SoVote

Decentralized Democracy

Ontario Assembly

43rd Parl. 1st Sess.
April 15, 2024 10:15AM

It’s a pleasure to rise today to talk to Bill 185. I’m just going to talk in my 20 minutes about the housing aspect of this bill, which is, I believe, the driving force behind this bill. This is one of the biggest issues I hear about at home, and let me begin—I’m going to zoom in and zoom out in these 20 minutes.

Let me begin by zooming into something very local that happened in my constituency office last Friday. I’m in meetings in the community, and I get a text from my colleague Erica who says, “Joel, there’s a guy in our office who needs a pair of shoes.” No joke, Speaker: There’s a guy in our office who needs a pair of size 12 shoes. He’s spending his nights couch surfing with different friends. He can’t find a home. He lives on social assistance. Our shelters, as I’m sure is the case with shelters everywhere in this province, are full. The average rent in our city is $2,000 a month. For someone on social assistance, on Ontario Works, in particular, making an income of less than $800 a month—brutal. There is a housing allowance that can maybe get you into a home if you time it correctly. This gentleman has worked with our offices, and a number of times, the timing just never works for him. But last Friday, he ended up in our office, asking for our help for a pair of shoes.

I was across town in a meeting with Professor Carolyn Whitzman—big room—with parliamentary assistant to the federal housing minister, Peter Fragiskatos. I may have mispronounced the parliamentary assistant’s last name. But it was a rich discussion about what we need to do for housing in the province, and my phone goes off from a colleague asking some advice about how we find someone a pair of shoes in the course of shuttling around the city, trying to find something other than the couch. So I think that’s the zoom-in picture, Speaker.

We have a situation in our community in Ottawa of 45,000 people, according to Professor Carolyn Whitzman, who are one or two paycheques away from homelessness, one or two paycheques away from eviction. And it depends upon the outreach worker from the city recording the data at night, but we have hundreds of people sleeping rough all year round in our city. Our shelters are full. That’s the zoom-in context of housing. So when members in this House say we need pieces of legislation to expedite the construction of deeply affordable housing, the answer from my community is, “Yes, yes, yes. What can we do? What can we do?”

I do know that in 2018, the government signed a contract with the federal government that committed the government to build 19,660 affordable housing units. Let’s be clear what we mean by affordable housing units, because the federal government has often slid around in its definition of what this means. According to the Canada Mortgage and Housing Corp., according to housing experts like Professor Whitzman, Steve Pomeroy from Carleton University, Kaite Burkholder Harris from the Alliance to End Homelessness Ottawa, the definition that makes the most sense is 30% of income—30% of income. And it used to be 20% of income in the post-war period, when we built all those victory homes for veterans who were otherwise facing poverty and homelessness after serving our country, making the greatest sacrifice overseas. It was 20%, but it became 30%. But then that definition lapsed.

But that was what the government agreed to in 2018, to build 19,660 affordable housing units—units that cost 30% of income. But how many units have been built in six years in Ontario? It’s 1,180. That’s barely 6% of the target.

Now, I don’t want to hang all the blame on this government particularly. I think we have had a problem for generations because we’ve put faith in the wrong place. We have put faith in the fact that the housing market, on its own, is going to resolve the issue we have—that I felt in my office, personally, last Friday—of the need for deeply affordable housing. And the market, by any measure, has manifestly failed.

For me, for affluent folks, sure, there are opportunities. They’re getting harder and harder to come by in major urban centres. But for the people like the gentleman in my office last Friday, it has manifestly failed, because we put blind faith in the notion that governments should play no direct role in provision of housing. But it was not always so. It was not always so.

That’s why, when I hear the member from University–Rosedale hold forth in this place, it raises my heart, because she has said time and time again that it’s time for the public’s money to be invested in creating that deeply affordable housing because it is the only way it will ever be created. We have given the private market three decades to pull this off. And at this point in the housing and homelessness crisis, we have people sleeping in tent cities, we have people coming into MPP offices without shoes.

But there was a time, Speaker—and I want to say this for the record—the period of 1989 to 1995 that Professor Whitzman spoke about last Friday was a period in which over 14,000 co-operative homes were developed in the province of Ontario. I had occasion to talk to former Premier Rae about this. I had occasion to talk to former municipal housing affairs minister Evelyn Gigantes, who was the MPP who had this seat for my community. She told me, former Premier Rae told me, that under that government, in that period—there’s some overlap there, 1989 to 1990 to the previous government—over 14,000 co-operative homes were created in the province of Ontario.

They were created because there was a program at the federal level that funded, through financial terms, advantageous financing for co-ops to grow quickly. There was a willing partner to get the financing. Cities and provinces worked together. And what was the result? A significant amount of homes. But almost overnight—almost overnight—in 1995, Ontario stops funding the development of affordable housing, co-operative and social and community housing in a significant way.

In 1998, rent control is removed from vacant units. So you have that problem of people moving out of a unit, paying a vastly different rent to the person coming in. And then in 2018, as the member for University–Rosedale said, as other members have said, under the current government, you have a situation that, for any form of rental housing built since 2018—no rent control.

The cost of rent is $2,000 a month, on average, in my city. In this city in which we’re standing right now, that would be a bargain.

So the question is, if we’re going to reckon with the evidence—the evidence is telling us that the market has had three decades to solve it and can’t solve it. So how do we solve it?

Well, I look, frankly, to the very west of this country; I look to the province of British Columbia, not only because it’s an NDP government, but because they’re following the evidence. They’ve created a $500-million acquisition fund in the province of British Columbia. If older, private rental market housing—because it needs to be renovated; it needs to be repurposed; it needs to be reutilized—is coming up for resale, the province of British Columbia has an acquisition fund to make sure that housing stock can stay in the hands of its current rent providers, and it gets refurbished and renovated on a not-for-profit basis, and those people who are currently living there get to stay in their homes. What’s happening in too many places across this country, and certainly in Ontario, is that large real estate investment trusts are swooping in at that very moment to buy up old, affordable housing, lightly renovate it, kick the tenants out, charge whatever the market will bear.

I want to point to an example from Hamilton—we have some Hamilton members in this room: Kevin O’Toole, interviewed by CBC’s The Fifth Estate. Mr. O’Toole was talking about the fact that he spent his life working in the service industry as a waiter, and he was talking about the fact that his rent, almost overnight, after light renovations to his building—the building having been bought by a real estate investment trust—was going to double. The landlord was going for an above-guideline increase that was substantial, that would have driven him out of his home. The tenants fought back. They went to the Landlord and Tenant Board. They waited a long time to get there. They managed to cut the rent increase in half. But he is barely struggling, right now, to make ends meet.

Real estate investment trusts are returning dividends to their shareholders that are very handsome indeed. The research that I have available to me is that we’re looking at over $2 billion in profits, in the last six years, being returned to the Blackstones of this world, being returned to the large real estate investment trusts, whose one goal is to buy up these large apartment buildings in municipal areas in Canadian jurisdictions, lightly renovate them, ditch the tenants, jack the rent. Has there been a single law in Ontario to stop this? There has not.

The country of Denmark has literally passed a law to make sure that large real estate investment trusts can’t buy up large swaths of the rental stock and throw people out onto the street. There has been an active approach to create that balance between responsible ownership, taking a responsible margin in the rental housing business, but maintaining affordability in the downtown.

I find the lack of action in this place on the creation of non-market housing and the protection of renters to be astounding.

What I know now is that there are consequences if we fail to protect tenants and renters. People aren’t just statistics. If in one moment they are a tenant in an affordable unit that they can no longer pay for after their rent has been jacked by who knows how much, they could become homeless. The cost to that person, the loss of dignity to that person in losing their housing is one thing, but there are also the financial implications for the province of what happens when someone is homelessness.

In our city, we have something called a portable housing allowance benefit to try to keep people in their homes; we’re talking about an expenditure per person of about $6,000 a year. I remember, when this got proposed, there were more conservative-minded colleagues in my city saying, “This is too expensive. We can’t afford it.” But if you look at what we can’t afford, it’s the cost of homelessness. Steve Pomeroy from Carleton University has told us that the same per-person cost of somebody being homeless is not $6,000 a year; according to Professor Pomeroy, it is $53,000 a year—talk to any paramedic, talk to any police officer, talk to anybody working in an emergency room, and they will tell you exactly why. All of those interactions with those critical nodes of community safety in our system are unnecessary if we can find people an affordable home in which to live. They’re all unnecessary if we can find people an affordable home in which to live.

So the government wants to build housing quickly. I think it’s a fantastic idea. They are reversing some of the decisions they made previously. I like the aspects in this bill that have to do with the rapid construction of timber buildings. I like the idea of telling developers that they have to use properties they have slated for development or lose it. I like all of these sticks, Speaker; I like all of these different carrots and incentives. But what I don’t see in the government’s bill before us today are specific provisions to deal with the predatory behaviour of real estate investment trusts or specific protections for renters or specific plans about how we’re going to build non-market housing.

My landlord back home, of our community office, is the Centretown Citizens Ottawa Corp. It is the largest non-profit landlord in the province of Ontario: over 17,000 residents, of which our five in our community office are one, on the commercial side. They’ve had a very particular mandate. Their mandate has been to charge appropriate rents. So the CCOC, Centretown Citizens Ottawa Corp., has a stream in their buildings of people who pay rent-geared-to-income units, but they also have a stream of residents in their system that pay market-rent units. I’ve always felt that’s a much more progressive model of housing. Rather than saying everybody who is having a hard time paying the cost of living, let’s have everybody living in one building together—when the goal should be to build diverse neighbourhoods, where we get to live together and get to know each other.

The minister has been to Ottawa many times. I’m sure he’s aware of the Centretown Citizens Ottawa Corp., but if he hasn’t met with them yet, I would encourage those interactions now. If we think about how to build housing now—what if Ontario did have, rather like the province of British Columbia, an acquisition fund, a community land trust? What if you worked with community land trusts so we could keep the housing we have, so Mr. O’Toole in Hamilton and others like him aren’t thrown out onto the street—another person who may one day show up in my office looking for a pair of shoes.

In the time I have left, I also want to talk about the issue that I was concerned about. I asked the minister a question after his one-hour lead, and he did respond. I know it’s an issue that he cares about, and it’s the issue of urban boundaries, Speaker. Because overnight in our city, we were told by a previous housing minister that our urban boundary in Ottawa had increased by 654 hectares. Now, that’s a big deal in Ottawa, Speaker, because we have literally one of the biggest urban boundaries in Canada. You could fit the cities of Calgary, Edmonton, Toronto, Montreal and Vancouver inside Ottawa’s urban boundaries. We are massive. We’re rural, we’re suburban, and we’re urban. But overnight, our city was told it’s going to be 654 hectares bigger. It was quite a shocking thing to learn.

We also learned that there was a farm bought right at the previous fringe of the urban boundary by a group of five gentlemen from the Verdi Alliance group of contract companies for $12.7 million. It was bought for $12.7 million, Speaker—a family farm that overnight was massively worth a lot more. The minister, to his credit, responded to letters from city councillors who sniffed something deeply wrong. We’re losing arable land that we can grow food upon, but we’re also seeing land speculation which did not pass the smell test. Councillor Shawn Menard, for Capital ward, raised the alarm bells. He got 11 people on city council to sign a letter to the minister. The minister acted.

But here’s what I’m worried about in the revisions to the provincial plan statement contemplated by this bill, Speaker: I worry we’re going to be going back to this kind of chaotic housing development. The ministers often talked about it in this place, and it’s a good topic, about how we can build enough water and sewer infrastructure to make sure that the housing that we want to build can be built. It’s not just the structures that you see, Speaker: the apartment buildings, the individual homes. It’s the services that need to be run to all those communities in order for those homes to be built.

But in this case, of this development, which now won’t happen, it would have cost the city massive amounts of money to pipe all of those utilities out to that development. We thankfully won’t have to deal with that. We’re going to be having the discussion of how we intensify development in the downtown and the suburbs, for which I’m a willing partner. But if we allow smaller municipalities who could potentially be more open to persuasion to these kinds of developments, I worry about the cost of it, Speaker.

I’ll point to one that is sadly going ahead. It’s the Tewin development in the far south end of the city. City staff actually encouraged the previous city council—not the current but the previous city council—not to green-light this development. Why? Two reasons: The cost of running sewer and water out to that community, given how far south it is in our already large boundary, was—get ready for it, Speaker—$600 million. That’s $600 million for water and sewer in this community. The federal government has just announced a new program, the Canada Housing Infrastructure Fund of $6 billion. People at home are telling me our likely share is maybe $180 million. That one project on its own is too expensive for what the federal government is prepared to offer us to build housing quickly.

So my point to the government is, if you’re going to be encouraging housing to be built, we have to be thinking about what kind of housing we build. Asking for homes to be built far outside the periphery of existing urban boundaries is expensive, inefficient.

I grew up in rural Ontario. I grew up in Vankleek Hill. The member for Glengarry–Prescott–Russell is here; he knows he represents a beautiful community. I grew up there. I love the bucolic countryside. I love that part of our province. But the municipalities of Glengarry–Prescott–Russell are intact units with their own systems that work. If we’re talking about major cities like Ottawa and Toronto and we’re saying the future development for housing in our communities is pushing outward into arable farmland like what we stopped at Watters Road, we’re courting disaster. We’re not going to be getting to where I believe we need to go, which is working with allied partners to build the kind of non-market housing.

What Professor Whitzman and Professor Pomeroy tell me: If we do that, we can house people potentially quickly. The one successful program that the federal government has introduced is their—I’m going to forget the acronym here as I speak, Speaker, but it’s the rapid housing fund. What it’s been doing—rather like our municipal fund of $6,000 per person helping people pay the rent—is helping people who would otherwise be surfing on couches or surfing in shelters pay the rent that they have to keep them housed. I want to believe this bill that we’re debating now could be improved to have some provincial assistance on that front. There is the Homelessness Prevention Program, which I’m aware is doing some of that work, but that’s like in the $200-million region. I’m talking about an ambitious rent bank program that can keep people housed.

It won’t just be those 45,000 people in my city who could be potentially homeless that will be happy for that help, it will be all the first responders, it will be people in the emergency rooms, it will be people who will otherwise be dealing with those folks in crisis that will also be happy. There is a multiplier benefit, Speaker—long story short—to keeping somebody housed. We restore dignity to the person, we restore opportunity to that person to contribute back to our society and we avoid spending a lot more money later. I encourage the government to listen to that advice and make changes to the bill.

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