OTTAWA (July 25, 1996) -- The federal government today announced details of a new approach to on-reserve housing for First Nations in Canada.
The new on-reserve housing policy is one example of how the federal government is fulfilling its Red Book commitment to develop an approach to housing that emphasizes community control, local resources and flexibility in design and labour requirements. Many of the ideas were incorporated from the Assembly of First Nations Housing Task Force.
"The changes are the result of discussions with First Nations leaders and the work already accomplished in the First Nations Innovative Housing Demonstration Initiative which was launched in 1995," stated the Minister of Indian Affairs and Northern Development, (DIAND) Ronald A. Irwin. "The new approach responds to what communities identified they needed: more flexibility and job training to expand and improve their housing through greater local control over their housing programs."
The Minister Responsible for the Canada Mortgage and Housing Corporation, (CMHC) Diane Marleau, praised the improvements incorporated in the new approach saying, "The new federal approach will link housing to community economic development, job creation and skills enhancement, and partnerships with the private sector. It will establish a solid framework which will enable First Nations to achieve immediate and sustainable improvements to on-reserve housing."
The housing conditions in many First Nations communities are well below the Canadian average and are deteriorating. The situation will become increasingly worse if not addressed now, as the demand for housing is dramatically increasing. At the same time, overcrowding (85,000 households for 76,000 homes) and lack of adequate maintenance has led to rapid deterioration. The federal government's new approach to on-reserve housing addresses these issues.
"A key component of the new policy is multi-year planning. First Nations can link housing to other community assets and needs. For instance, housing, training and social assistance programs can be combined in a community-based project that uses social assistance-based training programs to renovate existing housing," Minister Irwin said. "The result can be better housing, a better trained workforce and much needed employment. More flexible and long-term resource planning by First Nations will make more effective use of debt financing within their communities."
Since reserve lands cannot be mortgaged, First Nations have had difficulties in securing private sources of financing for housing construction. To help off-set this problem, DIAND will increase the availability of its Ministerial Loan Guarantees as security on housing loans. As well, DIAND, CMHC and other federal agencies will continue work with First Nations and the financial community to explore new ways of improving First Nations access to private capital.
The new on-reserve housing policy benefits from CMHC programs as well. "CMHC will assist First Nations to construct new housing through its Non-Profit Housing Program which will be modified to provide greater assistance for low-income households," said Minister Marleau. "In addition, First Nations will be able to renovate existing housing through CMHC's Residential Rehabilitation Assistance Program. These programs, together with support for First Nations to enhance their capacity to deliver and manage their own housing programs, will go a long way to improving on-reserve housing conditions."
Federal funding for on-reserve housing will increase by $140 million over the next five years. This includes an increase of $60 million to the 1996-97 budget, bringing the total amount to just over $352 million, shared between DIAND ($222.5 million) and CMHC ($129.8 million).
"Poor housing conditions also contribute to other social problems - - Aboriginal youth suicide is the highest in Canada, and the number of cases of tuberculosis is rising," said Minister Irwin. "While the need for even greater funding exists, we believe this approach is a significant step in the right direction."
The policy will be implemented on a voluntary basis. First Nations who choose not to opt into the new policy will continue to operate under the existing DIAND on-reserve housing program.
The federal government is committed to improving living conditions on reserves. A recent example of this commitment is the almost doubling of the funding for water and sewage systems this year, announced by Minister Irwin earlier this month. DIAND's budget for water and sewer has been increased by $98.5 million in 1996-97 to bring the total budget to $223.5 million.
The funding for the federal government's approach to on-reserve housing will be reallocated from within existing DIAND and CMHC budgets. This announcement is an example of how this government is prioritizing its spending so that it can better serve Canadians by making efficient use of their tax dollars.
For further information:
Lynne Boyer Claude Poirier-Defoy DIAND CMHC (819) 997-8404 (613) 748-2221
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