government action in housing - gouv

Government Action in Housing

Strategies and

Plan of Action

Société d’habitation du Québec

Legal depositBibliothèque nationale du Québec, 1997National Library of Canada, 1997ISBN 2-550-31427-1

MESSAGE FROM THE MINISTER

Good housing is at the root of any effort to improve the well-being of Quebecers. This is a challenge forsociety that must be addressed in the context of social and demographic conditions, with due attention paidto structural changes in the economy and the budgetary constraints imposed on government.

At a time when Québec is busy bringing order to its finances, and when everyone is questioning the roleand the place of government in the lives of its citizens, it is essential to undertake an in-depth analysis ofthe housing sector, to give thought to government action in this area and to establish strategies and anaction plan for the future.

The Québec government believes in the need for a comprehensive strategy to ensure the well-being ofQuebecers of all ages and from all strata of society, and to distribute resources in a fair and balancedmanner. It goes without saying that a revision of housing assistance programs must take into accountreforms in taxation, social aid and family policy in order to remain in line with government strategies andpolicies in these priority sectors.

The government considers that it is at the local and regional level that measures to improve housingconditions should be implemented, through partnerships between public, private and communitystakeholders. The management method and tools developed in the field of housing, as well as the trendtoward government decentralization, support this belief. I therefore invite all our partners in this area toinvest their specialized knowledge and know-how in Québec's future, helping to build a strong, forward-looking housing sector.

Rémy TrudelMinister of Municipal Affairs,responsible for Housing


TABLE OF CONTENTS

TABLE OF CONTENTS

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

I- HOUSING IN QUÉBEC: THE CURRENT SITUATION . . . . . . . . . . . . . 3

1. Social housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32. Renovation and adaptation of housing for low-income households . . . . . . . . . . . . . 63. The housing supply and the housing industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84. Role of the federal government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105. Partnership . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116. Decentralization: new roles in the offing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

II- STRATEGIES AND PLAN OF ACTION . . . . . . . . . . . . . . . . . . . . . . . . . . 14

Plan of action . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15

1. For social housing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 152. For the renovation and adaptation of housing for low-income households . . . . . . . 163. For the housing industry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 174. For a new agreement with the federal government . . . . . . . . . . . . . . . . . . . . . . . . 175. For a partnership with community organizations . . . . . . . . . . . . . . . . . . . . . . . . . . 186. For the decentralization of housing activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19

Impact on client groups . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

The reform at a glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24

Selected bibliography . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26

Tables and graph

Table 1 : Assistance for low-income households Costs per program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

Table 2 : Average market rent and average rent of tenant households in Québec . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Table 3 : Summary of measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Table 4 : Recurrent assistance for low-income households . . . . . . . . . . . . . . . . . . 21


TABLE OF CONTENTS

Table 5 : Additional measures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21

Graph : Expenditure related to housing in Québec - Comparison between new housing construction and renovation (1961-1996) . . . . . . 9

Appendix A

Table A-1 : Housing assistance programsFederal and Québec governments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28

Table A-2 : Income security: essential needs recognized in 1996 . . . . . . . . . . . . . . . 29

Table A-3 : Costs for the government of housing subsidies . . . . . . . . . . . . . . . . . . . 29

Table A-4 : Parameters of the integrated shelter allowance program . . . . . . . . . . . . 30

Appendix B Brief description of housing assistance programs . . . . . . . . . . . . . . . . . . 31


INTRODUCTION

INTRODUCTION

Housing is a fundamental sector for any society because of its social and economic importance.Not only is housing an essential need and a determining factor in quality of life, it also plays astrategic role in the economy by way of the investments it requires and the number of jobs itgenerates.

In the past 30 years, housing assistance has developed in a context of sustained economicgrowth. However, since the early 1990s, the socioeconomic situation has changed. Like mostWestern societies, Québec is undergoing a difficult economic period that is particularlychallenging for low-income households and that brings housing problems into sharp focus.Technological development and major sociodemographic changes also affect the nature and theextent of Québec’s housing needs.

Faced with the persistent needs of the most disadvantaged members of society and thewithdrawal of the federal government from any new initiative in social housing, the Minister ofMunicipal Affairs, responsible for Housing, mandated the Société d’habitation du Québec (SHQ)to look into government action in this area. An analysis of current housing assistance needs andmeasures gave rise to certain observations and to new strategies for government action inhousing.

The first part of this publication describes the principal housing problems. It analyses thefinancial difficulties the less affluent members of society experience in finding housing, theproblems of quality encountered in housing for low-income households, the restructuring requiredin the industry to deal with new needs and the role of partners in housing, particularly in a contextof decentralization.

The second part proposes new government strategies for housing and a plan of action;specifically, it reviews action taken and proposes a reallocation of available funds to maintainand increase assistance for those who are poorly housed. It also examines the impact of thesemeasures on various groups and the need to establish a new partnership with the federalgovernment; it touches on the transfer of responsibilities to local governments and theidentification of a single authority in charge of housing programs in Québec.


THE CURRENT SITUATION 3

PART IHOUSING IN QUÉBEC : THE CURRENT SITUATION

1. SOCIAL HOUSING

Housing is an essential need and is generally considered to be theindividual’s responsibility. In Québec, the needs of mosthouseholds are met by the private market, but there are somepeople who are unable to find suitable housing, mainly for thefollowing reasons:

Housing needs ofdisadvantaged

households

C their financial situation is such that too high a proportion of theirincome must go to cover the cost of housing, even though thecost per se seems reasonable;

C there is a disabled person in the household and thehousehold’s income is such that it cannot afford to make theresidential adaptations required or pay for specialized servicesfor that person;

C the supply of affordable housing of the size and quality requiredis inadequate in the region in which the household lives.

The government developed a number of housing assistanceprograms over the years for these households (see Table A-1 inappendix). Consequently:

Government actionin social housing

C A total of 85 200 households benefit from low-rental housing inbuildings managed by municipal housing offices (MHOs),community housing units managed by housing cooperativesand non-profit organizations or housing units for which theyreceive a rent supplement. These housing units are financedjointly with the federal government under Canada-Québecagreements on social housing;

C Over 145 500 low-income households receive financial supportfrom Québec for their housing costs under one of the twoshelter allowance programs, Logirente for persons aged 57 orover and the shelter allowance provided by the ministère de laSécurité du Revenu (MSR) for families;

C About 37 000 cooperative or community housing units aresubsidized exclusively by the federal government.



Furthermore, over 732 000 people receive tax assistance forhousing in the form of a property tax refund (PTR). Assistanceaverages $196 a year.

Specific government assistance for housing is aimed mainly at lowor moderate-income households, particularly:

Prioritizedclient groups

C families;C senior citizens;C the disabled;C Inuit and off-reserve Native people;C people with special housing needs: the homeless, women and

children who are victims of violence, etc.

It is believed that there are at present close to 200 000disadvantaged households in Québec that do not receiveany specific assistance for housing.

The programs set up over the years to help households findsuitable and adequate housing give rise to varying costs since thelevel of assistance depends on the formula used. The high costsassociated with low-rental housing programs place severelimitations on the number of instances in which the government canprovide help.

Varying costs

TABLE 1

ASSISTANCE FOR LOW-INCOME HOUSEHOLDSCOSTS PER PROGRAM

Programs households unit/month $MNumber of Average cost of Total annual cost

1. PUBLIC HOUSING: 1

Low- rental housing and 85 200 323.00 330.5 rent supplements

2. ALLOWANCES 145 500 47.19 82.42

Logirente 58 600MSR Shelter Allowance 86 900

61.55 43.3 37.50 39.1

3. TAX ASSISTANCE (PTR) 732 200 16.45 144.6 3

Source : SHQ, Rapport annuel 1995, p. 541

Source : SHQ, Rapport annuel 1995, for Logirente, and August 1996 statistics on the MSR Shelter Allowance2

Source : Ministère du Revenu du Québec, Dépense fiscale réelle 19953



Today, four departments and agencies, one of which isaccountable to the federal government, administer the housingprograms for disadvantaged households: the Société d’habitationdu Québec (SHQ), the ministère de la Sécurité du revenu (MSR),the ministère du Revenu (MRQ) and the Canada Mortgage andHousing Corporation (CMHC). The various parameters anddefinitions used differ widely and the levels of assistance grantedvary considerably. For the purposes of illustration, Appendix Agives the amounts corresponding to the essential needsrecognized by the social aid system (Table A-2), including housing,and examples of the public funds required to provide low-rentalhousing for income security recipients (Table A-3).

Lack of harmonizationin government programs

This lack of harmonization means that the cost of housingassistance is high. It costs the government $680 a month toprovide low-rental housing in an existing unit for a single personreceiving income security. If a new housing unit has to be built, thecost climbs to $1 062. On the private market, housing suitable fora single person costs $349 to $425 a month (see Table 2, p. 6).

Major disparities between the rent paid by tenant households withlow or moderate incomes that do not receive housing assistanceunder a government program and the rent paid by households thatdo raises a problem of balance in the allocation of public findsearmarked for housing. Moreover, a comparison of the varioustypes of housing assistance reveals that the amount of aid variesdepending on whether it is received in the form of low-rentalhousing, a rent supplement, Logirente, or a shelter allowancegranted by the MSR.

C Close to 73% of tenant households with low ormoderate incomes (less than $20 000 a year) devote30% or more of their income to housing;

C The proportion of income spent on housing byhouseholds in low-rental units is 28.4% (25% ofincome plus certain fixed costs other than heating,which is paid by the SHQ);

C Single persons living in low-rental housing pay anaverage of $196 a month in rent, compared with$336 for social aid recipients who obtained housingon the private market. All these households receivethe same income security benefit of $325 forhousing.



TABLE 2

AVERAGE MARKET RENT AND AVERAGE RENT OF TENANT HOUSEHOLDS IN QUÉBEC

Average rent Rent paid by social PortionType Average in low-rental aid recipients of social aid of household market rent housing on the private earmarked for1 2

market housing 3

Single person 349 $ to 425 $ 196 $ 336 $ 325 $Couple 425 $ 286 $ 415 $ 396 $Single senior citizen 349 $ to 425 $ 259 $ 336 $ N/AElderly couple 425 $ 405 $ 415 $ N/ASingle-parent family 484 $ to 571 $ 245 $ to 274 $ 429 $ to 469 $ 396 $ to 446 $Two-parent family 484 $ to 571 $ 325 $ to 347 $ 455 $ to 493 $ 446 $ to 484 $

Source : CMHC, Rental Market Report, 1994, Average rent in Montréal apartment structures of three units and over1

Source : Data taken from Le profil des locataires de la SHQ, 19932

See Table A-2 of Appendix A3

Among the common measures, shelter allowances providesubstantial assistance for households with housing needs. Theyprovide additional funds to pay for the overly high cost of housingor to enable the household to rent better quality housing. Becausethey are less costly than low-rental housing programs, allowancescan be made available to a much larger number of needyhouseholds.

Shelter allowances

However, in certain cases, ad hoc assistance does not solvespecial housing problems. For instance, senior citizens with limitedautonomy, people with physical or psychological disabilities, thehomeless and women who are victims of violence require adifferent kind of assistance that involves some kind of supervisionand support.

Special housing needs

For cases like these, new formulas such as purchase-renovationplans, less costly than traditional low-rental housing, have alreadybeen tested with success by the SHQ and its various partners.

2. RENOVATION AND ADAPTATION OF HOUSING FORLOW-INCOME HOUSEHOLDS

Is estimated that, since the mid-1980s, about 10% of Québechousing units have required major repairs in order to meetminimum housing standards. This poses a problem when the needto renovate and the cost of renovation falls on the shoulders of

Low-income householdrenovation needs



tenant households with limited financial resources. Continuedefforts must be made to ensure the quality of the housing stock sothat low-income households can continue to occupy qualityhousing.

The Québec government set up various programs over the pastfew decades to improve the quality of housing. These programspromote renovation, rehabilitation, emergency repairs, therevitalization of urban neighbourhoods and residential adaptationfor disabled persons. The vast majority of the units renovated oradapted under these programs were occupied by households withlow or moderate incomes.

Initiativesto improve

housing

So far, government measures to improve housing have beencarried out at a reasonable cost (between $5 000 and $10 000 perunit) and, in general, have not given rise to recurrent expendituresfor the government. Furthermore, they have benefited the Québececonomy by creating thousands of jobs, providing major investmentopportunities and ensuring tax benefits.

Job creationand economic benefits

Over 72% of housing units in need of major repairs are located inurban areas, particularly in the older sections of Québec's majorcities. Downtown neighbourhoods are deteriorating and so is thequality of life of the residents.

Urban areas

Housing units in disrepair in rural areas are widely scattered andare generally occupied by their owners, some of whom have verylow incomes. They cannot always find suitable housing elsewhere,since nothing is available at affordable prices. Moreover, they areoften unable to move into better housing since they may not beable to sell their house on the weak rural real estate market.

Rural areas

The government has always been concerned over the plight ofdisabled persons whose income does not enable them to adapttheir housing to their needs. However, the Residential AdaptationAssistance Program (RAAP) does not suffice to meet demand. Thewaiting period of nearly two years is too long for people who do nothave full or even partial access to their own home. Currentmeasures are not sufficient to foster the complete autonomy ofdisabled persons or to enable them to remain in their homeenvironment.

Residential adaptation

Furthermore, the number of elderly persons with limited autonomycontinues to grow, mainly as a result of the aging of the population.Although various experiments have been carried out in recentyears to adapt housing units to the needs of people with limitedautonomy, there is no program geared specifically towardresidential adaptation for this group. These people often also needpersonal support and services if they are to live comfortably in theirown home.

Senior citizenswith limited autonomy



For some years now, new concerns have been reflected in thevarious public initiatives to improve the quality of housing.particularly the conservation of the architectural heritage, energyefficiency and higher standards of quality.

New concerns

3. THE HOUSING SUPPLY AND THE HOUSINGINDUSTRY

The housing industry is directly concerned by the construction ofquality dwellings that meet the needs of Québec households. Theremust also be a supply of suitable products and services forrenovation and repairs so that the quality of housing units can bemaintained.

The industry today is experiencing a shift from the construction ofnew housing to the renovation of existing units. In fact, while theconstruction of new housing units has fallen off dramatically, thedemand for residential renovation has been growing steadily forover 30 years and has now exceeded demand for new housingconstruction.

The shift toward renovation

The extent of renovation needs is not a passing phenomenon,especially as Québec's housing stock is growing old. Since thepopulation is also aging and new households are not being formedvery rapidly, the number of new units required to meet demand willremain low.

The number of housing starts, which equalled 74 200 in 1987,dropped to 23 200 in 1996. The number of housing starts over thenext few years should average 25 000 to 30 000 units, keepingstep with the average rate of formation of new households.

In 1996, capital expenditure for renovation was estimated at $3.5billion, compared with $2.1 billion for new housing construction.



Expenditure related to housing in QuébecComparison between new housing construction and renovation

(1961 - 1996)

Source : Statistics Canada

Until recently, government action designed to support or stimulatethe housing industry has been geared toward measures to boostthe economy, such as home ownership assistance (Corvée-Habitation, Downpayment Assistance Program, etc.) or incentivesfor renovation projects (Accent on Renovation, Renovate, etc.).

Government action to stimulate the economy

Home ownership assistance appears less relevant at a time whenthe number of new households is small and vacancy rates inexisting housing and the number of new units on the market arehigh. Furthermore, mortgage rates have been low for many monthsand other conditions favour home ownership sufficiently toencourage those households that wish to become owner-occupants.

Access to home ownership

Stakeholders will have to work together to restructure and revitalizethis major economic sector, which comprises 7 200 firms, over85% of which have no more than three employees. In addition tomaintaining existing markets, one of the challenges facing thehousing industry is the preservation of some 20 000 jobs andannual investments of over $6.8 billion, which represents 4% ofQuébec's GDP.

A relatively large number of renovations are carried out outside thelegal framework of the construction industry and labour legislation.It is believed that close to 30% of renovation work is accomplishedwithin the underground economy. As a matter of fact, the dataobtained by the ministère des Finances show that the constructionand renovation sector accounts for over 25% of the undergroundeconomy in Québec.

The underground economy



The construction industry in Québec is highly regulated. For smallconstruction firms, this means a great deal of administrativecontrols.

The regulatoryenvironment

The fact that consumers have become more demanding, especiallywhere quality is concerned, also has an effect on the housingindustry. Firms must adapt to new technological developments inproduction, management and information, and integrate themrapidly into their businesses in order to meet the needs ofconsumers.

More demandingconsumers

In the context of market globalization, the industry must also adaptrapidly to new developments in order to stand up to foreigncompetition both at home and abroad.

The international context favours Québec construction productssuch as woodframe and prefabricated houses. The exportation ofproducts and services is an avenue that must be explored in aneffort to revitalize the housing industry.

Exports

4. ROLE OF THE FEDERAL GOVERNMENT

The federal government plays a role in housing in Québec throughthe Canada Mortgage and Housing Corporation (CMHC). Thisagency participated, under Canada-Québec agreements, in theconstruction of 85 200 subsidized housing units. It also directlysubsidizes about 37 000 cooperative or community housing units.The federal government's presence in the housing sector, an areaof provincial jurisdiction, means that, for the past 30 years, therehave been two administrative structures, a federal one and aprovincial one. This situation has resulted in overlapping andduplication, at the expense of efficiency.

Since 1986, the principal measures taken in social housing havebeen carried out within the framework of a Canada-Québecagreement which recognizes Québec as the only source of housingprograms on its territory, with the exception of Indian reserves,where the federal government continues to act alone. The federalgovernment has nevertheless continued to subsidize the creationof cooperatives since 1986.

The 1986 agreement

The 1986 agreement did not favour the development of simplemeasures, particularly as federal requirements substantiallyrestricted the means of action and the priorities for initiativestailored to the needs of Quebecers. For example, shelterallowances are wholly funded by the Québec government becausethey are not recognized for the purposes of cost-sharing with thefederal government.



Since 1989, the federal government has been progressivelywithdrawing its financial support from a number of social housingprograms and, in 1994, it withdrew entirely from all new initiativesin the sector.

The withdrawal of federalfinancial support

from social housing

Furthermore, Québec receives 19% of all federal housingexpenditures, which are in the order of $2 billion a year. This is lessthan the percentage of households in core housing need living inQuébec, that is, 29.3% (according to CMHC parameters), and lessthan Québec's share of the population, which equals 25.3% (1991census).

An unfair share of funding for Québec

Given its share of the population, Québec is receiving some $122million less than it should each year. Such a discrepancy limits thecapacity of the Québec government to help disadvantagedhouseholds solve their housing problems.

A shortfall for Québec

Ever since the federal government announced in 1986 that itplanned to withdraw from the management of social housing infavour of the provinces, negotiations have been under way totransfer the responsibilities of the CMHC to the SHQ. Québec mustrecuperate the responsibilities of the federal government on itsterritory, except federal commitments to Native people on Indianreserves, and obtain, in return, the tax room required to financefederal measures in this area. In this way, overlapping ofjurisdictions and responsibilities would be eliminated andgovernment action in housing would be much more efficient.

Negotiations with thefederal government

5. PARTNERSHIP

In drawing up its assistance programs, the SHQ generally workswith its partners, the main ones being:

Network of partners

C local and regional municipalities C municipal housing offices (MHOs)C housing cooperativesC non-profit organizations administering housing C community organizations working in the housing sectorC the CMHCC the housing industryC financial institutions.

Municipalities are major partners in housing. They participate in thefinancing of the low-rental housing programs and Rent supplementprograms. Some of them also invest in their own programs,particularly in the areas of housing improvement and propertyownership.

Local and regionalmunicipalities



The SHQ entrusts the management of these programs to over1 100 independent organizations. Public low-rental housing isadministered by 650 municipal housing offices while private low-rental housing is run by 90 cooperatives and 295 non-profitorganizations. This highly decentralized method of operation has afavourable impact on employment in the regions.

The SHQ’s network of mandataries

Municipal housing offices (MHOs) were among the firstmandataries identified by the Québec government to administersocial housing in over 650 municipalities throughout Québec. Ifprivate housing affected by the Rent supplement program isincluded, these offices manage over 68 000 units, which is 80% ofall low-rental social housing in Québec. Since the 1970s, they haveacquired an understanding of the needs in this area and expertknowledge of social housing management.

Municipal housing offices

Housing cooperatives and various non-profit organizations providepermanent community housing; some non-profit organizations alsooffer temporary housing for people with specific needs. Otherorganizations specialize in promoting affordable housing anddefending the rights of households in private or social housing.

Co-ops and communityorganizations

There will be greater cooperation henceforth between communityorganizations and the SHQ. In fact, for several years now, theexpertise of these organizations has served to support studies andachievements in community housing and this must be continued.

Support for communityorganizations

In addition to the CMHC and the housing industry, which havealready been discussed, financial institutions also play a role invarious housing transactions, particularly with consumers andcontractors and, for certain operations, in cooperation with theSHQ.

6. DECENTRALIZATION: NEW ROLES IN THE OFFING

When the Québec government tabled its green paper entitledDecentralization: An option for the people in June 1995, itexpressed its intention of decentralizing its activities and increasingthe power and responsibility of local and regional authorities. Theoptions for decentralizing social housing are based on theprinciples set out in the green paper. The object is, on the onehand, to bring program management yet closer to the peoplewhenever such an initiative proves possible, effective and lesscostly, and, on the other hand, to relax management rules.

Bringing programmanagement

closer to the people

Even if existing agreements between the federal government andQuébec restrict the extent to which programs can be decentralized,some measure of decentralization will take place and the SHQ's

Greater responsibilitiesfor current mandataries



partners will eventually be called upon to shoulder increasedresponsibilities as a result. However, the capacity of the partnersto accept new responsibilities varies considerably.

While some organizations may have the resources and thestructure required to assume greater responsibilities andobligations, others do not. About 400 of the 650 MHOs administerfewer than 20 housing units, with part-time employees, and 150others administer between 20 and 100. Similarly, mostcooperatives and non-profit organizations manage only a smallnumber of housing units.

It would perhaps be worthwhile to determine whether all the socialhousing management bodies should not be examined with a viewto redistributing housing units, regrouping them or sharing services.This could lead to greater efficiency and generate recurrent savingsin administrative costs.


STRATEGIES AND PLAN OF ACTION 14

PART IISTRATEGIES AND PLAN OF ACTION

To meet the more pressing housing needs, particularly for low-income families, senior citizens, especially those with limitedautonomy, disabled people, the Inuit, the homeless and womenand children who are victims of violence,

Objectives

To ensure the greatest possible equity in the sharing of resourcesand encourage continued or renewed autonomy in terms ofhousing,

To bring the decision-makers closer to the people and maximizethe impact of public funds on housing,

To empower the members of the public and enable them to gaincontrol over their environment, including housing conditions,

To promote improved quality in products and services in thehousing sector,

the Québec government has adopted general strategies for theyears to come and an action plan tailored to its means.

< Help households in financial difficulty find housing; Strategies

< Support local and community initiatives to meet the housingneeds of the most disadvantaged;

< Promote the improvement and adaptation of existing housingunits;

< Promote the construction of quality housing at affordableprices;

< Tie government action in housing to government strategies andpolicies in other areas;

< Reclaim all the responsibilities taken on by the federalgovernment so that there will be a single authority in charge ofhousing programs in Québec.



PLAN OF ACTION

1. FOR SOCIAL HOUSING

C Create an integrated shelter allowance for client groupscurrently receiving Logirente benefits (people 57 years old orover) and MSR shelter allowances (income securitybeneficiaries with children), as well as for 55 and 56-year-oldsand low-income workers with children.

An integratedshelter allowance with a

broader scope:$112M/year

for 173 100 households

This integrated shelter allowance, administered by the SHQand Revenu Québec, will provide harmonized subsidies forvarious client groups beginning on October 1, 1997:

- families receiving income security benefits will see theirsubsidies rise from 50% to 66 2/3%;

- senior citizens will see their subsidies drop from 75% to66 2/3% over three years, and the income level foreligibility go up.

For example, a family made up of two parents and two children,with an income of $21 160 or less, will be eligible for the IntegratedShelter Allowance Program (see Table A-4 in the appendix).

C Beginning in the spring of 1997, establish a Québec SocialHousing Fund in which non-profit organizations, privatebusinesses and municipalities will be invited to participate. TheQuébec government will make an annual commitment of $43million, which, with the contribution of its partners, particularlythe municipalities, will make possible the construction of 1 820new housing units a year:

A Québec SocialHousing Fund:

$43M/year1 820 units/year

- 1 200 units for low-income households;- 500 units for senior citizens with limited autonomy;- 120 units for people with special needs, such as the

homeless, people with intellectual disabilities and womenwho are victims of violence.

The fund, which was inspired by projects presented during theSummit Conference on the Economy and Employment, will beadministered by a non-profit organization with a board of directorscomposed mainly of non-governmental partners. The SHQ will siton the board and will have a right of veto with respect to the usemade of government funds.

C Maintain the social vocation of the 85 200 existing low-rentalhousing units.



Revise, in due course, the rent-setting mechanisms used inlow-rental housing so that tenant households devote 30% oftheir income to their basic rent. Additional amounts (electricity,parking) will be set in the same way as they now are.

Reviewing therent scale

Rents could be adjusted gradually over five years or more, byan annual increase equal to 1% of the tenant's income, up toa maximum of $10 a month each year, as long as the financialsituation of the household remains stable.

The sums obtained through this adjustment will be reinvestedin social housing.

C Implement various measures to protect low-income workersand so promote the creation of a mixed clientele in socialhousing as a whole.

Measures to protectlow-income workers

in low-rental housing

C Respect the commitment to zero impoverishment thegovernment made at the Summit Conference on the Economyand Employment by introducing compensatory measures forsocial aid recipients unable to work who already have low-rentalhousing or already receive a shelter allowance.

Commitment tozero impoverishment:

$7M/year15 000 households

protected

C Continue and diversify housing measures in Nunavik, in the 14villages north of the 55th parallel.

In the North:$5M/year

40 households assisted

Reinvest in Inuit communities the sums obtained from adjustingthe rent scale for social housing in Nunavik.

2. FOR THE RENOVATION AND ADAPTATION OFHOUSING FOR LOW-INCOME HOUSEHOLDS

C Increase the budget for the Residential Adaptation AssistanceProgram (RAAP) in order to reduce waiting time, particularly forpeople with low incomes.

Reducing waiting time:$5M more, that is,

600 more units/year

C Develop a component to assist in residential adaptation forsenior citizens with limited autonomy who live in privatehousing.

Adapted dwellingsfor autonomous seniors:

$3M and 700 units/year

C Join with the municipalities to finance housing improvements,mainly the revitalization of the most run-down urbanneighbourhoods, and reserve 10% of the budget for theconservation of the architectural heritage.

Revitalization ofold urban neighbourhoods:

$20M/year2 800 units renovated

Implement measures that target low-income households andcontrol rent increases in housing renovated under theseprograms.



C Working with the municipalities, provide financial support forrural owner-occupants who are financially unable to renovatetheir dwelling, while maintaining housing costs at a reasonablelevel.

Assistance forrenovation in rural areas:

$10M/year1 600 units renovated

3. FOR THE HOUSING INDUSTRY

C Develop, in collaboration with various partners in the housingindustry, means to promote the quality of the industry'sproducts and services and improve its competitiveness in orderto counteract the underground economy and facilitate theindustry's adaptation to new housing needs.

Quality ofhousing products

and services

C Develop relations between government organizations andbusinesses in the housing industry in order to reach the goalsset for the deregulation of the industry.

Deregulation andpartnership

C Support research and development in housing by fosteringexchanges of information and expertise on new housingconcepts and technological innovations.

R&D andtechnology transfers

C Set up a permanent information exchange centre for the mainstakeholders in housing, a kind of housing observatory, whosemandate would be to:

- measure activity on the new housing market, therenovation market and the rental housing market;

- study potential export markets for housing products andservices;

- assess the impact of development projects in the housingsector.

C Promote, particularly among small and medium-sizedbusinesses, the exportation of Québec housing products andknow-how, fostering the grouping of various stakeholders in theindustry and developing with them the tools required topenetrate foreign markets.

PromotingQuébec products

and know-how abroad

4. FOR A NEW AGREEMENT WITH THE FEDERALGOVERNMENT

C Repatriate all the responsibilities assumed by the federalgovernment in the housing sector, except its commitments withrespect to Native people living on Indian reserves.

Recovery of fullresponsibility

for Québec



Obtain fair and just financial compensation for Québec'sshortfall in recent years in federal expenditures in the socialhousing sector and ensure permanent long-term financing.

Obtain a mandate, under a service agreement with the federalgovernment, to administer the current activities of the CMHC insuch areas as mortgage insurance, mortgage-backed securitiesguarantees, research and statistics.

C See that the Québec government, through the Sociétéd’habitation du Québec, becomes the only authority and theonly representative of its partners and the general public for anyactivity related to housing in Québec.

A single authorityin the field of housing

assistance

5. FOR A PARTNERSHIP WITH COMMUNITYORGANIZATIONS

C Provide financial support for community housing organizationsby continuing the Program to assist community organizationscreated in 1996 :

A program to assistcommunity organizations:

$1.3M/year

- operating subsidies for organizations that represent thepublic and defend citizens’ rights in the area of housing;

- subsidies for specific community projects.

C By acting as an advisor in order to promote the autonomy oforganizations administering housing units, develop possibilitiesfor exchanges and support for these organizations (training,suitable management tools, transfers of technical expertise,etc.).

C By acting as an advisor in order to promote the autonomy oforganizations administering housing units, develop possibilitiesfor exchanges and support for these organizations (training,suitable management tools, transfers of technical expertise,etc.).

Work with community organizations in order to promote, amongother things, the completion of projects that combine housingand socioeconomic development in local communities.



6. FOR THE DECENTRALIZATION OF HOUSINGACTIVITIES

C Decentralize social housing programs by transferring to localand regional municipalities, their mandataries and accreditedorganizations:

- the supervision of programs and the preparation ofspecific programs for their territory;

- broader regulatory power over the attribution of publichousing at moderate rates;

- full responsibility for administering low-rental housing witha closed annual budget.

C Change the legislation to give local and regional municipalitiesa predominant role in designing, supervising and managingspecific programs for home improvement, residentialadaptation and home ownership. The Québec government willcontinue to be responsible for defining objectives and settingthe main parameters of the programs financed by Québec.

A dominant rolefor local and regional

authorities

Seek the most efficient structure for agencies administeringsocial housing.

C Once the federal government has fully withdrawn from housing,step up the decentralization of the low-rental housing stocktoward local or regional municipal authorities. These will agreeto maintain access to and thus ensure the permanence ofsocial housing for disadvantaged households.

Permanence ofsocial housing



TABLE 3

SUMMARY OF MEASURES1, 2, 3

MeasuresHouseholds

assisted annually Annual

commitment ($M)

Integrated Shelter Allowance 173 100

Québec Social Housing Fund 1 820

Zero impoverishment clause 15 000

Residential Adaptation Assistance Program 1 300 (RAAP)

Light residential adaptation for senior citizens with 700 limited autonomy

Revitalization of old neighbourhoods 2 800

Renovation in rural areas 1 600

Housing in Nunavik 40

Assistance for community groups ---

Incentives for restructuring the industry ---

4

112.0

43.0

7.0

9.2

3.0

20.0

10.0

5.0

1.3

0.7

To these must be added low-rental housing programs that enable 85 200 low-income households to obtain subsidized housing.1

Plus, once an agreement has been signed with the federal government, 37 000 cooperative or community housing units currently2

subsidized by the CMHC.

These amounts will make possible the creation of 2 000 jobs/year in the social and economic sectors and over $150M in investments3

annually.

Including the 700 disabled people benefiting from the present program, irrespective of income, and 600 other people per year as of4

1997.



IMPACT ON CLIENT GROUPS

Five years after the action plan is implemented, over 65 000 more households will enjoyimproved housing conditions:

C 36 700 households will benefit from social housing or a shelter allowance (Table 4);

C 28 700 households will take advantage of a renovation or residential adaptation program orof housing in the North (Table 5).

TABLE 4

RECURRENT ASSISTANCE FOR LOW-INCOME HOUSEHOLDS

Type of assistance Before 5 years later AdditionnalNumber of Number of householdshouseholds households receiving assistance

Social housing :! Low rental housing 85 200 85 200! New housing units 9 100 9 1001

Allowances :! Senior citizens 58 600 67 100 8 500

(55 years or over)! Families with children 86 900 106 000 19 100

TOTAL 230 700 267 400 36 700

Plus 37 000 cooperative and community housing units currently subsidized exclusively by the CMHC.1

TABLE 5

ADDITIONAL MEASURESTarget group Number 5 years laterand type of measure of units/year Additional units

Low-income disabled persons! Residential adaptation (RAAP) 600 3 000

Low-income senior citizens 700 3 500! Light residential adaptation

Renovation 22 000! In urban areas (revitalization of old neighbourhoods) 2 800! In rural areas (low-income owner-occupants) 1 600

Inuit! Construction of housing units 40 200TOTAL 5 740 28 700

THE REFORM

A new client profile

" 65 400 additional households will receive assistance over five years

C 36 700 households will benefit from social housing or a shelter allowance

C 28 700 households will benefit from residential renovation or adaptation programs

"" 15 000 more households will be protected under the government's commitment to zeroimpoverishment

Measures in keeping with the government's major strategies

" Integrated Shelter Allowance

C Close to 28 000 additional households will receive assistance, that is, 8 500 55-year-olds and 56-year-olds,and the families of 19 100 low-income workers.

C Housing conditions will be improved for over 106 000 families, mainly single-parent families.

"" Québec Social Housing Fund

Each year, 1 820 more households will receive assistance, thanks to the construction of new housingunits:

C 1 200 low-income households (purchase-renovation units);

C 500 senior citizens with limited autonomy;

C 120 persons with special housing needs (the homeless, battered women, etc.).

" Each year, 600 disabled persons with low incomes will benefit from the Residential Adaptation AssistanceProgram (RAAP), in addition to the 700 people eligible for the existing program irrespective of income.

" Each year, 700 senior citizens with limited autonomy living in private housing will benefit from lightresidential adaptation measures and will be able to live longer and safely in their present home.

" Each year, 2 800 households , mainly low-income households, will be able to benefit from renovatedhousing in the cities thanks to the Revitalization of old neighbourhoods program.

" Each year, 1 600 low-income homeowners in rural areas will also be able to renovate their homes.

" Each year, 40 households in the North will benefit from housing measures in Nunavik.

" Revision, in due course, of rent-setting mechanisms for low-rental housing

AT A GLANCE

A single authority for housing assistance

" New agreement to be negotiated with the federal government with a view to recovering full responsibilityfor housing so that the Québec government, via the Société d’habitation du Québec, becomes the soleauthority for government housing assistance in Québec.

37 000 cooperative or community housing units currently subsidized by the CMHC will then be addedto Québec's housing stock.

A coherent plan of action

" Compliance with the recommendations for an integrated shelter allowance made in the Bouchard and Fortinreports on income security

" Improvement of the family policy : better housing conditions for 106 000 low-income families

" Fulfilment of commitments made at the Summit Conference on the Economy and Employment

C The social economy : construction of 1 820 social housing units a year

C Zero impoverishment : for 15 000 income security recipients who are unable to work

C Creation of 2 000 jobs/year in the social and economic sectors, and investments of over $150M a year

" Compliance with the government's objectives for health and social services , decentralization of housingactivities , deregulation and exportation of Québec products and know-how

Partnership and decentralization

" Decentralization of housing activities toward local and regional municipalities

" Support for community organizations

" Measures fostering the restructuring of the industry, improved housing products and services, researchand development and technology transfers, as well as the exportation of Québec housing products andknow-how


CONCLUSION 24

CONCLUSION

Given the persistence of housing needs for the mostdisadvantaged households and the difficult budgetary context, theQuébec government is confronted with the following choice:

C maintain existing formulas for housing assistance and, in thevery near future, be forced to make major cutbacks, perhapseven abolish certain programs,

or

C take action to maximize the impact of public funds for housing,always with a view to providing suitable housing for the largestpossible number of low-income households, while fosteringoptimum conditions for all sectors of the Québec housingmarket.

The adopted plan of action promotes the government's currentpriorities and main strategies:

A coherentplan of action

C it respects the objectives of the income security reform,introducing greater equity for low-income workers, who alsoexperience housing problems, and promoting measures thatsupport integration into the labour market;

C it supports the strategies of the family policy, developingaspects of assistance that will improve the housing conditionsof low-income families, most of which have a woman at theirhead;

C it takes into consideration the objectives of the Québecgovernment with respect to health and social services thathave repercussions on housing needs, particularly thosedesigned to limit the institutionalization of people with physicalor mental disabilities, senior citizens with limited autonomy andpeople with special problems (substance abuse, diseases thatresult in functional disabilities, etc.)

C it also takes into consideration the objectives of the governmentin terms of the decentraliza tion of its activities, deregulationand the exportation of Québec products and know-how ;

C it makes it possible to respect the commitments made duringthe Summit Conference on the Economy and Employment,in particular by the creation of close to 2 000 jobs a year in thesocial and economic sectors;


CONCLUSION 25

C to respect the government's commitment to zeroimpoverishment for social aid recipients unable to work, itprovides various compensatory measures for people alreadybenefiting from low-rental housing or a shelter allowance.

A concerted effort and unfailing cooperation on the part of all thepartners in the housing sector in Québec will be required in orderto rapidly and smoothly integrate the main phases of the reform.This spirit of cooperation is essential if we are to reach ourobjectives and ensure suitable and affordable housing for the mostdisadvantaged members of the public.

An appealto our partners


BIBLIOGRAPHY 26

SELECTED BIBLIOGRAPHY

BOUCHARD, Camil, Viviane LABRIE and Alain NOËL. Chacun sa part, report by three membersof the Comité externe de réforme de la sécurité du revenu, 1996, 235 pp.

CANADA MORTGAGE AND HOUSING CORPORATION. Housing Information Monthly.

CANADA MORTGAGE AND HOUSING CORPORATION. The Canadian Housing System in the1990's, 1995, 55 pp.

CANADA MORTGAGE AND HOUSING CORPORATION. The State of Canada's Housing, 1994,42 pp.

COMMISSION DE LA CONSTRUCTION DU QUÉBEC. Analyse de l'industrie de la constructiondu Québec en 1994. 1995, 94 pp.

CORPORATION DES PROPRIÉTAIRES IMMOBILIERS DU QUÉBEC. Profil socio-économiquedes propriétaires immobiliers, 1984, 79 pp.

DANSEREAU, Francine. Le logement comme droit social, quelques pistes de réflexion,INRS-Urbanisation, 1991, 21 pp.

DANSEREAU, Francine, et al. L'état du parc résidentiel locatif de Montréal, research reportsubmitted to the Ville de Montréal, the Société d'habitation du Québec and the Canada Mortgageand Housing Corporation, INRS-Urbanisation, 1991, 249 pp and appendices.

FORTIN, Pierre and Francine SÉGUIN. Pour un régime équitable axé sur l’emploi, Report by twomembers of the Comité externe de la réforme de la sécurité du revenu, 1996, 137 pp.

GOUVERNEMENT DU QUÉBEC, BUREAU DE LA STATISTIQUE DU QUÉBEC. Compteséconomiques des revenus et dépenses, 1994, 136 pp.

GOUVERNEMENT DU QUÉBEC, MINISTÈRE DES AFFAIRES MUNICIPALES.Decentralization: An Option for the People, Québec, 1995, 95 pp.

GOUVERNEMENT DU QUÉBEC, MINISTÈRE DES FINANCES. White Paper on the PersonalTax and Transfer Systems, Québec, 1984, 380 pp.

GOUVERNEMENT DU QUÉBEC, MINISTÈRE DE L’HABITATION ET DE LA PROTECTION DUCONSOMMATEUR. Housing for Quebecers: The situation today, a challenge for the future,Québec, 1984, 262 pp.

GOUVERNEMENT DU QUÉBEC, MINISTÈRE DE LA SÉCURITÉ DU REVENU. The Road toLabour Market Entry, Training and Employment: Consultation Paper, 1996, 94 pp.

GOUVERNEMENT DU QUÉBEC, SOCIÉTÉ D’HABITATION DU QUÉBEC. AdministrativeStructures, Activities, Products and Services 1991, 1992, 1993 and 1994 and budgetary data.


BIBLIOGRAPHY 27

GOUVERNEMENT DU QUÉBEC, SOCIÉTÉ D’HABITATION DU QUÉBEC. Rapport annuel 1995and budgetary data.

GOUVERNEMENT DU QUÉBEC. Working Together for a responsible Québec, Report of theCommission on Taxation and the Financing of Public Services, 1996, 152 pp.

GROUPE SECOR. Pour une industrie québécoise de la construction plus responsable, 1994,89 pp.

HAMEL, Pierre. "L'action communautaire", in Fernand DUMONT, Simon LANGLOIS and YvesMARTIN. Traité des problèmes sociaux, 1994, 1164 pp.

STATISTICS CANADA. 1991 Census, Profile of urban and rural areas, Part B, Canada,provinces and territories, 93-340.

STATISTICS CANADA. Household Income Facilities and Equipment Survey, 1982 to 1993.

STATISTICS CANADA. Canadian Socio-Economic Information System (CANSIM).


APPENDIX A 28

APPENDIX A

TABLE A-1

HOUSING ASSISTANCE PROGRAMS - FEDERAL AND QUÉBEC GOVERNMENTS

Total number of households268 900

Joint Québec-Canada Québec programs Federal program programs

85 200 households146 700 households (SHQ - MSR) 37 000 households

1

SHQ SHQ - MSR MRQ CMHC

Property tax refunds2

732 200 households

Public LRH: 64500 households(650 OMH and14 Inuit villages)

Private LRH: Purchase-renovation: 8 200 households 1 200 units under 37 000 units

(90 co-ops and construction co-ops and NPOs 295 NPOs) (co-ops and NPOs)

RS: 12 500 households MSR shelter allowance :86 900 households

Logirente: 58 600 households

Abbreviations :

LRH: Low-rental housingRS: Rent supplementMHO: municipal housing officeNPO: non-profit organization

Housing subsidized by the federal government and subject to transfer to the SHQ. About 1 500 of these units are also eligible1

for the Rent supplement.

Property tax refund (PTR) beneficiaries can also benefit from allowances, federal programs or the Purchase-Renovation2

Program. Therefore, PTR are not added to the other data.


APPENDIX A 29

TABLE A-2

INCOME SECURITY : ESSENTIAL NEEDS RECOGNIZED IN 1996 ($/month)

Single Couple Single Single Couple Coupleperson with no parent with parent with with 2

children 1 child with 2 1 child children orchildren moreor more

Short-termFoodHousing(% of total)HousekeepingPersonal careCommunications

161 268 268 361 361 446325 396 396 446 446 484

(48,7 %) (40,2 %) (40,2 %) (37,1 %) (37,1 %) (34,9 %)25 35 35 43 43 5225 39 39 50 50 6020 21 21 21 21 21

Medium-termClothing 50 101 101 129 129 152

Long-termFurnitureTransportationRecreation

22 45 45 54 54 6221 42 42 50 50 5719 37 37 47 47 53

Total 667 984 984 1 202 1 202 1 387(100 %) (100 %) (100 %) (100 %) (100 %) (100 %)

Source : Ministère de la Sécurité du revenu, The road to Labour Market Entry, Training and Employment: Consultation Paper, p. 94.Percentages in parentheses were added by the SHQ.

TABLE A-3

COST FOR THE GOVERNMENT OF HOUSING SUBSIDIES

Single person Couple sans enfants

Existing New Existing New unit unit unit Unit

Portion of social aid cheque 325 325 396 396intended for housing(see housing component,Table A-2)

Operating deficit 355 737 355 7371

for an LRH unit

Total subsidy paid• per month 680 1 062 751 1 133• per year 8 160 12 744 9 012 13 596

The weighted average of the operating deficit for some 70 000 LRH units (excluding units in the North and units eligible for the Rent1

supplement).


APPENDIX A 30

TABLE A-4

PARAMETERS OF THE INTEGRATED SHELTER ALLOWANCE PROGRAM

Size of Minimum Maximum Maximum incomehouseholds rent rent (exclusion)Type of household

1 Single person 308 $ 428 $ 16 480 $

2 Couple with no children 398 $ 518 $ 19 320 $Single-parent family, 1 child

3 Two-parent family, 1 child 434 $ 554 $ 20 360 $Single-parent family, 2 children

4 Two-parent family, 2 children 460 $ 580 $ 21 160 $Single-parent family, 3 children

5 Two-parent family, 3 children 486 $ 606 $ 22 000 $Single-parent family, 4 children

Rate of assistance : 66 2/3%Computation of allowance : 66 2/3% X ((real or maximum rent) - (minimum rent or 30% of monthly income))


APPENDIX B 31

APPENDIX B

BRIEF DESCRIPTION OF HOUSING ASSISTANCE PROGRAMS

CC LRH

LRH - MHO

The low-rental housing program is designed to provide housing for low-income households.The buildings belong to the SHQ or to municipal housing offices and are administered by theMHOs. On average, the federal government covers 58% of the financing, Québec carries 32%and the municipalities contribute 10%. The basic rent required of tenants (including heatingand hot water) equals 25% of their income. Certain fixed costs are added to this.

LRH - Inuit

Low-rental housing for the Inuit is administered by the 14 northern villages. The deficit isshouldered by the federal government (58%) and Québec (42%). The rent that tenants payis not based on income but on the number of people living in the unit.

LRH for off-reserve Indians

Low-rental housing for Native people living off reserve belongs to private organizations thatoperate and administer the units. The deficit is shared between the CMHC (75%) and theSHQ (25%). The rent is calculated in the same way as for the low-rental housing program.

LRH - Co-ops-NPOs

Low-rental housing belonging to rental housing cooperatives or private non-profitorganizations is also eligible for subsidies to cover operating expenses, paid by the CMHC(75%) and the SHQ (25%). The rent is calculated in the same way as for LRH-MHOs.

C RENT SUPPLEMENT (RS)

The Rent supplement program subsidizes certain tenants living in private housing as thoughthey occupied LRH units. The costs are shouldered jointly by the CMHC, the SHQ and themunicipalities. The rent is calculated in the same way as for LRH units. Some units areavailable in cooperative or community housing subsidized by the federal government.

C LOGIRENTE

This is a shelter allowance for people 57 years of age or older. The SHQ pays part of the rentof all the households in this program if rent exceeds 30% of income. The subsidy equals 75%of that part of the rent that exceeds 30% of the household's income. Maximum rents are setto determine the allowance. The program is entirely financed by Québec.


APPENDIX B 32

C DAP

The Downpayment Assistance Program was created to promote home ownership amongQuebecers under certain conditions. This Québec program ended in March 1992. Assistanceconsisted in a guaranteed loan for which the SHQ paid the interest during five years.

C RAAP

The Residential Adaptation Assistance Program is designed to help disabled persons, nomatter what their income, cover the cost of the work required to make their home accessibleto them and adapt it to their needs. The Québec subsidy may go as high as $16 000 anddepends on whether the disabled person is an owner or a tenant.

C RBRP

The purpose of the Rental Building Renovation Program was to contribute to the renovationof low-rental housing and rooming houses occupied by low-income households, to bring themup to minimum health and safety standards. (Maximum subsidy: $14 250/unit, $8 450/roomor 75% of the cost of renovating a unit; the percentage varies with the rent). This Québecprogram ended two years ago.

C RÉPARACTION

A home repair program for low-income owner-occupants, RéparAction was createdfollowing the termination by the federal government of the Canada-Québec RehabilitationAssistance Program (RAP) on December 31, 1993. It was designed to help the same clientgroup, that is low-income owner-occupants, bring their homes into line with health and safetystandards (up to 75% of the cost of the work, a percentage that decreased as incomeincreased, with a maximum of $7 500/unit). This program terminated two years ago.

C ACCENT ON RENOVATION

The Residential Renovation Stimulation Program targeted owner-occupants of homesevaluated at less than $100 000 and eligible renovation work costing at least $5 000. Theowner had to choose between two types of assistance, either a $1 000 subsidy per unit, paidat the end of the work, or a three-year interest-free loan guaranteed by the SHQ,accompanied by a $500 subsidy at the end of the loan. This was an ad hoc program thatterminated in December 1994.

C PURCHASE-RENOVATION

The Purchase-Renovation Program enabled housing cooperatives and non-profitorganizations to acquire and renovate close to 1 200 additional housing units. Of these, 40%are reserved for low-income households, to whom a rent supplement is granted. This Québecprogram was launched in 1995 with a budget of $35 million.


APPENDIX B 33

CC RENOVATE

The Renovate Program offered owners who commissioned renovations worth at least $5 000the possibility of contracting an interest-free loan of $4 500 over three years. This Québecprogram terminated on August 16, 1996.

C REVITALIZING OLDER NEIGHBOURHOODS

The Revitalizing Older Neighbourhoods Program is designed to help downtown areas givenew life to old residential neighbourhoods. For each dollar spent by a municipality, the SHQinvests one dollar, as long as the owner shoulders at least one third of the cost ofrenovations. The municipalities set the parameters for applying the program. The programwas created in 1995 and the funds allocated to it have been claimed in full by 31municipalities.

C MSR SHELTER ALLOWANCE

This allowance is granted families receiving income security benefits that have at least onedependent child, whether under age or not, who is attending secondary school. The MSRreimburses 50% of the difference between the housing costs incurred, up to a givenmaximum, and the minimum cost set under the program.

C PROPERTY TAX REFUND (PTR)

This tax measure provides for the reimbursement of part of the property taxes paid by low ormoderate-income households, whether they are owners or tenants. The amount of the PTRdepends on the amount of property taxes paid and the income of the people who apply for therefund.

C UNILATERAL CMHC PROGRAMS

These programs concern cooperative or community housing units (37 000 in all) that areeligible for federal subsidies. The subsidies are in the form of interest rate rebates, amongother things. The housing units are not intended primarily for low-income households,although some tenants (about 1 500) also receive a Rent supplement.

government action in housing - gouv

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