Report to/Rapport au:

 

Community and Protective Services Committee

Comité des services communautaires et de protection

 

Planning Committee / Comité de l’urbanisme

 

and Council / et au Conseil

 

21 April 2011 / le 21 avril 2011

 

Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint, City Operations/Opérations municipales

 

Contact Person/Personne ressource :

Janice Burelle, Administrator, Housing Services /

Administratice, Services de logement (613) 580-2424 x44239, Janice.Burelle@ottawa.ca

Colleen Hendrick, Manager Community Development & Funding Branch

/ Développement et financement communautaires (613) 580-2424 x24366, Colleen.Hendrick@ottawa.ca

 

City Wide / à l’échelle de la Ville

Ref N°: ACS2011-COS-CSS-0005

 

 

SUBJECT:

HOUSING AND POVERTY REDUCTION INVESTMENT PLAN

 

 

OBJET :

PLAN D’INVESTISSEMENT POUR LE SECTEUR DU LOGEMENT ET DE LA RÉDUCTION DE LA PAUVRETÉ

 

COMMUNITY AND PROTECTIVE SERVICES COMMITTEE REPORT RECOMMENDATIONS

 

That the Community and Protective Services Committee recommend that Council approve the following: 

 

1.      The Housing and Poverty Reduction operating investments (investment envelopes 1 through 6) as outlined in the table attached as Document 1 and summarized in the chart attached as Document 2.

2.      Direct that the Administrator of Housing Services,

a)      issue requests for proposals and enter into contribution agreements with not-for-profit corporations and/or cooperatives in accordance with the City’s Grants and Contributions Policy that provide for the terms, conditions, use and accountability in order to implement the proposed investments as described in Document 1 investment envelopes 1 through 6, and

b)     enter into agreements with not-for-profit, cooperatives and/or private sector landlords to administer rent supplements in accordance with the Social Housing Reform Act, 2000’s basic eligibility criteria, but utilizing the shelter allowance as permitted by the Ontario Work Act, 1997 and the Ontario Disability Support Program Act, 1997, to implement the proposed rent supplements described in Document 1, investment envelope 4.

3.      Direct that the Director, Real Estate Partnership & Development Office have delegated authority to purchase or lease real property as outlined in Document 1, investment envelope 5, up to $3,000,000 in accordance with the principles outlined in the City’s Real Property Acquisition Policy.

 

PLANNING COMMITTEE REPORT RECOMMENDATIONS

 

That Planning Committee recommend that Council approve the following:

 

1.      The Housing capital investments (investment envelope 7) outlined in the table attached as Document 1 and summarized in the Chart attached as Document 2

2.      Direct the Administrator of Housing Services to issue requests for proposals and enter into contribution agreements with not-for-profit corporations and/or cooperatives in accordance with the City’s Grants and Contributions Policy that provide for the terms, conditions, use and accountability in order to implement the proposed investments as described in Document 1 investment envelope 7.

 

RECOMMANDATIONS DU RAPPORT DU COMITÉ DES SERVICES COMMUNAUTAIRES ET DE PROTECTION

 

Que le Comité des services communautaires et de protection recommande au Conseil d’approuver :

 

1.      Les dépenses de fonctionnement du secteur du logement et de la réduction de la pauvreté (enveloppes d’investissement 1 à 6) comme elles figurent dans le tableau du document 1 et comme elles sont résumées dans le diagramme du document 2.

2.      Que l’administrateur des Services de logement soit autorisé :

c)      à lancer des demandes de propositions et à conclure avec des organismes sans but lucratif et/ou des coopératives des accords de contribution conformément à la Politique sur les contributions et les subventions de la Ville et selon ce qui est défini comme les modalités, la destination et la responsabilité redditionnelle de l’exécution des dépenses proposées (enveloppes 1 à 6) comme elles sont décrites dans le document 1;

d)     à conclure des accords avec des organismes sans but lucratif, des coopératives et/ou des propriétaires du secteur privé pour l’administration de suppléments de loyer conformément à la Loi de 2000 sur la réforme du logement social avec les critères fondamentaux d’admissibilité applicables, mais en prévoyant l’utilisation d’allocations de logement selon la Loi de 1997 sur le programme Ontario au travail et la Loi de 1997 sur le Programme ontarien de soutien aux personnes handicapées dans le cadre de l’exécution des dépenses (enveloppe d’investissement 4) qui sont décrites dans le document 1.

3.      Que le directeur du Bureau des partenariats et du développement en immobilier jouisse par délégation de l’autorité voulue pour acheter ou prendre à bail des biens immobiliers selon ce que décrit le document 1 (enveloppe d’investissement 5) jusqu’à concurrence de trois millions de dollars et suivant les principes énoncés dans la politique d’acquisition de la Ville.

 

RECOMMANDATIONS DU RAPPORT DU COMITÉ DE L’URBANISME

 

Que le Comité de l’urbanisme recommande au Conseil d’approuver :

 

1.      Les dépenses en immobilisation (enveloppe d’investissement 7) comme elles figurent dans le tableau du document 1 et comme elles sont résumées dans le diagramme du document 2.

2.      Que l’administrateur des Services de logement lance des demandes de propositions et conclue avec des organismes sans but lucratif et/ou des coopératives des accords de contribution conformément à la Politique sur les contributions et les subventions de la Ville et selon ce qui est défini comme les modalités, la destination et la responsabilité redditionnelle de l’exécution des dépenses proposées (enveloppe d’investissement 7) que décrit le document 1.

 

EXECUTIVE SUMMARY

 

This report presents an investment plan for the new $14M Housing and Poverty Reduction envelope approved by Council as part of the 2011 budget process.  The proposed investments reflect the priority needs identified by staff and the community through consultations associated with the Poverty Reduction Strategy, Homelessness strategy development, the work of the Housing Systems Working Group and input from sector specific housing groups.

 

A snapshot of people experiencing homelessness and / or living in low income highlights the needs of this vulnerable population.   Combined with information unique to Ottawa’s housing and employment market, the report identifies the priorities for investment as being: supports for people who are precariously housed, people living on the street and in shelters; repairing aging social housing stock; and building and/or acquiring new affordable housing units.

 

Six criteria guided the development of the proposed investments.  The proposed investments fall into the following categories: financial supports to assist with accessing or maintaining housing including rent supplements and housing allowances; employment programs for youth living in social housing; supports for people to obtain housing and/ or to stabilize in current living arrangements; social housing repairs; and capital for new affordable or supportive housing.

 

The proposed investments reflect the current environment and community needs.  Staff will monitor the impact of the investments and report annually to Council on the investment results.  

 

 

BACKGROUND

 

The purpose of this report is to present an investment plan for the new $14 million Housing and Poverty Reduction envelope approved by Council as part of the 2011 budget process.  This report is of relevance to both the Planning and Community & Protective Services Committees since the $14M is split between the two Committees.  As per the Terms of Reference for the Planning Committee one of its mandates with respect to housing is to: 

 

“Make recommendations to Council on how to adequately and affordably house Ottawa residents, and provide options for increasing the supply of affordable housing” (Section 14). 

 

The Terms of Reference for the Community & Protective Services Committee states:

 

“Oversee and make recommendations to Council on all housing issues that fall within the mandate of this Committee (i.e. social housing, supportive housing and homelessness).

 

Monitor the activities and implementation of policies, programs and projects for the Social Housing and Shelter Management Branch.

 

Make recommendations to Council on how to meet the needs of residents eligible for supportive housing, and housing support services to live independently in the community.

 

Oversee the delivery of emergency shelter and transitional housing services.” (Sections 29 – 32)

 

In accordance with the Committees’ Terms of Reference, the $10M in operating was reflected in the Community & Protective Services Committee’s budget, while the $4M in capital was reflected in the Planning Committee’s budget.

 

In addition, on February 10, 2010 Council approved the Poverty Reduction Strategy (Phase I) and directed staff to report back to Committee and Council with respect to any Poverty Reduction Strategy recommendations that have budget impacts in 2011, by December 2010.  Of relevance to this report are the following recommendations:

#1  Develop an expanded community Ontario Disability Support Program (ODSP) application program.

#2  Streamline the needs assessment to Essential Health and Social Supports and Home Support Services for people in need.

#7 Increase employment supports and opportunities for vulnerable persons in Ottawa.

#9  Advocate for increased investments in homelessness prevention initiatives, social and affordable housing and housing with supports.

 

Snapshot of Ottawa’s Housing Needs and Low Income Population

 

A variety of contributing factors such as low income, financial crisis, health crises (physical, mental, addictions), new immigrants, family break up, lack of life skills are examples of life situations that affect many of us, placing us in need of supports to access and maintain housing.

 

The following data provides a brief overview related to the need for investments in affordable housing and supports for the vulnerable people described above.  More detailed information as well as an overview of some existing services are outlined in Document 3.  Document 4 contains a summary of three characteristics unique to Ottawa that impact our residents’ ability to be self-sufficient, namely: a high cost of living; low supply of affordable housing and a highly competitive job market.

 

·           In 2007, 18.4% of Ottawa (Census Metropolitan Area) residents lived in poverty[1].

·           Currently, almost 7% of residents (representing over 62,000 men, women and children) are in receipt of social assistance (OW/ODSP) with caseload increases forecasted into 2014.

·           There are currently 6,700 individuals in receipt of Employment Insurance; while there are many others who earn wages that leave them below the Statistics Canada Low-Income-Cut- Off.

·           The number of seniors is expected to double over the next 20 years with 7% being below Statistics Canada Low-Income-Cut-Off. 

·           The minimum wage is currently $10.25/hr.; assuming a standard 40 hour work week the annual salary would be $21,320 gross.

·           Over 40% of renters pay more than 30% of their income on rent, while 10% of renters pay more than 50% of their income on rent[2]; and these numbers are expected to grow.

 

Given the socio-economic conditions outlined above, there is an increased demand on our shelters by clients with more complex needs and a need for more affordable housing options with supports.

 

After 3 years of continued increases in number of times shelter beds were used and in the average length of emergency shelter stay, the 2010 data indicates we may be seeing a levelling off.  The numbers are stabilizing despite an increase in the City’s population.  The City’s and community’s investments and its leading practices are having an impact in the community and are also resulting in a decrease in shelter usage for some groups from 2009 to 2010.  Programs and services such as the OAKS, the Supports in Social Housing initiative, the Housing Response Team, the Housing Impact Team, etc. are having a positive effect.  Despite some progress in 2010, the demands from previous years continue to have a significant influence on shelter usage.  For example:

 

·         There are on average 1,225 individuals who stay in a shelter each night;

·         Shelters for men, women, youth and families remain in an overflow situation;

·         The average length of a shelter stay was 62 days in 2010; an increase of 5.1% over 2009;

·         The increase for families from 2009 to 2010 was 14%, with an average length of stay of 72 days; and

·         Over 100 families stay in shelter overflow in motels most nights.

 

However, the data also shows where the City and the community together are turning the tide.  For example:

·         Total number of individuals using shelters decreased by 28 – from 7,184 in 2009 to 7,156 in 2010;

·         A 2.3% decrease in the number of single men;

·         A 1.5% decrease in men’s stay;

·         31 days was the average stay for youth, an 8.8% decrease (in shelters under and over 18 years of age);

·         2,136 households moved from emergency shelters to permanent housing; plus 421 households moved from the street to emergency shelters, and 162 households moved from the street to permanent housing.

 

The data indicates that while there were less unique individuals using the emergency shelters, the length of stay increased.  This trend speaks to the increasingly complex needs and the continued shortage of affordable housing units and housing with supports.

 

In 2010 there were over 10,500 households on the Centralized Waiting List (CWL); while 1,752 households were housed from the CWL.  A recent report on the vulnerably housed based on CMHC data, indicates there are over 10,000 households who are vulnerably housed in Ottawa.

 

The Housing Needs in Ottawa report (July 2007) concluded that social housing providers in Ottawa needed an annual increase in capital subsidy of over $14M.  From 2009 – 2011, the Federal / Provincial Stimulus Program provided over $54 million in one-time funds towards repair of social housing stock and renewable energy projects.

 

Poor housing conditions and homelessness leads to increased illness and early death, resulting in increased use of health care system services and loss of human capital.  Poor housing conditions and high cost housing also leads to stress which impacts individuals’ and families’ physical and mental health.  Children living in unaffordable housing situations resulting in frequent moves have been found to under-perform in school with long-term consequences for their capacity to participate in the labour market. Many research studies have demonstrated the cost benefit of providing supported housing living environments compared to providing emergency shelter, which often is associated with higher usage of hospital emergency services and involvement with the justice system.

 

 

DISCUSSION

 

Priorities

 

Based on the information provided in the above Background section summarizing the community’s needs, the following priorities for investment of the Housing and Poverty Reduction Envelope have been identified:

 

·         Assisting people to move off the street and out of shelters and obtain and maintain housing;

·         Supporting people living in shelters, who have highly complex needs, to stabilize;

·         Providing supports to chronically homeless women;

·         Providing supports to homeless families living in shelters and overflow motels to obtain and maintain housing;

·         Repairing aging social housing units;

·         Building / acquiring new affordable housing, including accessible units for families;

·         Supporting people to remain in their homes, preventing homelessness;

·         Supporting people to access financial supports to assist with housing affordability; and

·         Employment supports to break the cycle of generational poverty of people living in social housing.

 

Criteria Informing Development of the Proposed Investments

 

The following criteria guided the development of the proposed investments.

 

·      Investments respond to the priority needs and gaps identified by the community and staff, and are associated with each of the components in the Housing and Support Services System. (Refer to Document 3 for a graphic of the Housing and Support Services System).

·      Investments will build on community relationships and partnerships; and represent a multi-sector approach.

·      Investments will have immediate community impact.

·      Investments will be flexible in order to respond to changing needs over the years.

·      Investments will leverage collective resources from all levels of government and the community.

·      Investments will be maximized in two ways:

o    Any unspent annualized operating dollars will be transferred into capital for shelters and/or repairs to social housing; and

o    They will build on the current, but time-limited, Federal and Provincial investments.

 

The proposed seven (7) Investment Envelopes include:

 

1)      Community Ontario Disability Support Program (ODSP) Application Support Program ($185K) - resulting in 150 households approved annually for ODSP

2)      Energy Fund - Essential Health & Social Supports ($205K) - Provides assistance with shelter / utility costs to approximately 200 households, allowing them to remain in their homes

3)      Employment Supports – Breaking the Cycle of Poverty ($500K) - serving 150 youth living in social housing with supports to employment, leadership development and post-secondary school mentorship

4)      Rent Supplement and Housing Allowances  ($5M) – providing either rent supplements or housing allowances to between 850 – 1,000 households

5)      Shelters / Supports to Housing ($2M) – 700 – 720 households with complex needs receiving supports to obtain and / or maintain their housing

6)      Social Housing Repairs / Renewal ($2M) – priorities may include critical repairs to address health & safety needs, modifications to enhance accessibility for people with disabilities, and / or address energy efficiencies

7)      New Affordable Housing (Capital) ($4M) – facilitate the development or acquisition of new rental or supportive housing, leveraging other funding opportunities wherever possible

 

Details of the proposed investments can be found in Document 1, attached to this report.  Document 2 contains a summary of the proposed operating and capital commitments over the next four years.

 

Monitoring of Investments and Impacts

 

The Housing and Poverty Reduction Investment proposal outlined above is for ongoing operating investments; and for a four year capital plan.  The proposal reflects the current environment and community needs in the city of Ottawa.  However, it is anticipated that over time the needs of the community will change as a result of any number of factors such as: investments from senior levels of government, demographic shifts, economic adjustments, impact of the above investments, etc.  For this reason, City staff will monitor the impact of the investments and report annually to Council on the results of its investments. 

 

 

RURAL IMPLICATIONS

 

The proposed investments are intended to serve rural and urban residents of Ottawa.

 

 

CONSULTATION

 

The proposed investments reflect recommendations contained in the Council approved Poverty Reduction Strategy report which was based on broad public consultation. The Poverty Reduction Steering Committee and the Poverty Issues Advisory Committee have been informed of the proposed investment allocations.  The Housing Systems Working Group as well as sector-specific housing groups have been consulted on the proposed investments.  Additionally, the results of the community consultation conducted in June 2010 regarding community needs to address homelessness have informed the proposed investments.



COMMENTS BY THE WARD COUNCILLOR(S)

 

N.A.

 

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

There are no legal/risk management impediments associated with this report. 

 

 

CITY STRATEGIC PLAN

 

Supports Sustainable Healthy and Active City priority

 

 

TECHNICAL IMPLICATIONS

 

N.A.

 

 

FINANCIAL IMPLICATIONS

 

There are no added costs associated with this report. During the 2011 budget Council approved $10M of operating funds and $4M of capital funds to establish a $14M Housing and Poverty Reduction budget envelope. The operating budget will be allocated to the appropriate branch/program as per the investment plan included within the report. The remaining operating funds in 2011 will be transferred to capital to increase the capital authority in the Housing Reinvestment Strategy project. The operating & capital budgets will be adjusted in subsequent years to align with the investment plan.

 

 

SUPPORTING DOCUMENTATION

 

Document 1 - Proposed Investment Envelopes

Document 2 - Summary of Clients Served, Operating & Capital Commitments 2011 – 2014

Document 3 - Housing and Support Services System

Document 4 - Ottawa Context – Unique Characteristics

Document 5 - Income versus Rental Accommodation Costs in Ottawa

 

 

DISPOSITION

 

Staff will action any direction received as part of consideration of this report.

 

Document 1

 

Proposed Investment Envelopes

 

Investment $

Target Audience

& / or Outcomes

Brief Description

Rationale / Benefit

Investment Envelope 1 – Community ODSP Application Support Program

$185K annually

·      150 households to be approved annually for Ontario Disability Support Program benefits

 

·      Community program  to support people with complex mental & physical health issues to access provincial ODSP benefits resulting in an increase household annual income and thereby preventing homelessness

 

Approach

Enter into a contribution agreement with Centre 454 to transition from a pilot to a sustainable expanded program.

·      Increased monthly income for rent and other necessities - $460 for singles and an average of $600 for families; for 150 households (approx. $900K in benefits annually)

·      Annual municipal savings estimated up to  $300K for next few years as ODSP is a 100% Provincial benefit (until upload of OW is complete)

 

Investment Envelope 2 – Energy Fund - Essential Health & Social Supports

$205K

·      200 low income households served annually

·      Provides emergency assistance with shelter / utility costs allowing people to remain in their homes

 

Approach

Deliver thought the City’s four Social Service Centres following recommendations set out in the report to Community Services Committee “ESSENTIAL HEALTH AND SOCIAL SUPPORTS

(RESPONSE TO MOTION CSC NO. 07(98)) on May 25, 1998.

·      Cost avoidance through prevention of  eviction and homelessness

Investment Envelope 3 – Employment Supports – Breaking the Cycle of Poverty

$375K – 2011

$500K – 2012 onwards

·      Average of 150 youth living in low income families annually

 

Components of the project:

1. Youth Futures (50 participants)

2. Youth At Risk Project (100 participants)

·      Employment program designed to help youth living in social housing access employment experience and post-secondary education opportunities through the Youth Futures Program and the Youth-at-Risk Project

 

Approach

Enter in agreement(s) with Social Housing Provider(s) for the delivery of employment programs.

 

Build on existing partnerships, with post-secondary institutions, Pathways to Education, United Way, youth serving community agencies.

 

·      Project is based on research evidence that access to education, training and employment opportunities can break the cycle of inter-generational poverty and social exclusion.  

Investment Envelope 4 – Rent Supplement and Housing Allowances

$2M (July to Dec Yr 1)

$4M (Annualized Yr 2)

$5M – Yr 3 & onwards

 

Ottawa Rent Supplements - Year 1 & onwards: 

·      110 families currently in motel overflow & shelters

·      40 people on the street

·      300 vulnerably housed families, singles and persons with disabilities

 

Housing Allowances –

·      Year 1: 100 Households who are vulnerably housed and would benefit from housing allowance

·      Year 2: An additional 100 Households

 

Year 3 onward –add $1M to total budget to support between 200 - 350 to ensure funding to those currently receiving Provincial Short Term Rent until 2013 (households may access either Rent Supplement s or Housing Allowances)

Two approaches:

·      Rent supplements with policies established by the City of Ottawa (through an agreement with private landlords / social housing providers / cooperatives) that will house households from the Centralized Waiting List (average subsidy of $550/mo depending on family size)

 

·      Housing Allowances to tenants or agreements with landlords (average subsidy of $250/mo)

 

Approach

Build on existing contribution agreement s with not-for profit corporations, co-ops and private sector landlords to provide Rent Geared to Income assistance as prescribed in the SHRA for basic eligibility, but with shelter costs as permitted in the Ontario Works Act and the Ontario Disability Program Act.

 

Housing Allowances:

·       Since this is a new program, a separate report will be prepared for Council’s consideration and approval on the implementation plan and policy framework

·      Currently consulting with stakeholders and the report will follow.

·      Eliminate existing use of motels for overflow by homeless families by providing them with rent supplement units, while providing support as required through a Families First housing support team

·      House single people living on the street who have supports but are waiting for housing

·       Provide other families and individuals with rent supplements and thereby removing them from the Centralized Waiting List.

·      Introduce a housing allowance program to assist households that are precariously housed 

·      Ensure funding to those currently receiving Provincial Short Term Rent Support program, until 2013

 

Investment Envelope 5 – Shelters/ Supports to Housing

A. Cornerstone Supportive Housing for  Women

 

 

·      Partial funding for 42 unit supportive housing facility for chronically homeless women

 

·      City provides $255K of operating in this new supportive housing facility, in addition to 20 ongoing Domiciliary Hostel subsidies

 

Approach

Enter into a contribution agreement with Cornerstone to implement program.

 

·      Project received capital funding from all three levels of government and Cornerstone’s fundraising; and requires  operating budget

B. Transitional emergency shelter for homeless adults with complex needs

 

$750K/yr for  supports ($375K for Yr 1)

 

Plus lease or

capital costs – estimated @ $3M in yr 1

·      House 30 to 50 single homeless adults who have complex needs - cognitive impairments, concurrent disorders, and potentially unpredictable behaviours

·      Transitional emergency shelter for 30 to 50 single homeless adults with complex needs

·      Provide intensive support to respond to unpredictable behaviours and to stabilize individuals

·      Move to appropriate long-term housing where possible

·      Take referrals from shelters, police, street outreach, hospitals, etc.

 

Approach

Build on existing contribution agreements with not for profit corporations within the sector who serve the target population. Where agreement is not reached, the Housing Services Branch will proceed with an RFP.

 

Will acquire a facility either through lease or purchase; may require renovations.

·      Restore safety for clients and staff of the emergency shelter system

·      Allow other shelters to better use their resources to focus on clients who are wanting to engage / responding to treatment

·      Reduce pressure on the city’s emergency services (police, ambulances, emergency rooms), stabilize these cognitively impaired clients from ongoing crises

C. Supports for Housing First

 

Housing supports to families & singles moving into rent supplement arrangements

 

$500K in Yr 1

 

$1M in Yr 2 and beyond

 

 

·      Supports for approximately 200 chronically homeless families, (representing about 600 individuals) and 30+ single people with multiple, complex needs who are moving from the City operated shelters / motels to housing – to support successful tenancies and reduce shelter and usage of motels for  overflow

 

·      Housing First Model’–multi-disciplinary team approach, addressing issues and barriers that hinder stabilization and prevent potential return to shelter

·      Combines with Rent Supplement and Housing Allowances programs described above


Approach

Build on existing contribution agreements with not for profit corporations within the sector who serve the target population. Where agreement is not reached, the Housing Services Branch will proceed with an RFP.

·      Reduce “revolving door” shelter and motel overflow use and generational homelessness

·      Research shows that a Housing First Model, with adequate support, is very successful in housing people and assists people to stabilize and engage in the community

·      Respond to families and their children who have been continually uprooted by homelessness and other crises

 

Investment Envelope 6 – Social Housing Repairs / Renewal

$2M

Plus unallocated annualized operating funds

·      Critical housing stock repairs related to health & safety issues, accessibility modifications, energy efficiencies, and buildings’ structural integrity; considering Provider’s existing capital reserves and age and condition of stock

·      Year 1. Projects will be selected based on significance of impact for tenants and on readiness

·      Year 2 and ongoing will use the knowledge gained through the process of updating of social housing providers’ Building Condition Assessments to allocate funds to providers with the most pressing need

 

Approach

Using the following criteria:

·         Health and Safety

·         Structural

·         Aging in place

·         Accessibility

·         Energy efficiency initiatives to reduce tenant costs

 

 Social Housing providers to complete a template including project description, urgency of repair (against criteria), cost analysis, financial reserves, within established timelines which will be evaluated, ranked and weighted by staff.

·      The Social Housing Stock which houses over 22,000 households is a $2.6 billion asset which needs to be preserved and maintained as safe and affordable housing.

Investment Envelope 7 – New Affordable Housing Projects (Capital)

$4M  annually 2011 – 2014

 

 

 





 

Year 1 – up to $4M to OCHC

 

 

 

 

 

Years 2 – 4: $4M each year

 

 

 

 

 











·      Carson Road – 26 Unit Stacked Townhouse – with accessible units for families (OCHC)



·      Develop new housing projects based on readiness and response to tenant specific needs, and addressing the lack of a ‘specific housing type’ (e.g. larger units for larger families, accessible units)

·      Facilitate the development or acquisition of new rental or supportive housing to respond to needs in order to house households on the Centralized Waiting List.




Approach

Development adjacent to existing OCHC property.  Includes multi-bedroom barrier-free in some units

Construction Start Sept 2011, Occupancy Q3 2012

 

Years 2 - 4 - will select projects through an RFP process and will leverage other funding opportunities

·      Increases the supply and facilitates the development of more options to reach persons with specific needs on the Central Waiting List such as purpose built supportive housing, wheel chair accessible and larger units

·      Intensify and revitalize Social Housing

·      Assists with the rehabilitation and preservation of existing social housing

 

·      Addresses shortage of affordable housing for families; and for those families with children with disabilities.




 

 

Document 2

Summary of Clients Served, Operating & Capital Commitments 2011 – 2014


(Investment Envelopes #1 – 6 – CPSC; and Investment Envelope #7 – Planning Committee)

 

Investment Envelope

 

Clients Served Annually

 

2011

 

2012

 

2013

 

2014

Operating

$

Capital

$

Operating

$

Capital

$

Operating $

Capital

$

Operating

$

Capital $

1.                    Community ODSP Application Support Program

 

150

$185K

 

$185K

 

$185K

 

$185K

 

2.                    Energy Fund - Essential Health & Social Supports

 

200

$205K

 

$205K

 

$205K

 

$205K

 

3.                    Employment Supports

 

150

$375K

 

$500K

 

$500K

 

$500K

 

4.                    Rent Supplement & Housing Allowance

 

850 – 1,000

$2M

 

$4M

 

$5M

 

$5M

 

5.                    Shelters / Supports to Housing

700- 720

$1.13M

$3M1

$2M

 

$2M

 

$2M

 

6.                    Social Housing Repairs / Renewal

 

 

$2M

+

$1.1M1

 

$2M

+

$1.1M2

 

$2M

+

$0.1M2

 

$2M

+

$0.1M2

7.                    New Affordable Housing Projects

 

 

 


$4M

 


$4M
3

 


$4M
3

 


$4M
3

 

Sub-total

 

 

$3.895M

 

$10.105M

 

$6.89M

 

$7.11M

 

$7.89M

 

$6.11M

 

$7.89M

 

$6.11M

 

Annual Total

Operating & Capital

 

 

 

$14M

 

$14M

 

$14M

 

$14M

 

 

Notes: 

1. In year one, allocations to capital for shelter or social housing repairs will be based on the following priorities:

a.    Capital for transitional emergency shelter for homeless adults with complex needs (see Investment Envelope in # 5.b in Document 1); and / or

b.      Social housing repairs (see Investment Envelope # 6 in Document 1).

2.  In years 2 and onward, any unallocated operating dollars will be invested in social housing repairs / renewal.

3.  For years 2, 3 and 4 allocations to capital for new supportive or affordable housing will be based on the following priorities:

·                        Projects selected through an RFP process;

·                        Project readiness; and

·                        The ability to meet priority need as outlined previously in the Discussion section.

 

Document 3

 

Housing and Support Services System

 

The City has developed a graphic to identify the various components of the housing services and supports system.

 

 

Snapshot of the Housing and Supports System in Ottawa

 

Below is a brief overview of some of the services and programs that the City has in place to meet the housing and support needs of vulnerable people in our community and the unmet need, based on various components of the Housing and Support Services System.

 

1.      People Living on the Street

People spending time on the street are served by coordinated and geographically-based outreach teams, as well as a network of essential drop-in centres for people who are homeless or at serious risk of homelessness. Since 2008, the Housing Response Team has assisted 85 individuals to move from the street into permanent housing, and continues to provide support as needed to ensure they maintain their accommodation.  Currently there are another 75 homeless individuals supported with outreach services - 40 of whom are engaged and ready and waiting for housing, 12 to 15 of whom refuse assistance, while the balance are in various stages of engagement.

 

2.      Emergency Shelters

The City owns and operates two family shelters and contracts with seven agencies for emergency shelter for women, youth and men.  Recent local research on single homeless people corroborates other studies that shelter clients can be segmented into three groups - long-stay users (2%), episodic (10%) and temporary one-stay users (88%).  Additionally, over 50% of beds are occupied by two groups, namely, the long-stay individuals at 27% and by episodic clients at 25%.  With de-institutionalization, more complex, potentially volatile situations are developing in our shelters, placing staff and clients at risk as well as hampering some clients’ ability to successfully engage in treatment and stabilize.

 

3.      Supportive Housing and other Support Services

The City funds a range of support services to people who are homeless and at risk of homelessness (Federal, Provincial and Municipal funding sources).  These services support specific demographic groups (such as Aboriginals, new Canadians, families, youth, and people with addictions and/or severe and persistent mental illness who may also have extreme behavioural issues).  Depending on their circumstances, clients receive help with:

·         finding and maintaining housing,

·         eviction prevention, and

·         accessing financial, medical and education supports and services, and basic life skills. 

 

De-institutionalization has resulted in an ever-growing number of people who need supports to prevent them relying on more expensive health care services (ambulances, emergency rooms, hospital stays) and from being involved in the justice system (police intervention, courts and prison). 

 

4.      Rent Supplements

The City is required by the Social Housing Reform Act to maintain a Service Level Standard of 16,500 Rent-Geared-to-Income (RGI) units, with the majority being in social housing.  Included in this number are about 1,500 Rent Supplement RGI units in the private market and another 1,500 with non-profit and coop housing providers. The subsidy paid is based on the tenant paying 30% of their income towards rent. Under the Social Housing Reform Act (SHRA), a rent scale based on basic shelter is used for households in receipt of Ontario Works or ODSP which requires a more significant subsidy from the City.

 

5.      Centralized Waiting List

The SHRA requires Service Managers to maintain a Centralized Waiting List (CWL) to coordinate access to rent-geared-to-income (RGI) social housing. Provincial housing providers are required to utilize the Centralized Waiting List for the selection of households for vacant Rent Geared to Income (RGI) units and abide by selection criteria including provincial and local priority placements. In 2010 there were over 10,000 households on the active social housing wait list. In 2010, 1,752 households were housed from the CWL.

 

Local policies were established by City Council in 2003 and further renewed and modified in 2008 to provide priority access to social housing for defined populations.  Provincial policy established the principle that some applicants for social housing should be given precedence over others on the list because of their current living situations and demonstrated need for priority access to social housing. The provincial priority, known as the Special Provincial Priority (SPP), focuses on assisting families that are currently or have recently experienced domestic violence within the home. The local priorities for access to social housing are: urgent safety, urgent medical, homelessness, displaced RGI tenants, in-situ market tenants within social housing, and tenants transferring from supportive housing.  These priorities address local concerns. 

 

Examples of Average Waiting List times (2010 –CWL data)

 

Non-Senior Households

Senior Households

Chronological

4.7 years

2.9 years

Homeless

5.1 months

5.1 months

Urgent Medical

9.3 months

3.1 months

 

6.      Social Housing

The 2007 Housing Needs in Ottawa report to Council (ACS2007-CPS-HOU-0009) identified capital underfunding for the maintenance of existing social housing to be over $14 million per year. Ottawa’s social housing stock is estimated to be worth $2.6 billion and provides homes for over 18,000 households.  Like all physical assets, social housing properties require regular repair and maintenance, as replacement or upgrades to the building structure – doors and windows, roofs, parking structures and driveways, elevators and mechanical and electrical systems. 

 

From 2009 – 2011 the Federal / Provincial Stimulus Program provided over $54M in one-time funding towards repair of social housing stock and renewable energy projects. This has gone a long way to improve the quality of the stock. It has dealt with many of the health and safety and structural issues that had been previously neglected as a result of a lack of funds.  The City will work with social housing providers to update their Building Condition Assessments; and will use the updated information as it becomes available to inform the allocation of funds in future years.

7.      Affordable Housing

Since the inception of Action Ottawa in 2003, the Affordable Housing Unit (AHU) has facilitated the development of 18 new affordable housing projects, including new, acquisition and rehabilitation, for a total of 724 rental units.  Currently, AHU has 10 projects of 465+ rental units, which are either under construction or undergoing planning approvals with construction planned to commence in spring or summer of 2011. Approximately half of the remaining 465 units will be completed in 2011, with the remaining units scheduled for occupancy in late 2012.

 

It has been the City’s practice to award City capital funding for affordable housing, including Canada Ontario Affordable Housing Program (AHP) funds through an Action Ottawa RFP. The guidelines in the Action Ottawa RFP are updated each year to reflect City priorities as well as requirements from the senior levels of government when AHP or other funds are available. Action Ottawa can also be used to bundle City incentives, capital and land with federal and provincial funding to better leverage our resources.

 

Document 4

 

Ottawa Context – Unique Characteristics

 

Three factors are unique to Ottawa that impact our residents’ ability to be self-sufficient, namely: a high cost of living; low supply of affordable housing and a highly competitive job market.  The impact of these factors is that families and individuals who are unemployed or underemployed, low-income and social assistance recipients are especially vulnerable.

 

High Cost of Living

 

Typical of highly educated communities, average salaries are higher than the national norm, driving up the basic cost of living. This poses barriers and challenges for those who are low income / low wage earners. Of 18 large Canadian cities, Ottawa had the highest cost of living increase of 2.6% from 2009 to 2010, tied with Toronto[3].

 

Cost/Availability of Affordable Housing

 

The demand for affordable and social housing in Ottawa currently exceeds the supply. Of the 350,000 plus households in Ottawa, approximately 60% own and 40% rent their housing.  The 2009 rental vacancy rate in Ottawa is only 1.6% which is amongst the lowest rates in Canada; while rents have increased by 3.7%[4], compared to a 2.6% rise in the Consumer Price Index between 2009 and 2010 for Ottawa-Gatineau. Only 5% of all housing built between 2001 and 2010[5] has been rental accommodation.  The average cost of a one bedroom apartment is $877 per month[6].   (Refer to Document 5 for information on income versus rental accommodation costs in Ottawa).

 

Highly skilled and competitive job market

 

Securing and maintaining work in Ottawa is particularly difficult due to the demand for bilingualism and a well educated workforce to fill high-skill jobs. In 2008, Ottawa tied with Vancouver as the most highly educated city in Canada. The competitive job market, combined with an unpredictable local unemployment rate makes it difficult for people with lower levels of education to secure and sustain employment.  While Ottawa’s unemployment rate was at a low of 4.9% in 2008, the rate has increased between 2010 and 2011 – 6.5% to 6.7% respectively.  By way of comparison, Toronto and Windsor decreased during this same timeframe from 8.9% to 7.7%, and from 11.3% to 9.5% respectively.[7]

 

Document 5

 

Income versus Rental Accommodation Costs in Ottawa

 

Basic Allowance

$

Shelter Allowance Maximum

$

Max

Ontario

Child Benefit

Total

$

Average market rent

1 bedroom[8]

Average market rent

2 bedroom[9]

Ontario Works (OW)

 

 

 

 

Single

$224

$368

$0

$592

$877

Parent with two children 0-12 years

$344

$627

 

$184

$1,155

 

$1,049

Ontario Disability Support Program (ODSP)

 

 

 

 

Single

$584

$469

$0

$1,053

$877

Parent with two children 0-12 years

$745

$799

 

$184

$1,728

 

$1,049

 

Minimum Wage

40 hr wk

 

Per Month

$10.25 / hour

$410

 

$1,775.30

gross

$877

 

$1,049

 

 

 

 



[1] Statistics Canada Low Income Measures

[2] CMHC 2006 Census Housing Series: Issue 8

[3] Statistics Canada, Consumer Price Index, by City

[4] CMHC, Rental Market Report, Ottawa, Fall 2010

[5] CMHC

[6] Ibid

[7] Service Canada Labour Market Monitor, February 2010 – February 2011

[8] CMHC 2010 data average of all areas in Ottawa

[9] Ibid