Madam Speaker, I congratulate the member for Tobique—Mactaquac who brought this motion before the House. The motion directs the government to take all necessary steps to ensure the continued viability of housing co-operatives administered by Canada Mortgage and Housing Corporation.
Housing co-operatives play an important role in providing affordable housing in my riding and in this country. Over 250,000 Canadians are members of nearly 2,200 non-profit housing co-operatives located in all parts of Canada. The people who live in housing co-operatives are often more satisfied in their accommodations than those who rent privately or who live in other kinds of social housing.
Turnover rates are about half those in the private rental market. About one-third of renters say they would move into housing co-operatives if they could. Forty thousand Canadian households are on co-op waiting lists. Canadians who live in co-ops are members, not tenants. They control their own housing through elected boards of directors.
Co-op housing is unique. Among assisted housing providers only co-operatives are committed to empowering ordinary Canadians to manage their own housing. While co-ops are dependent on some government support, they do in fact break the cycle of dependency enabling Canadians who need affordable housing to take control of their lives. Operating costs are below those of all other forms of assisted housing, 19% less than municipal or private non-profit housing and 71% less than government owned and operated public housing.
Co-op housing would make an important contribution even if it was not substantially cheaper than comparable forms of government assisted social housing. Co-op housing allows members to learn the skills of operating and managing the co-op. Co-ops have more than twice as many single families than are found in the general population.
Canadians with disabilities and other special needs live in the more than 5,000 units of co-op housing. They are counted on to participate as full and equal members. Co-ops emphasize abilities, not disabilities.
The majority of the co-op members are women and 10% of the units are occupied by women over 55 years of age. Women participate fully and equally with co-op elected leadership and staff. Nearly two-thirds of co-op units contain families with children. Co-ops help communities achieve sensible and sustainable urban development and preservation of historic neighbourhoods.
All co-ops play an important role in this country whether they be housing co-ops, consumer co-ops, farmer co-ops or financial service co-ops. Indeed at a time of mega bank mergers I believe that financial service co-ops will play an important role in providing Canadians with options.
Perhaps nowhere is co-op housing more important than in British Columbia. In the lower mainland of B.C., affordable housing is often not available. Even modest housing can be extraordinarily expensive. There are close to 15,000 people on waiting lists for co-op housing. Housing co-operatives play an important role. Co-op housing in B.C. fills the need for affordable housing for families, seniors and low to moderate income households. I think particularly of the housing co-ops in Steveston in my riding of Delta—South Richmond.
Co-ops are adaptable and resourceful. They will seek to respond to reasonable changes in government policy. But co-ops are concerned about their very existence. The current government policy designed to download or to devolve social housing responsibilities to the provinces fails to protect housing co-ops. The plan threatens to destroy a unique Canadian success story that has taken over 30 years to build. Co-op members across Canada are deeply concerned by this proposal which will affect 250,000 residents and over 60,000 co-op homes and apartments.
I call upon the government to change direction to find a mechanism to protect co-op housing in its rush to download to the provinces. The unique co-op self-management approach may well be eroded in the downloading. Co-ops are not just another form of social housing. Co-ops are the least costly form of all federal social housing programs because of the commitment and involvement of co-op members.
In future, co-op rents may rise dramatically and the buildings may deteriorate physically as a result of insufficient federal funding which may force cash strapped provincial governments to cut spending for social housing. The risks are real because the downloading agreements with the provinces do not adequately protect the operating agreements between the co-ops and CMHC and because federal expenditures have been capped at the 1995-96 levels.
The downloading has already taken place in Saskatchewan. The Saskatchewan government is currently proposing changes which co-ops believe will seriously erode their accountability and authority for setting housing changes, budgets and the number of households they will subsidize. If co-ops are forced to accept these proposals, they will be forced to operate much more like public housing.
I am impressed by the work done by the Co-operative Housing Federation of Canada. It has proposed a viable non-governmental alternative for the country's housing co-ops. The administration of co-op programs would be contracted to a non-profit management corporation operating at arm's length from government. This approach would build on the co-op sector's decades of experience and successful cost effective self-management.
Streamlined staffing and organization would allow considerable savings in comparison with government management, be it federal or provincial. Minimum savings are estimated at $2 million a year in the cost of portfolio administration plus $50 million in savings on project costs over 20 years.
The proposal from the co-ops, unlike the current government policy of transfer to the provinces, would preserve the keys to the co-op housing success story: member control and decentralized management.
In British Columbia both co-op organizations support the national organization's proposal for an agency at arm's length from government. Furthermore I understand the province of British Columbia is supportive of the position taken by our co-ops and has written to the federal government to have co-ops taken off the table in the transfer talks. The federal government has not yet responded to this very critical need.