Charting A New Course For Affordable Housing In Nova Scotia

Engagement Activitiessector of economic growth. Discussions on this topic can beThe recommendations contained in this report werepolarizing, but critical to understand. We heard from experts aroundinformed by public input, expert advice, and a comprehensivethe world that both views must be integrated to effectively addressjurisdictional review of best practices. The CommissionNova Scotia’s housing crisis and should not be viewed as mutuallyconducted an extensive stakeholder engagement process,exclusive. Both concepts are fundamental to tackling our deepwhich drew feedback from more than 2,000 participants.housing challenges and should shape government policies andKey stakeholders from private sector, non-profit organizations,stakeholder actions in the future.municipalities, and community leaders responded to surveysand a call for written submissions, took part in virtualA detailed summary of the public input received throughout ourworkshops, focus groups, and one-on-one meetings. Thework are summarized in our separate What We Heard report.Commission’s web portal received over 11,000 visits.Following is a high-level summary of our intentionsThe invaluable input we’ve received from stakeholders oftenand recommendations, starting with the foundationalreflected two views about housing, which are sometimesshifts necessary to support many actions in the shortconsidered to be opposites of each other. The first is that adequateand long-term. In this report we will run through allhousing is one of the most basic needs, and therefore should bethese recommendations in detail:recognized as a human right. The other is that housing is a strategicTO-DO:TO-DO:TO-DO:TO-DO:Build the foundationfor changeExpand and protectour affordablehousing stockSupport renters withbetter access anddiverse optionsCollaborate andpartner acrosssectors and levels ofgovernmentSupport the creationof more affordablehousing, prioritizing amixed-income, multipartner approachExpand housingoptions that meet theneeds of seniors andvulnerable NovaScotiansEstablish an arm’slength independentprovincial housingentityRecognize housing as akey strategic sector foreconomic growth,health, and socialequityModernize provinciallegislation andregulationsDevelop a long-termprovincial housingstrategyReduce costs for newaffordable housingReduce regulatory andnon-cost barriers ofnew developmentPrevent the loss ofaffordable homesBuild communityhousing capacityEXECUTIVE SUMMARYProvide targetedresources and supportsfor vulnerable andunderrepresentedcommunitiesEnhance renterprotections, equitableaccess, and betterfunctioning conditionsfor rental housingAddress the specificneeds of rural and nonurban communitiesEmpower Municipalitiesto become key partnersin affordable housingTransform our publichousing modelSupport innovation andpromote cross-sectoralpartnershipsImprove access torental housing dataTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT11

Section 3OurMandateOUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT12

Our MandateOn November 25, 2020, the Minister of Municipal Affairsand Housing (now Infrastructure and Housing) announcednew measures to protect renters in the midst of the globalpandemic. Government announced an immediate moratoriumon eviction orders for renovation and a cap of 2% on rentincreases retroactive to September 2020. The Minister alsocreated the Affordable Housing Commission to work withexperts in the public, private, non-profit and academic sectorsand recommend actions and strategies to increase the supplyof, and access to, affordable housing.“It is clear that our housing market is going throughan unprecedented situation, made worse by“It is clear that our housingmarket is going through anunprecedented situation,made worse by COVID-19,and people need us to takeimmediate action as we lookfor sustainable solutions.”CHUCK PORTER, NOVA SCOTIAMINISTER FOR MUNICIPAL AFFAIRSAND HOUSINGCOVID-19, and people need us to take immediateaction as we look for sustainable solutions.”CHUCK PORTER, NOVA SCOTIA MINISTER FORMUNICIPAL AFFAIRS AND HOUSINGThe 17 commissioners appointed to this task were drawn fromvarious sectors and parts of the province, across a spectrum ofexperience and ideologies. Our focus was on affordable rentalhousing, given the crisis in that sector, and exacerbated bythe pandemic. The mandate excluded the related but distinctissues of homelessness and owner-occupied housing. Thatsaid, we recognize the urgent situations of households facinghomelessness and that rising home prices in the real estatemarket put pressure on rent and availability of rental units, andon the entire housing system.We also acknowledge the concerns shared by several communityorganizations about the diversity of representation on theCommission and the importance of issues such as human rightsand equity principles. Our recommendation to develop a longterm provincial housing strategy is in response to the concernswe heard from many stakeholders about these issues.NSAHC is not a decision-making body. Therecommendations in this report have been sharedwith the Minister of Infrastructure and Housing.OUR MANDATETHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT13

Section 4Why Nowis the MomentOUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT14

WHO NEEDS AFFORDABLE RENTALHOUSING IN NOVA SCOTIA?LOW INCOME PEOPLE belowthe poverty line comprise 12.1% of NovaScotians, which is the second highestrate in Canada.Context: Why Now is theMoment to Address OurHousing Supply andAffordability ProblemAffordable housing is a basic human need, essentialinfrastructure for our province, and a strategic sector for oursociety and economy. It improves social and economic resilienceand promotes inclusive and diverse communities. Beyondproviding shelter, housing is the engine of our economy andfoundational to its growth.Housing is also a social determinant of health, which canimprove individual lives and lead to positive social outcomes. ASINGLE PARENT FAMILIES(52,378) represent 18.5% of all familiesin Nova Scotia, the second highest inhealthy housing market can reduce strain on our health care,justice, and social systems. Nova Scotia has one of the highestpoverty rates in the country, at 12.1%. There are 115,000 peoplewho live in families with income below the Market BasketCanada. Single parents earn less (underMeasure (MBM) in Nova Scotia. As we heard from many, anyone 40,000) than the national average.can be in need of affordable rental housing in their lifetime. Thisis why we must now turn our attention to our province’s housingsupply and affordability problem.Despite the rental market’s growing pains, Nova ScotiaWOMEN are almost 70% of publicwas buoyed by unprecedented population growthand strong demand for employment—until the globalhousing tenants and 60% of rentpandemic reached our shores last winter. Our housingsupplement clients in Nova Scotia.challenge, already at a breaking point, became a crisis.The price of real estate in Nova Scotia is climbing rapidly,squeezing first-time local homeowners out of the market,tempting landlords to sell, and putting even more upwardPEOPLE WITH DISABILITIEScomprise over 30% of Nova Scotians, thehighest proportion in Canada.pressure on rental rates. The cost of new houses wentup 11.6% between April 2020 - April 2021, morethan twice the percentage increase from theprevious year.There is currently a significant shortage of adequate,affordable housing to meet the needs of Nova Scotians, whichis disproportionately affecting individuals living on low-income,many of whom are from vulnerable groups, or marginalized andSENIORS More than 1 in 4 Novaracialized communities.Scotians will be over 65 by 2030.OUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT15

As shown, the housing challenges we face are not justabout bricks and mortar. The problem must also be viewedPEOPLE OF AFRICAN DESCENThad the highest unemployment ratein the context of building resilient, and vibrant age-friendlycommunities where housing is linked to jobs, transportation,health services, and schools. While pursuing opportunities to(16.2%) among visible minorities in Novaachieve greater affordability and availability, we should not loseScotia, as compared to the unemploymentsight of the fact that many individuals require various supportsrate of non-minorities of 9.8%.to stay housed.What We Are Building OnThere’s already a great deal of awareness and momentum on theaffordable housing front in Nova Scotia. This includes significantnew financial commitments by the Province, which is investingURBAN INDIGENOUS PEOPLEmake up close to 15,730 or 4% of totalhouseholds in the Halifax RegionalMunicipality. Of these, 5,290 or 34%identify as Mi’kmaq. 513 million over 10 years with the federal government inaffordable housing projects under the National Housing Strategy.This is above the existing operational budget for Housing NovaScotia and includes: 105 million in federal and provincial funding in the firstthree years through the Nova Scotia Action Plan under theNational Housing Strategy. This plan aims to: Increase access to affordable housing Preserve and sustain existing social and communityIMMIGRANTS arrived in the secondquarter of 2020 in the lowest numbershousing stock Maintain and expand strategic partnerships Position HNS to meet emerging challenges(866) in recent years due to the pandemicand travel restrictions. Immigrationwas concentrated in Halifax, with 5,122immigrants added to the population.The next highest numbers were in KingsCounty (198) and Cape Breton Regional 70 million in new provincial funding committed over thesame three-year period, to advance provincial housingpriorities such as capital renewal of public housing stock andsupports for low-income homeowners. Furthermore,government invested 12 million in 2020/21 to support thoseexperiencing homelessness or at risk of homelessness.Municipality (197).The Province of Nova Scotia delivers housingprograms and services to Nova Scotians living withlow-to moderate-income through the Departmentof Infrastructure and Housing. To achieve provincialOTHER AFFECTED POPULATIONSincluding people with intersectingidentities may be uniquely impacted by agoals and priorities, the department works withother government agencies, the federal government,municipalities, the private sector, and the communityhousing sector.lack of affordable rental housing.WHY NOW IS THE MOMENTTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT16

Section 5DefiningAffordableHousingOUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT17

As it turns out, definingand measuring affordablehousing—and who may beeligible for it—can be ascomplex as addressing theissue itself.OUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT18

DefiningAffordable HousingAs it turns out, defining and measuring affordablemore than 30% of their income on housing (and have incomeshousing—and who may be eligible for it—can be ashigh enough to afford an acceptable alternative unit in theircomplex as addressing the issue itself.community) are not in core housing need.‘Affordable housing’ is often defined as housing that is adequateAs you can see, the range of what qualifies as affordable housing(in good repair), suitable (large enough for its householdis complex. In the past, housing affordability may have beenoccupants), and costs less than 30% of the household’s pre-thought to impact only low-income households. Now, thesetax income. People or families whose housing is inadequate and/challenges have impacted moderate-income householdsor unsuitable, and whose income is too low to be able to pay forseeking to rent (or buy) a home without having to spend morea unit of appropriate size in their community are often describedthan 30% of their income on housing costs.as being in core housing need. Households that choose to spendDEFINING AFFORDABLE HOUSINGTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORTMarket Home OwnershipMarket Rental HousingAffordable Home OwnershipAffordable Rental HousingSocial HousingTransitional HousingEmergency SheltersHomelessHousing Spectrum19

The tables below describe the rents that households in Nova Scotia,by income decile, can pay with 30 percent of their monthly before-taxincome. Even with a moderate income, people living solo can afford very little if weconsider the current Average Market Rents (AMR).2020 Average Market Rent - Nova Scotia**AMR 829 981 1,182 1,42230% of monthly total incomeBachelor1BR2BR3BR Average Income Before TaxesFAMILIES*Total Households: 276,000Lowest decile 28,200 705NONONONOSecond decile 45,100 1,128YESYESNONOThird decile 57,000 1,425YESYESYESYESFourth decile 68,000 1,700YESYESYESYESFifth decile 80,200 2,005YESYESYESYESSixth decile 95,100 2,378YESYESYESYESSeventh decile 109,800 2,745YESYESYESYESEighth decile 127,300 3,183YESYESYESYESNinth decile 152,600 3,815YESYESYESYESHighest decile 243,500 6,088YESYESYESYESSINGLES*Total Households: 171,000Lowest decile 4,300 108NONONONOSecond decile 12,700 318NONONONOThird decile 20,200 505NONONONOFourth decile 23,400 585NONONONOFifth decile 28,700 718NONONONOSixth decile 35,000 875YESNONONOSeventh decile 42,100 1,053YESYESNONOEighth decile 49,500 1,238YESYESYESNONinth decile 60,400 1,510YESYESYESYESHighest decile 98,500 2,463YESYESYESYES*Source: Centre for Income and Socioeconomic Well-being Statistics, Statistics Canada**Source: Canadian Mortgage and Housing Corporation (CMHC) Rental Market SurveyDEFINING AFFORDABLE HOUSINGTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT20

Section 6The State ofAffordableRental Housingin Nova ScotiaOUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT21

The State of AffordableRental Housing inNova ScotiaEngagement Results11,282 visits to the web portalAs soon as we convened, we launched a review of thecurrent state of affordable housing in Nova Scotia with the1,204 Survey Responseshelp of key stakeholders and housing experts through foursubcommittees. We began by assessing our current contextin three ways: first, by assessing what data we had on thestate of affordable rental housing in Nova Scotia; second,by seeking expert insight from around the globe; and third,570 ideas and suggestionsreceived via web portalby listening to the experiences and ideas of our province’sresidents and stakeholders in affordable housing.The Commission’s WHAT WE HEARD Report will delve129 “Share Your Ideas”into public input in greater depth, including detailedsurvey results and excerpts from feedback.There is a lot to learn from jurisdictions across Canada and around102 MapIt pinsthe world who have recently studied and implemented innovativepolicies to address housing challenges and barriers. By looking atwhat others are doing, we can uncover good practices and provide91 Written Submissionsevidence to support the government’s actions.As part of this work, Department staff partnered with studentsfrom Dalhousie University’s School of Planning to conduct9 Storiesseveral jurisdictional and literature reviews and examined studiesand research papers that contributed to the development of thisreport. The Speaker Series hosted innovators and experts fromthroughout North America and Europe to share their insights andadvice with the Commission.411 participants in focus groupsand workshopsWe heard what other jurisdictions have done to improve accessA web portal launched in January 2021 offered multiplebased on extensive studies of social mobility and sustainableinteractive tools for stakeholders and the public to share theirgrowth, and looked at emerging trends in communities withviews and ideas and received over 11,000 visits. We gatheredcomparable challenges to our own. See appendix B for moreall of this information and synthesised our observations anddetails about the many experts who provided their time andlearnings throughout the engagement. Feedback was sharedshared their expertise with the Commission. We would like towith commissioners on a regular basis to help guide discussionsgive our sincere thanks to all our presenters for sharing theiraround charting a new course for affordable housing. Key themesknowledge and experience with the Commission.emerged from this engagement process and shed light on themost common challenges and opportunities. This analysishelped shape the Commission’s recommendations.THE STATE OF AFFORDABLE RENTAL HOUSING IN NOVA SCOTIATHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT22

Section 7Our FindingsOUR CALL TO ACTIONTHE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT23

Our FindingsWe learned that our current housing crisis is not the result ofagree that we need more data to assess the specific needsone specific event, but rather the consequences of systemicof Indigenous groups, people of African descent, and otherchallenges that have been building for years, including aunderrepresented groups, which also addresses historic andchronic under-investment in housing; inadequate fundingcontinuing systemic barriers these groups may face.for maintenance and capital renewal of the existing publicand community housing portfolios; an extremely small andMembers of this Commission debated the value of identifyingfragmented community housing sector; and systemic inequitiesspecific targets based on this limited data. To make economicallyrelated to affordability and access to housing. The pandemicvalid projections, we need more research and data. Thesimply exposed how vulnerable our system is, with very littleCommission underlines the importance of housing databuffer (if any) to cope with unexpected shortfalls or demand.compilation and rigorous economic analysis to inform thedevelopment of targets.Housing data for Nova Scotiais limited.Our housing market isunder pressure.It is important to note that housing data for Nova Scotia islimited. The CMHC annual rental market report is the foremostAs Nova Scotia’s population grows, our economy grows—butdata source on rental properties. However, it excludes smallerrarely in perfect tandem. New residents may struggle to accessgeographies, as well as dwellings not originally purpose-built forthe employment opportunities, services, and housing they need,the rental market and properties with less than 3 units. That said,and the private and public sector may struggle to adjust to risingwe have a reasonably clear picture of our current state baseddemand. Our population has increased significantly over the laston nationally-collected data on core housing need and newfive years, going from 942,970construction statistics.of January 1, 2021, the highest on record. This is goodin 2016 to 979,449 asnews for our economy. However, supply has not kept pace withSimilarly, data on affordable housing demand is limited todemand. Our rural communities are challenged by availability,nationally-collected household statistics, such as indicatorswhile the vacancy rate in Halifax is very low.on Core Housing Need and the Market Basket Measure. WeNova Scotia Population2021 Jan979,449990,000980,000970,0002011 Oct945,016960,000950,000940,000930,0002015 Apr935,271920,000910,000900,00000OUR FINDINGS01020304050607080910111213141516171819THE NOVA SCOTIA AFFORDABLE HOUSING COMMISSION REPORT202124

“ Given present low vacancy rates and anticipatedhigher levels of migration, the rental market in our2021. During the first quarter of this year, Nova Scotia’s housingstarts were up 20.9% compared to the same period last year 2.capital city is expected to remain tight over the nextthree years”However, despite recent increases in house com

Charting a new course for affordable housing in Nova Scotia OR CALL TO ACTION THE NOVA SCOTIA AFFORDABLE HOSING COMMISSION REPORT2 Many people contributed to our work at a crucial time for the future of housing in Nova Scotia. Our web portal received over 11,000visits in less than four months.