Stronger Foundations – Alberta’s New Affordable Housing Strategy
The Alberta Government released their new affordable housing strategy – Stronger Foundations – on November 1st. The new strategy sets out to improve and expand affordable housing by supporting 25,000 new households through new builds and an increase in rent supplement. Minister of Seniors and Housing Josephine Pon shared:
“Albertans deserve a housing system that is flexible, fair, inclusive and sustainable. The Stronger Foundations strategy focuses on partnerships and innovation to meet the diverse and unique housing needs of Albertans across the province now and into the future. Having a safe and secure place to call home will create new opportunities for Albertans.”
Stronger Foundations was created based upon the advice provided by the Affordable Housing Review Panel. The Panel, struck in July 2020, provided a report to the Minister of Seniors and Housing, detailing 19 recommendations meant to transform the affordable housing system in Alberta. The recommendations were summarized under five overarching themes:
1. Focusing on affordable housing
2. Unlocking existing equity and building sector capacity
3. Promoting partnerships
4. Simplifying administration
5. Supporting innovation
Key actionables that fall under the five themes include the development of a provincial strategic plan for housing (the previous strategy, A Plan for Alberta, expired in 2019); development of an asset management plan that includes the development and implementation of a strategic asset transfer plan; facilitation of partnerships between housing management bodies, not-for-profit organizations, private industry, and Indigenous groups; development of a centralized housing portal; and working with municipalities, encouraging them to update planning policies/regulations and to develop local housing and homelessness needs assessments and action plans.
Stronger Foundations has also been developed with the following vision in mind: that Albertans have access to safe, affordable housing that meets their needs and promotes quality of life; The housing system delivers innovative and sustainable affordable housing options to Albertans in need through partnerships with other orders of government, non-profit and private housing providers, and communities; and the housing system serves Albertans now and into the future.
The new strategic 10-year plan endeavors to address the significant wait list of more than 24,000 (a figure that has doubled in the past decade) Albertans waiting for suitable subsidized accommodations while simultaneously trying to bring Alberta’s percentage of affordable housing stock in line with the national average. Currently, Alberta’s social and affordable housing represents 3.1% of Alberta’s total housing stock while the national average sits at 4.3%. The new housing plan also notes that, from 2018 to 2020, the waitlist for subsidized housing has increased by 34%. Notably, Alberta began to see this rise before COVID.
The Stronger Foundations document provides some rationale to explain part of the reason why Alberta has seen the increase in the wait list for affordable housing. In part, it identifies that the housing market changes have not aligned “with shifts in household income or demographics, with housing prices and rental rates often lagging behind shifts in the economy and unique local conditions” (pg. 9). It also adds that “Alberta’s affordability challenge is compounded by a misalignment between demand and unit availability. There are vacant units across the province, but these units may be located in areas with lower demand, are too small for households in need, or may be designated for specific purposes” (pg. 10). Finally, it identifies that aging infrastructure and limited opportunities for partnerships due to the Alberta Housing Act have dampened opportunities for innovative and collaborative partnerships.
This new strategic plan marks a significant shift from the A Plan for Alberta strategy. Stronger Foundations makes no mention of the housing first philosophy, nor does it speak to trying to end homelessness. What seems to be offered in its place is a brief nod to the complexities involved with housing, stating:
“Housing is more than just infrastructure. Providing Albertans in need a place to call home ensures a strong foundation for social, economic, and community participation. Investment in housing is multiplied in economic returns. It creates jobs and pathways to employment, and provides stability that, in turn, contributes to reducing interactions in the health, social services and justice systems.” (Pg. 5)
Instead, Stronger Foundations shifts the focus to developing a plan that provides “goals, targets, and clear roles for government and its partners” (pg. 5), and asserts that, for this plan to be successful, “partnerships, less red tape, and a better way of funding affordable housing” (pg. 5) is required.
Stronger Foundations will be supported by Bill 78, The Alberta Housing Amendment Act, when it is passed. According to the Government of Alberta news release, Bill 78 will lay “the foundation for government to take steps to encourage and attract investment and encourage more innovative models of funding and delivery of affordable housing.” Additionally, Bill 78 will make it possible for the province to enter joint venture or partnerships to provide affordable housing; formally designate affordable housing accommodations and providers; and give ministerial authority to require specific knowledge or skills for housing management body boards.
The 2021 Alberta Seniors and Housing’s Capital Plan allocates $238 million over three years to provide 1,800 new and regenerated affordable housing units. The Government of Alberta government provided an additional $16 million for the rent supplement program. While only 1,500 new units have been built since 2019 (almost half of which were for seniors), the new 10-year plan has the ambitious goal of creating 13,000 new housing units, an average of about 1,300/year. This is nearly double the rate of growth seen between 2019-2021. Interestingly, the report acknowledges that senior households represent only a small portion of the Albertans waiting for affordable housing, compared to families and adults. This begs the question: why were nearly half of the 1500 new units created designated for seniors?
The 10-year plan identifies six guiding principles and twelve target populations, as follows:
Guiding Principles
1. Shared responsibility and partnerships
2. Supports focus on people and adjust to meet different needs
3. Fair, equitable, and inclusive
4. Vulnerable Albertans are protected
5. Fiscal stewardship
6. Flexible and adaptable to local and regional needs
Target Populations
1. Indigenous peoples
2. People with disabilities
3. Women and children fleeing violence
4. People at risk of homelessness or transitioning out of homelessness supports
5. People at risk of health and safety in current accommodation
6. Seniors
7. People dealing with mental health and addiction
8. Youth exiting government care
9. Veterans
10. Recent immigrants and refugees
11. Racialized groups
12. LGBTQ2S+ people
While having a new strategic plan may be seen as a proactive move by the government, the proposed strategy leaves ample room for concern. The move away from housing first, and from the overall goal of ending homelessness, puts Alberta at odds with the national Reaching Home strategy, and may wind up causing more confusion and red tape in the long run due to the conflicting funding requirements that may stem from receiving funding from both federal and provincial budgets. When you add the focus placed on bringing in private sector experience and funding, a general decrease in Government of Alberta responsibility when it comes to affordable housing, and a downloading of responsibilities to municipal governments (at a time when provincial funding for municipalities is continuing to decrease) one is left to question how well Alberta’s vulnerable people will be served by this new and ‘improved’ strategy.
