Thank you, Mr. Chair.
Good afternoon, ladies and gentlemen. Thank you for this opportunity.
Habitat for Humanity Canada believes that the development of a national poverty reduction plan and a national housing plan are top priorities. Sufficient federal funding needs to reach the provinces and territories to help make these plans a reality, and the issue of affordable housing must be central in future policies for reducing poverty in Canada.
Habitat's specific focus is on the importance of affordable, assisted home ownership, which is an often neglected part of the housing continuum. We urge you to recognize the importance and the long-term efficacy of assisted home ownership solutions to the affordable housing crisis. A stable, decent, affordable home is a doorway to better health, education, and careers, and it is an important source of human pride and dignity.
In Canada poverty is largely a function of two things, income and shelter cost. Too many Canadians are forced to make unreasonable and unjust choices between shelter on the one hand, and such things as food, child care, and electricity on the other.
Habitat uses the number of households living in core housing need as an indicator of poverty. According to CMHC, 1.5 million households, or 12.7%, were in core housing need in 2006. Their average income is just under $20,000. About one-third of these households are homeowners and two-thirds are renters. In fact, more than one-quarter of all renter households in Canada are living in core housing need, mostly due to affordability.
The criteria for Habitat partner families include housing need, ability to repay an interest-free mortgage, and willingness to volunteer their own time. Partner family income is assessed using LICO, median income for the area, and shelter cost-to-income ratios.
Our goal is to keep shelter costs for these new homeowners below 30% of their income. How? Habitat for Humanity mobilizes volunteers and community partners in building affordable housing and promoting home ownership as a means of breaking the cycle of poverty by building modest, inexpensive homes with no down payment required and no interest on the mortgage. We enable low-income families to access the benefits of home ownership, the security that comes with more stable living arrangements, and the pride and confidence that comes from owning their own homes.
A one-time investment that increases housing affordability can in the long term be a more cost-effective solution than providing ongoing subsidies such as income supports and rent supplements. There will always be, of course, a need for rental housing for low- and middle-income families and for people who are just starting out or who are in transition. Due to the lack of affordable rental housing, for many people it becomes a trap they can't get out of, and the housing continuum is a dead end for them.
Financially, the distance from renting to owning is increasing, and lower-income households need help to make that leap successfully. Many more renters in Canada could afford to purchase a home, possibly paying less on their mortgage and property taxes than they are currently paying in rent, not only lowering their monthly housing cost but also building equity, lessening their reliance on government subsidies, and stimulating the housing market. As an added benefit, scarce rental units would be freed up for others in need.
We urge you to recognize the importance of assisted home ownership solutions to the affordable housing crisis. The federal government should support the work of organizations that are promoting and providing affordable home ownership by allocating funding to the provinces and territories for this purpose, in turn encouraging them to allocate more funds to affordable home ownership as well. An investment in affordable home ownership not only builds homes for families in need right now, but also, through their mortgage repayments, will help to fund homes for many more families in the future.
We respectfully request that the government recognize the important role that affordable home ownership plays in affordable housing and poverty reduction strategies. Promote access to affordable land. Fund affordable home ownership providers on a per unit basis to increase affordability and speed up housing production. Fund provincial and territorial programs that provide forgivable down payment assistance for qualifying low-income families. Encourage regions and municipalities to implement strategies like zoning that will increase the supply of new affordable housing. Create tax credit programs that provide incentives for corporations and individuals to develop more affordable market housing. This has been successful in quite a few U.S. states.
With this kind of support, providers of affordable home ownership could have a far greater impact. More families would plant deeper roots and become proud, connected members of a community. A well-housed population is one that creates thriving communities, forges new opportunities, and makes Canada a home to everything it stands for as a country, a place where all people have a chance to build a better life. Habitat for Humanity Canada believes that this chance should be at everyone's doorstep and that everyone should have an address.
Thank you.