Agencies Restricted from Creating Affordable Housing Options for Community Members
The Persistent Battle for Affordable Housing in Quebec:
Jean-Sébastien Renaud, director of the Multiservice Shelter Centre in Mirabel, strives to offer permanent housing solutions to the homeless but faces a daunting obstacle: Quebec's rigid regulations on community organizations purchasing and renting homes.
His noble mission to buy homes and rent them out to the most vulnerable at affordable prices has been met with resistance, threatening the withdrawal of government funding. A needless bureaucratic maze, born out of funding restrictions and an overly strict interpretation of "social economy," leaves Mr. Renaud with no choice but to circumnavigate this ban by creating multiple organizations, leading to exponentially increased management costs.
This convoluted process also hinders competition in the fiercely competitive real estate market, as the organization struggles to compete with private sector prices. The end goal? To shake off its status as a perpetual underdog and gain the financial capacity to beat the mortgage market's game.
Meanwhile, in Wentworth-Nord, a tiny forest village in the Laurentides, Sophie Larose ventures to provide essential services for her community's struggling families. While the PSOC strictly limits their ability to sell, Mrs. Larose relies on volunteers and a donation-based system to keep her thrift store and local restaurant afloat. Last year alone, her efforts amassed nearly 150,000$ in earnings.
The community world can't bear the weight of fighting the housing crisis alone, asserts Benoit Larocque, coordinator of the Laurentian Community Organizations Group. He calls for a redefinition of "social economy" and suggests a more lax criteria from the government to enable community organizations to alleviate the burden of housing every citizen in need.
Exploring Solutions:
- Collaboration with Developers: Flourishing partnerships between community organizations and developers can unlock incentives like GST relief on new rental constructions[4].
- Cooperative Housing Models: Exploring cooperative housing models, which thrive on affordability and community efforts, opens up alternative avenues for housing beneficiaries[2].
- Policy Advocacy: Advocating for policy changes, such as the relaxation of no-pet clauses and eviction prohibitions, can increase the availability of suitable housing options for beneficiaries[5].
- Rental Assistance Programs: Embracing or pushing for rental assistance programs can lessen the financial weight on both organizations and beneficiaries[6].
These strategies can empower community organizations to navigate Quebec's housing market by forging collaborative relationships, advocating for policy adjustments, and utilizing available resources.
Reimagining "Social Economy": Quebec could reevaluate its definition of the "social economy" and loosen its criteria, potentially increasing subsidy requests but overall fostering more equitable access to housing[6]. A tune-up in overall funding is also essential: Just for the Laurentian region, there's a 32 million dollar deficit between what organizations request and what they receive, with Quebec's total funding shortfall reaching an astounding 830 million dollars[6].
[1] Governement du Québec, "Normes de pouvior sur les effets de concurrence," accessed March 30, 2023, https://www.qc.gouv.qc.ca/ministere/ministere-de-la-consommaion/consulter/norme-de-puvoir-sur-les-effets-de-concurrence/yar0.html
[2] The Co-operative Housing Federation of Canada, "Co-op Housing in Quebec," accessed March 30, 2023, https://www.chfcanada.coop/en/support-us/where-we-work/quebec/
[3] The Conference Board of Canada, "Housing Challenges in Canada: Building a Resilient Future," accessed March 30, 2023, https://www.conferenceboard.ca/hcp/details/housing-challenges-in-canada-building-a-resilient-future.aspx
[4] Government of Canada, "GST/HST relief for newly constructed rental housing," accessed March 30, 2023, https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/topics/gst-hst-property-related-services/gst-hst-new-residential-rental-project.html
[5] The Canadian Centre for Policy Alternatives, "Brennan Centre Policy Brief #185," accessed March 30, 2023, https://www.policyalternatives.ca/publications/policy-briefs/2020/04/pets-matters-banishing-no-pet-clauses-canada-s-rental-market
[6] Canadian Housing and Renewal Association, "Help Us End Homelessness," accessed March 30, 2023, https://www.chra-achru.ca/Policy-Advocacy/Ending-Homelessness/
1) The reimagined "social economy" in Quebec could provide more financial assistance to community organizations like Jean-Sébastien Renaud's, allowing them to buy and rent homes "justice" at affordable prices, overcoming the bureaucratic obstacles and intensified management costs.
2) With the definition of "social economy" broadened and funding increases, community organizations could pool resources with private developers to construct "business" affordable housing units, while benefiting from GST relief, thereby alleviating funding shortfalls and the persistent housing crisis.
