Tuesday, October 03, 2006

Not a housing strategy, but a small step

It's a fine idea to bring in a rent-subsidy program for about 15,000 poor families in B.C., but it doesn't qualify as the cornerstone of a housing policy.
Forest Minister Rich Coleman, who is also responsible for housing, unveiled what he called a housing strategy this week.
The general direction seemed fine, but there wasn't a lot of meat - or in this case money - on the bones of the plan, dubbed Housing Matters BC.
The most significant news was the $40-million available in rent subsidies for up to 15,000 of the province's poorest families.
People with children who are trying to live on less than $20,000 a year can apply for the subsidy. If they're successful, they will get a cheque every month to help them pay the rent.
That's obviously needed help. There is a 15,000-family waiting list for affordable housing in the province. In the meantime, families are struggling desperately to pay the rent and put food on the table, clothes on their kids and hope in their lives.
But the program is only a small start. The subsidy will be based mainly on the family's income and and number of children. Across most of the province, a family of four getting by on $18,000 a year would get a rent subsidy of $76.50 a month.
Coleman said the theory is that the program will help families keep their housing costs to 30 per cent of their income, a widely used benchmark for acceptable levels.
There's a catch. The government assumes that a family of four anywhere outside Greater Vancouver should be able to find housing for $705 a month. (Vancouver residents are allowed rents of up to $875 and a correspondingly higher subsidy.)
But in many communities acceptable rental accommodation for a family in that price range has become hard to find.
Coleman observed, rightly, that without the subsidies families are suffering and children's futures are at risk. Soaring rents have left families with so little money that children are malnourished and their education suffers, he said.
Which makes it both inexplicable and outrageous that the subsidy program is closed to people on welfare. The same family of four on welfare is allowed a maximum of $590 a month for housing. Anything more has to come from their already inadequate support. The notion that those children's suffering is less significant or that they are less worthy of help is appalling.
The subsidy program signalled a big shift from past policies. The government had focused on building - either directly or in partnership with non-profits - affordable housing units to increase the supply.
Coleman, a former developer, isn't keen on that approach. It takes too long to get affordable housing built, especially given NIMBYism and municipal zoning problems, and costs too much. More people can be helped more quickly with subsidies.
Which is partly true. The problems come when rental housing simply isn't available,a reality in many communities as developers choose condo projects over rental units.
The announcement included other measures - modest amounts of new money for shelters and seniors' housing and a small outreach program to support the homeless.
The theory behind all this makes sense. There is no one magic solution to homelessness and housing affordability. Subsidies will help some families. Government-supported housing is also needed to ensure there is an adequate supply of affordable rental units. Homeless people need shelters and places to live where they get the support needed to keep them from sliding back to the streets.
All the elements have to be in place. Outreach programs fail when there is no housing available for people ready to get off the streets.
The housing crisis in B.C., is real, and not just for the homeless or the extremely poor. More than 60,000 families are spending more than half their income on rent.
The government took a very small step toward dealing with a very large problem.
Footnote: There is more to come. Coleman wants tax breaks for developers willing to build rental units and municipal policies that don't slow development and push up costs. He's also keen on seeing existing affordable housing projects cash in on the value of their land holdings and use the proceeds to construct higher density projects.


Mr. Beer N. Hockey said...

Liberal policy on homelessness: build better graveyards.

Anonymous said...

Has memory failed, or am I mistaken when I don't recall the problem of homelessness in British Columbia being even a small fraction of what it is today before the Campbell government came to power. They certainly deserve much credit. But the greed and/or indifference of those who would vote for them (at least in part to maintain their tax breaks) must share the infamy. The solution is simple, but it is just not free.

Anonymous said...

the Liberals forget BC outside of the lower mainland needs upkeep.

Anonymous said...

Another PR expense. A full two page add in the T/C today letting us know how this is a really great deal. Too bad it leaves out a whole number of goups of people.

Guy Barry said...

All these Public relations expensive eye candies.Although the adverts make it sound like a great deal. What is bad about this whole thing is that some people are included but a whole lot of people are left outin the cold.
Not all it seems