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Husiasm to This Fund STANDING COMMITTEE ON HUMAN SERVICES Hansard Verbatim Report No. 3 – April 16, 2012 Legislative Assembly of Saskatchewan Twenty-seventh Legislature STANDING COMMITTEE ON HUMAN SERVICES Mr. Delbert Kirsch, Chair Batoche Mr. Cam Broten, Deputy Chair Saskatoon Massey Place Mr. Mark Docherty Regina Coronation Park Ms. Doreen Eagles Estevan Mr. Greg Lawrence Moose Jaw Wakamow Mr. Russ Marchuk Regina Douglas Park Mr. Paul Merriman Saskatoon Sutherland Published under the authority of The Honourable Dan D‟Autremont, Speaker STANDING COMMITTEE ON HUMAN SERVICES 27 April 16, 2012 [The committee met at 19:00.] We‟ve demonstrated our commitment to meet housing challenges head-on through ongoing investments and through The Chair: — Good evening, ladies and gentlemen, and the development of programs that are meeting the demands of a welcome to tonight‟s proceedings. Tonight we have Social growing province. Since November of 2007, in partnership with Services and first we‟ll introduce the members. I‟m Delbert non-profit groups and the private sector, Sask Housing Kirsch. I‟m the Chair. Deputy Chair is Mr. Cam Broten. We‟ve Corporation has funded a total of 1,924 affordable rental got Mark Docherty, Doreen Eagles, Greg Lawrence, Russ housing units that have been developed or are under Marchuk, and Paul Merriman. And we have one participating construction; 1,439 units have been completed with the funding member and that would be Mr. David Forbes. of $110.6 million. And as of December 31, 2011, an additional 485 units with the funding of $63 million are under This evening the committee will be considering the estimates of development. the Ministry of Social Services, but before we begin, I would like to remind the officials to introduce themselves when they We‟ve provided assistance to nearly 400 households right speak for the purpose of Hansard‟s recording. We will now across the province to achieve home ownership. And we‟ve begin our consideration of vote 36, Social Services, central helped more than 3,000 households improve health, safety, and management and services, subvote (SS01). energy efficiencies in their homes. To help those with low income who have a place to live but struggle to afford the rent, General Revenue Fund we have also adjusted shelter rates and rental supplements Social Services seven times, based on the average market rent. This means that Vote 36 clients may be eligible for up to 100 per cent of the average market rent and those with a disability are eligible for up to 110 Subvote (SS01) per cent of the average market rent. The Chair: — Minister Draude is here with her officials. I‟m going to take a minute to describe the effect of what is Madam Minister, would you please introduce your officials and occurring in the rental market. As I have mentioned, we‟ve if you have any opening remarks. indexed the rental supplement seven times. You may wonder why in our 2012-13 budget for rental housing supplement it is Hon. Ms. Draude: — Thank you very much to the Chair and lower than ‟11-12. The answer lies in the fact that we have good evening to you and to the committee members. I‟d like to successfully increased the supply of rental housing. start by thanking the opposition members for allowing us to split these six hours into different segments. We appreciate that Here‟s an example of the progress in this area. In 2011 alone very much. there were more multi-unit rentals started than in the last seven years of the previous government combined. This increase in I know we‟ve agreed to spend our first couple of hours on housing supply has reduced the upward pressure on rents. The housing, and I‟m going to focus my opening remarks on opposition would know the largest rent increases in the last two housing, but I‟d like to start by introducing officials. Beside me decades occurred between 2007 and 2008. The average rent tonight I have the deputy minister, Ken Acton, this side. increases have steadily stabilized since then, setting at rates that Housing division, we have Don Allen, assistant deputy minister. are closer to and becoming closer to inflation. This means that Eileen Badiuk is executive director of program and service renters need less assistance than we expected when we prepared design. Dianne Baird is executive director of housing network. the 2011-12 budget. And although there‟s more work to do, it‟s Doug Schweitzer is the director of housing development and encouraging to see the progress. real estate. Representing corporate services, we have Alan Syhlonyk, who is the assistant deputy minister; Miriam Myers, And it‟s not only in the area of housing where our province has who is the executive director of finance and administration. seen progress. According to RBC [Royal Bank of Canada] And we have the Status of Women office represented by Pat reports, over the last two decades the affordability of home Faulconbridge, executive director. ownership was under most stress in Saskatchewan in the years 2007-2008. We have a separate session booked later this week for income assistance and disability, but we have two officials here tonight RBC documents steady improvement in affordability since that in case there is some overlap questions. So we have Bob time. According to RBC‟s analysis, ownership costs as a Wihlidal, who is the assistant deputy minister, and Doug Scott, percentage of household income continues to improve in 2011. who is the director of strategic policy. This improvement has brought the level of affordability back quite close to its long-run average. Combined with the expected So as I said, I‟m going to start with some discussion on income gains as a result of continued economic growth, RBC‟s housing. Saskatchewan has been experiencing economic and conclusion is that affordability, and I quote, “is unlikely to be a population growth that‟s not been seen in decades. With many factor restraining Saskatchewan homebuyers.” benefits of growth comes challenges, one of which has been in the area of housing. Our province‟s growth has created This is critical because I know we continue to have challenges increased demand for housing, resulting in greater pressures on in housing. But the challenges will not be addressed by focusing housing supply and on affordability. Our government has not exclusively on one part of the housing spectrum. They are going shied away from these challenges. In fact we‟ve made housing a to fit together. That‟s why we continue to build on the actions priority. that have been taken since November of 2007. 28 Human Services Committee April 16, 2012 In March of last year, we announced the Saskatchewan projects for a total of $1.16 million in government funding. advantage housing plan. The plan contained five programs to These projects will (1) provide financial assistance for up to help us increase housing supply and address housing 160 first-time homebuyers in Regina, Saskatoon, and affordability: that was Headstart on a Home, affordable home Humboldt, (2) build nine new housing spaces for adults with ownership program, rental construction incentive, Habitat for intellectual disabilities in Regina, (3) develop three new Humanity partnerships, and investment of $34 million in rental affordable homes in north central Regina, and (4) implement a units. regional housing action plan to help communities meet housing needs associated with growth. Headstart on a Home will help municipalities and developers create home ownership opportunities for about 1,000 In the second intake of applications for the Summit Action moderate-income households over five years, with a funding of Fund, our government doubled the funding provided to $2.7 $199 million. The affordable home ownership program matches million for eight projects that will increase the housing supply grants that municipalities provide to homeowners and are by 268 units. These new projects will develop local home originally expected to create 600 new home ownership units. ownership programs in Pinehouse, providing 10 new home The rental construction incentive is designed to help ownership units. It will result in four new rental units in La municipalities and developers create new rental units and create Ronge, with additional units in future phases. It will help opportunities for low-income people to find safe, affordable employers offer housing benefits to employees who are housing. It was originally expected to create 2,900 units. first-time homebuyers, resulting in 190 new homes; created 24 new rental units in Weyburn through significant municipal Habitat for Humanity is known all over the world for helping financial incentives; build 13 supportive living rental residences people achieve their dream of home ownership. Our in Eston, freeing up existing single family homes; develop a government is very proud to continue our very successful 12-unit retirement villa through sustainable community partnership with Habitat Saskatchewan‟s affiliates. In 2011 we fundraising in Mossbank; built a 10-unit home for cognitively expanded our commitment to Habitat for Humanity to a total of impaired adults in Corman Park; and facilitated the construction $3.5 million to help 70 families build a place to call home. of four new basement apartments for low-income residents in an existing building in Melfort. Also in 2011, we set aside nearly $34 million to develop more affordable rental housing units in communities with long-term As you can see by these projects, builders and developers and housing needs and to rejuvenate government funding homes communities and organizations are coming together and and rental units that would have been lost without major work. creating solutions to meet our housing needs, and our The total of 160 units were rejuvenated.
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