Draft Housing Strategy - Under One Roof - District of Thunder Bay Draft Housing Strategy Commissioned by: The District of Thunder Bay Social ...
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Draft Housing Strategy - Under One Roof District of Thunder Bay Draft Housing Strategy Commissioned by: The District of Thunder Bay Social Services Administration Board Toni Farley & Associates November 2010
DRAFT HOUSING STRATEGY – UNDER ONE ROOF TABLE OF CONTENTS EXECUTIVE SUMMARY..................................................................................................................3 A NEW VISION ................................................................................................................14 1.0 WHY A HOUSING STRATEGY ...............................................................................................15 1.1 INTRODUCTION ................................................................................................................15 1.2 PURPOSE AND METHODOLOGY ...................................................................................15 1.2.1 STUDY FORMAT ......................................................................................................18 2.0 PART I – THE CONTEXT ......................................................................................................18 2.1 DYNAMICS OF HOUSING SUPPLY AND DEMAND ......................................................18 2.2 GLOBAL ECONOMY AND FOREST PRODUCTS ...........................................................19 2.3 ECONOMIC FORECAST DISTICT OF THUNDER BAY ..................................................20 2.4 DEMOGRAPHIC TRENDS IN THE DISTRICT ..................................................................21 2.5 PROVINCIAL POLICY FRAMEWORK..............................................................................22 2.6 FISCAL FRAMEWORK .....................................................................................................23 3.0 THE HOUSING CONTINUUM ................................................................................................25 3.1 THE HOUSING SYSTEM: PARTNERS AND ROLES .....................................................26 4.O PART II – THE HOUSING STRATEGY .................................................................................30 4.1 NEEDS, BARRIERS AND SOLUTIONS ..........................................................................30 4.2 SOCIAL HOUSING ...........................................................................................................31 4.3 PROPOSED DISTRICT MODEL TO ACCESS HOUSING AND SUPPORT SERVICES ......................................................................................................46 4.4 HOMELESSNESS.............................................................................................................49 4.5 HOUSING FOR ABORIGINAL PEOPLE (NON-RESERVE)............................................55 4.6 SUPPORTIVE HOUSING .................................................................................................62 4.7 PRIVATE MARKET HOUSIING ........................................................................................69 4.8 SUMMARY ........................................................................................................................75 APPENDIX 1: BEGINNING TO FILL THE GAPS – FIVE YEAR HOUSING TARGETS .............77 APPENDIX 2: LIST OF STAKEHOLDERS ..................................................................................79 Toni Farley & Associates Page 2
DRAFT HOUSING STRATEGY – UNDER ONE ROOF EXECUTIVE SUMMARY Housing is a basic need and critical to the well-being of all residents in the District of Thunder Bay. It has been defined as a “system of assets, financing, services, supports, policies and programs”1 that enables the creation and maintenance of healthy and sustainable communities; and that provides stability, security and improved quality of life for individuals and families both owners and renters. A secure and stable living environment provides all residents with the opportunity to prosper and function to their maximum potential. Conversely, housing insecurity increases relocation rates, can lead to family conflict and breakdown, and increase the use of health and social services.2 A well functioning housing system is an investment in people. It supports them as they experience changes due to crisis, family size, lifestyle, finances and physical or mental ability, and as they age. Investing in people’s diverse housing needs has tangible benefits. There is strong evidence to suggest that cost savings will accrue in health, education, criminal justice and social services while at the same time contributing to the economic prosperity of communities. Indeed, in some communities in the District of Thunder Bay, the ability to meet the housing needs of retirees (seniors with good pension incomes) may make the difference between communities failing or maintaining their economic viability. The housing system in the District of Thunder Bay works quite well for a significant number of households offering choice and affordability. Unfortunately, it does not work well enough for those homeless individuals with substance abuse issues who call a jail cell home. It does not work well enough for seniors in rural communities and many other persons who need access to supportive housing. Nor does it work well enough for Aboriginal people. With a population that is declining and aging, and an economic base which at best is in transition, the District will be challenged in its ability to provide housing opportunities for all of its residents. This strategy promotes a comprehensive systemic response focused on partnerships to address the identified housing needs of people living in the District. It has been designed to assist not only The District of Thunder Bay Social Services Administration Board, but all of the community partners involved in the provision of public, private and not for profit housing. The Housing Strategy is prepared in two separate parts. Part I is entitled, Housing Analysis Report – Setting the Scene. It provides a review of the variables that impact the supply and demand for all housing across the housing continuum for the District of Thunder Bay. The trends revealed through the analysis of the data were used to inform the housing strategy. 1 City of Ottawa Housing Strategy 2007 - 2012 2 Social Determinants of Health: Housing Fact Sheet, Southern Public Health Unit Network and West Moreton Public Health Unit, Australia Toni Farley & Associates Page 3
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Part II is this report, the Housing Strategy – Under One Roof. It addresses the needs and gaps identified through broad based community consultations. The culmination of community consultations identified a number of common themes. These are: Affordable senior supportive housing for those that can no longer remain in their own homes – seniors supportive housing to be located in the communities where they currently reside In-home support services so that seniors can maintain independence longer and remain in their local community Supportive housing for the full range of persons who require assistance to live as independently as they are able to within the community (e.g., physically disabled, those with developmental/intellectual or mental health issues those with fetal alcohol spectrum disorder (FASD), those involved with the criminal justice system, etc.) Improved access to housing and support services Process for information sharing and collaboration between community agencies Systems navigator – to link people to supports required Housing that is barrier free and accessible Rent-geared-to-income assistance Funding to retrofit existing housing including private market housing Flexible housing programs to provide greater housing choices Full range of affordable housing for Aboriginal people from transitional to permanent housing with and without supports that is culturally appropriate and under Aboriginal control Anti-discrimination strategy Full range of housing and services for the homeless from harm reduction housing to permanent rent-geared-to-income housing with and without supports Streamlined service delivery of DSSAB programs Sustainability of the existing social housing stock These common themes have been translated into three strategic directions, 11 goals and 72 recommended actions to implement the strategy. Toni Farley & Associates Page 4
DRAFT HOUSING STRATEGY – UNDER ONE ROOF The three strategic directions are: Strategic Direction 1 Ensuring an appropriate supply of affordable and subsidized housing to meet the needs of existing and future residents in the District Strategic Direction 2 Doing what we do better – DSSAB user friendly service delivery Strategic Direction 3 Moving toward an integrated and co-ordinated one- window model to accessing housing and support services The 11 goals with their accompanying recommended actions are as follows: Goal 1: To balance the supply and demand for subsidized housing Recommended Action 1.1 Adopt a target to re-designate 25 per cent of the senior one bedroom units (approximately 400 units) to non-senior one bedroom units over the next five years. Prior to implementation, an evaluation be undertaken to determine what buildings in which locals are best suited to change. The evaluation is to include an analysis of the effect of integrating non-seniors into seniors’ buildings and/or changing the target group for specific buildings. The impact analysis to include such factors as costs, resources required to address seniors’ security issues and wait times. Recommended Action 1.2 Use the rent supplement program to acquire units in private rental buildings to assist with balancing supply and demand and promote the advantages of the rent supplement program with the private sector. (See Recommended Action 11.1). Goal 2: To build capacity, readiness and identify resources to maximize take-up of any new federal and provincial housing initiatives Recommended Action 2.1 Identify and work with local partners including housing and care providers, and builders to be ready for new program announcements. Recommended Action 2.2 Focus on capacity building. Identify expertise that is available in the District. An option could entail working with member municipalities to identify existing staff that could be deployed to provide the required capacity as and when required. Toni Farley & Associates Page 5
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Recommended Action 2.3 Solicit support from the Northern Ontario Service Deliverers Association (NOSDA) and the Northwestern Ontario Municipal Association (NOMA) to advocate for a new capital funding allocation model that considers northern factors related to geography, costs, loss of employment, local demographic trends and high need target groups, e.g., Aboriginals, homeless and seniors with support service needs. Goal 3: To support the government’s broader aging in place strategy by ensuring that residents in social housing are able to age at home Recommended Action 3.1 Work in partnership with the North West Local Health Integration Network (NWLHIN) to create an aging in place plan for residents living in social housing funded and administered by the DSSAB. The plan is to include an evaluation of all projects and their ability to be retrofitted to accommodate accessibility requirements and provision of home supports. Recommended Action 3.2 Advocate for the capital and support services to implement the aging in place strategy. Recommended Action 3.3 Identify sources of funding to increase the number of community relations workers, (CRWs) or hire personal support care workers (PSWs) to provide support to older tenants. Goal 4: To maximize sustainability of the existing social housing supply Recommended Action 4.1 Facilitate discussions with non-profit housing providers to determine their interest in amalgamating with other providers in the same general vicinity with the option of contracting property management services with the Thunder Bay District Housing Corporation (TBDHC) or amalgamating with the TBDHC. Recommended Action 4.2 Work with housing providers and the Ontario Non-Profit Housing Association (ONPHA) to undertake a cost benefit analysis of establishing a bulk purchasing program for goods and services not offered by the Social Housing Services Corporation (SHSC). Recommended Action 4.3 Consideration be given to including TBDHC in bulk purchasing programs used by the City of Thunder Bay. Toni Farley & Associates Page 6
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Recommended Action 4.4 Drawing on best practices, staff develop a policy governing the use, disbursement and recovery of any one- time capital funds advanced to housing providers. Recommended Action 4.5 Working with the SHSC and housing providers, develop preventative maintenance plans to be implemented by housing providers. Further, that preventative maintenance plans be mandatory for any provider requesting additional capital or subsidies. Recommended Action 4.6 Update the District’s capital plan including capital reserve requirements, building condition assessments and identify opportunities for energy efficiency. Recommended Action 4.7 Share the building condition assessment reports used to update the capital plan with housing providers for their respective properties to facilitate capital works, capital reserve fund planning and investment. Recommended Action 4.8 Undertake a review of the DSSAB’s service level standards to determine the issues that prevent the standards being met. The review also identify strategies for meeting the standards. Recommended Action 4.9 Solicit the support of NOSDA, NOMA and the Association of Municipalities of Ontario (AMO) to continue to advocate for parity in social housing rent scales with the private sector and request an increase to the minimum rent. Recommended Action 4.10 Make available rent subsidies to housing initiatives that advance the housing strategy for the District. Recommended Action 4.11 A process be put in place a process to obtain a waiver from the Province and Canada Mortgage and Housing Corporation (CMHC) for each project reaching mortgage maturity indicating that the project is no longer subject to the Social Housing Reform Act (SHRA) and the Canada- Ontario Social Housing Agreement (SHA) and all obligations of the DSSAB have ceased. Recommended Action 4.12 Advocate for Service Manager authority to have a project removed from under the SHRA once mortgages and debentures have reached maturity. Recommended Action 4.13 Confirm that all existing and future properties have restrictions registered on title prohibiting their sale, transfer or disposition. Recommended Action 4.14 Determine the legal ability to retain the disposition restrictions registered on title post mortgage maturity and Toni Farley & Associates Page 7
DRAFT HOUSING STRATEGY – UNDER ONE ROOF operating agreement expiry. Recommended Action 4.15 In partnership with NOSDA, NOMA and AMO, lobby for the development of a post mortgage maturity accountability framework to ensure the preservation and affordability of the existing supply of social housing. Recommended Action 4.16 Advocate in partnership with NOSDA, NOMA and AMO for the continuing federal and provincial government capital reinvestment in the existing social housing stock. Goal 5: To improve client services and access to social housing Recommended Action 5.1 Examine the feasibility of an integrated service delivery model for Ontario Works, Housing and Child Care. Recommended Action 5.2 Enter into information sharing arrangements with other housing organizations in the District for which the DSSAB is not directly responsible to establish a central data base of housing opportunities and contacts. Recommended Action 5.3 Establish multiple points of entry through existing community service agencies and/or a mobile system to facilitate the application processes for services delivered by the DSSAB. Building on the introduction of the web based application form for Ontario Works (OW), examine the feasibility of allowing the completion and submission of the application for rent-geared-to-income (RGI) housing through the web. Recommended Action 5.4 Simplify the application for housing (underway) and field test with consumers prior to implementation. Recommended Action 5.5 Examine the internal review process for clarity and simplicity and develop written procedures that address eligibility/ineligibility, waiting lists and priority rules, occupancy standards, calculation of RGI rents and procedural processes for internal review hearings. Recommended Action 5.6 Develop a policy and process to assist individuals who lack identification to access housing and work with stakeholders to establish a policy with respect to the requirement for a letter of reference or guarantor. Recommended Action 5.7 Prepare a new tenant handbook that explains tenant rights and obligations and make it available in a variety of languages and in audio/ video form. Toni Farley & Associates Page 8
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Goal 6: To improve operational efficiency Recommended Action 6.1 Formally request the Province to permit the rationalization of projects under programs owned and operated by the TBDHC. Recommended Action 6.2 Examine the feasibility and cost implications of having DSSAB staff perform RGI rent calculations for all housing providers under administration by the DSSAB. Goal 7: To ensure that all residents have access to housing and support services which meet their needs Recommended Action 7.1 Facilitate discussions with the Ministries of Community and Social Services (MCSS) and Health and Long-Term Care (MOHLTC - NWLHIN) to gain support and funding for an integrated one-window approach to access housing and support services in the District, and work with MCSS and MOHLTC (NWLHIN) to ensure that by 2014 the following measures are agreed to and in place: An implementation plan A new accountability framework with required resources identified Delivery plan with clearly articulated roles and responsibility Formal approval with funding in place to begin to implement the new approach to accessing housing and support services. Goal 8: To break the cycle of homelessness Recommended Action 8.1 In partnership with the City of Thunder Bay, the Province of Ontario (MOHLTC (NWLHIN) and MCSS) and the federal government facilitate the initiation of a pilot program to provide a continuum of housing for the homeless from harm reduction housing and crisis beds to permanent RGI housing. Recommended Action 8.2 In partnership with the City of Thunder Bay and appropriate community agencies, facilitate a street needs assessment of the homeless to determine the number of homeless people and services required to keep the homeless housed and safe. Recommended Action 8.3 Seek funding from the federal government (Ministry of Toni Farley & Associates Page 9
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Human Resources and Skills Development), MOHLTC (NWLHIN), MCSS and MMAH to establish a housing loss prevention program. Recommended Action 8.4 Put in place a system to track why tenants leave social housing, e.g., no longer affordable (cost of utilities), eviction (rent arrears). Recommended Action 8.5 Establish targets to increase the number of homeless on the waiting list for social housing and for the number of homeless who qualify for OW. Recommended Action 8.6 Consider establishing a mobile unit to work with the homeless to complete applications for housing and request OW and MCSS (Ontario Disability Support Program (ODSP)) to participate. Recommended Action 8.7 Work in partnership with AMO, NOSDA, and NOMA to advocate for increased social assistance shelter rates. Recommended Action 8.8 Consider the creation of a position or function to keep track of government programs including information on how to apply for grants, etc., and to assist community based groups to apply for funding. Goal 9: To advance the housing agenda – Improving the quality of life for Aboriginal people Recommended Action 9.1 Encourage the development of a master contact list of Aboriginal organizations serving Aboriginal people living off-reserve in the District. Recommended Action 9.2 Establish a greater presence in the community by making effective use of technology such as e-mail and electronic newsletters to consult with Aboriginal service organizations and receive input on a regular basis. Recommended Action 9.3 Actively encourage. Aboriginal people to apply for positions within the DSSAB by notifying known Aboriginal organizations of employment opportunities as they arise. Recommended Action 9.4 The DSSAB create a community development officer position to interface between the DSSAB and specific groups in the District such as the Aboriginal community. Recommended Action 9.5 The DSSAB consider establishing an Aboriginal Liaison Committee with representation from the Aboriginal community, MMAH, NWLHIN and MCSS. Toni Farley & Associates Page 10
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Recommended Action 9.6 Request the Ministry of Municipal Affairs and Housing (MMAH) to broaden the Special Priority Policy to include Aboriginal families who are fleeing violence from on- reserve extended families. Recommended Action 9.7 The DSSAB review the urgent status category for housing and amend it to include Aboriginal families who are fleeing from violence from on-reserve extended families. Recommended Action 9.8 Request the Ministry of Municipal Affairs and Housing (MMAH) to amend the Social Housing Reform Act (SHRA) to eliminate the minimum occupancy standard to minimize the disadvantage to large households. Recommended Action 9.9 In the absence of a legislative solution and with due regard to health and safety, consider developing a policy to enable local flexibility to accommodate large Aboriginal families seeking subsidized housing. One approach may be to designate guest suites in select buildings. Recommended Action 9.10 Advocate for flexible new capital programs and operating funding that will provide greater choices for meeting the housing and support service needs of Aboriginal residents. Recommended Action 9.11 Support the development of permanent, emergency and transitional housing with and without supports for Aboriginal people that is culturally appropriate and under Aboriginal control to accommodate large Aboriginal families seeking subsidized housing. Recommended Action 9.12 Establish programs and policies to address discrimination. Elements of the program could include: Partnering with the City of Thunder Bay and the Centre for Equality Rights in Accommodation (CERA) to promote human rights in housing targeted to both the community at large and specifically to landlords and tenants. Working with the Human Rights Commission to promote their policy on Housing and Human Rights Training DSSAB staff on the Commission’s policy on Housing and Human Rights Working with Aboriginal organizations to showcase successes achieved in housing. Goal 10: To meet the demand for supportive housing Recommended Action 10.1 Advocate for capital and operating funding to increase Toni Farley & Associates Page 11
DRAFT HOUSING STRATEGY – UNDER ONE ROOF the supply of both dedicated supportive housing and support services. Recommended Action 10.2 Ensure that any new built or renovated housing is barrier free and accessible in compliance with the Accessibility for Ontarians Disabilities Act (AODA). Recommended Action 10.3 Establish a co-ordinated process for identifying housing priorities and proposed projects for capital and program funding in the event of new government initiatives. Recommended Action 10.4 Investigate the feasibility of a portable rent supplement program where the subsidy is linked to the individual rather than the unit. Recommended Action 10.5 Advocate for the renewal of programs that provide capital funding for renovations to existing housing both private and publicly owned. Recommended Action 10.6 In partnership with MOHLTC (NWLHIN) and MCSS, undertake a study to identify available support services in the District. The study should include type of services provided, number and types of clients served, funding source and amount of funding received. Recommended Action 10.7 Support the provision of seniors’ supportive housing in municipalities or communities where seniors reside based on a comprehensive needs analysis. Recommended Action 10.8 Where feasible and capacity exists, convert units in existing social housing projects to supportive housing for seniors. Recommended Action 10.9 Assist member municipalities to work with the NWLHIN to develop community specific aging in place strategies maximizing available services. Recommended Action 10.10 Work with the Métis Nation of Ontario (MNO) to promote the availability of the Residential Rehabilitation Assistance Program (RRAP) and the Residential Rehabilitation Assistance Program for Persons with Disabilities (RRAP-D). Recommended Action 10.11 Facilitate discussions with MCSS and MOHLTC for the purposes of establishing a registry system and designated lead for supportive housing to match individual needs with an appropriate form of housing. Recommended Action 10.12 Review the application form, requirements and processes for Ontario Works in collaboration with Toni Farley & Associates Page 12
DRAFT HOUSING STRATEGY – UNDER ONE ROOF MCSS. Recommended Action 10.13 Advise MCSS of stakeholders’ concerns with the ODSP application form, requirements and processes and request that they be reviewed. Recommended Action 10.14 Explore with MCSS the feasibility of a single access point for all OW and ODSP applications. Goal 11: To establish effective partnerships with the private sector to foster a positive environment in support of the District’s Housing Strategy. Recommended Action 11.1 Work with private landlords to promote the benefits of the rent supplement program and consider providing assistance to support landlords with difficult tenants where, in the opinion of the DSSAB, the assistance is warranted. Recommended Action 11.2 Adopt a formal and consistent method for communicating with the development sector to disseminate information about new government initiatives. This could include providing information (and web links) about new CMHC and Province of Ontario initiatives on the DSSAB’s web site. Recommended Action 11.3 Encourage members of the development community and municipal officials to provide input into the development of the 2011 edition of the Ontario Building Code. Recommended Action 11.4 Encourage the City of Thunder Bay to adopt a definition of Affordable Housing consistent with the 2005 Provincial Policy Statement and review the implications of Bill 58 if and when proclaimed to Part 6 of Section 2 of its Official Plan. Recommended Action 11.5 Explore the feasibility of providing in-situ rent supplement assistance to residents who are unable to afford the shelter component cost of residing in a retirement home. Toni Farley & Associates Page 13
DRAFT HOUSING STRATEGY – UNDER ONE ROOF A New Vision The strategic directions identified in this study lend themselves to a vision and mission statement for housing that encompasses the following principles: Co-ordinated access to housing and support services Building partnerships and collaboration between partners to achieve common goals Offering people choices about where and how they wish to live A system of housing and supports that is inclusive and maximizes personal growth Suggested Vision A people centric system of housing and support services that offers choice and efficiency. Suggested Mission Statement The DSSAB’s mission is to: Promote and support housing opportunities and related services for people living in the District of Thunder Bay through the use of existing resources and programs by building effective partnerships which contribute to the social and economic development of the District. Promote equal access to housing and support services. Provide a sustainable supply of affordable and subsidized housing to meet the needs of current and future residents. Empower people through the provision of a continuum of housing and support services to become more independent and improve their quality of life. Toni Farley & Associates Page 14
DRAFT HOUSING STRATEGY – UNDER ONE ROOF 1.0 WHY A HOUSING STRATEGY 1.1 Introduction The District of Thunder Bay Social Services Administration Board (DSSAB) was established on April 1, 1999, through the enactment of the District Social Services Administration Board Act (DSSAB Act). The provincial-municipal service delivery review conducted by the Province in the late 1990s resulted in a realignment of responsibilities between the Province and municipalities. The Province determined that the residents of Ontario would be best served if Ontario Works (OW), Community Child Care and Social Housing were delivered and funded at the local level. To implement local service delivery of these and other devolved functions, 47 municipal delivery agents known as Service Managers were created. The DSSAB is one such delivery agent. The DSSAB is funded by its member municipalities and through cost-sharing arrangements with Provincial Ministries. The District of Thunder Bay Social Services Administration Board consists of twelve members who are elected officials chosen by their respective municipal councils representing areas defined in the DSSAB Act. The DSSAB housing role, which commenced January 1, 2000, is governed by the Social Housing Reform Act, 2000 (SHRA). Over the last decade, the DSSAB has focused on consolidating, streamlining and developing expertise in the social housing field. Prompted by changes in demography, economic circumstances, increased funding pressures and increasingly limited ability to house those in need, the DSSAB determined to sponsor a housing study to examine the housing needs of all residents in the District. A study of this nature has never been commissioned and extends beyond the legislated mandate of the DSSAB. However, the DSSAB believed it must look at the full housing continuum to determine how it could best support improvements to the housing system in the District. 1.2 Purpose and Methodology The overall purpose of this study is to develop a comprehensive housing strategy for the District. The study encompasses the full continuum of housing from market housing (owned and rental), affordable housing (both market and government sponsored), subsidized housing (non-profit and commercial rent supplement), Aboriginal3, supportive, and transitional and emergency housing facilities serving victims of domestic violence and the homeless. 3 Note: First Nations on-reserve housing is a Federal responsibility and beyond the scope of this study. Toni Farley & Associates Page 15
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Within the context of the continuum, the study identifies: Current and future housing needs in the District Key issues related to the provision of and access to affordable and supportive housing Gaps and barriers in the system Strategic themes and proposed recommendations The study also updates the DSSAB’s 2004 Community Plan and assesses the suitability of the housing portfolio both owned and funded by the DSSAB relative to the needs of current and future applicants for social housing. Sustainability of the portfolio from a financial and asset management perspective is also examined. To help guide the overall work plan and development of the Housing Strategy, the DSSAB established a Steering Committee. The Steering Committee was chaired by the CAO of the DSSAB and included the following members: 2 political representatives from the City of Thunder Bay 2 political representatives from the balance of the District 2 staff representatives from the DSSAB 1 staff representative from the Thunder Bay District Housing Corporation 1 non-profit housing provider representative 1 representative from the Aboriginal community 1 representative from the North West Local Health Integration Network (NWLHIN) 1 representative from the Ministry of Health and Long-Term Care (MOHLTC) 1 representative from the Ministry of Community and Social Services (MCSS) The Housing Strategy was developed using both quantitative and qualitative data. Quantitative analysis was undertaken using information derived from Statistics Canada, CMHC, DSSAB Co-ordinated Access, housing providers and community agencies. Qualitative information was derived from extensive consultations with a diverse range of stakeholders from across the District including: Mayors/Reeves, CAOs, Community Development Officers, representatives of local hospitals (Geraldton, Nipigon, Marathon, Terrace Bay and Thunder Bay Regional Health Centre), The North West Local Health Integration Network and Community Care Access Centre, Ontario Works staff, social workers, support service providers, non-profit and supportive providers (seniors and non-seniors), private retirement home operators and private developers. As well, representatives and organizations serving the homeless, victims of domestic violence, the physically disabled, those with developmental, mental and intellectual disabilities, substance abusers, medical issues, etc., were also consulted with. (Refer to Appendix 2 for a complete list of stakeholders) The information gained from these consultations was instrumental in shaping the Housing Strategy. Toni Farley & Associates Page 16
DRAFT HOUSING STRATEGY – UNDER ONE ROOF The Housing Strategy was developed in six phases: Phase 1: Statistical Data Review and Information Gathering Identified housing trends, issues and needs based on an analysis of statistical data by area municipality. Updated the housing needs analysis for social housing funded and administered by the DSSAB. An environmental scan and economic forecast for the District as impacted by global economic trends was prepared to provide context to the supply and demand for affordable and subsidized housing in the District. Phase 2: Stakeholder Meetings Identified key stakeholders across the District and held both one on one and group meetings to gather qualitative information to better indentify local needs, issues, gaps and housing priorities. A survey of non-profit providers, subject to the Social Housing Reform Act, 2000, was conducted to solicit their views on housing issues, needs and suggestions for addressing identified issues. A summary of findings to date including common themes and issues across the housing continuum was prepared to serve as a basis for further discussion and consultation. Phase 3: Housing for Specific Populations Held focus group meetings specifically on housing for the homeless, Aboriginal people, supportive housing and social housing to validate findings to date related to issues, needs, gaps and barriers in the housing system. Identified priorities for housing, possible strategic directions and potential roles for housing partners. Phase 4: Consolidation of Findings Consolidation of identified strategic directions, recommendations and role of the partners was presented to the Steering Committee for discussion and input. Toni Farley & Associates Page 17
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Phase 5: Public Consultation Proposed strategic directions and recommendations as endorsed by the Steering Committee to be released for broad public input and feedback. Phase 6: The Housing Strategy Strategic directions and recommendations consolidated into a comprehensive Housing Strategy. 1.2.1 Study Format The Housing Strategy is prepared in two parts. Part I is entitled, Housing Analysis Report – Setting the Scene. It provides a review of the variables that impact the supply and demand for all housing across the housing continuum. The trends revealed through the analysis of the data were used to inform the Housing Strategy. It is a separate companion document to the Housing Strategy Report. Appendix 6 to this report entitled, Supportive Housing and Support Services Inventory is presented as a separate document due to its size. Part II is the Housing Strategy – Under One Roof. It addresses the needs and gaps identified and proposes strategic directions, goals and recommended actions to implement the strategy. 2.0 PART I - THE CONTEXT The Housing Strategy was developed within two overarching parameters: the projected social and economic environment of the District as defined by its economic growth or shrinkage and demographic characteristics; and, the policy and legislative framework set by senior levels of government. 2.1. Dynamics of Housing Supply and Demand Long term demand for housing is fundamentally driven by complex factors governed by economic, demographic, social and political conditions, principally focused at a local level. In periods of sustained growth, a requirement for more housing of all types (ownership/rental, market, affordable and subsidized) is created both as a result of net inward migration of households seeking jobs and opportunities, and new household formation. Additional goods and services competitively produced and consumed by an increased population invariably leads to more disposable income for all members of the community. In favourable economic times, households are more inclined to assume (or increase) mortgage debt to enhance their standard of living, and builders are similarly more prepared to create additional housing stock as their financial risk is mitigated given more secure revenue streams of the population. Toni Farley & Associates Page 18
DRAFT HOUSING STRATEGY – UNDER ONE ROOF In unfavourable economic conditions (especially if they appear long term or chronic in nature), the reverse is true. Outward migration occurs as households must re-locate in order to find alternative employment and fewer new households are created as young people are similarly forced to seek careers elsewhere. This can create an oversupply of housing resulting in vacant stock and weakening housing prices and even mortgage defaults. Although not commonly a serious problem, it recently became a material and substantive issue in rural communities such as Longlac and Manitouwadge where both market and subsidized housing continue to suffer from lack of demand. Flat and declining economic conditions also give rise to increased demand for subsidized, affordable and emergency housing. The loss of higher paying jobs coupled with the inward migration of people to more urban centers where services are more readily available and expectations for any type of work are higher, correlates with this increased demand. The characteristics of the population, in particular stage in the life cycle and level of physical and mental ability will determine the type and number of housing units required to serve the population. 2.2 Global Economy and Forest Products After an encouraging recovery coming out of the 2008 recession – the worst global decline experienced since the Great Depression – real economic growth in developed nations has fallen off quite dramatically. Real growth numbers in most of the G20 nations have contracted every quarter this year after peaking in the fourth quarter of 2009. The generous government stimulus programs (globally adopted to offset failing demand) like Canada and Ontario’s $2.5 billion package to buoy construction in the social housing sector alone, have wound down. Governments, now concerned with deficits and their long term derogatory impact on the economy, have limited spending in favour of bridging the budgetary gaps. But the severity of the recession combined with the curtailment of government support programs and extensive correction in equity markets, have left consumers too weak to drive consistent aggregate demand. The high unemployment levels that characterized the recession have not improved, and this has led to low levels of consumer confidence with particularly negative effects on autos and housing, two critical sectors of the economy. As of October 2010, Statistics Canada reported little change to unemployment rates standing at 8.0 per cent and 8.8 per cent for Canada and Ontario respectively. United States unemployment stood at 9.6 per cent as of September 2010 (the all inclusive U-6 number at 17.6 per cent)4. Not all countries in the G20 have suffered equally. Those with export oriented economies (i.e., Canada, Australia, Brazil, Germany) focused on Far East and emerging market countries have fared much better. The developing countries had much less exposure to the financial meltdowns of 2008 and considerably less overall debt leverage (credit is traditionally tighter), consequently, they recovered more rapidly than many of their developed counterparts. Aggregate demand remained quite robust and their 4 U-6 number includes people whose unemployment benefits have run out Toni Farley & Associates Page 19
DRAFT HOUSING STRATEGY – UNDER ONE ROOF recovery is now considerably well advanced. The Asian tigers, China, India, Taiwan, Korea and Malaysia have seen their economies soar to pre-recession growth rates and countries providing them with either natural resources or machine technologies have participated in their growth. But many G20 countries are not heavily export focused and are recovering much more slowly using only domestic programs wherever possible to enhance growth. Most notably among these countries is the US (about 40 per cent of the global economy). As the essential locomotive of world growth and Canada’s largest trading partner, slow growth south of the border has negative consequences here. Canada is performing much better than the US for several reasons (export boom in commodities and no banking crises), but Canada’s recovery will remain tepid and our unemployment levels unacceptable until the US recovery regains its former health. Two formerly prominent Canadian export sectors tied exclusively to the US that will absolutely struggle to recover are autos (US consumption is 25-30 per cent below normal) and forestry (lumber, pulp and paper). Even though the US has embarked upon some of the most aggressive monetary policy in the last century, high unemployment, poor consumer confidence and declining housing markets have left US consumers sceptical. Attempts by Washington to artificially stimulate demand, Cash for Clunkers (autos) and a first time home owners grant program only managed to raise demand to the length of their programs. When the tax money ran out, sales and demand also dropped. Lumber prices which recovered sharply out of the abyss of 2008 are now back to levels of about a year ago ($240 US MB) and just barely profitable for efficient mills, especially given the rise of the Canadian dollar now at close to parity with the US dollar. With US housing starts at levels (450,000) not seen since the early seventies, it is hard to see these prices (and volumes) bouncing back anytime soon. Paper has performed better, but for different reasons. Diminishing US demand has been replaced by Far East demand and temporary supply disruptions (Chilean earth quake and extended Finish mill closures), but Far East buyers are extremely price sensitive and South American low cost producers are displacing North American ones. The long term outlook for paper is not attractive for most northern hemisphere producers (although a bit better for lower value added pulp). Where does the future of the forestry industry lie? According to representatives of the Thunder Bay Community Economic Development Commission, the future may well be in high end value added paper and wood products. 2.3 Economic Forecast District of Thunder Bay The inability to compete on a global basis in the forestry sector over the last 10 years has had devastating impacts on local economies. Economic recovery has been slow and will hinge on the ability of the District to transform itself into a more diverse economy. Tenure reform should help rejuvenate the forestry industry paving the way for smaller entrepreneurs to access wood supplies to produce higher end goods like plywood. With the world price of gold and other metals at consistently high prices over the past few years, there has been renewed interest in mining and mining exploration – gold mines which closed or were close to shutting down are now seen as viable. The potential for the mining of ferrochrome and a significant amount of other metals in the Toni Farley & Associates Page 20
DRAFT HOUSING STRATEGY – UNDER ONE ROOF area known as the “Ring of Fire” north of Geraldton has expectations running high and if successful would do much to lift the economy of the District. An underdeveloped asset in municipalities such as Red Rock and Nipigon is the natural beauty of an area that, with thoughtful planning (currently underway) and marketing, could do much to draw tourism to the North Shore of Lake Superior. For the City of Thunder Bay, focused efforts are required to capitalize on its geographical position as the gateway to the West. With varying degrees of success, municipalities are pursuing economic development strategies to balance and diversify local economies. For the Thunder Bay Census Metropolitan Area (CMA) there are positive signs of the economy transitioning and becoming more diverse. Growth is already occurring in the Bio research and health care fields and is expected to increase over the next few years. 2.4 Demographic Trends in the District The population of the District is declining. From 1996 to 2006, Statistics Canada reported that the overall population fell from 155,945 to 146,280 – a decline of about 6.2 per cent. This decline is expected to continue. The Ministry of Finance reports that the population is projected to decline a further 2.4 per cent to 142,720 by 2016 and to continue to decline for the next 25 years. Not only is the population declining but like most areas across the province, the population is aging and will continue to age as the post World War II baby boom moves through the life cycle. The change is predominantly evident in the number of people 45 years of age and older. By 2016, projections for the District of Thunder Bay show that over time the age distribution of the population will change with more people being in the senior (65-74) or older senior (75+) age categories. Figure 1 charts the projected age distribution for population of the District to 2031. FIGURE 1: POPULATION OF THUNDER BAY DISTRICT 2006-2031 50000 45000 40000 2006 35000 2011 30000 2016 25000 2021 20000 2026 15000 2031 10000 5000 0
DRAFT HOUSING STRATEGY – UNDER ONE ROOF The number of households increased in the District by 2.3 per cent from 60,470 in 2001 to 61,635 in 2006. This increase was geographically centred in the Territories Without Municipal Organization (TWOMO) and the Thunder Bay CMA. While the number of households increased, household size declined over the same period from 2.45 to 2.37 persons per household in 2006. The declining and aging population coupled with more and smaller sized households defines the type of housing supply that is required to meet current and future housing demands. 2.5 Provincial Policy Framework The development of the Housing Strategy requires that it take into consideration broader government policies and directions that have or may have a bearing on it. The Social Housing Reform Act, 2000 (SHRA) is the key piece of legislation that governs the DSSAB’s mandate and authorities with respect to the funding and administration of social housing. This legislation is highly prescriptive leaving little autonomy for discretionary decision making to address local housing issues. There is cause for cautious optimism as the Ministry of Municipal Affairs and Housing (MMAH) determined as part of its consultations on the development of a Long-Term Affordable Housing Strategy (LTAHS) for Ontario to open the SHRA for review. Both the release of new (or amended) legislation governing social housing and the LTAHS anticipated for later this fall will provide the new framework from which the Housing Strategy will need to be positioned. The ability to achieve housing targets set out herein will clearly depend on the renewal of capital funding initiatives by both the federal and provincial governments. Current capital funding made available for housing by both Canada and Ontario under the Economic Stimulus initiative has for the most part been fully allocated. It is unknown whether the governments of Canada and Ontario will enter into another cost sharing agreement to provide further capital funding for housing purposes. Nonetheless, the DSSAB will need to ready its partners to maximize take-up of any new capital funding initiatives. With respect to supportive housing, services and supports are principally funded by the Ministry of Community and Social Services (MCSS) and the Ministry of Health and Long- Term Care (MOHLTC). The extent to which these two Ministries may be prepared to invest in more support services and/or partner in new approaches to accessing housing and support services will depend on available funding envelopes and the extent to which government priorities align. The current initiative of MCSS to transform developmental services to improve “services and supports for adults with a developmental disability to make them more equitable, accessible, fair and financially sustainable” needs to be considered. An important part of the Services and Supports to Promote the Social Inclusion of Persons with Developmental Disabilities Act, 2008 is a new application process which provides a one- window approach to housing and support services. New entities to be created across the province would provide the following services for those persons with developmental disabilities: Toni Farley & Associates Page 22
DRAFT HOUSING STRATEGY – UNDER ONE ROOF Information Determination of eligibility Determination of service and support service needs Service navigation Linking people to services and supports Administration of direct funding agreements MCSS also funds and administers a portfolio of supportive social housing units transferred from MMAH. MOHLTC currently has a number of existing services and priorities that may align with the Housing Strategy. These include the Aging at Home Strategy, funding and administration of supportive housing for consumers of mental health services and a proposed 10 year mental health and addictions strategy for Ontario. Additionally, there may be initiatives arising from the Provincial-Municipal Fiscal and Service Delivery Review with respect to human services delivery and integration, and the consolidation of housing across ministries that may impact the Housing Strategy. Most certainly, the Poverty Reduction Act 2009 recognizes the interplay of housing, health, and income support programs to reducing overall poverty levels. 2.6 Fiscal Framework On a provincial basis, health and social programs cost shared by the Province and Municipalities total over $10 billion annually5. Cost sharing arrangements between the Province and Municipalities vary according to program. As the realignment of responsibilities between the Province and Municipalities was intended to be revenue neutral, Service Managers receive assistance with their share of social programs through the Ontario Municipal Partnership Fund (OMPF), which for the DSSAB includes some recognition of the challenges it faces as a northern and rural community. While the costs faced by the DSSAB continue to rise, the amount of money received from the OMPF is fixed, resulting in the goal of revenue neutrality not now being met. Specifically with regard to the costs of social housing, Service Managers such as TBDSSAB receive a share of federal dollars associated with social housing projects and programs transferred to the Province under the Canada-Ontario Social Housing Agreement. This funding covers what was the federal share of operating subsidies and capital associated with the federal and federal/provincial transferred programs. The provincial share of those program costs is now a Service Manager responsibility. Further, for those projects which were developed solely by the Province, the Service Manager is now responsible for all of the costs. The federal flow through funding is eliminated as individual project mortgages or debentures mature. Figure 2 on the following page provides an illustration of the step out of federal flow through dollars. 5 Source: Ontario Non-Profit Housing Association Toni Farley & Associates Page 23
DRAFT HOUSING STRATEGY – UNDER ONE ROOF FIGURE 2: DECLINING FEDERAL FUNDING By 2033, all mortgages and operating agreements will have expired, and there is no further federal funding currently planned. Provincially, the drop in federal funding becomes material at about 2020. The scenario for TBDSSAB mirrors the provincial trend line. In the five year period from 2015 to 2019, 11 per cent of mortgages and debentures will reach maturity, 42 per cent from 2020 to 2024, with a further 43 per cent reaching maturity in 2025-20296. Under the SHRA (s.s. 130 (1)), the DSSAB is to apportion the amount of its housing costs among municipalities within its service area (District) and Territories Without Municipal Organization (TWOMO). Municipalities are required to pay the amount apportioned to them. The cost of housing apportioned to TWOMO is invoiced to MMAH for payment. The City of Thunder Bay commensurate with its resources, based on weighted assessment, pays by far the largest share of costs at approximately 75 per cent of the total. Weighted assessment is a calculation determined by “multiplying the taxable assessment for each prescribed property class by the tax ratio established by the municipality for each class. The tax ratio used for each property class in the unincorporated territory is the weighted average of those established by incorporated municipalities. The weighted assessment for each property class is then summed to determine a total for each municipality and unincorporated territory. Each municipality’s sum is then divided by the aggregate of all member municipalities’ weighted assessment to determine its share.”7 The accountability framework between the DSSAB and its members is such that the Board must seek double majority support for any expansion of services outside of the core mandate. To obtain double majority support, eight of the 15 Board members must vote in favour of a resolution and the eight members must represent 50 per cent plus one of the total population of the District. This policy was developed at inception as there 6 Source: TBDSSAB, Calculations by Toni Farley & Associates. Excludes Native People of Thunder Bay Development Corporation. 7 Source: TBDSSAB Toni Farley & Associates Page 24
DRAFT HOUSING STRATEGY – UNDER ONE ROOF was a concern that the Board would go beyond its mandate. This policy may prove to be a challenge to expanding services that may be required to support the Housing Strategy. Once mortgages and debentures mature and operating agreements expire, the DSSAB’s funding obligations change. It continues to be the sole shareholder of the Thunder Bay District Housing Corporation (TBDHC) responsible for funding and administration of about 2,675 former public housing units in accordance with the SHRA. With the former federal unilateral projects, such as those developed under the Urban Native Housing Programs, it will effectively cease to have funding obligations for those projects when mortgages have matured and operating agreements expired. The DSSAB’s obligation to subsidize former provincial projects cease once the Minister of Municipal Affairs and Housing terminates the Service Manager’s duty under s. 102 of the Act. Housing providers whose operating agreements have expired or who have been released from under the Act by the Minister are only required to conduct themselves in accordance with their corporate by-laws. That is, they are no longer subject to DSSAB administration. In a pre and post mortgage maturity environment, the Service Manager has a legislated responsibility to meet its service level standards. A service level standard is a prescribed obligation to fund a specified number of households on a rent-geared-to-income (RGI) basis. The DSSAB has an ongoing obligation to fund 3,601 units of RGI housing as specified in O. Reg. 368/01 Table 7 of the Act. Post mortgage maturity, the service levels are not tied to specific projects and will be able to meet its service level standards as it determines. However, it will then have to enter into new agreements with formerly subsidized housing providers or acquire units in the private sector. 3.0 THE HOUSING CONTINUUM The DSSAB determined early on that the strategy would cover the full housing continuum to ensure the housing needs of all residents in the District were considered. The various components that make up the housing continuum have their own dynamics which shape their respective markets but they are also interdependent. Activity or inactivity in one area affects the supply or availability of other housing. For example, a limited supply of housing subsidies means considerable delay or inability of individuals to move from temporary or emergency housing to permanent subsidized housing. Similarly, a general lack of rental housing stock would inhibit mobility along the continuum even if there were rent subsidies available. Lack of supportive housing for seniors may mean that some seniors are prematurely placed in long-term care homes. A lack of supportive housing in general for persons with disabilities or other issues may mean that hospital beds are unavailable for acute care patients and cause back-ups in emergency rooms. Toni Farley & Associates Page 25
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