This presentation offers critical insights on how to build an effective affordable housing plan for Toronto. Michael Shapcott, Director of Housing and Innovation www.wellesleyinstitute.com Follow us on twitter @wellesleyWI

1. Brick by brick: Building
an affordable housing
plan for Toronto
Michael Shapcott
The Wellesley Institute
WCOHH, June 2012

2. People and places to celebrate

3. YWCA Elm Centre

5. Toronto 1911:
Founding of
Wellesley Hospital

6. Sprucecourt Apts 1914
s
m nto
lu i
s d
to me es
on or om
or sf h
T an d
r oo
t g

7. Genuine
Canadian
hero
John Peters
Humphreys

8. International Covenant on Economic, Social
and Cultural Rights: Article 11
1. The States Parties to the present Covenant
recognize the right of everyone to an adequate
standard of living for himself and his family,
including adequate food, clothing and housing, and
to the continuous improvement of living conditions.
The States Parties will take appropriate steps to
ensure the realization of this right, recognizing to
this effect the essential importance of international
co-operation based on free consent.

9. 31st October 1945. MACKAY J.:—This is an application brought
by Drummond Wren... to have declared invalid a restrictive
covenant... namely, ‘Land not to be sold to Jews or persons of
objectionable nationality.’...
First and of profound significance is the recent San Francisco
Charter, to which Canada was a signatory, and which the
Dominion Parliament has now ratified. Under articles 1 and 55 of
this Charter, Canada is pledged to promote ‘universal respect for,
and observance of, human rights and fundamental freedoms for
all without distinction as to race, sex, language or religion.’...
An order will therefore go declaring that the restrictive
covenant attacked by the applicant is void and of no effect.

13. Toronto - 1970
Below middle
Middle income
Upper income
The Three Cities - David Hulchanski, U of T

14. Toronto - 2005
Below middle
Middle income
Upper income
The Three Cities - David Hulchanski, U of T

15. Inequality / precarious housing
is driving poor health
Toronto Health Profiles

16. TO affordable housing wait list
8213
85000# 08
8
e 20
si nc
80000#
2 3%
Up
75000#
70000#
63 791
65000#
60000#
2004
2005
2006
2007
2008
2009
2010
2011
December 2011: 82,138 households on
wait list; 280 housed - 24 year wait

18. Bad housing makes you sick!
Homelessness:
Increased morbidity
Increased premature morality
Contextual:
Individual / neighbourhood deprivation
networks / friends / crime
Biological / physical:
Chemicals, gases, pollutants
Socio-economic: Design (accidents) / crowding
Affordability / energy
Transportation / income / jobs
Mental health:
Alarming rates... especially
Clinical depression and anxiety
Control / meaning
Collective efficacy

19. Good housing good for health!
Physical and mental health:
Better health outcomes /
decreased health care utilization
Environment / physical infrastructure:
New housing, repairs, heating, noise,
indoor + outdoor environmental issues,
allergens, water + sanitation
Community safety:
Reduced recidivism among
people leaving incarceration
Affordability interventions:
Income-based housing subsidies

20. “Yes, there are poor people in the world, okay, but
poor people will be with us forever, like it’s been
Agree?
from the moment of time. I think sometimes you
have to have tough love, not because you hate
people but because they need the support. People
should get lessons in budgeting, lessons in
nutrition..., lessons in parenting. Kids have children,
okay, who don’t know how to parent... I didn’t tell
you to wear a condom or not wear a
condom or how many children, you
made that decision.”
Cllr. Mike Del Grande
Toronto Budget Chief

21. “After 20 years of continuous decline, both inequality and
poverty rates have increased rapidly in the past 10 years,
now reaching levels above the OECD average.”
OECD (2008), Growing Unequal? : Income Distribution and
Poverty in OECD Countries

22. quality
Ine

24. Selected policy recommendations for OECD
countries from Divided We Stand
• Reforming tax and benefit policies is
the most direct instrument for increasing
redistributive effects. Large and
persistent losses in low-income groups
following recessions underline the
importance of government transfers and
well-conceived income-support policies.
• The growing share of income going to
top earners means that this group now
has a greater capacity to pay taxes. In
this context governments may re-
examine the redistributive role of
taxation to ensure that wealthier
individuals contribute their fair share of
the tax burden.

25. ‘Social spending in Canada relies more on
public services (education, housing,
health, etc.) than on cash transfers, such
as unemployment and family benefits.’
OECD, 2011

26. d pr ivate
uali ty an 95%
of
Ineq mar kets Cana
dians
hou sing each
home
s in p
live i
n
out or r owne rivate
rea sing rship
inc renta
l mar
kets
/

27. d pr ivate
uali ty an
Ineq mar kets
hou sing each
out or r
rea sing
inc Typical two-bedroom apt:
$44,920 household income
CMHC
Entry level condominium:
$70,600 household income
RBC Economics, August 2011
20% of households have
annual income <$18,000
50% of households have
annual income <$41,000
MMAH

28. For renters, average market rents are
outpacing renter household incomes

29. Four observations:
1. Housing insecurity deep / persistent
2. Costly to people, communities,
economy, government
3. Federal housing / homelessness
investments eroding
4. No comprehensive national plan

30. Most
housing
needs
invisible

31. Ongoing erosion of federal housing investments
(Federal housing investments as a percentage of GDP)
1.20%
1.10%
1.00%
0.90%
0.80%
0.70%
0.60%
0.50%
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
Follow the money...

32. 2011 federal spending estimates
2010 2011 Change
Assisted $1.722b $1.628b 5% cut
housing
On-reserve $215m $156m 27% cut
Repair $674m $37m 94% cut
AHI $452m $16m 97% cut
Overall $3.131b $1.907b 39% cut
‘Scheduled termination’

33. Looking ahead -
more federal cuts

36. Ontario housing spending declining
Municipal housing spending increasing

37. Toronto Shelter, Support, Housing - 2012 budget
2009 2010 2011 2012 2013 2014
Gross $797m $834m $869m $786m $792m $799m
Net $263m $274m $291m $269m $295m $300m
Fed $192m $187m $181m $179m $179m $179m
ON $177m $372m $341m $285m $287m $288m

38. Aff
ply
p
ord
S u
a
bili
ty
a ir
r ts
p
po
e
up
R
S

39. ‘Naming and shaming’ at UN HRC

40. Miloon Kothari, former UN Rapporteur
on Right to Adequate Housing
‘Housing
is a human
right’

41. UN Special Rapporteur, 2009
“Canada has a long and proud history of
housing successes, and has been known
around the world for its innovative
housing solutions. The Special Rapporteur
visited and received information about
programmes, laws and policies that
represent good practices... Canada can
also rely on a tremendous range of
academic and civil society resources.” !
“There has been a significant erosion of housing rights
over the past two decades. Canada’s successful social
housing programme, which created more than half a
million homes starting in 1973, has been discontinued.

42. Canada officially
accepted UPR
recommendations
on housing and
homelessness
“Canada accepts recommendations 47 and 48. Canada is
working to improve housing choice and affordability.
Governments are making substantial investments in housing
through programs targeting affordability, housing renovation,
homelessness and support for existing social housing units.
Addressing Aboriginal housing issues on reserve remains a
priority. Canada provides support through programs targeting
the construction of new housing units, the renovation of existing
housing stock, and subsidies for existing rental housing. Since
2006, new funding for Aboriginal people has been dedicated to
resolving challenges of poverty and housing.”

44. Toronto Shelter, Support, Housing - 2013 budget (???)
2009 2010 2011 2012 2013 2014
Gross $797m $834m $869m $786m $792m $799m
Net $263m $274m $291m $269m $295m $300m
Fed $192m $187m $181m $179m $179m $179m
ON $177m $372m $341m $285m $287m $288m

47. www.wellesleyinstitute.com
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