of new housing built in the community should be affordable, and half of this should be affordable to very low income people – those making 30% of median incomes. This policy is not being enforced.

A single person on social assistance is spending 62.5% of their income on shelter , if they find a place to live for $325 inclusive. The general affordability guideline that is widely used is that housing costs should not be more than 30% of total household income. This guideline does not reflect the quality of the housing, and the figures for housing costs, as collected by CMHC may or may not include hear and hydro in the rent. Figure 1 looks at average rents in London, and the corresponding income level needed to afford this rent without taking away from other household

expenses such as food. This 30% guideline is not an indicator of ability to pay, and it is misused by landlords to discriminate against low-income people.

Here’s one woman’s experience:

"I went to see an apartment…and as soon as I mentioned I’m on assistance, he wouldn’t even consider it…[In the private market] you end up in the position of half lying – they would rather hear you say you are self-sufficient. It is difficult to go to the private market and….say you are on assistance. They are not interested."

The following data is from the Canadian Mortgage and Housing Corporation and 1996 Census information and Ontario Works.

Figure 1: Shelter allowance, Average Rents, and Income Needed To Be Within 30% Guideline.

The London Homelessness Survey shed some light on the changing face of homelessness, the causes of homelessness and the solutions. This London survey, conducted by the London Social Planning Council, took a "snapshot" of homelessness on a spring evening in 1997. This is the most comprehensive information to date on homeless people in London.

Some Points from the Homelessness Survey:

• 216 people were staying in shelter
• 78% of the women in the survey had their children with them
• 19% of those surveyed were children under the age of 15
• 28% reported mental illness

• Lack of community supports for people with mental illness and other support needs
• Breakdown of social and family networks
• Complexity of the problem

Information from the London survey particularly highlights the need for community supports and the breakdown of family and social networks. In Ontario, people receiving income assistance are in effect restricted from obtaining help from their families and from living with family due to the adverse consequences predicated by Ontario Works regulations. Many homeless people live with physical health problems, addictions and social isolation from family and friends. And poverty is getting worse in London. In 1990, 15.2% of the population was living below the poverty line, in 1995 that figure grew to 18.8%.

Supportive Housing Needs:

We are particularly concerned about the restructuring of mental health care services and the housing needs for this vulnerable population. The Thames Valley District Health Council has highlighted housing as a priority in the restructuring of mental health services in the London area. In their February 1997 report, Mental Health Reform Implementation Planning Needs Assessment, they recommend that the number of supported housing spaces be increased from 400 to 1358 by the year 2003.

Although the time line for the psychiatric hospital closures has been extended, this by no means diminishes the daunting task of creating over 900 new supported housing spaces. This figure is for people with psychiatric support needs only, and does not reflect the needs of seniors, those with physical or developmental disabilities, addictions and other health concerns.

Please see Appendix B for our snapshot of need for women with psychiatric disabilities. These numbers likely underestimate the problem, because people like Margaret, a homeless woman who inspired us to create a housing project, do not get counted in these numbers.

I would like to emphasize that this section describes the current need for new housing units, which, along with future need have yet to be addressed by the Provincial Government. This need exists today and we have no adequate means by which to respond to meet this need.

The Community Based Solution:

The Housing Registry, whom you will hear from today, attempts to find private sector housing for people on social assistance or low-income. Their annual report for 1998 shows that out of 896 registered clients [representing 1160 individuals] the Registry was able to find housing for 50% of their registered clients, and 78% of their clients found nothing available in the private sector that was in their price range and/or unit type.

This cash strapped agency is doing phenomenal work. However, the private sector options simply do not meet the needs of people seeking housing. Of those that did accept housing through the registry, many accepted situations where they were paying higher rent and living in less space than they desired or needed. Obtaining housing in some cases meant sharing accommodations or accepting a room in a private home, which is not wanted by most, and is not a long-term housing solution.

The private sector is not equipped to be the primary solution to the needs of very low-income people, nor can they meet supported housing needs. There are simple reasons for this. It costs more to build the housing than can be recovered through affordable rent therefore, it is nearly impossible for landlords to make money in social housing, even with substantial subsidy and incentives. Another reason why the private sector is not an ideal solution to social housing needs is there is no long-term guarantee that the housing will remain "affordable". This is particularly true with single-family housing.

Nor can the government solve the housing problem alone, as the primary builder of affordable housing. There is a great need for a range of housing types and affordability ranges, and a need for great flexibility according to local conditions. The housing programs of the past were good, but need more flexibility.

The co-op and non-profit sectors have been effective and efficient delivery agents for affordable housing. They can ensure, through their mandate and by-laws that housing remains affordable in perpetuity, that their communities are responsive to tenants needs, and are not driven by profit. They are also closer to the grass roots, and are a source of innovation and creativity. The "third sector" (providers that are neither private sector, nor public sector) is the logical and most efficient producer of affordable housing. In the past, Canadian programs for "third sector housing" were looked to as a model for the delivery of social housing.

LIFE*SPIN is actively pursuing the creation of new non-profit supportive housing in a governmental environment that has abandoned its commitment to affordable housing. Margaret’s Community Housing Project is a woman centred, community based approach to create permanent supportive housing. It is also based on Community Economic Development principles. The project was inspired by Margaret, a homeless woman who came to our door needing help. She trusted no-one, was strong-minded, and her greatest fear was going back to the psychiatric hospital. The women’s shelters did not want to accept her because of her history. Fortunately, LIFE*SPIN became a place she could trust. At this point we asked ourselves – "How could this person be housed – what would meet her needs?"

She wanted housing where her privacy was respected, a place she could afford, and a place where the landlord didn’t take advantage of her. LIFE*SPIN was able to find her temporary accommodation at a hotel, which she enjoyed and lived on her own for over a year. The next time we saw her, she was homeless again, through serious gaps in the judicial system. She was held in jail for over thirty days, awaiting a court date. During this time she lost everything – her housing, her Disability support. We were once again able to find her a temporary housing solution, but are still seeking appropriate permanent housing for her.

LIFE*SPIN’s Community Housing Project is an innovative approach to supportive housing. It combines commercial enterprise and affordable housing for women with psychiatric support needs. We have a diverse community advisory group, including Consumer/Survivors, care-givers, developers, housing experts, and service providers. It was developed based on women’s housing wants and needs. We are working to engage Consumer/Survivors in the renovation work and enterprise development. This project is unique in that it is entrepreneurial, is not dependent upon a government program for survival, and is community based.

However we do need government assistance to move forward. We are in the process of purchasing a property and raising money for the down payment. According to our budget projections, we need $50,000 in equity to ensure the long-term financial viability of the project, and we need a commitment from the Ministry of Health to fund support services. The project will house approximately 13 women, and takes a holistic approach to enabling women to stabilize their lives and contribute in a meaningful way to their community. It is a community economic development project. We anticipate developing Consumer/Survivor run businesses in association with this project.

The Federal Government has already assisted in the development of LIFE*SPIN’s Community Housing Project through the Centre for Public Private Partnership at CMHC. DMHC has been extremely helpful and supportive of this initiative. We received a proposal development loan of $25,000 to pay for up front costs, which is an enormous boost.

However, our biggest hurdle right now is up-front capital.

How the Federal Government Can Help LIFE*SPIN:

In our own experience, the ability to access low cost land or buildings, and access to up front capital are critical. Also, financing assistance is crucial. Deferred taxes and special tax status or tax credits for non-profit affordable housing projects would help facilitate the viability of our project.

Multi-year funding for project development would be extremely helpful. LIFE*SPIN does not have core funding, and it is incredibly difficult to find funding for project development. Homegrown Solutions is a wonderful program that unfortunately did not seek proposals the year we were beginning to develop the project. We have been able to move forward due to dedicated staff putting in volunteer hours on the project along with modest support through the Affordability and Choice Today Program and support from Status of Women Canada for the development work.

How the Federal Government Can Increase the Supply of Affordable Housing:

Implement the 1% solution – double Federal spending for affordable housing. Solving the homelessness problem will require housing and will require a substantial increase in funding. 1% of the federal budget is not a lot to ask.

In terms of where to put this new money, the Canadian Mortgage and Housing Corporation has done extensive research on what works, and the Federation of Canadian Municipalities have outlined several recommendations in their National Housing Options discussion paper. As you may be aware, the Canadian Mortgage and Housing Corporation surveyed 186 non-profit, co-operative and municipal housing sector groups across Canada regarding the development of affordable housing projects [Kraus and Eberle, 1998]. They found the following keys to success and mechanisms that can assist in the development of new affordable housing:

• Ability to obtain land at low-cost or no cost. [21%]
• Government support including co-operation and contribution of funding. [20%]
• Community Determination and Support - partnerships, connections to financing, support of community leaders. [17%]
• Board and staff commitment. [13%]

• Tax concessions. [40%]

Investor tax credits for low income housing or land, tax exemptions, tax incentives to help groups raise funding for affordable housing, federal government to waive or reduce GST, property tax exemptions.

• Streamline Development Approvals Process [20%]
• Other mechanisms include: financing assistance, either to obtain financing, get a preferred mortgage rate, and special consideration from lenders, or mortgage insurance for high ratio mortgages; information on setting up and maintaining appropriate partnerships; affordable housing needs subsidy; reduction or waiving of fees by municipalities; the need for low cost or no cost land and start-up funding.

Some key points I would like to highlight from the Federation of Canadian Municipalities paper regarding the Federal role in housing include:

Federal Support to National Foundation or Local/City-Region Trust Funds

Housing Trust funds are a key source of capital investment in housing projects and can serve as a catalyst to the development of a permanent supply of affordable housing. This idea has interest from LIFT housing, those in the Co-op and Non-profit sectors in London, and groups that are involved in this housing project. LIFE*SPIN has done research on Housing Trust Funds in the U.S. and in Canada on the development and management of a housing trust fund. The success of a local housing trust fund program is leadership from the City of London.

For new non-profit groups venturing into housing, up front capital/equity can be a serious barrier. It does not take a lot of initial capital to leverage financing and other capital contributions from the community if there is a good idea, substantial community involvement and the project is economically viable.

This has been discussed above. The support for research and project development is critical. These programs can be most important and useful for projects that are working to serve very low-income people – people on social assistance or those who cannot afford low-end of market rents. The Federal government should expand this program and expand their mandate.

Block grants have been used extensively in the U.S., and are funds that are delegated to address specific systemic issues at a community or neighbourhood level based on need and population, but can then be distributed to specific initiatives and programs with local discretion. The flexibility to develop projects and programs that are designed locally to meet local needs is vital. These grants should specifically seek projects that adhere to Community Economic Development principles – projects that build the local capacity to address needs, project that are owned and primarily benefit the low-income community, and projects that achieve social ends through business means.

Mental Health Housing Funding

Supportive housing is an area that needs specific attention by the government While we look to the Province for a financial commitment to support services, assistance for supportive housing can be facilitated by the Federal Government through standards and support for innovative and holistic approaches that are tenant-centred.

Housing as Part of Programs Targeted to Other Priority Populations

Simply put, housing alone will not solve the problem of homelessness. Housing is an integral part of the solution. However, follow-up support for people who move from shelter into housing was identified as a critical need in our community. Conversely, it is dangerous to require individual participation in programming as a condition of obtaining affordable housing. Housing is also an integral part of community revitalisation, and community well-being.

Tax Credits for Investing in Affordable Housing

This incentive can be directed toward foundations dedicated to fostering third sector non-profit housing development. This can encourage private sector contributions to those foundations and agencies creating affordable housing.

LIFE*SPIN is a founding member of the Canadian Community Reinvestment Coalition, which has been pushing for increased accountability and community reinvestment on the part of the banks. Housing has been a common means for banks to reinvest in their communities in the U.S. experience.

Discussions regarding the future of the financial services sector often focuses on the issues of access to micro-credit and loans for small businesses. While these are important issues, the U.S. experience with the Community Reinvestment Act has shown that in practice, one of the largest areas of reinvestment by financial institutions has been affordable housing.

The "Public Accountability Statement" envisioned by the Minister of Finance Paul Martin in the Financial Services White Paper calls for banks to document "funding provided to local government and voluntary agencies for community works," but does not specifically discuss funding of housing initiatives. The Minister should require banks to specifically report on investments in affordable housing.

Housing is integral to economic development, community development, community well-being, and individual well-being. It therefore intersects with a variety of government agencies. It is important that housing and homelessness solutions be spearheaded by Ms. Bradshaw, and co-ordinated through and with other government programs and resources.

It is my sincere hope that the Federal government takes up the charge to end homelessness, and that the Federal government sees quality affordable housing as the cornerstone and foundation of this effort. It is no coincidence that the rise in homelessness comes on the heels of the Federal and Provincial governments getting out of the housing business. I am not suggesting a complete return to the programs of the past, but the tools, funds and leadership to ensure that all Canadians have access to an affordable home that is safe, and of adequate size and quality.

What is Home?

A home is a place of peace, rest, love, and a blessing from God. The largest reason of pain and loneliness is not having a place to call your own. If you don’t have a home, even a simple poor home, you don’t have stability or a feeling of appreciation to continue going on trying.

To have a home is to say, in effect, someone or something cares, because a home is a gift of life, a gift of security, a gift of pride, a place to make a new start, a place to collect your small treasures, a place of our own freedom and peace, a place where you can choose your friends and what you eat, a place you can choose your own music, movies, and stories of friendship, love and excitement. A place you can wear what you want and a place no one can ridicule you, and more….

There are many homeless or sub-homeless people who are very disillusioned about any kind of stability because without a pleasant home, a fresh start to true happiness is not available. I pray that affordable, clean, warm housing will be provided for all.

Thank you for the opportunity to speak with you today.
Respectfully submitted,
LIFE*SPIN Community Housing Project