Madam Speaker, it gives me pleasure to rise today and speak to the bill. I have a number of concerns as I am sure many members of the House have about certain provisions in the bill. There are also things that I like about it.
I would like to read into the record words that were spoken by Mr. Laird Hunter, the counsel for the Co-operative Housing Federation of Canada. I want to do that because in my riding of Delta—South Richmond there are many co-operative housing units. They are a very necessary part of the housing requirements in my constituency for a very simple reason. People in the lower mainland of British Columbia, who in other parts of the country would be making fairly good wages, find they are in a high cost, high rent marketplace. They cannot afford to buy a home and they cannot afford to pay the high rents in some of the accommodation that is available. The alternative has been the co-operative housing marketplace.
As someone who has visited many of those co-operative housing locations, I can assure the House that the housing is simply delightful. It is a pleasure to walk through. Housing co-op members have stated to me on many occasions that they feel very safe in their environment. They know their neighbours and there is stability in the neighbourhood.
The people who participate and live in the co-op housing units have a commitment to the co-op. They ensure that the place is well-maintained because it is their home and it is their investment. They look after one another's children. It is not a concern when their kids are playing in the street in front of a co-op housing unit or in a unit itself. People have some assurance that their kids are safe because they know their neighbours are watching them.
It reminds me of old times in small-town Ontario where I grew up. When we were out playing in the streets our parents were not concerned because they knew the neighbours were looking out for us. Quite often that is something which is missing today. Certainly in busy urban settings that is not the case, but it is the case in these co-op housing units. There is that kind of security. As far as providing homes for people who need them for economic reasons, I do not think there can be a better setting than these co-op houses.
Mr. Hunter noted that the bill contains certain provisions which they are pleased with. He notes and expects that the CHF of Canada welcomes the bill's proposal to strengthen the Canadian system for residential mortgage insurance. He says: “We also support the reinforcement of Canada Mortgage and Housing Corporation's international role both in the exporting market and in helping developing countries to build secure and affordable housing”.
He goes on to say: “We have concerns about Bill C-66. We hope to offer some comments that will help to improve this bill and prevent some of the potential harmful effects that arise through unintended consequences on the affordable housing that now exists”. He outlines the three areas of concern. He said that they have concerns about the mortgage insurance, the international housing matters and the accountability framework. Those are concerns the Reform Party has as well.
One other concern should be mentioned. It is a serious concern for many of the co-ops in my riding. It is an important issue, one which I do not think the bill has addressed at all. It is the problem many of the co-ops have where the mortgages have been locked in. They entered into mortgage agreements in times of high mortgage rates. Unlike others, they cannot simply go to the bank and pay the penalty and buy into lower mortgage rates. They are stuck with the high rates. Some co-ops are paying 10% and 11% mortgage rates, with some probably paying higher rates. They cannot take advantage of the newer lower rates.
That is a fundamental problem. The co-ops are owned collectively. In that sense individuals own their own units, but because the title is a collective title for the whole organization or complex, these people are prevented from going to the bank collectively and saying “We do not want to continue to pay these high rates; we would like to pay the penalty and renegotiate at a lower rate”. That is fundamentally wrong.
We are not dealing with the Rockefellers of the world when we talk about this bill. We are dealing with people who are working hard and trying to put the bread on the table for their families and their children. We are making it tougher for them to do that.
I should mention one other thing when I say that this point is unfair. I was visiting one of the co-ops in my riding within the past year. One of the ladies told me that she had lived in co-op housing for years and that she had paid one of the higher rates. She had a pretty good job and was paying a pretty high rent. Then she had a physical health problem and was unable to work. When she could not work her rent dropped and she paid a little less than she had before. She said that it was not a concern to the other people as they knew she had done her best when she could and now she could enjoy that security. It is only right that happens. The group is looking after its own and that is correct.
Although we in the Reform Party are great supporters of the notion of co-op housing, we believe there is also a place for private sector builders that want to build low cost housing. That is a concern to me and to my friend from Okanagan who is our critic in this area.
I live on the lower mainland where there is a need for lower cost housing. Lower cost housing does not mean lower quality housing. It may mean smaller housing and smaller yards, but it certainly does not mean lower quality.
There is a place for government in providing low cost housing, whether it be through co-ops or assisting private sector builders that want to build low cost housing. The government should be making every effort to ensure that private sector builders have access to land in our municipalities where they can build smaller homes on smaller lots.
When I grew up the home in which I was raised was not very big. It probably was about 1,000 square feet. It was certainly adequate for my parents and four kids. Nowadays it seems that in the area where I live a small home is about 1,200 square feet and many of them are in the 2,000 to 2,500 square foot range.
However, with size comes expense. There is a problem when laws restrict size and do not allow builders to construct smaller homes on smaller lots. It prices people out of the market. The motions the NDP is proposing will do just that. Its series of motions will restrict the value of the bill to providers of on reserve rental housing, non-profit corporations and co-op associations. It does not want to allow private sector builders access to funding. I think that is wrong.
If the federal government is concerned about providing housing to low income Canadians, it should be taking the lead in ensuring that municipalities make land available where smaller lot sizes are okay. It should encourage municipalities to provide areas where smaller homes can be built. There is a place in our society for them. Many of the houses that were built in the thirties, the forties and before were built on smaller lots in many of our cities. They were smaller and affordable.