CITY OF VANCOUVER

M E M O R A N D U M

FROM: City Clerk's Office DATE: January 26, 1998

FILE: 3253

TO: Vancouver City Council

SUBJECT: FCM Resolutions

The following resolution has been forwarded for Council's consideration for submission to the FCM Annual Conference, June 5-9, 1998:

Resolution Submitted by

(a) Housing Manager, Housing Centre.

Please note that the deadline for submissions to reach the FCM Secretariat is February 6, 1998.

DEPUTY CITY CLERK

NLargent:dmy

Att.

(a)

HOUSING

WHEREAS 17% of all households in Canada are in core-housing need, living in unsuitable housing or housing they cannot afford; and

WHEREAS safe, secure and affordable housing is crucial to general well-being, healthy communities, and the ability of households to participate productively in society;

THEREFORE BE IT RESOLVED THAT the Federation of Canadian Municipalities urge the Federal Government to renew its funding commitment to affordable housing, and, in partnership with the Provinces, to a national housing strategy to develop suitable and affordable housing for core-need households in all regions of Canada, with such a strategy to include the construction of new housing and the renovation and rehabilitation of existing housing to respond to the different needs of different regions.

Affordable Housing: Background to FCM Resolution

The Federal Government, through CMHC, was the primary funder for social housing until 1993. In the 40 years from when the first social housing project was built in Vancouver until the federal government ceased funding new units, 18,000 units were built comprising 9% of Vancouver’s housing stock and 16% of its rental stock. This housing is occupied by low and modest income seniors and families and those with special needs such as the disabled.

In a city such as Vancouver that is experiencing long-term growth and consistently low rental vacancy rates, the provision of government-funded housing is very important for households who cannot afford to rent in the market place. As well, little new market rental housing is being built in Vancouver, which the inclusion of market rate rental units in social housing would address. Over time a stock of non-market housing would be developed to supplement housing provided by the market, and stabilize housing need.

The need for government-funded social housing continues undiminished in Vancouver. Nationally, 17% of all households are in core-need (would have to pay more than 30% of their gross income on housing and/or live in unsuitable accommodation). In the Vancouver CMA, 20% of all households are in core-need, and in the City 29%. Of the renters in the City of Vancouver, 42% are in core-need. Single-parent families, and low-income singles experience some of the highest need.

In 1997, the Province and the City entered into a partnership to develop social housing in Vancouver. The City is providing $3.6 Million in the form of free land or discounted costs to develop 88 family units and 200 low-income singles units. This is 11% of the total capital cost of these projects. The Province is picking up the operating subsidies so the projects can accommodate core-need households.

Housing is expensive. In order to meet the continuing need for affordable housing, the broadest partnership is required. If the Federal Government were prepared to match the Province’s contribution, an additional 600 social housing units could be developed in B.C. Federal participation would encourage other municipalities to join in the partnership as well, increasing the total number of units that could be built.

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(c) 1997 City of Vancouver