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PPP Visit : Experience Sharing on The Canada-Ontario Affordable Housing Program

PPP Visit : Experience Sharing on The Canada-Ontario Affordable Housing Program. By Mr. T.C. Chak Mr. C.K. Siu of Housing Department. 1. Housing Need. 13.7% of Canadian households are in core housing need – most commonly because

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PPP Visit : Experience Sharing on The Canada-Ontario Affordable Housing Program

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  1. PPP Visit : Experience Sharing on The Canada-Ontario Affordable Housing Program By Mr. T.C. Chak Mr. C.K. Siu of Housing Department • 1

  2. Housing Need.. • 13.7% of Canadian households are in core • housing need – most commonly because • they are paying 30% or more of income on • shelter • 15.1% of Ontario households are in core • housing need • 3

  3. Assisted Rental Units in Ontario . • Provincial Rent Bank Program • Helps ensure housing stability for those who, due to an emergency • or other unforeseen circumstance, are in short-term arrears and facing • eviction • The province provides funds to the 47 Service Managers, who run • the program on its behalf • As of December,2005, 4,177 units assisted under this program • Social Housing: 212,730 units total • Commercial Rent Supplements • 12,468 units • Strong Community Rent Supplement Program • Provides funding for regular rent supplements units, as well as • supportive housing units in partnership with MOHLTC and MCSS • As of June 2006, 6,670 units have been assisted under this program • 6

  4. Assisted Rental Units in Ontario . • Canada-Ontario Affordable Housing Program • Provides federal and provincial funding to increase • the supply of affordable housing • As of June 2006, funding commitments have been • made to construct 6,598 affordable housing units • 7

  5. Government Roles and Responsibilities • Federal Government • Has jurisdiction over matters that concern all Canadians, • including defence, foreign affairs, the regulation of • interprovincial and international trade and commerce, • and citizenship • A partner in funding for housing programs, but not • involved in program implementation • 8

  6. Government Roles and Responsibilities • Provincial Government • Jurisdiction over many public goods, such as • healthcare, education, social and affordable • housing • Designs and funds housing programs • Significant taxation power, including the power • to collect income, sales, and property taxes • 9

  7. Government Roles and Responsibilities • Significant Provincial Legislation • Ontario Building Code: Regulates standards for the construction • and demolition of new buildings • Tenant protection Act: Regulates residential tenancies, creates • the Ontario Rental Housing Tribunal to decide on residential • tenancy matters(e.g. evictions) and gives municipalities powers • regarding vital services provided to rental units • Municipal Act: Provides for the structure of single, upper and • lower tier municipalities, and sets out their basic powers including • the ability to regulate(e.g. licensing), provision of services, finances • and roads • Planning Act: Establishes a regulatory framework for the use and • development of land in Province; provides for the Provincial Policy • Statement setting out provincial land use policy • 10

  8. Government Roles and Responsibilities • Municipal Government • Set up by the province; have only such powers • as the province gives it • Regulates and provides services, finances, and • roads • Delivers housing programs • 11

  9. The New AHP Agreement . • On April 29, 2005, Ontario signed a new Canada-Ontario • Affordable Housing Program(AHP) Agreement with the • federal government • The new agreement will provide $602M ($301M in federal • funding and $301M in provincial funding) over the next four • years to increase the supply of affordable housing in Ontario. • The total amount invested in affordable housing in Ontario • by the federal, provincial, and municipal governments will be • at least $734 million over the life of the program. • This program will fund 15,000 affordable housing units and • 5,000 housing allowances to households in need. • 12

  10. Canada-Ontario Affordable Housing Program The AHP is a partnership initiative among: • The federal and provincial governments who provide equity • contributions(e.g. grants, development charge waivers) • and set the overall AHP framework; • Municipal Service managers(SMs) who procure, deliver and • administer the AHP and who provide equity contributions or • operating assistance (e.g. waive property tax) to affordable • housing projects; and • Proponents of affordable housing (municipalities, municipal • non-profits, private for-profits and private non-profits) that build, • own, operate and finance the housing units. • 13

  11. Capital Program: Long-term Affordable Housing The AHP will deliver housing assistance to 20,000 households through: • A capital program with 15,000 affordable housing units delivered • through four program streams: • Pilot Program – affordable rental housing developed under the original • AHP funding arrangement of 2002 • Rental and Supportive Housing – to increase the supply of affordable • housing for households on or are eligible to be on social housing waiting • list • Home Ownership – to ease the demand for rental housing by providing • rental households with down payment assistance to purchase affordable • homes • Northern – to create, acquire, rehabilitate and renovate affordable rental • or ownership housing in northern Ontario • 5,000 housing allowances (funded exclusively using federal funds • under the AHP). • 14

  12. Capital Program : Long-term Affordable Housing • Pilot Program (25% of capital units) • $109.28M total, over 4,300 units committed to date • Program already active • Federal contribution - $25,000 per unit • Provincial contribution - $2,000-4,000 per unit • Unit must be at ot below CMHC average market rent • This includes $4M for 200 units for Northern Ontario • Rental and Supportive Housing (40% of capital units) • $364M total (includes Strong Start), 5,200 units • Program commencing 2006/07 • Total Federal/Provincial contributions averaging $70,000 per unit • 40% Federal contribution upfront grant • 60% Provincial contribution over 20-year period in the form of an Affordability Payment • Units must be on average 20% below CMHC average market rent • 16

  13. Target Groups • Province had targeted victims of domestic violence (VDV) and people with mental illness through the use of specific allocations : • 500 units for VDV • 700 units for people with mental illness • Low-income seniors (unit target not specified) • Federal government has targeted new immigrants, Aboriginal people, and people with disabilities. • Households must be on or eligible to be on social housing waiting lists to be eligible for rental units. 17

  14. Capital Program : Long-term Affordable Housing • Home Ownership(25% of capital units) • 36M total • Total Federal/Provincial upfront contributions (50/50) averaging $8,000 per unit • Units must be affordable to households with incomes at or below the 50th percentile of income (provincial or local – whichever is lower) • Northern (10% of capital units) • $30M total, 1500 units total: Northern Housing, $20M; Northern Pilot Project, $4M; Homeownership RFP, $3M; Reserve $3M • Program already active • Total Federal/Provincial upfront contributions (50/50) averaging $20,000 per unit • Units must be at or below average market rent or selling price 21

  15. Housing Allowance Program Federal government committed $80M of federal funding to finance a 5-year housing allowance program. It is designed to assist 5,000 low-income households to take advantage of high vacancy rates in the current market. In August, 2005 the Minister of MMAH announced the distribution of unit and funding allocation to the service Managers (SMs). All program expenditures must end by March 31, 2013 22

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  17. Ontario Mortgage and Housing Initiative The Ontario Mortgage and Housing Initiative (OMHI) is a vehicle to facilitate the financing of affordable housing projects under the AHP within Ontario and consists of three elements : • a Roster of Qualified Lenders • an OMHI Resource Centre • an Ontario Mortgage and Housing Corporation (OMHC) Together, these three elements would assist in the delivery of rental and supportive units under the AHP with target rents 20% below CMHC average market rents in communities across Ontario The OMHI would not have any role in approving projects under the AHP.It is only to facilitate proponents’ access to financial institutions in order to finance projects approved by Service Managers and MMAH under the AHP. 24

  18. References • Presentation materials provide by the Ministry of Municipal Affairs and Housing • www.mah.gov.on.ca 24

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