Brick by brick: Building an affordable housing

plan for TorontoMichael ShapcottThe Wellesley InstituteWCOHH, June 2012

People and places to celebrate

YWCA Elm Centre

Toronto 1911:Founding of

Wellesley Hospital

Sprucecourt Apts 1914

Toronto

slum

s

tran

sform

ed into

good h

omes

Genuine Canadian hero

John Peters Humphreys

International Covenant on Economic, Social and Cultural Rights: Article 11

1. The States Parties to the present Covenant recognize the right of everyone to an adequate standard of living for himself and his family, including adequate food, clothing and housing, and to the continuous improvement of living conditions. The States Parties will take appropriate steps to ensure the realization of this right, recognizing to this effect the essential importance of international co-operation based on free consent.

31st October 1945.  MACKAY J.:—This is an application brought by Drummond Wren... to have declared invalid a restrictive covenant... namely, ‘Land not to be sold to Jews or persons of objectionable nationality.’... First and of profound significance is the recent San Francisco Charter, to which Canada was a signatory, and which the Dominion Parliament has now ratified. Under articles 1 and 55 of this Charter, Canada is pledged to promote ‘universal respect for, and observance of, human rights and fundamental freedoms for all without distinction as to race, sex, language or religion.’...   An order will therefore go declaring that the restrictive covenant attacked by the applicant is void and of no effect.

Toronto - 1970

Below middleMiddle incomeUpper income

The Three Cities - David Hulchanski, U of T

Toronto - 2005

Below middleMiddle incomeUpper income

The Three Cities - David Hulchanski, U of T

Inequality / precarious housing is driving poor health

Toronto Health Profiles

60000#

65000#

70000#

75000#

80000#

85000#20

04

2005

2006

2007

2008

2009

2010

2011

63791

82138

TO affordable housing wait list

December 2011: 82,138 households on wait list; 280 housed - 24 year wait

Up 23% since 2008

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

Agr

ee?

“Yes, there are poor people in the world, okay, but poor people will be with us forever, like it’s been from the moment of time. I think sometimes you have to have tough love, not because you hate people but because they need the support. People should get lessons in budgeting, lessons in nutrition..., lessons in parenting. Kids have children, okay, who don’t know how to parent... I didn’t tell you to wear a condom or not wear a condom or how many children, you made that decision.”

Cllr. Mike Del GrandeToronto Budget Chief

“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

Inequality

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

Inequality and private

housing markets

increasing out or reach

Entry level condominium:$70,600 household income

RBC Economics, August 2011

Typical two-bedroom apt:$44,920 household income

CMHC

20% of households have annual income <$18,00050% of households have annual income <$41,000

MMAH

For renters, average market rents are outpacing renter household incomes

Four observations:

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

economy, government3. Federal housing / homelessness

investments eroding4. No comprehensive national plan

Most housing

needs invisible

0.50%

0.60%

0.70%

0.80%

0.90%

1.00%

1.10%

1.20%

1989

19

90

1991

19

92

1993

19

94

1995

19

96

1997

19

98

1999

20

00

2001

20

02

2003

20

04

2005

20

06

2007

20

08

2009

Ongoing erosion of federal housing investments(Federal housing investments as a percentage of GDP)

Follow the money...

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’

Looking ahead - more federal cuts

Ontario housing spending decliningMunicipal housing spending increasing

Toronto Shelter, Support, Housing - 2012 budget

2009 2010 2011 2012 2013 2014

Gross $797m $834m $869m $786m $792m $799m

Net $263m $274m $291m $269m $295m $300m

Fed $192m $187m $181m $179m $179m $179m

ON $177m $372m $341m $285m $287m $288m

Supply

Affordability

Repa

ir

SupplySupply

Supports

‘Naming and shaming’ at UN HRC

Miloon Kothari, former UN Rapporteur on Right to Adequate Housing

‘Housing is a human

right’

UN Special Rapporteur, 2009 “Canada has a long and proud history of housing successes, and has been known around the world for its innovative housing solutions. The Special Rapporteur visited and received information about programmes, laws and policies that represent good practices... Canada can also rely on a tremendous range of academic and civil society resources.” !

“There has been a significant erosion of housing rights over the past two decades. Canada’s successful social housing programme, which created more than half a

million homes starting in 1973, has been discontinued.

Canada officially accepted UPR

recommendations on housing and homelessness

“Canada accepts recommendations 47 and 48. Canada is working to improve housing choice and affordability. Governments are making substantial investments in housing through programs targeting affordability, housing renovation, homelessness and support for existing social housing units. Addressing Aboriginal housing issues on reserve remains a priority. Canada provides support through programs targeting the construction of new housing units, the renovation of existing housing stock, and subsidies for existing rental housing. Since 2006, new funding for Aboriginal people has been dedicated to resolving challenges of poverty and housing.”

Toronto Shelter, Support, Housing - 2013 budget (???)

2009 2010 2011 2012 2013 2014

Gross $797m $834m $869m $786m $792m $799m

Net $263m $274m $291m $269m $295m $300m

Fed $192m $187m $181m $179m $179m $179m

ON $177m $372m $341m $285m $287m $288m

Thank you!

www.wellesleyinstitute.com