On-reserve housing crisis needs immediate action: report
- Tiffany Head | June 27, 2015
The housing and infrastructure on First Nations communities is dismally inadequate. Many communities face barriers which prevent them from having the full range of housing available off-reserve.
Earlier this month, the Standing Senate Committee on Aboriginal Peoples (ASSCAP) released its On-reserve Housing and Infrastructure: Recommendations for Change Report. It is the final report of a two-phase study which the committee began in November 2013.
The committee visited 16 First Nations communities from Nova Scotia, Quebec, Ontario and British Columbia.
The committee heard from over 80 witnesses representing individual First Nations, tribal councils, First Nations organizations, financial institutions, private sector organizations, and federal government departments and agencies.
“First Nations communities across the country told the committee that the process of applying for funding from the On-reserve Non-Profit Housing Program was challenging. There are often long delays and delays in funding approvals often place enormous pressure on communities, since the allocated funds need to be spent within the fiscal year,” said a witness that spoke in the public senate hearings.
The importance of this situation compelled the SSCAP to look at the issues surrounding housing in depth at the outset of its infrastructure study.
The housing shortage on reserve is estimated at between 35,000 and 85,000 units across the country. Due to the housing situation, overcrowding continues to be the biggest problem on on-reserve communities.
Homes on reserve deteriorate more quickly than housing off-reserve as the houses are built with poor quality building materials and lack of enforceable building codes.
“Infrastructure is not just about bricks and mortar. Aging, inadequate and poor infrastructure can have significant negative effect on the social and economic outcome of communities,” said Senator Dennis Patterson, Chair of the Committee.
The two per cent cap that has been in place since 1996 has resulted in insufficient funds to manage and maintain housing. An estimated 37 per cent of housing units on-reserve are in need of major repairs.
Three main reasons have been identified why departmental budgets are not keeping up with infrastructure needs:
- AANDC pays in full for infrastructure during the construction period, rather than over time;
- Funding at AANDC has been capped and has not kept up with inflation and population growth; and,
- Funding which is budgeted for infrastructure has been reallocated to other programs within AANDC.
“While AANDC takes into account the increased cost of Northern and remote communities through a remote and isolation index in their funding formula, the committee heard from witnesses that this index is not reflective of the needs of these communities and that the amount of allocated for the remoteness factor should be increased,” said Patterson.
The SSCAP is calling on Aboriginal Affairs and Northern Development Canada (AANDC) to remove the two per cent cap on annual increases in funding for on-reserve programs and services effective Budget 2016-17.
The recommendation aims to ensure that funding takes into account population growth and inflation in F.N communities.
The Committee is also calling for the creation of a new ministerial loan guarantee program to help finance infrastructure on-reserve.
“One of the goals we set out to achieve with this report was developing innovative financing options. By recommending the creation of a new Ministerial Loan Guarantee Program (MLGP) to help finance infrastructure on-reserve, the committee has proposed a solution that would empower First Nations to meet the long-term needs of their communities,” said Senator Scott Tannas, Committee Member, “The Committee recommends changes to the current MLGP for housing on Reserve to grant First Nations government’s access to the program, rather than just individual members. The purpose of these recommendations is to provide a new funding option to enable construction of more infrastructures on First Nations reserves across the country.”
The committee examined and reported on the challenges and potential solutions relating to First Nations infrastructure on reserves, including but not limited to housing, community infrastructure (such as water and waste water treatment, schools and other community buildings), and innovative opportunities for financing and more effective collaborative strategies.
Summary of Recommendations
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Removing the 2% cap on annual increases on funding for on-reserve programs and services from Aboriginal Affairs and Northern Development Canada (AANDC);
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Providing adequate funding and greater flexibility in the Canada Mortgage and Housing Corporation’s On-Reserve Non-Profit Housing Program (also known as the Section 95 program);
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Making it possible for First Nations to hire qualified housing managers through designated funding as part of AANDC’s Band Support Funding Program ;
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Moving toward the implementation and enforcement of building codes in First Nations communities;
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Assessing the adequacy of the shelter allowance component of the Income Assistance Program and addressing the regional discrepancies in the application of that program;
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Developing a housing strategy for remote and isolated First Nations communities; including a review the adequacy of the remote and isolation index;
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Simplifying the process for First Nations members to access mortgages backed by a Ministerial Loan Guarantee and expanding the program to allow First Nations governments to access a Ministerial Loan Guarantee;
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Evaluating the First Nations Market Housing Fund (FNMHF) and reinforcing its capacity development component;
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Simplifying the process for First Nations to be scheduled to the First Nations Land Management Act (FNLMA);
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Exploring the possibility, in consultation with First Nations, of developing opt-in legislation which could facilitate private property ownership for First Nations members living on reserve;
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Creating a new ministerial loan guarantee program to help finance infrastructure on-reserve;
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Facilitating First Nations’ access to “Indian Moneys” which, as currently required by the Indian Act, are held in trust for First Nations in the Consolidated Revenue Fund;
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Providing support for First Nations to develop long term comprehensive community plans which could help them plan for the future.
Related story: AFN National Chief wants action on dismal housing report
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