Submission to the 2015 Ontario pre-budget consultations

Transcription

1 Submission to the 2015 Ontario pre-budget consultations Toronto Community Housing

2 Toronto Community Housing Corporation Submission to the 2015 Ontario pre-budget consultations 1. Executive Summary Toronto Community Housing is proposing that the Government of Ontario invest approximately $125 million per year between 2016 and 2022, for a total of $864 million, to renew Toronto s social housing infrastructure. This investment will create tens of thousands of jobs, generate domestic economic stimulus in the billions of dollars, proactively reduce incremental health care and justice costs, and help prevent 58,500 units of affordable housing from declining into a critical state of disrepair. Many of Toronto s most marginalized and vulnerable residents are living in Toronto Community Housing buildings that are in a state of chronic disrepair and reaching a critical state of decay as major building systems near the end of their useful life-cycle. Some buildings are already boarded up; without significant investment, more will suffer the same fate. We request your consideration to fund one-third of the capital investment required to sustain this valuable, publicly funded infrastructure, which supports better health, social, and economic outcomes. This requested investment has been identified in a $2.6-billion, 10-year capital financing plan unanimously approved by Toronto City Council in October Together, the City of Toronto and Toronto Community Housing have a plan to secure over $900 million through a variety of innovative strategies. The Government of Canada is also being asked to contribute a one-third share of $864 million within the same timeframe. Social housing helps build vibrant communities by providing safe and secure homes for families, seniors and individuals who often have nowhere else to turn. Investment in social housing will promote the objectives of Ontario s Poverty Reduction Strategy as well as multiple Ontario government priorities. Toronto Community Housing believes in sustaining this valuable public resource for the benefit of current and future generations. We look forward to partnering with the Government of Ontario to find solutions that benefit everyone.

3 2. Background The 58,500 households that live in Toronto Community Housing include low-income families, seniors, persons with disabilities, and some of the most vulnerable and marginalized residents of Ontario. We also house some of the most enterprising new Canadians and brightest young minds in the province, who use the foundation provided by our housing as a springboard to maximize their potential. One in four of our residents are seniors and four in ten are children and youth. The average household income of residents is less than $1,350 a month, and most (94%) are living below the poverty line. We continually strive to provide safe, clean and affordable homes. For these residents, Toronto Community Housing provides the stability and security that enables them to live with dignity and contribute to their community. 3. Funding Needs and Impacts Toronto Community Housing was created in 2001 without a stable, long-term source of funding to pay for capital repairs to its housing stock. Our housing was built, in significant part, with provincial dollars. Today, as those buildings age, all levels of government must face the consequences of the lack of long-term funding. Most of Toronto Community Housing s buildings are 40 to 50 years old or older. They require significant one-time catch-up repairs over the next 10 years, as a large number of buildings begin to age out at the same time. An estimated $2.6 billion is needed over a decade to repair these homes to serve Toronto s needs for another 40 to 50 years. This equates to a cost of $50,000 in repairs per unit, compared with an estimated cost of $250,000 to $300,000 per unit to replace these same homes. 2

4 Number of homes in critical condition Without Funding If the funding Toronto Community Housing requires is not invested, there is an imminent risk we will need to vacate and board up units as they become unsafe. At the end of 2014, we had 500 homes in critical condition and more than 100 were boarded up; by 2018 there will be 4,000 homes in critical condition. Without further investment, over 90 per cent will be in critical or poor condition by Without provincial and federal funding, over 90 per cent of TCHC homes will be in critical or poor condition by the year The unanimously approved City of Toronto plan secures just over one-third of the $2.6 billion we need to fix our aging buildings over 10 years. We are doing everything we can to generate additional funds with the City of Toronto. We are pursuing innovative approaches, including borrowing $156 million from Infrastructure Ontario through mortgage refinancing, raising $49.5 million through sale of standalone houses, avoiding $215 million in capital repair costs through revitalization/redevelopment and avoiding $20 million in costs through business efficiencies and better procurement practices. But the problem is simply too much for the City of Toronto to tackle alone. Despite our efforts, without provincial and federal investment, we will have to drastically scale back our capital repair investments starting in Toronto Community Housing has among the oldest and largest social housing stock in the province, which means Toronto is facing this challenge earlier than other municipalities. However, as noted by the Ontario Non-Profit Housing Association in its 2015 budget submission, housing providers across the province will soon start to feel the same pressure. That s why it is so critical to begin addressing this challenge now. 3

5 There are real and current risks of not maintaining these homes in good repair. The waiting list for social housing is ever growing, and the rate at which families are housed will be substantially reduced if we have to board up more units because they have become unsafe to live in. The average wait time for social housing in Toronto is already more than eight years for families and more than five years for seniors. Closing more buildings will mean more households will face an even longer wait for the housing they need. In addition, the loss of $114 million of provincial funding for social housing (Toronto Pooling Compensation) over the next few years means that social housing funding for Toronto from the province will plummet from $114 million in 2014 to zero in 2016 at a time when more, not less, funding is needed to stave off the looming crisis in capital repairs. Toronto Community Housing supports the City of Toronto s request to the province to reverse its recent decision to eliminate this funding for social housing. 4. Investing in Social Housing With the support of both the provincial and federal governments, we can and will fix our homes. We have already started to ramp up repairs, using the funding secured with the City of Toronto. Our annual capital plan for building repairs has grown from $68 million in 2013 to $128 million in 2014 to $175 million in Our 10-year plan calls for a $200 million investment in 2016 and further annual investments, on average, of about $285 million per year until 2023 but only if the federal and provincial governments come to the table with a one-third share each. But without this money, Toronto Community Housing will be forced to significantly scale back its capital repair plan, as the dollars secured through the City will start to run out in That s why we are calling on both the provincial and federal governments to each match the City of Toronto s investment to enable us to prevent our 58,500 homes from crumbling into a critical state of disrepair. For the province, this amounts to $864 million, or about $125 million per year over seven years. 4

6 Capital Budget (in millions) Our ask of Ottawa and Queen s Park: Invest an average of about $125 million per year between 2016 and 2022 in capital repairs to TCHC homes. We also ask the province to consider the following measures to help reduce our operating costs: Include social housing in the definition of infrastructure in legislation, such as the Infrastructure for Jobs and Prosperity Act, 2014 (Bill 6), which would allow social housing providers to access funding for capital repairs at zero cost to the province; Change shelter allowances under Ontario Works and the Ontario Disability Support Program so the full amount of the allowance is accessible. Prescribed rent scales in the Housing Services Act result in a reduced housing benefit when compared with private market households in receipt of social assistance. For the City of Toronto as a whole, this represents an estimated annual cost of about $81 million; and Reverse the decision to eliminate $114 million in funding for social housing, as requested by the City of Toronto. 5

7 5. Why Investing in Social Housing Makes Sense To deliver on key elements of Ontario s Poverty Reduction Strategy Nearly 40 per cent of our residents are under the age of 24. We are committed to connecting our young residents to opportunities for success through scholarships, leadership programs, employment opportunities and organized recreation programs sponsored by private sector partners. Provincial investment in Toronto Community Housing s 10-year capital plan will enable these young people to focus on their schooling, health, and reaching their full potential, without worrying about losing their homes. This will help break the cycle of poverty for children and youth. Toronto Community Housing also supports skills development and training through procurement practices that encourage the hiring of residents of Toronto Community Housing as part of Revitalization initiatives and repair projects. Our Regent Park Revitalization alone has created over 900 jobs for local residents. These investments simultaneously repair buildings while supporting residents and their families to achieve economic stability that will enable them to move toward employment and income security and for some to eventually move out of social housing as their economic circumstances improve. Toronto Community Housing houses about 700 formerly homeless residents every year through referral agreements with the City of Toronto s Streets to Homes program and other community agencies. Of the people housed from the waiting list in 2013, one in five were formerly homeless. The At Home/Chez Soi study by the Mental Health Commission of Canada demonstrated that stable housing combined with supports is central to improving the quality of life among the homeless population. Investing in social housing will support provincial efforts to end homelessness in Ontario. 6

8 To generate savings and economic and social benefits Provincial investment in repairs to social housing infrastructure will generate a significant return and improvements in healthcare, safety, and energy use. It will also generate government revenue and stimulate private sector investment. Investments in housing can mean savings down the road because people are healthier, more ready for employment, and participating in the community. Deb Matthews, Deputy Premier, Ontario Ontario Poverty Reduction Strategy, Toronto Community Housing recently retained the Canadian Centre for Economic Analysis to measure the 30-year socio-economic impact of our $7.9-billion, 10-year capital and Revitalization investments. The study s preliminary results indicate that significant financial, economic and social benefits will occur across several sectors as a result of provincial and federal investment in repairing our social housing. Toronto Community Housing will be seeking opportunities to brief affected ministries in more detail on the results of the study in spring Repairing housing infrastructure stimulates significant economic activity across the region in the home reconstruction sector. Our capital plan is already creating jobs and economic opportunities for skilled workers and home reconstruction businesses based in the Greater Toronto Area and beyond. As we move forward with ramping up our capital spending through our 10-year plan, this investment will continue to be an important driver for the local economy and for this sector. To sustain a valuable public asset Social housing is a critical part of Ontario s social infrastructure, and investing in infrastructure plays a crucial role in the health of Ontario s economy. Neglecting to invest in maintaining this valuable infrastructure will create additional economic costs, well in excess of this proposed investment. These homes represent a cornerstone of social infrastructure in this province today: Toronto Community Housing represents 90 per cent of the I believe that affordable housing is infrastructure. Sometimes, it is hard to get that conversation on the national table; but, it is a very important part of the infrastructure in our communities. public housing in the GTA and 44 per cent of Ontario s public housing stock. Premier Kathleen Wynne, 2013 ROMA OGRA Conference, 7

9 This valuable public asset was built in large part with provincial dollars. It makes sense for the province to invest in sustaining this critical public resource rather than to stand by and watch homes deteriorate and be lost for future generations. 6. Moving Forward We thank the Government of Ontario for its consideration and look forward to working together with you to achieve our shared goals. Toronto Community Housing and the City of Toronto have a plan to secure an initial one-third of our needed investment, and are using these dollars now to catch-up repairs that will improve quality of life for residents. We now need the province to contribute its one-third share, or $864 million, with the first investments starting in 2016, to sustain our momentum in keeping 58,500 homes available as social housing in Canada s largest city well into the 21 st century. Our 10-year plan makes smart business sense. But it is also the right thing to do. We are appealing on behalf of the residents of Toronto Community Housing, so they can live proudly in safe, healthy, affordable homes in financially and socially sustainable communities. Let s work together to find solutions that benefit everyone. Sincerely, Greg Spearn President and Chief Executive Officer (Interim) Toronto Community Housing 931 Yonge Street, 2 nd floor Toronto, ON M4W 2H2 (416) greg.spearn@torontohousing.ca 8

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