Proposed Affordable Housing Strategy

Calgary Poverty Reduction Initiative Proposed Affordable Housing Strategy Submitted: October 12, 2012 Plan written by Alina Turner with the CPRI Affordable Housing Working Group: Co-Chairs Richard Farrell, Calgary Housing Company Alina Turner, Calgary Homeless Foundation Members Derek Cook, Calgary Poverty Reduction Initiative Terrence Hodkinson, Canada Mortgage and Housing Corporation Sue Jackson, Fireside Property Group Ltd. Ron Kneebone, School of Public Policy, University of Calgary Kim O Brien, Horizon Housing Gerrad Oishi, Calgary Homeless Foundation David Staines, Municipal Affairs, Government of Alberta 1

Executive Summary Purpose At the request of the Calgary Poverty Reduction Initiative s Stewardship Committee, the Affordable Housing Working Group was convened to develop a strategy focused on the issues of housing and homelessness in the context of poverty reduction. The proposed strategic direction was presented to key stakeholders for further refinement and submitted to the CPRI for incorporation in the final Poverty Reduction Plan. An Affordable Housing Charter The working group s recommendations center on the concept of an Affordable Housing Charter. Affordable housing is a critical issue in ongoing discussions between Alberta s major urban centers and the Government of Alberta regarding city charters as it presents a key opportunity to deliver more streamlined services for the benefit of our communities. Within this shifting context where the provincial-municipal roles and responsibilities are being reconsidered, a locally-driven affordable housing development and management model could be implemented where leadership and service delivery is coordinated at the community level. The roles of federal and provincial governments would be to support local leadership through enabling policy and resources. Local Affordable Housing Coordinating Body With this approach, Calgary would have the capacity to implement measures that ensure appropriate affordable housing stock is being delivered in sustainable, economically viable ways that meet constantly changing and unique local needs. A lead implementing body can play a key role by bringing together stakeholders, including municipal, provincial and federal partners, as well as a myriad of housing providers (private and non-profit) to maximize existing resources and coordinate delivery city-wide to meet Calgary priorities and targets. A lead organization is necessary to drive local community goals in implementation, ongoing planning and strategy development, while ensuring alignment towards broader provincial and federal goals. Priority Actions Within the context of the Affordable Housing Charter, the following priority actions could be implemented with considerable impact on poverty and affordable housing in our city. 1. Central Housing Registry. People in need of housing assistance should be able to access help easily. Along with easy access to help, vulnerable and at risk groups need consistent intake, triage and assessment processes. A Central Housing Registry can streamline access in a consistent manner across diverse housing and support opportunities. A shared information system can enable this consistency further. 2. Long-Term Real Estate Strategy. Through the leadership provided by a local coordinating body, Calgary can develop a coordinated approach to deliver housing goals. Its role would be to engage key affordable housing and social supports 2

stakeholders in developing a locally-driven, comprehensive real estate strategy to leverage existing assets and explore innovative financing mechanisms, such as social impact bonds. 3. Toolbox of Incentives, Policy and Regulatory measures. There are key measures which we have outlined who should be considered as a toolbox of possible options that could be considered and pursued moving forward at the municipal, provincial and federal levels. By building on success, particularly provincial investment in affordable housing and homelessness initiatives, as well as municipal movement towards increasing affordable housing options, the following measures can further increase and protect affordable housing stock, as well as general private sector rental stock. City of Calgary Government of Alberta Government of Canada Secondary suites Income assistance Low income housing tax Inclusionary zoning & Rent supports credit density bonussing Eviction prevention & Social impact bonds Surplus land controls Land donations Property tax exemptions Capital grants Capital cost allowance Controls of conversions changes & demolitions GST changes Fast-tracking permits Business tax reductions Leveraging capital grants 4. Public Awareness and Education Strategies. A key preventative measure that can increase Calgarians' housing stability centers on public awareness and education. Basic budgeting and tenant education on rights and responsibilities to ensure youth are prepared to become good renters once leaving their parental homes could be incorporated in secondary school curricula. Focused teaching on budgeting to avoid financial difficulties could be a focus in existing life-skills classes, or even in math curricula. Similarly, family doctors and primary care networks can receive focused materials and training on identifying homelessness risk and initiate appropriate referrals to housing professionals. 3

Table of Contents Background... 5 Key Issues... 5 Proposed Approach...10 Affordable Housing Charter...10 Local Affordable Housing Coordinating Body...10 Ensuring Sustainability...11 Locally Driven Long-Term Real Estate Strategy...12 Innovative Funding Mechanisms...12 Government as Enabler to Local Leadership...12 Alignment to Calgary s 10 Year Plan to End Homelessness...13 Priority Actions...13 Central Housing Registry...14 Shared Information System...14 Appropriate Housing & Supports...14 Consistent Terminology...15 Policy and Regulatory Measures...15 City of Calgary...15 a. Secondary Suites...16 b. Inclusionary Zoning & Density Bonusing...16 c. Land...16 d. Property Tax Exemption...16 e. Controls on Demolition and Conversions...16 f. Fast-track Permit Process...16 g. Business Tax Reductions...17 h. Leverage Capital Grants...17 Government of Alberta...17 i. Income Assistance...17 j. Housing Allowances and Rent Supports...18 k. Eviction Prevention...18 l. Place-Based Homelessness Prevention...18 Government of Canada...19 m. Low Income Housing Tax Credit Program...19 n. Social impact bonds...19 o. Land Donations...19 p. Capital Cost Allowance Changes...19 q. GST Changes...20 Public Awareness and Education....20 References...22 4

Proposed Affordable Housing Strategy Background At the request of the Calgary Poverty Reduction Initiative, the Affordable Housing Working Group was convened by Co-Chairs Alina Turner (CHF) and Richard Farrell (CHC) to develop a strategy focused on the issues of housing and homelessness in the context of poverty reduction. To this end, the 9-member committee developed the proposed strategic direction. Alina Turner was charged by the committee to develop the draft document outlining key recommendations for further discussion and refinement. This document was developed to outline the key issues and actions related to housing and homelessness around: Policy/Systems Programs/Services Community Involvement The proposed strategic direction will be presented to key stakeholders for further refinement, including the Stewardship Group of the CPRI and various nodes working on issues related to housing and homelessness. A consultation with the Community Action Committee on Housing and Homelessness, representing over 100 stakeholders involved in relevant subject area occurred on September 11, 2012 with approximately 25 participants. Feedback was incorporated into this report. Further feedback was collected from the constellation meeting on September 25, 2012. A final document was presented to the CPRI s Co-Chairs and Executive Director by the working group on October 12, 2012. It is the understanding and intention of the working group that the proposed strategy will be considered as part of the final Poverty Reduction Plan. Key Issues The issues of affordable housing, homelessness and poverty are intimately interconnected. Research consistently demonstrates the importance of affordable and appropriate housing for health and well-being. From a social inclusion perspective, having access to safe and appropriate housing enables individuals and families to participate in society meaningfully as citizens, employees, volunteers, students, etc. Recent initiatives in Calgary, employing the philosophy of Housing First have further demonstrated both the economic and social benefits of investing in housing to address one of the most extreme manifestations of poverty and social exclusion homelessness. The intent of the Housing and Homelessness Strategy is to align key directions relating to housing to the overall goals of the municipal poverty reduction effort. 5

Homelessness The January 2012 Homeless Count enumerated 3,190 people as homeless at any given time suggesting a reduction of 11.4% in homelessness since the last count in 2008. 1 Although the results from Housing First programs and indications of reductions in homelessness are encouraging signs that the 10 Year Plan to End Homelessness is working, there are still challenges ahead pointing to the ongoing need for affordable housing and homelessness supports in our city. The August point in time count is still being analyzed, though preliminary analysis confirms a marked increase in enumerated rough sleepers given the extreme change in weather from the winter count. While the number of people experiencing homelessness rose in August 2012 compared with the January 2012 point-in-time count, the trend of homelessness increasing on average of 15% per year since 1992 has been arrested. This is in large part due to the fact that through the 10 Year Plan to End Homelessness in Calgary (10 Year Plan), more than 4,000 men, women and children have received housing and support since January 2008. On August 15, 2012, 3,576 people were experiencing homelessness compared with 3,190 people on January 18, 2012. This represents a 12.1% increase, with the main increase being in the number of people sleeping outside (from 64 in January to 333 in August). The number of people staying in emergency shelters and short-term housing remained relatively stable. One of the challenges is the result of Calgary s role in the economy and its attractiveness to migrants, coupled with a tight rental market. About 63% of the shelter users in Alberta are in Calgary, compared with 28% in Edmonton. 2 A strong labour market attracting more migrants and decreasing affordable rental stock are primary factors contributing to Calgary s higher homeless rates. 3 6

A School of Public Policy study (2011) led by Drs. Ron Kneebone and Herb Emery, and Oksana Grynishak 4 concluded that shelter use in Calgary is intimately tied to the attractiveness of the city to migration, as well as the local housing and labour market. When comparing shelter use patterns between Calgary and Edmonton historically, it was concluded that Calgary shelter use is much more sensitive to fluctuations in the labour market and migration. Further, Edmonton s much lower number of shelter users is correlated to the fact that Edmonton has twice the rental stock compared with Calgary. The squeezing of the rental market impacts migrants who are at risk, as well as the local at risk population. Housing & Migration Calgary's role in the global economy makes it attractive to migrants seeking job opportunities. The low number of available rental stock, less than 36,000 purpose-build rental units 5 ; the lack of new rental properties; and, the continuing loss of existing stock to condo conversions create competition for housing among the lowest income earners with limited choices. Since 2001 Calgary has seen a reduction of 22.4% in available rental market stock, a loss of 12,122. 6 Those who are already vulnerable and experiencing higher pressures to maintain housing can become homeless. Looking ahead, migration is forecasted to increase as the economy improves, placing more pressure on at risk populations. Already, shelter utilization reports show a reversal of stabilizing trends during the summer of 2012. Shelter use is currently at 99% in facilities funded by the Ministry of Human Services, pointing to increasing demand. The Government of Alberta has stated that the province s economy is no longer in recession and will grow to become one of the strongest economies in Canada. 7 Alberta s population is expected to continue to grow, due primarily to inter-city and inter-provincial migration. 8 Calgary s economic recovery has led to increasing job opportunities, a return to positive migration rates and reduced vacancies for Calgary s rental units. Cost of living increases for basic needs items are emerging in housing, food and transportation. 9 Migration to Calgary is expected to increase, which will put pressure on the affordable housing and homeless-serving system. In 2011, 9,563 people had migrated to Calgary from other cities and provinces. 10 Alberta saw a population increase of 13,396 for interprovincial migrants and an additional 8,671 from international migration. 11 Initial data from Calgary s HMIS system confirms that new migrants to the city are at an increased risk of homelessness. Two sets of time series from a local emergency shelter, November 2011 June 2012; and April 2012 June 2012 reveal that 16.2% and 20.3% respectively are new migrants to the province. Furthermore, 29.3% and 33.1% are new to the city. 12 The increasing demand placed on Calgary s homeless serving systems demonstrates a positive correlation between population growth and the demand for emergency shelter spaces higher population growth is associated with higher demand for shelter spaces. Rental Market Pressures The average cost of rent in Calgary in 2012 was the third highest among major Canadian cities. 13 The overall average rent for all apartment types in April 2012 was $1004 per month, with the average two-bedroom units renting for $1,113 per month, a slight increase from $1,069 per month in 2011. 14 The Canadian average was $887 per month. Alberta has the highest 7

average rent of all provinces in Canada with average rent at $1,055, British Columbia slightly lower at $1,036. 15 The number of rental units in Calgary decreased from 2009 to 2012. The number of rental units at the end of 2009 for Calgary was 36,174; by 2011, this number was 34,659 16 (Note that this information is based on rental data survey and doesn t include single or private landlord rentals). This decrease in the rental units is consistent with a nine-year pattern of decline. Since 1999, Calgary s multi-unit rental stock shrunk by one-third. Twenty-nine per cent of rental units were lost due to demolitions and condominium conversions. 17 Apartment vacancy rates for Calgary in April 2012 were 2.5% compared with 3.4% in April 2011. 18 As improvements in the labour market and increases in net migration to Calgary are forecast to continue, vacancy rates are estimated to reduce further in 2013. 19 Apartments in the lowest rent ranges ($600 to $749 per month) continue to have the lowest vacancy rates. The creation of more affordable housing in Calgary will be critical to ending homelessness. As part of its efforts in this regard, provincial government investment in housing should be more heavily weighted to Calgary, where the greater need and greater percentage of emergency shelter spaces exist. The provincial government should, however, recognize the potential for engaging the private sector in expanding the supply of affordable housing units. Key to expanding the supply of affordable housing is for governments at all levels to pursue efforts to incent the private sector to build affordable housing units. The creation of additional rental units will also reduce overall rents due to greater supply in the market place. Indicators point to continued pressure on low income households, exacerbating vulnerability to homelessness. Income support caseloads continue to be at a historic high, and although we saw signed of reduced shelter utilization from 2009 to 2011, the impacts of a strengthened local economy within persistent global economic issues continues to generate uncertainties. Already, shelter use is trending up in the first quarter of 2012. Core Housing Need The CMHC indicator of core housing need classifies those who could not afford suitable and adequate housing in their locality as being in housing need. The incidence of core housing need 20 in Alberta was 10.3%. More than half (at 53.5%) of lowest-income households experienced core housing need in 2008. Incidences of core housing need are higher in Calgary than in Edmonton, where core housing need rates were 10.8% and to 9.7% respectively. 21 More than 72,195 Calgary households are low income earners and spending more than 30% of income on shelter. These households earn less than $44,000 per year and spend more than 30% of their total income on housing. 22 In 2008, the City of Calgary reported that 44.1% of individual renters; 29.0% of family household renters; and 15.1% of multi-family household renters were in need of affordable housing. In total, 37% of all renters in Calgary are low-income and spend more than 30% of their gross annual income on shelter. 23 These findings are comparable to the three previous census cycles. 24 It is perhaps not surprising for students and for young single people to spend 30% or more of their income on rent for short periods of time, thus a more reliable measure is the number of households who are in core housing need for an extended period of time. CMHC reports that over the three-year period 2005 to 2007 some 27% of Canadian individuals ever (at least one year) in core housing need remained in core housing need all three years. 25 While no 8

benchmark for Calgary for persistent core housing need could be obtained, using the Canadian figure, we estimate that about 2.9% of Calgary households are experiencing persistent core housing need. According to the 2006 Census, there were 415,595 households in Calgary; 12,052 of these would be considered in persistent core housing need. 26 Vulnerability to Homelessness Based on a refined understanding of populations experiencing social exclusion putting them at risk for homelessness, we have a much better handle on the number and characteristics of this group. Firstly, this group is much smaller than previously believed 27 and follows predictable patterns into vulnerable situations. An estimated 14,000 households in Calgary are at high risk for homelessness due to spending more than 50% of their income on housing and earning less than $20,000 per year. Homelessness doesn t happen to anyone: it is likelier to occur when a predictable combination of risk factors is present and a number of protective factors are absent. Preliminary results from more than 700 surveys of at-risk Calgarians participating in the HART study confirm the following social exclusion factors exacerbate the risk for homelessness: 28 46% had a recent experience with a physical or mental health issue. 31% spent time in an addictions facility in the last five years, of those 23% did not have access to safe, stable housing when they were discharged. 32% spent time in a medical facility, in the last five years, of those 17% did not have access to safe, stable housing when they were discharged. 21% spent time in a correctional facility and more than 33% of those did not have access to safe, affordable housing upon their release. 25% or respondents were Aboriginal; 76% of them had a direct experience with residential schools and 34% recently migrated from a reserve to Calgary. About 8% reported being newcomers to Canada. 77% have little to no support from family or friends and 65% do not have family to rely on to help with financial or housing support. 50% had a previous episode of homelessness; 45% of those had an episode of homelessness before the age of 18. 42% experienced family abuse as a child and had one or more parents with an active addiction. 22% were involved with child intervention services and 85% of those did not receive support for safe, stable housing in those interactions. 64% were suspended from school in their youth and 50% lived with family conflict and/or bullying. 35% lived in homes that relied on social assistance 33% of youth participants (ages 15 to 24) were recently kicked out of their homes and 44% were single parents. 56% of youth participants say their parents do not take an interest in their activities and 78% have not accessed supports from a youth-serving agency for stable housing. 65% of adult women participants had a history of domestic violence and 59% grew up in homes were there was violence. 31% had their children removed by authorities; 19% had been victims of sexual assault. University of Calgary Faculty of Social Work research findings also identified protective factors that moderate the risk for homelessness, which generally centered on economic, social and 9

human capital (healthy social relationships, education, access to affordable housing and adequate income). A Note on the Importance of Targeting A targeted focus on Calgarians who are experiencing a high risk for homelessness and persistent core housing need will ensure that those in highest need have access to the supports (income assistance, affordable housing, case management, etc.). A targeted approach focused on developing affordable housing options to reduce the number Calgarians in persistent core housing need and at risk for homelessness will ensure measurable impact on the flow into homelessness, quality of life for served families, and community wellbeing. While no benchmark for Calgary for persistent core housing need could be obtained, using the Canadian figure we estimate that 12,052 households (2.9% of total households) face persistent core housing need, the Poverty Reduction Plan could focus on reducing the incidence of persistent core housing need as a key outcome of a targeted affordable housing strategy. Without a clear focus on target groups, the impact of affordable housing initiatives runs the risk of being limited and diluted in implementation. Proposed Approach This section will outline the Committee s analysis of critical issues and goals related to affordable housing necessary to achieve an end to poverty. Affordable Housing Charter The working group s recommendations center on the concept of an Affordable Housing Charter. Affordable housing is a critical issue in ongoing discussions between Alberta s major urban centers and the Government of Alberta regarding city charters as it presents a major opportunity to deliver streamlined services differently for the benefit of our communities. Within this shifting context where the provincial-municipal roles and responsibilities are being reconsidered, a locally-driven affordable housing development and management model could be implemented where leadership and service delivery is coordinated at the community level. The roles of federal and provincial governments would be to support local leadership through enabling policy and resources. Local Affordable Housing Coordinating Body The implementation of Calgary-based affordable housing initiatives that support an end to poverty in our community should be driven by our community. To this end, leadership in the delivery of housing and related support services must shift closer to our community. This localization requires a new way of conceptualizing affordable housing planning and delivery. With this approach, Calgary would have the capacity to implement measures that ensure appropriate affordable housing stock is being delivered in sustainable, economically viable ways that meet constantly changing and unique local needs. 10

A lead implementing body can play a key role by bringing together stakeholders, including municipal, provincial and federal partners, as well as a myriad of housing providers (private and non-profit) to maximize existing resources and coordinate delivery city-wide to meet Calgary priorities and targets. A lead organization is necessary to drive local community goals in implementation, ongoing planning and strategy development, while ensuring alignment towards broader provincial and federal goals. Currently, local housing management agencies such as the Calgary Housing Company act as agents on behalf of the Government of Alberta, whose program and timing requirements are not as nimble and flexible to meet Calgary s affordable housing needs. Further, the reality of Calgary s affordable housing development and management sector is that multiple players are working without a clear, structured and strategic approach to meet community needs. While we are theoretically aligned in our efforts to address the needs of low income Calgarians, in practice, no consistent planning and operation framework exists to ensure common targets are achieved towards community goals. Ensuring Sustainability Along with many Canadian communities, Calgary will imminently face the impact of expiring social housing operating agreements for existing stock. These projects are primarily managed by non-profits, primarily Calgary Housing Company, on behalf of the Government of Alberta. As many of these projects came online in the 1970 s, they are gradually aging and requiring increasing reinvestment to keep up with capital needs and maintain an appropriate quality of housing for tenants. The management bodies are facing increasing costs to maintain these capital assets and keep up with necessary renovations costs. With federal subsidies expiring along with these social housing agreements, the ongoing subsidies used to help maintain these projects will also disappear and with it, our capacity to keep valuable social housing stock online. It is important to note that municipalities have been provided with ongoing maintenance and improvement funding by the federal government. For stock that was properly managed and adequately funded, the asset should be in an acceptable condition. As the management body no longer would have to be pay a mortgage, all rental income earned from the property could be used to maintain and grow the property. If the property is no longer serving the target market it was originally developed for, this presents an opportunity to consider possibilities of expanding the development of the existing property with new units. Despite this looming crunch, social housing operators can employ innovative measures leveraging existing capital assets to address both ongoing operation costs and look to expansion to keep up with local demand. Certain social housing projects may serve a better purpose if sold, freeing up capital to re-invest in more appropriate stock built to modern, sustainable standards. Other projects could benefit from densification to maximize available land. Other opportunities include the development of mixed use communities, where tenant mix can balance the costs of providing lower rents to social housing renters from income generated by market and commercial tenants. The ultimate aim of Calgary s social housing system must be to become self-sustaining creating adequate revenues to ensure operations and capital maintenance costs are met without dependence on ongoing government subsidies. In the long run, we must develop affordable housing delivery mechanisms that are socially, financially, and environmentally 11

sustainable; flexibility, innovation, and local planning and delivery are essential to achieving this bottom line. Locally Driven Long-Term Real Estate Strategy Calgary must develop the capacity to develop a locally-driven, comprehensive real estate strategy to leverage existing assets and explore innovative financing mechanisms, such as social impact bonds. Through the leadership provided by a local coordinating body, Calgary can develop a coordinated approach to deliver housing goals. Its role would be to engage key affordable housing and social supports stakeholders in developing a locally-driven, comprehensive real estate strategy to leverage existing assets and explore innovative financing mechanisms, such as social impact bonds. An essential first step in implementing a Calgary-based affordable housing strategy is developing a systematic approach to planning and delivery. Based on the goals and priorities set out in the Poverty Reduction Plan, our community must develop a coordinated approach to deliver on housing related targets. A lead organization is necessary to drive local community goals in implementation, ongoing planning and strategy development, while ensuring alignment towards broader provincial and federal goals. The governance mechanism of this approach must also be articulated and aligned to the provincial and community mandates around affordable housing and comprehensive social outcomes. Innovative Funding Mechanisms Government and community need work together to find new ways to get the private sector to invest in developing affordable housing in Calgary. The goal is to create stable and long-term revenue to ensure continued development of affordable housing. There is the opportunity for social finance to bring additional funding models to the table, particularly leveraging affordable housing. This can significantly increase our capacity to deliver the necessary affordable and permanent supportive housing units. Social Impact Bonds can be used to this end; private investors can invest to support initiatives that save taxpayer dollars. A return on investment is generated by the share of savings realized by government. For example, investors could put up money for a housing program that reduces prison use. The cost saved by a demonstrated reduction in recidivism would be shared by the investor and the taxpayer. Such collaborative and innovative measures can create more sustainable funding mechanisms for affordable housing and supports, independent of public funding. Government as Enabler to Local Leadership To enable such locally driven coordination on strategy development and service delivery, it is essential that Calgary obtains the support of all levels of government. Following other provincial models, such as Ontario s, the Government of Alberta can be a major enabler to this local approach by taking on a supportive role that provides the local community with key resources, such as predictable capital and operations funding and a supportive regulatory and policy environment. We encourage the Government of Alberta Ministry of Municipal Affairs to work with key affordable housing stakeholders, including the Calgary Housing Company and the Calgary 12

Homeless Foundation, to support local leadership around implementation closest to those impacted. Communities can determine the best and most effective ways of achieving targets, mobilizing resources and people, while meeting provincial outcomes. In summary, a locally driven affordable housing real estate strategy should: prioritize capital investment to the most vulnerable (those experiencing deep and consistent core housing need, and at highest risk for homelessness); prioritize economically efficient investments; explore innovative financing options; maximize current assets; ensure appropriate supports are in place for operations; take a portfolio approach by delivering new units and rent supplements; build non-profit agency capacity to own and operate housing; make the most efficient use of existing non-market housing stock; implement quality service and asset standards for affordable housing; and develop and implement policy changes that encourage an increase in overall affordable housing stock, including market rental. Alignment to Calgary s 10 Year Plan to End Homelessness The results of the targeted efforts of the Calgary community, the Government of Alberta, Government of Canada, The City of Calgary, community based organizations, and private sector partners have demonstrated not only significant improvements in the quality of life of homeless clients and communities, but also cost-savings. We strongly recommend that the Poverty Reduction Plan, and particularly its affordable housing strategy, be aligned to ending homelessness efforts. As an extreme manifestation of sustained poverty and social exclusion, homelessness should remain a critical focus for our city. The targets and timelines of Calgary s 10 Year Plan a focus on reducing shelter use, targeting the chronically homeless and adopting the Housing First approach -- are sound measures our community is currently working towards and are measures that are not only effective at addressing the root causes of poverty but also reduce the burden on our public systems of health, justice, social assistance and corrections. Priority Actions Within the context of the Affordable Housing Charter discussion above, the following priority actions could be implemented with considerable impact on poverty and affordable housing in our city. 1. Develop a centralized housing registry that includes building common intake, triage and assessment leveraging a shared information system to facilitate access to resources and reduce duplication. People in need of housing assistance should be able to access help easily. There need to be points of entry (intake) to this system at locations where people naturally seek help. Along with easy access to help, vulnerable and at risk groups need consistent intake, triage and 13

assessment processes. This will streamline access in a consistent manner across diverse housing opportunities. A shared information system can enable this consistency further. a. Central Housing Registry If we look to other communities across Canada, such as Hamilton, a common housing registry can achieve these outcomes. Such registries essentially centralize all available affordable housing options in a community employing a common application and triage process to best match tenants to available resources. In Calgary s case, over 20,000 units of social, coop, permanent supportive, and short-term supportive housing can be leveraged through this practice. Similarly, the registry can also facilitate access to the multiple rental subsidy programs available in our community. By employing a shared database, as part of its centralized housing registry, better client and system level outcomes can be achieved. Vulnerable populations will gain access to one, central source of information about housing and rental assistance opportunities in their community, a transparent and equitable eligibility assessment process, and ultimately better housing outcomes. From a system planning perspective, a centralized housing registry will enable the consolidation of multiple wait lists, a refined analysis of demand at the client level, and means of tracking housing outcomes across providers. b. Shared Information System A key opportunity we have in this regard is to leverage the learnings from work underway in Calgary s Homeless-Serving System, where the Homeless Management Information System has been implemented along with common intake and assessment across more than 35 agencies and over 100 housing support programs. The Committee strongly recommends that key social and affordable housing stakeholders work together to develop a centralized housing registry, shared information system and processes to enable consistent access and information in our community. One agency can be charged as the lead operator of the registry on behalf of the Calgary community. c. Appropriate Housing & Supports It is important to note that the housing needs of the most vulnerable are highly subsidized and supported rental units, rather than homeownership. This in turn impacts government investment; without appropriate matching of housing type to population needs, we are less likely to achieve meaningful impact for the most vulnerable. Though homeownership assistance is an important part of an overall affordable housing strategy, it is critical that we maximize the use of capital grants for populations in highest need of assistance. A targeted focus on Calgarians who are experiencing persistent core housing need will ensure that those in highest need have access to the supports (income assistance, affordable housing, case management, etc.). A targeted approach focused on developing affordable housing 14

options to reduce the number Calgarians in persistent core housing need will ensure measurable impact on the flow into homelessness, quality of life for served families, and community wellbeing. Vulnerable families and individuals do not simply need access to affordable housing to meet their complex needs. Often, supports must be in place to ensure housing stability and community reintegration supports. In particular, those who experience mental health and addictions, issues which impact one s ability to obtain and maintain housing, required tailored, client-focused, quality supports. There is a need to ensure housing resources are closely aligned with support services to ensure wrap-around support for vulnerable groups as in the case of Housing First initiatives, where rent subsidies and subsidized housing opportunities are delivered in tandem with case management. d. Consistent Terminology To this end, common definitions, measurement and assessment tools need to be developed to define target populations. We need to refine our understanding of these vulnerable groups and their respective needs. As this population is highly vulnerable and harder to engage, it also requires appropriate levels of support because of the complex issues individual and families face. Again, by working through a lead strategy development and service planning body in Calgary, we can ensure the operation and development of housing supports can meet the unique needs of these sub-groups. 2. Implement incentives, policy and regulatory measures to increase new and protect existing affordable rental housing. The lack of affordable rental housing continues to be one of the major infrastructure challenges our city faces. With no new private rental units being built and conversions of existing stock continuing, creative action is necessary to incentivize private sector engagement in particular. We have to also revisit other options, such as secondary suites, that increase available rental stock - especially as forecasts of a strong economy and increasing migration point to a tightening housing market. There are several measures aside from capital government grants that could be implemented that would increase both the stock of non-market and private sector affordable housing. The policy and regulatory measures require action from all levels of government. We strongly encourage that the Poverty Reduction Plan include a recommendation for careful study of policy and regulatory measures that have been introduced with success in other jurisdictions. Listing these potential measures by the level of government with responsibility for implementing them, the recommended package of incentives, policy and regulatory changes include; City of Calgary 15

a. Secondary Suites Secondary suites, units which are subsidiary to the main unit in a house and are smaller in size are a major source of low cost housing in high cost cities. In Calgary, recent LUB changes have begun the process of legalization in limited circumstances. Full legalization can increase the supply of affordable housing but also density by making more efficient use of existing infrastructure. This would make homeownership affordable for many. We recommend expanding the Land Use Bylaw to allow secondary suites as a permitted use in developed and developing communities. 29 b. Inclusionary Zoning & Density Bonusing Inclusionary zoning may be either mandatory or voluntary. Inclusionary zoning aims at inclusion of affordable units in otherwise market-priced private developments. The mandatory model, typically used in the US, requires the affordable units (or cash equivalent) even when the developer is given nothing by way of added density or height in return. The voluntary model, typically used in Canada, provides the developer with a choice: either build as of right and avoid inclusion of affordable units, or seek zoning variances with affordable units as quid pro quo. Inclusionary zoning can achieve affordable housing production at no cost to taxpayers and can increase income mix across communities. 30 We recommend that The City of Calgary work with developers to create an inclusionary zoning and density bonusing system for new multi-residential developments. Ensure that any program is tied to a tax incentive, subsidy or density bonusing program to offset the economic loss to multi-residential developers and owners. c. Land The City can develop a comprehensive program to identify and inventory land and/or properties appropriate for affordable housing. A target amount of appropriate land that could be made available each year for affordable housing development should be identified. d. Property Tax Exemption Toronto is currently exempting new social housing developments from both city and provinciallycontrolled education property taxes. The exemptions continue for up to 25 years. Municipalities may also provide financial support by the transfer of land to affordable housing developers on non-market terms. Calgary could offer an exemption of affordable housing from property taxes, and other municipal financial support. This would achieve incremental production of affordable housing and where redevelopment of obsolete social housing projects is desired, can facilitate redevelopment. 31 e. Controls on Demolition and Conversions Calgary and other western cities have suffered from large losses in the multi-unit housing stock in recent years. One way to stop further losses is prohibition, possibly conditioned on current rents in the units or vacancy rates. In BC several municipalities have bylaws controlling conversions and Toronto permits conversions and demolitions only subject to certain conditions. This would prevent the loss of affordable units in certain building and increase the security of tenure of tenants of multi-unit rental buildings. 32 f. Fast-track Permit Process 16

A critical and low cost measure that can assist both private and non-market rental developments is the streamlining of municipal approval land use and development permitting processes. At times, having capital tied up in the current process becomes a key disincentive for possible private sector investors. Having a dedicated team to speed the process up for such projects is a low cost measure that can address this in short order. g. Business Tax Reductions The reduction of business taxes for operators of rental housing, particularly where this housing is offered at rents below the market average, can be a further incentive to maintain current stock and develop new rental in the city. h. Leverage Capital Grants Grant funds could be used as incentives for private sector rental. A specific percentage of units in a development can be dedicated as affordable units for an agreed upon time limit. This can be an incentive for private rental housing developers while ensuring income mix in developments and increasing overall rental stock. Government of Alberta We know that one of the key reasons for vulnerable groups to experience housing need and risk of homelessness stems largely from an imbalance in their income to the cost of available housing. Measures which address this imbalance, can in turn decrease risk and improve housing outcomes. i. Income Assistance Income for the poor has not kept up with the cost of living in Alberta; particularly for housing. The most vulnerable Calgarians receive Income Supports or Assured Income for the Severely Handicapped (AISH). These supports are difficult to access and are not enough to cover the cost of private market rental accommodation. For the most vulnerable who are unable to work, the recent increase in income payments for AISH recipients was a very positive step - yet Alberta Works Barriers to Full Employment recipients remain precariously housed and in poverty due to inadequate incomes. This requires a re-examination of the current core shelter allowance provided to income recipients based on current housing costs. An increase to the core shelter benefit to 30% of the CNITs based on the housing type and community they live in would ensure that an adequate income is in place to meet actual housing costs. The Government of Alberta should increase the amount of these supports, remove regulatory barriers to these benefits to make them more accessible, and develop criteria so income supports are prioritized to the most vulnerable. It is important to link people with existing employment opportunities and training, and developing additional training, education and work programs. Allowing increased earning exemptions for this group will also improve their engagement in employment and overall quality of life. 17

j. Housing Allowances and Rent Supports The Government of Alberta s rent supports and homelessness emergency prevention initiatives dedicated $44.4 million to 15,500 Alberta households in 2009/10. Rent supplements directed at landlords provided another $30.8 million to over 4,700 households in 2009/10. For less than $4,000 per household, these initiatives prevented the homelessness of more than 20,000 Albertans in one year. While the budget for this initiative has been variable from 2006/7 ($19 million) to 2011/12 ($77 million), the current amount is $2 million below 2010/11. Given the added pressure brought on by high migration and a shrinking rental vacancy rate, the need for rent supplement programs exceeds current funding levels and we strongly recommend greater funding for this initiative. The program relies on a useful and complementary working relationship between the public and the private sector and minimizes the need for public ownership of housing units. As sufficient affordable housing stock is built (directing capital to those requiring high levels of support over the long term), rental supplements should go to those requiring a lower level of support over the short term. Housing allowances in particular, allowing tenants to choose rental accommodations, as well as direct to landlord rent supplements should continue to be offered. We also recommend that access to various rent support streams be centralized through the housing registry to ensure easy and equitable access. k. Eviction Prevention From an eviction prevention perspective, the development of targeted interventions to stabilize those at imminent risk for homelessness is critical. Such resources can be used to meet the immediate needs of families and individuals (rent and utility arrears, etc.) and should be targeted to those who are most vulnerable. By leveraging a central housing registry, diverse eviction prevention resources currently delivered by multiple agencies can be coordinated effectively for greatest impact. Another possible measure related to utility assistance can leverage utility companies such as Enmax and Direct Energy who might be approached to develop a donation program for their client base to assist those facing arrears. l. Place-Based Homelessness Prevention Research can also help identify the communities in Calgary where large numbers of vulnerable people live. In these specific neighbourhoods, there is an opportunity to work with community groups towards prevention. The United Way of Calgary & Area, Calgary Homeless Foundation and City of Calgary FCSS have been working to develop a framework for place-based homelessness prevention over the past 12 months. One of the best practice examples the group has focused on has been New York s Brownsville Partnership - an initiative created in 2008 to prevent families in a Brooklyn public housing complex from losing their housing. What began as a homelessness prevention initiative, 18

developed into a broad strategy to strengthen the entire community. The project achieved specific success in preventing homelessness and keeping families and individuals housed but also stimulated development of other services including early childhood programs, education programs, job training, financial literacy programs, enhanced neighbourhood safety and an innovative youth court for first-time offenders. The Poverty Reduction Plan can leverage and support the work of the three funders to potential test a similar initiative in a Calgary community. Government of Canada m. Low Income Housing Tax Credit Program Recent research suggests that a low income housing tax credit program could increase 500 to 1,000 units per year in Alberta. The US housing tax credit program, introduced as part of tax reform under the Reagan administration in 1986, now funds almost all low income housing in the US, is regarded as highly successful by the low income housing community, and has the support of the US National Home Builders Association. A Canadian program like the US one would provide credits worth a high percentage of construction cost. In return for offering affordable rents, owners of the projects would receive each year for ten years a credit such that the present value of all ten years credits is a set percentage of construction cost. Credits would be limited and would be allocated by the provinces or by CMHC in a competitive process. A housing tax credit is a limited tax expenditure which requires no matching funding from provinces. It can be flexible in implementation led by provinces that has low administrative costs. 33 n. Social Impact Bonds As a means for private sector investment in housing programs, the return is generated by demonstrated savings to government. See Goal 1 for further information on this measure. o. Land Donations Amend the Income Tax Act to eliminate the capital gains tax on donations of land and buildings to registered public charities for the purpose of providing perpetually affordable housing for individuals and families in Core Housing Need, as defined by the Canada Mortgage and Housing Corporation. p. Capital Cost Allowance Changes These would increase investors cash flow and post-tax return.34these changes would be subsidies to the rental housing sector delivered via the tax system tax expenditures because they reduce tax revenue. Currently tax expenditures for rental are many billions of dollars less than those for the home ownership. These measures can increase horizontal equity (renters vs homeowners) if tax reductions for investors are passed on to renters. By increasing the CCA rate and eliminating the half-year rule, cash flow would increase most just when cash-flow problems are most likely. Further, capital gain rollover would exploit the shovel-ready state of many proposed developments. 19