What s Next for Affordable and Co-op Housing in Ontario? - A Ministry of Housing Perspective -

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1 What s Next fr Affrdable and C-p Husing in Ontari? - A Ministry f Husing Perspective - C-perative Husing Federatin f Canada Ontari Regin Annual General Meeting June 8, 2017

2 Overview Lng-Term Affrdable Husing Strategy (LTAHS) Update Implementatin What Has Changed? What des this mean fr c-ps? Scial Husing Mdernizatin What des this mean fr c-ps? Overview/Updates: Supprtive Husing Transfrmatin and Investment Indigenus Husing Strategy Fair Husing Plan and the Rental Fairness Act What des this mean fr c-ps? Green Investment Fund and Scial Husing Imprvement Prgram Overview What des this means fr c-ps? Overview f 2017 Federal Budget May Ministry f Husing 2

3 2016 LTAHS Update On March 14, 2016, the gvernment released the update t the Lng-Term Affrdable Husing Strategy (LTAHS). The updated Strategy is bld and transfrmative, and supprts ur gal f ending chrnic hmelessness by the year The updated strategy is based n a new visin that reflects the gvernment s gal f ending hmelessness: Every persn has an affrdable, suitable and adequate hme t prvide the fundatin t secure emplyment, raise a family, and build strng cmmunities This visin is assciated with tw verarching utcmes: Decreased number f peple wh are hmeless and Increased number f husehlds achieving husing stability. Achieving these utcmes can ptentially impact a range f assciated utcmes, including lng-term cst avidance in ther sectrs such as: Decreased inapprpriate use f emergency health care services; Decreased use f plicing and crrectinal services; Increased emplyment; Increased educatin utcmes; and Increasing scial and ecnmic inclusin. May Ministry f Husing 3

4 2016 LTAHS Update: Themes 1. Apprpriate and Sustainable Supply f Husing 2. Equitable, Prtable System f Financial Assistance 3. Peple-Centred, Efficient Husing Prgrams 4. Indigenus Husing Strategy 5. Key Steps t End Hmelessness 6. Evidence-Infrmed System May Ministry f Husing 4

5 LTAHS Update Implementatin What Has Changed? As part f the LTAHS Update, a number f regulatry changes were made t prvide Service Managers with greater flexibility in the delivery and administratin f scial husing. On July 1, 2016 regulatry amendments under the Husing Services Act, 2011 (HSA), City f Trnt Act, 2006 and Municipal Act, 2001 came int frce that: Allw husehlds t retain mre f their incme withut impacting their RGI calculatin; Allw fr mre mixed incme husing within the current RGI husing stck; Prescribe Service Manager decisins fr reviews requested by husing prviders and setting rules fr such reviews (effective January 1, 2017); and Prvide Service Managers and municipalities with greater ptential t access capital funding fr affrdable husing prjects. May Ministry f Husing 5

6 LTAHS Update cnt d. On December 8, 2016, Bill 7, the Prmting Affrdable Husing Act, 2016 received Ryal Assent. The Prmting Affrdable Husing Act, 2016: Incents a meaningful increase in the supply f affrdable husing units thrugh a variety f enhanced and new tls including inclusinary zning; Eliminates the requirement fr mst Ministerial Cnsents t be btained fr the sale r transfer f scial husing prperty and changes t Lcal Husing Crpratins; Allws ther frms f Service Manager-funded husing assistance t cntribute twards a Service Manager s Service Level Standard (SLS), and allws fr husehlds wh accept such assistance t be remved frm scial husing waiting lists; Requires Service Managers t undertake regular lcal enumeratin f their hmeless ppulatin; and Clarifies that scial husing tenants can remain in their hme after they cease t qualify fr RGI assistance. May Ministry f Husing 6

7 What des this mean fr c-ps? Review f Service Manager Decisins After cnsultatins with CHF, ONPHA and AMO the Ministry has made amendments t Regulatin 367/11 under the HSA. The Regulatin nw prescribes decisins made by Service Managers that can be requested fr review by Husing Prviders. Reviewable decisins include thse taken by a SM in respnse t a triggering event, namely a decisin t: suspend r reduce husing prvider subsidy; take ver the husing prvider s pwers r duties; appint an peratinal advisr fr the husing prvider; appint an interim receiver fr the husing prvider; and remve r (invluntarily) replace any r all f the husing prvider s Bard f Directrs. This prcess will avid cstly dispute reslutin thrugh the legal system. May Ministry f Husing 7

8 Scial Husing Mdernizatin A key element f the LTAHS Update (and the Minister f Husing s 2016 Mandate Letter) is develping a mdernized framewrk fr scial husing aligned with the gvernment s fcus n pverty reductin: Articulate key elements fr scial husing prgrams in the future Scial Husing Mdernizatin Technical Dcument released May 2016 Undertake sme immediate refrms t supprt mdernizatin Prmting Affrdable Husing Act, 2016 (passed December 8, 2016); ther regulatry refrms apprved May 2016 Cmmit t a prcess t define the path frward Scial Husing Mdernizatin Discussin Frum cnvened May The mdernizatin f the scial husing system will be built arund the fllwing themes and key elements: A mdern prgram framewrk A mre crdinated access system New appraches t financial assistance A vibrant nt-fr-prfit and c-perative husing sectr. May Ministry f Husing 8

9 Scial Husing Mdernizatin Discussin Frum T supprt the scial husing mdernizatin prcess, a Discussin Frum has been cnvened and tasked with prviding advice t gvernment n all aspects f the mdernized system. The Discussin Frum is supprted by a variety f wrking grups prviding technical advice n specific tpics. Participants n the Frum and Wrking Grups include representatives frm Service Managers, scial husing prviders, sectr rganizatins including CHF Ontari Regin, as well as representatives frm brader cmmunity grups. T ensure brad gvernment perspectives, partner ministries include the Ministry f Health and Lng- Term Care, the Ministry f Cmmunity and Scial Services, and the Canada Mrtgage and Husing Crpratin are als participants. The Frum has met six times since May 2016 and is expected t meet int Early pririties included prviding advice n the prpsed Prtable Husing Benefit Framewrk, enhancements t the Special Pririty Plicy, and develping standards fr a vluntary accreditatin system fr husing prviders. May Ministry f Husing 9

10 What des this mean fr c-ps? Prtable Husing Benefit (PHB) Framewrk A PHB wuld give peple n the scial husing waiting list the ptin t receive direct financial assistance that prvides mre flexibility and chice abut where they live; The PHB Framewrk wuld be a new tl fr Service Managers t use t assist husehlds n the scial husing waitlist with rental husing csts, alngside the rent-geared-t-incme (RGI) system ; It culd help c-p members wh like where they live but are facing affrdability challenges t remain where they live; Wuld allw fr the pprtunity t create mre vibrant mixed-incme cmmunities; and We recently sught public feedback n prpsed regulatins that wuld establish the PHB Framewrk within the Husing Services Act, Cmments clsed n June 5, Discussin Frum The Discussin Frum cntinues t meet regularly t prvide expert advice n all aspects f wrk related t scial husing mdernizatin May Ministry f Husing 10

11 Supprtive Husing Transfrmatin and Investment Supprtive Husing System Transfrmatin On March 9, 2017, the prvince released the Supprtive Husing Plicy Framewrk and Best Practice Guide t prvide directin fr the lng-term transfrmatin f Ontari s supprtive husing system (available n MHO website at New Supprtive Husing Investment Als n March 9, the prvince annunced it is investing up t $200 millin in perating funding fr husing assistance and supprt services t assist up t 6,000 families and individuals ver the next three years. The investment will als supprt the cnstructin f up t 1,500 new supprtive husing units ver the lng-term. May

12 Supprtive Husing Transfrmatin and Investment The supprtive husing investment is cmprised f three cmpnents: 1) Service Manager cmpnent (Hme fr Gd prgram): ~$75 millin by 2019/20; 2) Targeted funding fr Indigenus rganizatins t give Indigenus peple better access t supprtive husing: $20 millin by 2019/20; and 3) Targeted funding t meet the needs f specific transitinal client grups, t be delivered by MOHLTC and MCSS: ~$5 millin by 2019/20. MHO has released an Expressin f Interest (EOI) inviting municipal Service Managers t apply fr funding fr the first tw years f the Hme fr Gd prgram fcused n helping peple within ne r mre f the prvincial pririty hmelessness areas. MHO will select successful Service Managers by July. May

13 Indigenus Husing Strategy Update Indigenus Husing Strategy Engagement Table MHO s new Indigenus Husing Plicy and Prgrams Unit leads the engagement with prvincial Indigenus rganizatins, husing prgram administratrs and husing prviders. Organizatins include the Ontari Native Wmen s Assciatin, the Métis Natin f Ontari, Ontari Federatin f Indigenus Friendship Centres, Ontari Abriginal Husing Services, Miziwe Biik Develpment Crpratin, Gignul Husing and Nishnawbe Hmes. The Ministry has begun reaching ut t ther Indigenus partners nt represented at the Table. MHO cntinues t wrk with and seek advice frm the Ministry f Indigenus Relatins and Recnciliatin and ther ministries, as well as with the federal gvernment (Natinal Husing Strategy). As annunced n March 9, 2017, MHO is dedicating $20 millin per year (20 per cent) f the Supprtive Husing Investment fr Indigenus rganizatins. The Indigenus Supprtive Husing Prgram will fund Indigenus rganizatins t deliver affrdable husing and supprts t Indigenus peple in need thrughut Ontari. May Ministry f Husing 13

14 Fair Husing Plan On April 20, 2017, the gvernment intrduced the Fair Husing Plan, a cmprehensive set f 16 measures t address demand, increase supply, prtect buyers and renters, and bring stability t the real estate market. Measures t address demand fr husing and prtect renters include: Intrducing a 15 per cent Nn-Resident Speculatin Tax n the price f hmes purchased in the greater Glden Hrseshe Area by individuals wh are nt Canadian citizens r permanent residents r by freign crpratins. Expanding rent cntrls t all private rental units in Ontari, strengthening prtectins fr tenants against sudden, dramatic rent increases; and Strengthening the Residential Tenancies Act t further prtect tenants. May Ministry f Husing 14

15 Measures t increase supply f husing, including rental and affrdable husing include: Fair Husing Plan cnt d. Establishing a prgram t leverage the value f surplus prvincial lands that culd be used fr new market and affrdable husing develpment; Empwering Trnt and ptentially ther interested municipalities t intrduce a tax n vacant hmes t encurage wners t sell r rent unccupied units; Ensuring that prperty tax fr new multi-residential apartment buildings is charged at a similar rate as ther residential prperties; Intrducing a targeted $125-millin, five-year prgram t encurage the cnstructin f new purpse-built rental apartment buildings by rebating a prtin f develpment charges; Prviding municipalities the flexibility t use prperty tax tls t help unlck develpment pprtunities. Fr example, municipalities culd be permitted t impse a higher tax n vacant land that has been apprved fr new husing; and Creating a new Husing Supply Team within the prvincial gvernment t identify barriers t specific husing develpment prjects and wrk with develpers and municipalities t find slutins. As well, a multi-ministry wrking grup will be established t wrk with the develpment industry and municipalities t identify pprtunities t streamline the develpment apprvals prcess. May Ministry f Husing 15

16 Fair Husing Plan cnt d. Plan als includes additinal prtectins fr hmebuyers and actins t increase infrmatin sharing such as: Wrking t better understand and tackle practices that may be cntributing t tax avidance and excessive speculatin in the husing market, such as paper flipping ; Wrking with realtrs and cnsumers t review the rules real estate agents are required t fllw t ensure that prspective hmebuyers are represented fairly in real estate transactins (i.e., the practice f duble ending); Establishing a multi-disciplinary husing frum t prvide us with nging advice abut the state f the husing market, discuss the impact f the measures in the Fair Husing Plan and recmmend any additinal steps that are needed; Educating hmebuyers n their rights where realtrs represent mre than ne party in a real estate transactin; Partnering with the Canada Revenue Agency t explre mre cmprehensive reprting requirements s that crrect federal and prvincial taxes are paid n purchases and sales f real estate; Making elevatrs in Ontari buildings mre reliable by establishing timelines fr elevatr repair in cnsultatin with the sectr and the Technical Standards & Safety Authrity (TSSA); and Including new prvisins in the Grwth Plan that require municipalities t cnsider the apprpriate range f unit sizes in higher density residential buildings t accmmdate a diverse range f husehld sizes and incmes. May Ministry f Husing 16

17 Rental Fairness Act, 2017 As part f the Fair Husing Plan, n May 18, 2017 the prvincial gvernment passed Bill 124, the Rental Fairness Act, 2017 t amend the Residential Tenancies Act, 2006 t: Imprve rental husing affrdability by: Expanding rent cntrls t all private rental units Prviding authrity fr regulatins t further tighten abve-guideline rent increase rules fr capital expenditures Mitigate the impact f carbn csts n tenants and encurage landlrds t make their buildings mre energy efficient by remving abve-guideline rent increases fr extrardinary increases in utility csts; Strengthen tenant prtectins and help facilitate successful tenancies by: Enabling a standard lease t help bth tenants and landlrds knw their rights and respnsibilities, while reducing the number f disputes Prtecting tenants frm evictin due t abuse f the landlrd s wn use prvisin Ensuring landlrds cannt pursue frmer tenants fr unauthrized charges Delaying abve-guideline rent increases until elevatr maintenance rders are addressed Facilitate better results fr individuals living in transitinal husing and help mre peple successfully transitin t lnger-term, stable husing by requiring transitinal husing prviders t prvide written tenancy agreements with prgram participants in rder t qualify fr an exemptin frm the RTA fr up t fur years; and Imprve and simplify Landlrd and Tenant Bard (LTB) prcesses. May Ministry f Husing 17

18 What des this mean fr c-ps? The amendments t imprve and simplify Landlrd and Tenant Bard (LTB) prcesses wuld impact c-ps by: Preventing unfunded stays f evictin rders (amendment t s ); Simplifying evictin applicatins based n a tenant s secnd breach f their bligatins (repeal/replace s (1)); Allwing the LTB t cmbine rders and mediated agreements t simplify enfrcement (amendments t s.94.11); and Making it easier t file applicatins and mtins with the LTB by allwing the LTB t establish rules allwing fr certain circumstances when affidavits are nt needed (new s culd impact c-ps, at discretin f LTB). May Ministry f Husing 18

19 What des this mean fr c-ps cnt d? Other initiatives under the Fair Husing Plan that culd als impact the cperative sectr include: Develpment charges rebate prgram Wrking with municipalities, the gvernment wuld target prjects in thse cmmunities that are mst in need f new purpse-built rental husing that wuld nt have prceeded in the absence f this incentive. Prgram details are being develped. Prvincial Affrdable Husing Lands Prgram The prgram will leverage surplus prvincial land assets acrss the prvince t develp a mix f market husing and new, permanent, sustainable and affrdable husing supply. The Prvince is cmmitting $70 - $100 millin in land value t develp up t 2,000 new husing units, including a mix f market and permanent affrdable husing. Alignment f prperty taxes fr new multi-residential apartment buildings with ther residential prperties Culd facilitate the develpment and financial viability f new cperatives thrugh lwer perating csts. Making elevatrs mre reliable Lessen disruptin fr cperative members thrugh imprved elevatr availability. May Ministry f Husing 19

20 Green Investment Fund (GIF) Prgrams C-ps are eligible under bth the Scial Husing Apartment Retrfit Prgram (SHARP), and the Scial Husing Electricity Efficiency Prgram (SHEEP) prvided buildings meet the eligibility criteria: SHARP = Scial husing apartment buildings f 150 r mre units. SHEEP = lw-density (single, semi, twn/rwhuse) where tenants pay their wn hydr csts. MHO prvides funding t Service Managers with eligible units, wh then develped their wn lcal selectin prcesses. C-p husing buildings were given funding under bth SHEEP and SHARP: SHARP = 7 eligible prjects received 11% ($8.9M) f the ttal $82M in prgram funds. SHEEP = 6 eligible prjects received 6% ($0.6M) f ttal $10M in prgram funds. C-ps accunt fr 8% f all units in the ttal scial husing prtfli. May Ministry f Husing 20

21 Scial Husing Imprvement Prgram (SHIP) Scial Husing Imprvement Prgram (SHIP) is a cmpnent f the federal gvernment s Scial Infrastructure Fund (2016 SIF). It aims t assist in the repair, and installatin, f energy and water retrfits in scial husing in rder t address capital needs, imprve energy efficiency and reduce greenhuse gas emissins. C-ps recmmended by Service Managers received funding apprvals under SHIP fr buildings that met the fllwing eligibility criteria: As f April 1, 2016, the prject was administered within a Transferred Husing Prgram f the Husing Services Act (HSA), At the time f the cmmitment and use f the SHIP funding fr the prject, the prject is still within a Transferred Husing Prgram. MHO prvided prgram funding t the 47 Service Managers that recmmended prjects based n their lcal selectin prcesses. 101 c-p husing buildings received $25M in SHIP funding, which represents 13% f the ttal prgram funding f $200M. May Ministry f Husing 21

22 Federal Budget 2017 and Natinal Husing Strategy On March 22, the federal gvernment tabled its 2017 budget, which prpses t invest mre than $11.2 billin ver 11 years in a variety f initiatives designed t build, renew and repair Canada s stck f affrdable husing. These investments will be made as part f a new Natinal Husing Strategy. The Strategy will prvide a radmap fr gvernment and husing partners and stakehlders acrss the cuntry as they decide hw t best supprt husing and hmelessness in Canada. The Budget includes: $3.2 billin f renewed funding t Prvinces and Territries; Other initiatives t be delivered by the federal gvernment and which address the existing scial husing stck, hmelessness and Indigenus husing needs. May Ministry f Husing 22

23 What des this mean fr c-ps? Fr c-ps and ther scial husing prviders, the federal budget utlines a range f resurces ver an 11 year perid t help sustain the existing scial husing stck, such as: Transitinal funding as perating agreements expire; Expanding direct lending; Supprting innvatins; and, Establishing a Sectr Transfrmatin Fund and Technical Resurces Centre. Ontari (and ther prvinces and territries) is cntinuing t wrk with the federal gvernment t refine and rll-ut these resurces ver the next few mnths t help meet the needs f c-ps and ther scial husing prviders. May Ministry f Husing 23

24 Vibrant Nn-Prfit and C-perative Husing Sectr As perating agreements cme t an end, the nn-prfit and c-perative husing sectr will face cnsiderable financial pressures and challenges related t sustaining peratins in the future. Recgnizing the range f pressures affecting the sectr, the prvince cntinues t wrk with its partners t strengthen the nn-prfit and c-perative husing sectr s capacity and flexibility in rder t maintain, replace, and expand affrdable husing ptins. As shwn here tday, the prvince cntinues t wrk twards ensuring that sustainable, well-gverned c-ps remain a significant and valuable cmpnent f husing in Ontari. May Ministry f Husing 24