Ten things to know about affordable housing in Alberta

Ten things to know about affordable housing in Alberta

by | Jun 30, 2019 | Aboriginal Peoples, Alberta, Alternative Federal Budget, Calgary, Ending Homelessness, Fiscal policy, Government, Government Funding, Homeless, Housing, Housing First, Income Inequality, Indigenous peoples, Policy, Poverty, Poverty Reduction, Research and Data, Ron Kneebone, seniors, Social Housing, Social Policy

Ten things to know about affordable housing in Alberta

People without affordable housing suffer from poor health outcomes, have difficulty finding and sustaining employment and are at greater risk of having their children removed by child welfare authorities.

Here are 10 things to know about affordable housing in Alberta specifically:

  1. The NDP government of Rachel Notley undertook important initiatives pertaining to affordable housing. In its 2016 budget, the Notley government announced the near doubling of provincial spending on housing. This represented a total of $892 million in new funding, spanning a five-year period.
  2. According to the most recent Census, 11.4% of Alberta households experience core housing need, representing more than 164,000 households. In order to assess housing need for Canadians, the Canada Mortgage and Housing Corporation uses a measure called core housing need. A household is said to be in core housing need if, out of financial necessity, they either pay more than 30% of their gross household income on housing, live in housing requiring major repairs, or live in housing with insufficient bedrooms for the household size in question (as determined by the National Occupancy Standards).
  3. Seniors living alone in Alberta face particularly high rates of core housing need. Nearly 34% of senior (65+) females living alone in Alberta were in core housing need in 2011, while the figure for senior (65+) males living alone was just under 26%. 
  4. Female lone-parent households in Alberta also face a particularly high rate of core housing need. More than 27% of these households were in core housing need in 2011. However, that figure likely dropped after the NDP government of Rachel Notley introduced the Alberta Child Benefit, a major feature of the 2016 Alberta budget.
  5. Members of Alberta First Nations also experience very high rates of core housing need. In fact, the rate of core housing need for Status Indians is nearly 25%—more than double the rate for non-Indigenous households in the province. And get this: these core need figures do not account for households living on reserve (if they did, that figure would be much greater). I should also note that more than 25% of  persons experiencing absolute homelessness in Alberta identify as being Indigenous, even though Indigenous peoples make up just 7% of Alberta’s total population.
  6. Housing typically constitutes a larger share of spending for low-income households (compared with middle- and higher-income households). And as the figure below illustrates, that phenomenon got measurably worse for low-income households in Alberta between 2010 and 2016.

    Source. Kneebone, R., & Wilkins, M. G. (2018). Social Policy Trends: Paying for the Essentials: Shelter, Food and Energy Consumption by Household Income Quintile for 2010 and 2016. The School of Public Policy Publications, 11. Retrieved from Policy School’s website: https://www.policyschool.ca/wp-content/uploads/2018/07/Social-Trends-Engel-Curves-July-2018.pdf

  7. On a per capita basis, Alberta has far fewer subsidized housing units than the rest of Canada. According to the most recent Census, subsidized housing represents just 2.9% of Alberta’s housing units; for Canada as a whole, the figure is 4.2%.
  8. Some Alberta cities have much more low-cost rental housing (per capita) than others. The visual below shows the range of private market rents paid on one- and two-bedroom apartments across Alberta’s seven major cities. The light-coloured bars show the range of rents paid on the second quintile (i.e., the second-poorest quintile) of private market rents. The next darkest bar shows the range of rents paid on the third quintile (i.e., the middle quintile) of rents, while the darkest bars define the range of rents paid on the fourth quintile of rents. Among the seven major cities, Medicine Hat appears to have the most low-cost rental housing units (per capita), and Calgary the fewest.

    Notes. Monthly rent quintiles by city in 2017. Data provided to Ron Kneebone (University of Calgary) by Canada Mortgage and Housing Corporation. The range of rents paid on the first and fifth quintiles are not reported due to confidentiality reasons.

  9. Going forward, the impact of the federal government’s National Housing Strategy will be modest. Recent analysis by Canada’s Parliamentary Budget Officer (PBO) projects future federal housing spending to actually decrease over the next decade (relative to Gross Domestic Product). The same analysis projects that total spending on Indigenous housing by Canada’s federal government will be “substantially lower” going forward. (For a general overview of the National Housing Strategy, see this analysis.)
  10. There are considerable cost savings to be realized when investing in affordable housing, especially when the tenants have serious mental health challenges. Subsidized housing for vulnerable subpopulations (including persons with mental health challenges) that is accompanied by professional staff support is referred to as supportive housing. Recent analysis in Calgary estimates considerable cost savings in the health and justice sectors attributable to formerly-homeless persons receiving supportive housing.

In Sum. For a more comprehensive look at affordable housing in Alberta, see this year’s Alberta Alternative Budget (AAB). Full disclosure: I was primary author of the chapter on affordable housing and homelessness.

I wish to thank the following individuals for invaluable assistance with the housing chapter of this year’s AAB: Meaghan Bell, John Kmech, Claire Noble, Chidom Otogwu, Steve Pomeroy, Ron Kneebone, Vincent St. Martin, John Veenstra and one anonymous reviewer. Any errors are mine.

Ten Things to Know About Social Assistance in Alberta

Ten Things to Know About Social Assistance in Alberta

by | Jul 24, 2017 | Alberta, Ending Homelessness, Government, Point in time Count, Poverty, Research and Data, Ron Kneebone, Social Assistance, Social Housing

Ten Things to Know About Social Assistance in Alberta

This is part two of a two-part blog series on social assistance. Part one, which looks at social assistance across Canada, can be accessed here.

As recently noted by my colleague Rachel Campbell, last fall’s Point-in-Time (PiT) Count of persons experiencing homelessness across Alberta yielded interesting findings pertaining to social assistance. The report found that a mere 7% of persons experiencing homelessness in Calgary indicated that “welfare/income assistance” was one of their sources of income; across the rest of Alberta, meanwhile, the average was 29%.

On April 20, Calgary Homeless Foundation convened a community panel discussion in the hope of uncovering potential reasons for this discrepancy. Panel members were Andrew Joo (Calgary Drop-In), Simon Lai (Woods Homes) and Ellie Hall (Calgary Legal Guidance).[1]

Here are 10 things to know:

  1. It’s always been challenging for households to qualify for—and maintain—social assistance in Alberta. Major reasons for this include: governments wanting to spend less money, policy makers fearing that social assistance receipt will make gainful employment less attractive, and elected officials (and their constituents) believing that unemployed persons have themselves to blame for their misfortune. (None of these points are limited to Alberta; all of this was discussed in Part 1 of the present blog series.)
  2. In 1986, the Edmonton Social Planning Council published a controversial document. The Other Welfare Manual was an advocacy document that helped low-income individuals (and their advocates) navigate Alberta’s social assistance system. It was updated multiple times and soon became controversial, in part because it made it more challenging for social assistance officials to deny benefits to households. Intake workers were told by their supervisors that they could refuse to see clients who wanted to bring the manual into the intake interview.
  3. In the 1990s, rules for social assistance receipt in Alberta became harsher and benefit levels were reduced. Social assistance administrators began to put an intense focus on ensuring recipients looked for gainful employment. It subsequently became more difficult for people to be deemed eligible for social assistance. As I’ve written before: “a ‘single employable adult’ without dependents received almost $9,000 annually in 1992 (that figure includes tax credits); by 2007, this figure had shrunk to less than $6,000.”[2]
  4. Since that time, it’s been even more difficult for people to access social assistance throughout the province. For example, previously mothers were not considered “employable” until their youngest child was in school. This policy changed to a policy stipulating that mothers should look for work as soon as their youngest child turned two. According to Ellie Hall (Calgary Legal Guidance): “Until recently [when Alberta Works was in the news for forcing clients to stand in the cold waiting in line for an appointment with an intake worker] clients could not schedule an intake appointment. They could only start lining up outside the office, sometimes for hours, and were still often turned away and told to come back another day and start over” (personal communication, May 2, 2017).
  5. Across Alberta municipalities, it’s possible that there are discrepancies in the way social assistance offices interpret rules and administer benefits. Clients and front-line workers often report that rules are not always interpreted consistently across offices. It may be that some Calgary offices are stricter in dealing with persons experiencing homelessness than are offices in other Alberta cities (such inter-office variability may also exist in Canada’s other provinces and territories.)
  6. In Alberta, persons experiencing homelessness are not eligible to receive certain forms of social assistance. They can qualify for Assured Income for the Severely Handicapped (AISH), but not for Alberta Works; the former is for persons with permanent, severe disabilities, while the latter is not (yet, both are forms of social assistance). At one time, individuals living in a homeless shelter could access some Alberta Works benefits money each month; but today, they receive nothing directly from Alberta Works until they find a permanent address (however, the services provided to them by the shelter likely benefit from some provincial funding). This is not the case in all provinces. For example, Quebec lets clients in homeless shelters access the equivalent of Alberta Works.
  7. Earlier this year, the Alberta government streamlined the AISH application process. More information on these changes can be found here (and a CBC News story can be found here). This move happened in response to criticism from the provincial auditor general. However, it’s not yet clear how much of an impact this will have in practice or how it will impact people experiencing homelessness. It’s also important to note that AISH benefit levels are higher than comparable programs in other provinces; see point #8 of this previous post.
  8. Even though the cost of rental housing is substantially higher in Calgary than in other Alberta municipalities, social assistance benefit levels are the same across the entire province. One possible reason for this is that the cost of rent should not be the only variable used to assess cost of living—other important variables include the cost of transportation, food and fuel (and in some Alberta communities, those costs may be greater than in Calgary).[3] In other provinces and territories, benefit levels do vary by jurisdiction, in part to reflect the higher cost of living in more remote areas of that province or territory. This is the case in Ontario, Manitoba, Saskatchewan and all three territories.[4] In this recent presentation, Ron Kneebone and Margarita Wilkins argue that social assistance benefits levels in Alberta should vary by municipality.
  9. When it comes to the percentage of each city’s homeless population receiving social assistance, one factor that may help explain the discrepancy between Calgary and the rest of Alberta may be labour market attachment. As Rachel Campbell noted in her recent blog post, results of last fall’s PiT Count found a discrepancy between Calgary and the rest of Alberta in terms of individuals experiencing homelessness indicating “employment” as a source of income. In Calgary, 33% of respondents indicated “employment” as a source of income, compared with fewer than 10% in the rest of the province. Since it’s harder for persons who are gainfully employed to receive social assistance, it would be logical if this explains much of the discrepancy between rates of social assistance receipt among persons experiencing homelessness in Calgary versus other Alberta cities.
  10. Today, the Alberta government is under considerable political pressure to control spending. For 2017-18, the provincial government is forecasting a $10.3 billion deficit. And for 2018-19, its target is a $9.7 billion deficit. At the same time, the job vacancy picture looks bleak, and social assistance caseloads are rising (you can read about this here and here).

In Sum.  The question asked at the outset of this two-part blog series was: “Why do a smaller percentage of persons experiencing homelessness in Calgary receive social assistance than their counterparts in other Alberta cities?” I offer three possible answers to this question: 1) It’s always been difficult for anyone to access social assistance in Alberta, as is the case in every Canadian province and territory; 2) higher rates of employment among people experiencing homelessness in Calgary may explain why a smaller percentage of Calgary’s homeless population accesses social assistance; and 3) variations in how staff from one office to another interpret social assistance eligibility rules may also help explain the discrepancy between Calgary and other cities.

The author wishes to thank the following individuals for invaluable assistance with this blog post:  Rachel Campbell, Hilary Chapple, Louise Gallagher, Ellie Hall, Coleen Hutton, Andrew Joo, Nigel Kirk, Kara Layher, Lindsay Lenny, John Stapleton, Anne Tweddle, Donna Wood and one anonymous reviewer. Any errors lie with the author.

You can view a PDF version of this blog post here: Ten Things to Know About Social Assistance in Alberta

 

[1] Multiple attempts were made—via official channels—to have a Government of Alberta official also participate on the panel. Regrettably, none of those attempts proved fruitful.

[2] All of these figures are expressed in 2015 constant dollars.

[3] For a succinct overview of a recent attempt to calculate the cost-of-living variation across Alberta communities, see this report; and for more detail, see this web link.

[4] In the words of my colleague, John Stapleton: “I don’t think any jurisdiction has a good rationale for its rates. They are historical rather than rational and reflect a massive elixir of compounds that seldom make sense. Every so often, a province or territory will compare and set rates according to some external standard like the consumer price index or cost of items. It seldom lasts long” (personal communication, April 30, 2017).

Second Annual Canadian Homelessness Data Sharing Initiative

Second Annual Canadian Homelessness Data Sharing Initiative

by | Jul 4, 2017 | Data Sharing, Ending Homelessness, Government, Housing, Pit Count, Poverty Reduction, Research and Data, Ron Kneebone

Second Annual Canadian Homelessness Data Sharing Initiative

On May 18, 2017, the Second Annual Canadian Homelessness Data Sharing Initiative took place in Calgary (all slide presentations, as well as photos from the event, are available here). The event was organized by the Calgary Homeless Foundation and the University of Calgary’s School of Public Policy, and the participants included:  people who build datasets (about persons experiencing homelessness); researchers who use that data; persons with lived experience; and public servants.

Here are 10 things to know about this year’s event:

1. For the second year in a row, there was strong representation from Canada’s federal government. Five officials from Employment and Social Development Canada (ESDC) participated, three of whom had formal speaking roles at the event. Aaron Segaert (from ESDC) presented data from more than 200 homeless shelters between 2005 and 2014, showing that:

  • the occupancy rate (i.e. % of beds filled each night) across these shelters rose from 83% in 2010 to 92% in 2014;
  • the average ‘duration of stay’ by households using these shelters is increasing, especially for families and seniors;
  • the number of seniors using homeless shelters annually nearly doubled across Canada between 2005 and 2014.

2. This year’s event had strong Quebec representation. Research presented by Annie Duchesne, for example, finds that certain subgroups of persons in Montreal’s largest homeless shelter are more likely to experience chronic homelessness (i.e. long-term homelessness) than others—those subgroups include persons over the age of 50, persons with mental health problems and persons with disabilities.

3. Indigenous perspectives were presented. Bonnie Healy’s presentation focused on the work of the Alberta First Nations Information Governance Centre. Topics raised in her presentation included First Nations OCAP principles, a publication titled First Nations – Health Trends Alberta, the First Nations health status report for the Alberta region, the work of the Alberta First Nations Governance Centre, and Indigenous logic models.

4. Several data-sharing advocates actively participated in this year’s event. Michael Lenczner, a data-sharing champion in Canada’s social sector, attended and spoke at this year’s event. He stated that, in terms of data sharing, he’s not aware of any other subsector of Canada’s non-profit sector that has an annual forum to discuss the importance of data. He also cited Alberta as a leader in data sharing, making reference mostly to PolicyWise, who’ve worked with government to link client administrative data from multiple ministries. They’re the leaders of this kind of data-linking in Canada, and possibly the world.

5. Difficulties with researchers accessing federal homelessness data were raised. Tracey Lauriault is a Carleton University professor who described her past difficulties in trying to access HIFIS data for research. When she did, she was told that her data requests must be sent to community coordinators; yet, federal officials were never able to provide her with a list of community coordinators.

6. One of the event highlights was a panel discussion on moving towards increased national integration of Homelessness Management Information Systems (HMIS). As I’ve written before, there are multiple software systems across Canada that keep data on persons experiencing homelessness; many people would like to see increased integration of these systems (possibly into one very large system, or at least the sharing of data among these systems so that researchers can have larger samples for their work). Henry Dagher (ESDC) discussed the evolution of the Homeless Individuals and Families Information System (HIFIS) software system (which is one type of HMIS system). This federally-administered HIFIS system is now operating in more than 100 communities. HIFIS 4 is now web-based and gaining strong momentum; BC Housing is now implementing HIFIS province-wide (spanning approximately 200 service providers). Several panel members suggest that community members need to gain more control of HIFIS (via a stakeholder advisory body with some clout that includes persons with lived experience). As Michael Lenczner puts it: “The tail shouldn’t wag the dog.” Jenn Legate (Calgary Homeless Foundation) raised several operational concerns that need to be kept in mind as we move forward on increased national integration of HIMIS systems—namely, the ongoing costs a server, the cost of migrating data from an old database system to a new system, challenges pertaining to customer service provided by software vendors, and legal barriers to data sharing.

7. Important findings were presented from Canada’s recent nationally-coordinated Point in Time Count of homeless persons. Patrick Hunter’s presentation noted that more than 25% of homeless persons enumerated during the 2016 count did not use an emergency shelter during the previous year—I think this speaks in part to conditions in emergency shelters, about which there’s virtually no research.[1] Hunter also reported that Indigenous peoples are nine times more likely to experience homelessness than the rest of Canada’s population; what’s more, more likely to experience longer homeless spells than non-Indigenous people.

8. One of the event highlights was a “review of the day” by Stephen Metraux. Metraux, the Director of the Health Policy Program at the University of the Sciences in Philadelphia, gave a ‘wrap up’ presentation that included a short slide presentation. He subsequently wrote a blog post in which he reflected on his experience at the event.

9. Several suggestions were made about a ‘way forward.’ Topics that need to be tackled in the future include:

10. This will continue to be an annual event that we expect to be held each year in (or near) Calgary. It may also evolve into a two-day format, with one day focusing on the operational aspects associated with building, maintaining and improving HMIS systems. All of these operational matters are the focus of this biannual event in the United States; yet, no Canadian equivalent currently exists.

In Sum. We hope this annual event will help communities across Canada get closer to ending homelessness. The event web page—with slide presentations and minutes from the event—can be found here.

A blog post written about the First Annual Canadian Homelessness Data Sharing Initiative can be found here.

The author wishes to thank the following individuals for invaluable assistance with this blog post: Vicki Ballance, Ron Kneebone, Eric Latimer, Tracey Lauriault, Kara Layher, Michael Lenczner, Lindsay Lenny, Stephen Metraux and one anonymous source. Any errors lie with the author.

 

[1] This 2016 report on conditions inside Out of the Cold facilities and Warming Centres is worth reading. However, it should be noted that the facilities that are the focus of this report are not “homeless shelters” as defined by City of Toronto officials; rather, they operate separately from the formal shelter system.

 

You can view a PDF version of this blog post here: Second Annual Canadian Homelessness Data Sharing Initiative

 

Public Policy and Homelessness: The Case of Calgary

Public Policy and Homelessness: The Case of Calgary

by | Feb 21, 2017 | Alberta, Big City Charter, Chidom Otogwu, Determinants of Homelessness, Ending Homelessness, Housing, Poverty, Poverty Reduction, Ron Kneebone, Social Housing

Public Policy and Homelessness: The Case of Calgary

On January 24, I gave a presentation to students at the University of Calgary as part of the Certificate in Working with Homeless Populations program. The goal of this presentation was to convey the fact that public policy strongly impacts the number of homeless people in a given jurisdiction at any particular time.

A version of my PowerPoint slides, which are chock-full of visuals and references, can be downloaded here: Falvo Public Policy and Homelessness WHP 1 of 3 

This is Part 1 of a 3-part presentation I gave that day. A blog post based on Part 2 can be found here, while a blog post based on Part 3 can be found here.

Here are 10 things to know:

1. Federal spending in Canada fell drastically from the early 1990s until the mid-2000s. In the early 1990s, federal spending (not counting intergovernmental transfers) represented 19% of our Gross Domestic Product (GDP). By the late-2000s, that figure had dropped to about 13%. That’s a remarkably sharp drop in such a short time.

2. Taxation fell sharply in Canada between the mid-1990s and the late-2000s. Looking at annual tax revenue expressed as a percentage of GDP (all orders of government combined) tax revenue in Canada represented 36% of GDP in the late-1990s.  By 2012, that figure had dropped to below 31%. What’s more, Canada’s level of taxation was considerably above the average for OECD countries in the mid-1990s; today, our taxation level is well below the OECD average.

3. Federal spending on housing decreased substantially beginning in the early 1990s. In light of the trends discussed in points #1 and #2 above, this comes as little surprise to most people. For more on the federal role in housing policy, including a look at how it has evolved over the past several decades, see this 2013 conference paper.

4. Rental housing production in Canada fell sharply beginning in the late 1970s. This happened in part due to reductions in public spending on housing discussed in point #3 above. Other factors that likely led to this drop include high interest rates (which made it expensive for developers to finance new supply), a shrinking middle class (which resulted in less demand for rental units), provincial legislation pertaining to condominiums, and rent regulation.[1]

5. Beginning in the mid-1990s, the Alberta government began spending substantially less on housing.This decrease was drastic. Indeed, in 1995, the Alberta government devoted an amount worth 0.36% of its GDP to housing; just five years later, this amount had shrunk to a mere 0.10%. The Alberta government’s annual spending on housing didn’t start to increase again until the early 2000s.

6. In 1993, the Alberta government introduced strict reforms to social assistance. This entailed at least two things.  First, the rules changed, meaning that provincial officials made it much more difficult for Albertans to qualify for social assistance. Second, the annual value of benefit levels for those who did qualify for social assistance dropped quite suddenly (and then continued to erode over time).  Indeed, a ‘single employable adult’ without dependents received almost $9,000 annually in 1992 (that figure includes tax credits); by 2007, this figure had shrunk to less than $6,000[2]  That’s a very sharp loss in annual income for a very low-income individual.

7. Alberta has much less rental housing than other provinces, and this gap has grown in the past 25 years. In 1990, Alberta had almost as many apartment rental units (on a per capita basis) as the rest of Canada.  Then, beginning in the early 1990s, the amount of apartment rentals in Alberta started to decrease; today, Alberta has just half the number of apartment rental units (per capita) as the rest of Canada.  There are three main reasons for this: the first being, historically, Alberta experienced higher rates of in-migration than other provinces; secondly, the Alberta government was not as keen as other provinces to subsidize housing for lower-income households; and lastly, Alberta has a relatively large number of high-income households (and higher-income households typically prefer to own than rent).

8. Calgary has much less rental housing than Edmonton, and this gap has grown since the mid-1990s. Beginning in the early 1990s, the number of rental housing units (per capita) in both Edmonton and Calgary started to drop each year; and it dropped more sharply in Calgary than in Edmonton. Today, Calgary has approximately half the number of rental units as Edmonton on a per-capita basis.

9. The many public policy factors raised above helped create the ‘perfect storm’ for a very sharp rise in homelessness in Calgary beginning in the mid-1990s. From the mid-1990s until the mid-2000s, homelessness in Calgary saw very rapid growth.  For example, according to analysis done with Point-in-Time Count methodology, it grew by almost 700% (per capita) during that time. And while it’s always hard for researchers to establish causation (see point #2 of this blog post) it can reasonably be inferred that the public policy changes discussed above played a major role in this increase.

Part1, Slide 19

10. In 2008, Calgary became the first Canadian city to develop a plan to ‘end homelessness’; since that time, homelessness in Calgary has decreased. There are three main reasons for that decrease. First, since 2008, a great deal of progress has been made at the community level in Calgary (I’ve previously discussed the very important role played by the Calgary Homeless Foundation as System Planner here). Second, benefit levels for Alberta social assistance recipients have increased since 2008.  For example, total annual income received by a ‘single employable’ household receiving social assistance jumped by more than 30% in 2009; and total annual income for a single adult receiving Assured Income for the Severely Handicapped increased by 30% between 2011 and 2013. Third, Calgary’s rental vacancy rate is very high right now (an indirect result of the drop in the price of oil).

In Sum: The intended ‘take away’ from the presentation is that, homelessness is a complex issue that requires a coordinated and collective response that addresses the local issues through local responses. When it comes to ending homelessness, a community plan that is focused on increasing coordination and collaboration across a system of care and greater integration with big system public service providers is vital. For agencies at the frontline, having a System Planner, such as the Calgary Homeless Foundation, providing the big picture view and coordination matters a great deal… and so too does public policy.

I wish to thank: Rachel Campbell, Louise Gallagher, Ron Kneebone, Kara Layher, Lindsay Lenny, Chidom Otogwu, Steve Pomeroy, Joel Sinclair, John Stapleton, Greg Suttor, Alina Turner and Donna Wood for assistance with this.  Any errors are mine.

[1] This is not to suggest that rent regulation doesn’t play an important role in regulating landlord-tenant relations.  For more on this, see this recent analysis.

[2] Both figures in this paragraph are expressed in 2015 constant dollars.

For a PDF version of the present blog post, please click here: Public Policy and Homelessness,The Case of Calgary