History
The Historical Perspective
Between the late 1960’s and early 1970’s non-profit family housing in Canada originated from a combination of social and economic needs and changes within the inner city urban environment. Earlier not-for-profit housing initiatives focused upon the needs of low-income seniors and were the result of charitable or religious societies. Low-income families were served through government owned and operated public housing. Two unrelated but significant initiatives of the late 1960’s, the public discrediting of large public housing ventures given voice in the 1969 Hellyer Task Force Report on Housing; and the movement in many cities to protect inner city neighbourhoods, contributed significantly to a change in housing policy.
On the one hand, small mixed income rental projects were seen as an alternative to large public housing “ghettos” and considered a less stigmatized means of providing affordable housing. Inner city neighbourhoods threatened by urban renewal programs, and rezoning for higher residential density, quickly appreciated the benefits of strategically acquiring inner city properties as both a means to control zoning and provide affordable housing for existing low income residents.
As a result of the Hellyer Report, the Government launched a $200 million demonstration housing program (“the Demonstration Program”) in February, 1970. The focus of the funding was on housing needs in major urban areas and produced a variety of innovative projects.
One such project was Kinew Housing Corporation in Winnipeg, sponsored by the Indian and Metis Friendship Centre. This was the first non-profit housing corporation sponsored, owned and managed by Aboriginal peoples. Kinew’s first project was 10 units of older housing. Aboriginal contractors were hired to do much of the renovation, introducing an element of potential Aboriginal employment to the program. Between 1972 and 1975, five more urban Aboriginal non-profit housing societies were created across Canada: Canative, which originated in Edmonton and Calgary; Sasknative in Saskatoon; Native People of Thunder Bay Development corporation; Wigwamen in Toronto; and Skigin Elnoog in New Brunswick. All used the same approach of acquiring older existing housing, rehabilitating them and renting to low income Aboriginal families.
The experience with the Demonstration Program led to changes to the National Housing Act (“NHA”) in 1973 which introduced 100% capital financing, a fixed long term mortgage interest rate and 10% capital forgiveness. In spite of these more generous terms, the six urban Aboriginal housing institutions still found that the financing arrangements were insufficient to meet their needs. To assist in making these projects viable CMHC provided an annual grant under the Research and Demonstration Section of the NHA. Despite viability concerns, the six Aboriginal housing institutions continued to flourish and by 1975, they were responsible for 600 units of rental housing.
In 1974, CMHC, concerned with the ad hoc use of “research” funds for housing operation, undertook a review of urban Aboriginal housing institutions. The Aboriginal housing institutions met for two days in Ottawa and concluded that an “Urban Aboriginal Housing Program” (“UNH Program”) should be developed. Through several meetings with the Minister and senior CMHC officials, the Aboriginal housing institutions were able to articulate some of the policy aspects of the new UNH program.
Despite the initial enthusiasm within CMHC for a separate program, the eventual decision was that the NHA already provided programs for the urban poor and a new initiative for urban Aboriginal peoples was not necessary. As a compromise, CMHC urged the provinces to use their cost shared funding under Section 44 of the NHA to provide deeper shelter subsidies for low-income Aboriginal families, thus ensuring some degree of financial stability.
In 1977, CMHC was approached by Aboriginal organizations and leaders to increase housing unit allocation for Aboriginal housing institutions. The federal government agreed that the new non-profit housing program (just being introduced into Parliament) utilizing private lender capital financing should be used for urban Aboriginal housing. CMHC agreed to set aside 400 units a year or 10% of the 1978 allocation. Under the new program, the federal government provided mortgage interest assistance in the form of non-repayable subsidies over the life of the mortgage, usually set at 35 years.
The number of Aboriginal housing institutions increased significantly over the next few years through the sponsorship support of Friendship Centres and Tribal Councils. In 1983, recognizing the special financial needs of urban Aboriginal housing institutions, the federal government approved deeper funding for the initial 400 units. In early 1984, the deeper subsidy was extended to an additional 500 units, guaranteeing that tenants of Aboriginal ancestry would pay no more than 25% of their income for shelter under federal programs.
The initiative known as Urban Native Additional Assistance (“UNAA”) bridged the gap between operating costs and operating income. UNAA, for the first time, put urban Aboriginal housing institutions on a viable financial footing, and facilitated operating enhancement in the way of administration, counselling, maintenance regimes that have contributed significantly to the success of the urban Aboriginal housing institutions.
While in practice, Aboriginal housing institutions operated their projects in a distinct way from non-Aboriginal not-for-profit housing groups, it was not until 1985 that a distinct UNH program was funded under Section 56(1) (now 95) of the NHA. While it formalized the deeper funding of the UNAA and targeted persons of Aboriginal ancestry, in most respects, the Operating Agreements between the Aboriginal institutions and CMHC were identical to other NHA non-profit programs. The flexibility to provide tenant counselling services outside of administration, to spend more on administration, to recognize non-traditional households, and the treatment of income, resulted from CMHC’s willingness to recognize the special nature of Aboriginal housing and the specific needs of Aboriginal peoples.
Today there are over 100 urban Aboriginal housing institutions responsible for over 10,000 unilateral federal rental units. These rental units are operated in all major urban centres in all regions of Canada. In Manitoba, there are 14 urban Aboriginal housing organizations that manage over 1,400 rent-geared-to-income housing units.