Provincial Downloading of Operating Costs for Deteriorating Provincially Owned Housing

Date:

November 2023

Expiry Date:

December 2026

Current Status:

Intent Not Met

Sponsors:

Northern Sunrise County

District:

4 – Northern

Year:

2019

Convention:

Fall

Category:

Community Services

Status:

Intent Not Met

Vote Results:

Carried

Preamble:

WHEREAS historically, the Government of Alberta has funded provincial housing maintenance and repairs; and

WHEREAS presently, 380 provincially owned housing units are deemed uninhabitable due to disrepair, according to the standards of core housing established by the Canada Mortgage and Housing Corporation; and

WHEREAS these units will remain vacant until sufficient funding is provided to the housing authorities for their repair; and

WHEREAS the 2021-2022 Ministry of Seniors and Housing report acknowledges that 82% of their housing stock is in fair or poor physical condition; and

WHEREAS 10,750 lodge units, with an average building age exceeding 30 years, have been assigned to housing management bodies (HMBs) for operation; and

WHEREAS these units provide housing to the province’s most vulnerable population; and

WHEREAS despite facing escalating costs due to unprecedented inflation, increased supply costs, utilities and carbon taxes, lodge operators have not received an increase in funding since 2018; and

WHEREAS funding allocation is determined by ministerial orders and the passing of the Government of Alberta’s budget, rather than being negotiated and secured through contractual agreements; and

WHEREAS this arrangement exposes HMBs to unnecessary financial risk and pressure to deliver programs without a guarantee of resources to operate them;

Operative Clause:

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta (RMA) advocate to the Government of Alberta (GOA) to retain fiscal responsibility for all provincial housing and to increase the grants provided to housing management bodies for operation and maintenance; and

FURTHER BE IT RESOLVED that the RMA advocates to the GOA to ensure that municipalities and ratepayers are not held accountable for absorbing the operating and repair costs of these deteriorating provincially owned buildings.

Member Background:

The Alberta Affordable Housing Review Panel released a final report in October 2020 with recommendations that envision more privatization of social housing with the Government of Alberta acting as a funder and regulator rather than an owner and operator of social housing. The report also identifies that the demand for social housing is expected to increase in the future, while also acknowledging that 82% of the province’s social housing stock is in need of repair and maintenance.

The province’s Affordable Housing Partnership Framework currently does not regulate and ensure that housing units sold to private companies will remain as non-market housing after 20 years and therefore the Government of Alberta is running the risk of eliminating affordable housing units in the future. The demand for housing will continue to rise and the risk is that municipalities and ratepayers will have to absorb the costs of maintaining and operating social housing for seniors and those in need of housing.

With no additional funding from the Government of Alberta, the burden of increased costs relating to the program falls on all municipalities as municipal requisitions are responsible for funding the operating expenses of the Seniors Lodge program.  Municipalities continue to see an annual increase to their requisitions from the housing management bodies (HMBs) in order to operate this program.  This downloading of funding from the province to municipalities increases the financial burden, which creates extra pressures to sustain these programs.

Following the capital funding support of HMBs resolution that was passed at the 2023 RMA Spring Convention, a response was received from the Government of Alberta. They refer to a 2023/2024 Seniors Lodge Program Review that will be undertaken and advise the housing providers to “reach out to ministry staff to explore options for essential Capital Maintenance Renewal work”.

Click here to view the recent Housing Management Body Budget Survey completed in May 2023.

RMA Background:

15-23: Capital Funding Support for Housing Management Bodies

THEREFORE, BE IT RESOLVED that the Rural Municipalities of Alberta advocate to the Government of Alberta to increase funding to housing management bodies to alleviate the affordability crisis and provide funding for capital upkeep or replacement needed to sustain supportive living at senior lodges.

Click here to view the full resolution.

Government Response:

Seniors, Community and Social Services

Excerpt from Resolution: “…BE IT RESOLVED that the RMA advocate to the Government of Alberta (GoA) to retain fiscal responsibility for all provincial housing and to increase the grants provided to housing management bodies for operation and maintenance.”

As part of the provincial government budget process, the Alberta Social Housing Corporation (ASHC) is allocated funding, which it uses to support affordable housing, including funds for Capital Maintenance Renewal (CMR). The funding provided to each Housing Management Body depends on the available budget and the maintenance work identified for each facility. Decisions related to the disbursement of CMR funding are made in the fourth quarter of each fiscal year after the approved budget is received.

Excerpt from Resolution: “…BE IT RESOLVED that the RMA advocates to the GoA to ensure that municipalities and ratepayers are not held accountable for absorbing the operating and repair costs of these deteriorating provincially owned buildings.”

The AHSC provides CMR investment funding to HMBs for the repair of provincially owned buildings. Funding is based on the available budget and requests from HMB.

Development:

Since RMA last reported on this resolution the Government of Alberta has not assumed any change in responsibility for affordable housing in the province and RMA members continue to observe discrepancies in the capital maintenance and renewal funds available to government owned affordable housing verses affordable housing that is available to private and/or non-profit owned affordable housing.

RMA has previously participated in the Seniors’ Lodge Program Review. RMA’s input during the review emphasized that increased cost pressures are impacting Housing Management Body (HMB) operations, and forcing municipalities to take on a larger fiscal burden for seniors housing that impacts their ability to provide other services.

Given the Government of Alberta’s unchanged investment in operating and capital costs for these affordable housing units, RMA assigns this resolution as Intent Not Met and will continue to advocate for the asks of this resolution as RMA undertakes a research project on affordable housing.

Provincial Ministries:

Seniors, Community and Social Services

Provincial Boards and Organizations:

None reported.
Federal Ministries and Bodies:
None reported.

Internal Notes:

None reported.