December 19, 2006

Statement to the Legislature: Concerning the Canada-Ontario Affordable Housing Agreement
The Honourable David Caplan, Minister of Public Infrastructure Renewal

Good afternoon Mr. Speaker.

It is my pleasure to inform the House that late last week the Canada-Ontario Affordable Housing Agreement was officially signed – and Ontario’s new Affordable Housing Program has been launched.

This is a historic occasion in this province.

Ontario is back into affordable housing in a meaningful and significant way after almost a decade of neglect by the previous government.

That decade of discontent is over.

Thousands of new units and housing allowances will become available for the neediest, most vulnerable members of our society.

This momentous agreement occurred through precedent-setting cooperation among all three levels of government, each committed to finding a long-term affordable housing solution.

Over the past many months, ministry staff and I have worked closely with Canada’s Minister Fontana, as well as two other federal ministers responsible for housing, Andy Scott and Steve Mahoney, and their staff to develop the best new Affordable Housing Program possible.

This new program also affirms the effectiveness of this government’s approach to negotiating with its municipal partners and stakeholders groups. By choosing consultation over confrontation and cooperation over conflict we were able to reach this historic agreement.

We consulted with and listened to our municipal partners and stakeholder groups who told us the old program designed by the previous government simply wasn’t working.

They told us they needed more flexibility to meet local housing needs.

They told us about the growing affordability problems in the North and rural communities.

They told us they wanted to try innovative approaches. We listened and we agreed.

And most importantly, we acted.

Ontario demanded and fought for flexibility and innovation.

Our federal partners listened.

I also want to acknowledge my colleague, Municipal Affairs and Housing Minister John Gerretsen, for his valued insight and contribution.

Our government truly believes that in an age of affluence, in one of the richest jurisdictions in the world, there is no justification for turning our backs on those who suffer misfortune.

That is why – despite an extremely challenging fiscal situation – the McGuinty government is investing $301 million in this Affordable Housing Program.

With another $301 million contributed by the federal government for a total of $602 million, we are keeping our election commitment to match federal dollars in this critical area.

This brings the total amount invested in affordable housing in Ontario by the federal, provincial and municipal governments to $734 million over the life of this program.

It is an investment that will create more than 15,000 units of affordable housing, and provide housing allowances for some 5,000 lower-income families in Ontario.

Through the Affordable Housing Program, there will be:

• More affordable rental units
• More support for those needing housing assistance in Northern Ontario
• A major expansion of new supportive housing for victims of domestic violence and persons suffering from mental illness
• $80 million directed towards 5,000 housing allowances in communities across the province, providing immediate relief to low-income Ontarians.

The program establishes the Ontario Mortgage and Housing Partnership, fulfilling another key commitment of our government.

This will help housing providers access stable, long-term, low-cost financing to help build more units faster.

The program will also help make home ownership possible for those who thought it was beyond their reach.

It introduces the Home Ownership Market Entry Fund, a new initiative that would offer a capital grant for the creation of new affordable housing.

This grant would help support the development of at least 4,500 units, which would then be purchased by Ontarians with low to moderate-income at below the average-market selling price for a given area.

And, if appropriate legislation is passed, it will be permanent.

If the unit is sold, the grant would be repaid to the Fund along with a share of the capital gains.

This money would then be used to help more low-income families realize the dream of home ownership.

Mr. Speaker, shelter is a basic human right; a basic human need.

A house becomes a home. A home is a catalyst for stability in our lives; a necessary precondition for education and employment.

By investing in housing, we are investing in our people.

By investing in our people – we are investing in stronger communities.

In the days ahead and in a continuing spirit of cooperation, our government will be working with our federal and municipal partners on the implementation and successful rollout of this important initiative.

We will be announcing further details as we move forward.

Affordable housing is a key priority of our government.

The new Affordable Housing Program is a key component of our comprehensive housing strategy for this province.

In this – and in many other ways – we are taking action to protect and support Ontario’s neediest, weakest and most vulnerable.

We are helping create the caring, compassionate, civil society of which we can all be justly proud.

Thank you.