Hunger Report 2017: The Rising Cost of Housing and its Impact on Hunger in Ontario

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ONTARIO ASSOCIATION OF FOOD BANKS HUNGER REPORT <strong>2017</strong> V. Why Affordable <strong>Housing</strong> Matters <strong>The</strong> current federal investment <strong>of</strong> $11 billion for a National <strong>Housing</strong> Strategy is promising; however, it has yet to be announced when this funding will be released <strong>and</strong> where it will be invested. <strong>The</strong> Ontario Association <strong>of</strong> Food Banks believes that part <strong>of</strong> this funding should be invested into a portable housing benefit for low-income households. Under this recommendation, the portable housing benefit would be provided directly to a low-income tenant to ensure that their rent does not exceed 30 per cent <strong>of</strong> their household income. At <strong>its</strong> most basic, this benefit would allow low-income families to stay in their homes, <strong>and</strong> complement supply-side efforts to build new, or repair aging, social housing un<strong>its</strong>. Beyond this, a portable housing benefit would drastically reduce the red tape that is involved in managing the various social housing systems that are in place across the province, helping to reduce wait times <strong>and</strong> ensuring that families in need are able to secure safe <strong>and</strong> adequate housing as quickly as possible. At present, individuals that live in rentgeared-to-income housing experience a number <strong>of</strong> challenges. For example, in the current system, an individual living in social housing cannot move out <strong>of</strong> fear <strong>of</strong> losing their RGI unit. As the current benefit is tied to that specific unit, if an individual must move cities for any reason, whether it be employment or to be near family, they would then return to the bottom <strong>of</strong> the waiting list, where they would likely remain for years before l<strong>and</strong>ing a new affordable unit. A portable housing benefit would allow for greater choice <strong>and</strong> flexibility, providing individuals with the ability to move more freely throughout the province <strong>and</strong> pursue new opportunities. To put the cost <strong>of</strong> the portable housing benefit into context, it is important to note that all three levels <strong>of</strong> government already subsidize both homeowners <strong>and</strong> market-rate private renters. In 2008/2009, the subsidies to both totaled $8.9 billion, with the vast majority ($8.4 billion) targeting homeowners through policies like the First-Time Home Buyer’s Tax Credit, capital gains tax exemptions on primary residences, <strong>and</strong> home renovation tax cred<strong>its</strong>. 52 Much <strong>of</strong> these homeownertargeted benef<strong>its</strong> ended up in the h<strong>and</strong>s <strong>of</strong> higher-income Ontarians, as households with an income <strong>of</strong> $100,000 or more have an ownership rate <strong>of</strong> 90.6 per cent, which is almost three times higher than low income Ontarians, who have a home ownership rate <strong>of</strong> less than 38 per cent. 53 20
INCREASED ODDS OF VISITING THE EMERGENCY ROOM IF HOMELESS 8.5 times COST OF A STANDARD HOSPITAL STAY $5,364 COST OF A FEDERAL PORTABLE HOUSING BENEFIT, PER MONTH, PER PERSON $306 Arguably, not providing this opportunity actually costs the province more, as there is a strong inverse relationship between health <strong>and</strong> poverty. Individuals living in poverty are more likely to use the health care system, due to mental or physical illnesses related to stress, poor nutrition, <strong>and</strong> lack <strong>of</strong> stability. 54 <strong>The</strong> 2008 Ontario Association <strong>of</strong> Food Banks’ ‘<strong>Cost</strong> <strong>of</strong> Poverty’ report estimated poverty costs the health care system $2.9 billion annually in Ontario alone. 55 On top <strong>of</strong> the stresses <strong>of</strong> poverty, not having a home can add further burdens. A study comparing health care utilization <strong>of</strong> homeless individuals versus housed low-income adults found that the homeless individuals were 4.2 times as likely to be hospitalized <strong>and</strong> 8.5 times as likely to visit the emergency room. 56 Those vis<strong>its</strong> add up: the cost <strong>of</strong> a single st<strong>and</strong>ard hospital stay in Ontario is $5,364. 57 In contrast, a recent proposal by the National <strong>Housing</strong> Collaborative estimates the cost <strong>of</strong> a federal portable housing benefit at an average <strong>of</strong> $306 per household, per month. 58 This benefit could help move many Ontarians who are currently in precarious living situations into stability. By developing a portable housing benefit for low-income Ontarians, the government could drastically reduce spending on the already stressed healthcare systems, while directly improving the well-being <strong>of</strong> hundreds <strong>of</strong> thous<strong>and</strong>s <strong>of</strong> individuals. Providing individuals with a pathway to housing that is safe, appropriate, <strong>and</strong> affordable is one way the provincial government can save money, decrease food bank use, <strong>and</strong> build stronger <strong>and</strong> healthier communities. 21
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Hunger Report 2017: The Rising Cost of Housing and its Impact on Hunger in Ontario

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