CMHC / NOVA SCOTIA Agreement for Investment in Affordable Housing Extension and Social Infrastructure Fund REPORTING

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1 CMHC / NOVA SCOTIA Agreement for Investment in Affordable Housing Extension and Social Infrastructure Fund REPORTING

2 The provincial and federal governments recognize that governments must be accountable to the public for the use of public funds through an open and transparent process which identifies expected outcomes, measures performance and provides for follow-up. In this context, each government is responsible for reporting annually to the public regarding the achievement of outcomes under the Investment in Affordable Housing Agreement (IAH Agreement) and its subsequent extension agreements. This is Housing Nova Scotia s IAH Accountability Report for It set outs how Nova Scotia invested the funds available under the Agreement to improve access to affordable housing that is sound, suitable, safe and sustainable.

3 HOUSING NOVA SCOTIA REPORTING Background In October 2011 Housing Nova Scotia (HNS) entered into a 3-year agreement with the Canada Mortgage and Housing Corporation (CMHC) called Investment in Affordable Housing (IAH Agreement) involving more than $60M. The Agreement was costshared 50:50 by the government of Nova Scotia and its housing partners, and the government of Canada. Over the three years of the agreement, the funds were invested to help over 7,400 low-to-moderate income families, seniors, individuals, persons with disabilities, vulnerable individuals, and victims of domestic violence access safe affordable homes. In 2014, the Agreement was extended for five years - the IAH Extension Agreement. It made available $102M in cost-shared 50:50 funding for housing. In the first two years of the Extension Agreement, HNS investments have helped over 5,100 low-to-moderate income households in need to access healthier and safer homes. In February 2016, the Government of Canada announced provisions to fund a 2-year Social Infrastructure Fund (SIF) for affordable housing. For Nova Scotia, this involves approximately $75M in new money for housing composed of both federal and provincial funding. In August 2016, the Province amended the IAH Extension Agreement to flow SIF funding through the IAH Agreement. There are two components to the SIF: Part A: Provides $42M in cost-shared funding (CMHC $21.4M and Nova Scotia $21.4M); and Part B: Provides $32M in federal funds that do not require provincial cost-sharing. These funds must be targeted to specific areas: Affordable housing for seniors; Shelters for victims of domestic violence; and Retrofit and renovation for social housing. Increasing affordable housing opportunities for lowto-moderate income households remains the focus for HNS. Creating or preserving affordable housing is fundamental to the quality of life and well-being of low income households with a housing need, and helps build stronger communities. In , through the IAH and SIF monies, HNS investments helped over 7,600 households with improved access to a safe affordable home. The report is divided into two sections: Section 1 looks at how we invested housing funds available under the Extension Agreement and under PART A of the Social Infrastructure Fund; and Section 2 looks at how Nova Scotia is investing the PART B Social Infrastructure Fund monies. There is a map of Nova Scotia at the end of this report that shows our province-wide investments. 1

4 HOUSING NOVA SCOTIA REPORTING SECTION 1 Investing IAH Extension Agreement and PART A SIF Funds An overview of investments, along with targeted outcomes and performance indicator results for , separated into IAH and IAH-SIF PART A, are set out in Table 1 at the end of the report. In Nova Scotia committed or invested over $37M in IAH and SIF monies. The overall outcome to be achieved through the carrying out of the Agreement is to reduce the number of households in need by improving access to affordable housing that is sound, suitable and sustainable. HNS made progress towards this outcome in Funds from the IAH Extension Agreement and the 2-year Part A SIF Agreement were directed to assisting over 3,700 low-to-moderate individuals, families, seniors, persons with disabilities and victims of domestic violence to access affordable housing. Highlights of specific investments include: Enhanced existing affordable housing and repair/ adaptation program financial assistance Enhanced existing affordable housing and repair/ adaptation program financial assistance. Part A (cost-matched) SIF funding was invested to enhance the financial assistance provided through existing housing repair/adaptation programs. This included the Homeowner Residential Assistance Program, Emergency Repair Program and the Access-A- Home Program. OUTCOME 1 Increase/preserve the supply of affordable housing that is sound, suitable, safe and sustainable. Helping households with needed health and safety related home repairs (1,509 households); Partnering with developers to create new affordable rental housing (7- projects comprising 41 new rental units including 7 barrier-free units); Partnering with landlords to preserve existing affordable rental housing (423 existing units); and, Committing $7.8M to create 222 new rent supplement units to reduce the public housing wait list. Figure 1 - Rental Preservation After picture of an upgraded existing 6-unit affordable rental building. It is in an existing built-up neighbourhood within walking distance of services and transit services. 2

5 HOUSING NOVA SCOTIA REPORTING Investing in creating new rent supplement units $18.08M in PART A SIF funds was committed over two years to help more families and seniors in need, by improving access to safe affordable housing near services and supports. $7.8M was committed for year 1, , to create 222 units, and $10.3M for year 2, to create approximately 218 units. The funds will provide rent subsidies for approximately 440 units in buildings owned by a private landlord, co-operative or non-profit housing provider. Prospective tenants will come from current public housing wait lists. As of March 31, 2017, 93 new units had been funded. Enhanced rental preservation program assistance In the past year, HNS invested in 72 rental preservation projects involving a total of 423 affordable rental units. In comparison, in , HNS invested in 14 projects involving 44 units. In , with SIF funding, HNS doubled the unit capital contributions for the Rental Preservation Program, from up to $25,000 to up to $50,000, and substantially increased the Rental RRAP budget. Projects in were located throughout the province and in many small rural communities such as Aylesford, North East Point, Noel, Springfield, Waterloo, and Saulnierville. These projects improved access to safe, sound and affordable rental housing. This helps to sustain communities as well as providing employment opportunities for trades people. Figure 2 - New Rental Housing Housing Nova Scotia converted a non- residential building in the Yarmouth area into a 9-unit affordable rental housing project. The project was built to passive housing environmental standards. One of the nine units is barrier-free. Multi-unit passive housing project In HNS converted a non-residential building into a 9-unit affordable housing apartment building. It was constructed to passive housing environmental standards. The project also incorporates visitable accessibility standards and includes one barrier-free unit. OUTCOME 2 Increase the resources available to address housing needs of households in need by encouraging contributions by others, including the private and not-for-profit sectors. Under HNS New Rental and Rental Preservation Programs, private developers are required to contribute equity of 20% of the total development costs while the requirement for non-profit developers is 15%. Equity may include cash or unencumbered land or a mix of cash and land. In , $2.63M was leveraged from partners to help reduce project costs. This includes $0.88M in land equity and $1.75M in cash equity. 3

6 HOUSING NOVA SCOTIA REPORTING OUTCOME 3 Foster a more holistic approach to addressing poverty by supporting a broad range of programs. HNS is committed to partnering with not-for-profit organizations and the private sector to provide stable housing options for homeless individuals and individuals at risk of homelessness. By the end of , a total of 195 rent supplement units for vulnerable Nova Scotians were funded through the IAH Extension Agreement. This included: The Halifax Housing First Project with 37 rent supplement units. The project is targeted at helping chronic and episodic users of emergency shelters transition to more permanent housing. 158 rent supplement units for the Housing Support Worker Program. This program, funded by HNS, enables emergency shelter providers to hire workers to help those at risk of homelessness find permanent housing. Both these initiatives provide stable affordable housing options in conjunction with support services that help individuals not only maintain successful tenancies, but also improve their health and well-being. Stable housing is the base from which individuals can rebuild their lives. OUTCOME 4 Reduce the demand for services and institutional living by increasing and extending independent living for seniors in need and persons with disabilities. The Government of Nova Scotia has a long history of investing in home repair and home adaptation programs targeted to older adults at least 65 years of age and to persons with disabilities. In under the IAH Agreement, HNS assisted 1,097 households to continue to live independently in their own homes. This, combined with the Provincial Home Care Program and other Department of Health and Wellness initiatives, has helped to reduce the length of time older adults stay in nursing homes. OUTCOME 5 Improve accommodations for victims of family violence by providing access to safe, sound, suitable, secure and accessible housing. HNS continues to help non-profit providers of housing for those fleeing abusive relationships with financial assistance for needed capital improvements. These nonprofit organizations provide safe housing for victims of family violence together with counselling and support services. In , HNS invested $700,000 in PART A SIF monies to increase Shelter Enhancement Program funding. Over the course of the year, HNS approved 22 projects to upgrade and improve the living condition of transition housing facilities located across the province. Those facilities have a total of 306 bed-units. OUTCOME 6 Foster training of skilled labour by supporting apprenticeship in the residential housing sector. Proponents of New Rental and Rental Preservation Program projects are asked to indicate in their proposal whether they will be hiring apprentices during project construction. Their responses are taken into consideration when evaluating proposed developments. All approved new rental and rental preservation projects in involving more than 6 units will employ apprentices. This includes apprentice plumbers, electricians and carpenters. 4

7 HOUSING NOVA SCOTIA REPORTING SECTION 2 Investing SIF Part B, Non-Cost-Matched Funds The $32M available to Nova Scotia for housing under the Social Infrastructure Fund does not require provincial cost-sharing. These funds, however, must be spent to address specific housing needs of low-income households. The specific targeted needs and Nova Scotia s planned investments over are: Affordable housing for seniors ($8.6M); Shelters for victims of domestic violence ($5.2M); Retrofit and renovation for social housing ($18.2M). In , HNS committed approximately $26M of the $32M. Table 2, at the end of this report, provides a summary of HNS investments in the context of the IAH Extension Agreement outcome and performance measures applicable to the targeted spending areas. These investments are depicted in the map of the province at the end of this report. OVERALL OUTCOME Reduce the number of households in housing need. Through the PART B SIF funding, in HNS improved access to affordable housing that is sound, suitable and sustainable for over 3,800 households in housing need. OUTCOME 1 Program H-1: Seniors New Construction and Renovations. Affordable housing that includes accessible design features enables seniors to continue to live Figure 3 - New affordable rental housing - Mahone Bay - 26 unit building currently under construction. It is targeted to seniors and includes 3 barrierfree units. The project will be built to visitable accessible design standards with enhanced senior features such as all units having walk-in-showers in lieu of bath tubs. Through PART A SIF funding, Housing Nova Scotia will fund 13 rent supplements units in the project. independently in their own homes. In , HNS invested in 3 new affordable rental housing projects for seniors involving 74 units, of which 8 are barrierfree units. Nova Scotia invested PART B SIF funds to provide capital contributions for the units. 25 have rent supplement funding. These rent supplements are funded through PART A SIF monies. OUTCOME 2 Program H-2: Victims of Family Violence new construction and renovation. Over HNS is investing $5.2M in SIF Part B funds for transition housing. In year 1, HNS committed approximately $3.5M in the following projects: 5

8 HOUSING NOVA SCOTIA REPORTING 1. Initial funding to begin replacing two emergency transition housing facilities. This includes investing: $2M for Bryony House, a 24-bed transition housing facility in Halifax. HNS will invest up to $3M over 2 years to replace the facility which is the largest of its kind in the province. $667,408 to replace Chrysalis House in Kentville. Up to $1M has been committed over two years to replace the facility. 2. Investing up to $511,951 for a 4-unit affordable second stage housing project to address the unique housing needs of urban indigenous women and children fleeing domestic violence. Through the project, the Mi kmaw Native Friendship Centre plans to provide support services including counselling, parenting and employment programs. 3. Committing up to $292,100 to build a duplex to provide affordable second stage housing for those fleeing domestic violence in Cumberland County. The housing will be managed by Autumn House who have long history of providing shelter, counselling and support services and programs to help victims of family violence transition to independent living. An example of the capital improvements made to public housing stock in is $5.6M to revitalize Mulgrave Park in Halifax, a development of over 300 public housing units. Other committed improvements were: repairs and upgrades to high-rise apartment exteriors, the renewal of buried heating pipes to reduce costs, emergency repairs, and safety and environmental risk-management work, including the restoration of high-risk retaining walls. The focus is on investing the funds in large residential projects to improve their overall Facility Condition Index level. These investments will have an impact on over 3,700 households. Figure 4 - Public housing retrofit and renovation - Investing PART B Social Housing infrastructure funds to upgrade and sustain existing public housing stock. Note, front steps will be replaced in spring OUTCOME 3 Program H-3: Renovation and retrofit of social housing. In , HNS invested PART B SIF funds to improve access for low-income households by expending $6M of a two-year $18.2M commitment to renovate and retrofit existing provincially-owned public housing stock. An example of the capital improvements made to public housing stock in is $5.6M to revitalize Mulgrave Park in Halifax, a development of over 300 public housing units. Other committed improvements were: repairs and upgrades to high-rise apartment exteriors, the renewal of buried heating pipes to reduce costs, emergency repairs, and safety and environmental risk-management work. The focus is on investing the funds in large residential projects to improve their overall Facility Condition Index level. These investments will have an impact on over 3,700 households. 6

9 Table 1 CMHC - Nova Scotia Investment in Affordable Housing Social Infrastructure Funding (Part A - Cost-Matched Funding) Outcomes & Results Outcomes and Indicators Results IAH IAH-SIF-A Overall Outcome Reduce the number of households in need by improving access to Affordable Housing that is sound, safe, suitable and sustainable. Overall Indicator: Total number of low to modest income households no longer in need as a result of the Investment in Affordable Housing 2,520 2,655 2,448 1,346 Outcome 1 Increase/preserve the supply of affordable housing that is sound, safe suitable and sustainable Indicator 1: Homes preserved through major health and safety related repairs (# units or # households helped) 2 1,072 1, Indicator 2: Number affordable rental units created through new construction. 59 (7 projects) 56 (5 projects) Indicator 3: Number affordable rental units preserved through rehabilitation and repair. 52 (9 projects) 44 (14 projects) Indicator 4: Number low income households helped through new rent supplement units to reduce public housing wait lists. N/A N/A N/A Outcome 2 - Increase the resources available to address housing needs of households in need by encouraging contributions by others, including the private and not-forprofit sectors Indicator: Additional funds leveraged from partners to reduce development costs ($ leveraged) 6 $1.2M $1.9M $2.12M $0.5M Outcome 3 - Foster a more holistic approach to addressing poverty by supporting a broad range of programs Indicator: Homeless individuals or individuals at-risk of homelessness who transition to more stable housing because of funded rent supplement units (# households helped) N/A Outcome 4 - Reduce demand for services and institutional living by increasing and extending independent living for seniors in need and persons with disabilities Indicator: Seniors of persons with disabilities helped by health and safety related repairs or home adaptations that will enable them to continue to live independently in their own homes (# households helped) 1, , Outcome 5 - Improved accommodations for victims of family violence by providing access for safe, sound, suitable secure and accessible housing Indicator: Shelters for victims of family violence upgraded through needed capital improvements (# units) (13 projects) 293 (16 projects) 224 (14 projects) 82 (8 projects) Outcome 6 - Foster training of skilled labour by supporting apprenticeship in the residential housing sector Indicator: New rental and rental preservation projects that will be hiring apprentices (# projects) 9 N/A N/A 5 projects 1 project

10 Table 1 Notes 1 - Information in this table is provided in accordance with Housing Nova Scotia s annual reporting commitments to CMHC under the Agreement for Investment in Affordable Housing (Extension Agreement) and under the 2016 Social Infrastructure Agreement under the Extension Agreement. PART A SIF funding involved an additional $21.4M in to improve access to affordable housing. 2 This does not include repair/adaptation program specifically targeted to seniors (65+) and disabled persons. 3 - Revised figure. A 45-unit project approved in is not going forward. 4 Investing PART A SIF funds to increase capital contributions for New Rental Program and Rental Preservations. Contributions went from up to a maximum of $25,000/unit to up to a maximum of $50,000/unit. This change came into effect at the end of August Added this indicator in to capture PART A SIF funds invested in creating new rent supplement units for low income families and seniors on public housing wait lists. Committed $7.8M in year 1 to create approximately 222 units including 10 units for new rental projects; and $10.3M in year-2 for 205 rent supplements involving deeper subsidies and 13 rent supplement units for new rental projects. As of March 31, 2017, rent supplement agreements were in place for 93 units. 6 In addition to the funds noted for this indicator, HNS leveraged an additional $1.46M in using PART B SIF Funding which is not reflected in this table. 7 - Reporting on the number of rent supplement units funded by HNS for emergency shelter providers in the Halifax Regional Municipality and for the Halifax Housing First Project. These units are delivered in conjunction with support services. 8 - This involves beds/self-contained units. Individual shelters may receive assistance for more than one improvement project over the course of the fiscal year. 9 - Tracking did not begin until April 1, In addition to the data reported for this indicator, two PART B SIF housing projects targeted to seniors indicated that they will be hiring apprentices.

11 Table Special Social Infrastructure Funding (PART B Non-Cost-Matched Funding) Outcomes and Indicators Outcomes and Indicators Results Overall Outcome Number of households no longer in housing need by improving access to Affordable Housing that is sound, suitable and sustainable for households in need Overall Indicator - Total number of households no longer in housing need as a result of the investment Special SIF Funding (non-cost matched funding). Outcome 1 Program H-1: Seniors New Construction and Renovations Reduce the number of households in need by improving access to Affordable Housing that is sound, suitable and sustainable for households in need Indicator: # of households no longer in housing need as a result of Program H-1: Seniors New Construction and Renovation 74 3,837 Outcome 2 Program H-2: Victims of Family Violence New Construction and Renovation Reduce the number of households in need by improving access to Affordable Housing that is sound, suitable and sustainable for households in need Indicator: # of households no longer in housing need as a result of Program H-2: Victims of Family Violence New Construction and Renovation Outcome 3 Program H-3: Renovation and Retrofit of Social Housing Reduce the number of households in need by improving access to affordable Housing that is sound, suitable and sustainable for households in need Indicator: # of households no longer in housing need as a result of Program H-3: Renovation and Retrofit of Social Housing. 3 3,728 Notes: 1 The information in this table is provided in accordance with Housing Nova Scotia s annual reporting commitments to CMHC under the Agreement for Investment in Affordable Housing (Extension Agreement) and under the 2016 Social Infrastructure Agreement under the Extension Agreement Special SIF Funding (non-cost-matched funding) involves approximately $32M in funding from CMHC. 2 - Two of the 4 projects invested in involved replacing two existing shelters comprising a total of 29 bed-units. The remaining two projects involved creating 6 new second stage housing units. 3 A total of $18.2M of the Special SIF Funding were committed in to upgrade the public housing stock. By the end of , Housing Nova Scotia had expended $5.6M..

12 Investment in Affordable Housing Agreement, Investment in Affordable Housing by Community

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