Housing refugees’ top challenge

Hundreds of refugees arrive in Manitoba each year, each one trying to carve out a home in a city where there are too few homes to go around.

And while social-service agencies push to find their clients safe places to stay, the housing gap leaves many refugees from Africa and elsewhere stuck in a catch-22 that can put their new life on pause for months.

According to a study by University of Winnipeg Prof. Tom Carter, 91 per cent of refugees lived below the poverty line in their first year in Winnipeg. By their third year, that figure dropped to 53 per cent. If that figure speaks to the hard work of new arrivals, it also tells a tale of housing need: For most refugees, transitional and social housing are the only options within reach.

But there’s a waiting list for Manitoba Housing, and affordable apartments get snapped up quickly in a city with a vacancy rate that hovers near a paltry one per cent.

“The only thing which really frustrates me is the housing,” says Mubambe Didier, 44, who landed in Winnipeg with his wife and three children on Nov. 15. “It’s the only thing (missing). If housing would be upgraded to the reality on the ground, it would be much better. But the gap is too big.”

Even though the cold snap in the wind and the snow on the ground are foreign, the Didier family “felt at home right away,” Didier says, hands neatly folded on a table inside refugee agency Welcome Place’s brightly coloured boardroom.

The counsellors from Welcome Place who met them at the airport were “very gentle and kind,” he says; they helped the family learn everything from where to find a doctor to how to take the bus in Winnipeg. And yet, two months later, the family is still living in one of the 31 temporary apartments above Welcome Place’s Bannatyne Avenue offices. Counsellors at Welcome Place and other agencies work to find families like the Didiers a place to stay, but for new refugees on a razor-thin budget, including a social-housing allowance that can hover around $480 a month, there are few options.

That’s the catch-22, said Welcome Place settlement counsellor Aurelio Madut Danto: Until refugees find a permanent address, they cannot apply for a social insurance number, cannot start to work, cannot start to do all the things it takes to get established in a new land.

“The bottom line is affordable housing for newcomers,” Danto says. “The second is finding a job… but housing is the biggest issue for our clients.”

As the pressure mounts, it could become one of the biggest problems for government, too.

At a conference in Edmonton in November, Carter, the Canada research chair for Urban Change and Adaptation at the U of W, called on government to expand its mandate to help boost immigrant and refugee housing. Among the solutions he cited were property-tax forgiveness, reducing land costs and reducing fees to encourage the development of affordable housing.

But the challenges facing newcomers don’t stop there.

Manitoba MP and Liberal citizenship and immigration critic Kevin Lamoureux said the two biggest priorities for settlement services should be language training and help for young immigrants to ensure they don’t drop out of school and get sucked up by gangs.

Lamoureux has spent much of his political career helping immigrants and their families navigate the system and he said while Manitoba does relatively well overall with settlement services, the biggest gaps are for refugees and immigrants who arrive without built-in support systems of family, friends and co-workers.

While most of Manitoba’s immigrants are provincial nominees and often have friends and family on the ground, or jobs on arrival, refugees don’t usually have any of that and have the highest needs.

“Many refugees, including many from Africa, are a lot more reliant on umbrella organizations to provide support because they don’t have family and friends here,” he said. “If you don’t provide adequate supports it can be challenging.”

Ottawa is spending $32 million on settlement services in Manitoba this fiscal year and plans to increase that to $36.5 million next year. Nationally, settlement funding has tripled since 2006. The new formula for calculating settlement-service funding allocations includes a recognition that refugees require higher levels of services, and therefore provinces are allocated money in part on their share of refugees.

For refugees currently languishing over long-term periods in transitional housing, change — however it comes — can’t come fast enough.

Didier acknowledges in some ways, he arrived in Canada in a good situation: He is bilingual and educated; he worked as a logistics officer for humanitarian agencies in his native Congo until war and corruption forced him and his family to flee to Uganda and, finally, to Canada.

But this doesn’t make it easier or less anxious for Didier when his children worry about when they might be able to start school. When it comes to housing the waiting is, indeed, the hardest part.

http://www.winnipegfreepress.com/local/housing-refugees-top-challenge-137551398.html

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Council explores ways to pay for crumbling infrastructure

City officials are digging deep to try and find new ways to fund much-needed infrastructure improvements in Winnipeg. They took a step in the right direction, releasing a long-awaited report on possible funding sources.

Mayor Sam Katz created the Infrastructure Funding Council last year and tasked them with weighing options for addressing the $3.8 billion infrastructure deficit faced by the City of Winnipeg.

A total of 17 recommendations were included in the report that was released by the IFC.
The group considered everything from a municipal sales tax to vehicle registration fees, which are two options Katz said he would definitely not support, because Winnipeg residents are already paying enough in those areas.

“That’s not something I’d be supportive (of),” Katz said, “In fact, I can tell you right now, citizens are being totally ripped off, end of story.”

The report is broken down into three sections: funding options that are within control
of the municipality, options requiring support from the Province, and options requiring support from the Federal government.

The Executive Policy Committee and the Association of Manitoba Municipalities want a permanent transfer from the federal gas tax, one per cent of the existing seven per cent PST dedicated to infrastructure, and a rebate from the PST.

While Katz said the deficit is daunting, he said it isn’t impossible to tackle.
“It’s no secret that our infrastructure has been neglected for decades and we have a huge catch-up to play,” Katz said.

But raising taxes isn’t on the Mayor’s agenda; rather, it’s about getting a greater share of the existing tax money.

http://www.globalwinnipeg.com/Council+explores+ways+crumbling+infrastructure/4805349/story.html

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“Wanted: Unit for Rent”— Manitoba Apartment Shortage

An increase of new immigrants due to the Manitoba Provincial Nominee Program has brought rental accommodations to shorter number. A survey done by Statistic Canada showed that Winnipeg has only one percent apartment vacancy rate. So, where will these new immigrants be residing?

This is one of the questions that will be addressed by the WinnipegREALTORS in their upcoming rental report.

City across Manitoba is experiencing shortage of affordable housing. The Manitoba Real Estate Association considers that this situation was rooted from three decades of rent controls in Manitoba and the time has come to assess the rent control system. MREA suggests that those vacated units must float with market rates and be re-controlled when it is re-occupied.

Meanwhile, huge population of rented units has been transformed into condominiums and the rest where neglected making them inhabitable. The rental shortage brings some negative effect in line with the government’s economic plans. Positive immigration is halted and companies’ expansion is hindered. This is because the new workforces who are entering the province have no place to live in.

Construction of new building maybe the right solution but it is expensive and risky when units offer similar accommodation at lower rates. The 20 year moratorium on controls for new units offers investors to cover costs but not for long when older buildings tend to cost lower.

By allowing existing units float to market there will be a stronger economic support for new construction. Favourable interest rates present a chance to fund new construction and construct units will less risk. Yet, the underlying price support from the existing market needs to be in place before new construction will initiate.

Some may wonder the rent increase applications above the one-per-cent guideline are being approved. However, the buildings receiving the renovations are not in the affordable group. They might have been in that category before the upgrade but they often are not after.

Capital expenditures whether in new construction or renovations, will improve the quality if the rental stock but will not make it cheaper to rent. An increase in supply will produce the competitive situation needed to initiate physical improvements in rental buildings. Increasing the rental supply will improve the situation for the bulk of tenants. Providing affordable housing units will still require subsidization from the public purse. Renovation grants or partnership programs aimed at supporting low-income families has to be part of the housing agenda. Collaborative efforts between private and public sectors will be the means to improving the quality of life in affordable housing.

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Realtor association targets land transfer tax for first-time homebuyers

The new president of the WinnipegREALTORS is hoping persistence pays off when it comes to the much maligned provincial land transfer tax.Claude Davis and other WR representatives met Finance Minister Roseann Wowchuk to urge her government to exempt first-time homebuyers from having to pay the land transfer tax.

The association made the same pitch last year to then finance minister Greg Selinger, now premier, but to no avail. Davis said he’s hoping this time will be different, although Wowchuk didn’t give them an answer at the meeting.

“She received it as information and said she’d consider it. And that’s all we can ask,” Davis said.

However, Wowchuk didn’t sound like she held out much hope for an LTT reprieve in this spring’s provincial budget.

She said in an interview that although she’ll take this and other tax-change requests into consideration, the province is facing a deficit as a result of the recession and has to find a way to balance the budget, stimulate the economy and maintain health care and other essential services.

Davis said WR representatives pointed out that each house transaction in Manitoba generates about $40,000 in spinoff economic benefits, and exempting first-time buyers as some other provinces do could help stimulate the market by making homes easier for them to purchase.

The tax is intended to pay for the costs of registering a property transaction in the provincial land registry. It is based on a percentage of the value of a transaction, rather than a set fee.

The tax rate is 0.5 per cent for the portion of the selling price between $30,000 and $90,000, one per cent from $90,000 to $150,000, 1.5 per cent from $150,000 to $200,000, and two per cent for anything above $200,000. On a $350,000 sale, the homebuyer pays a land transfer tax of $4,650.

http://www.winnipegfreepress.com/business/realtor-association-targets-land-transfer-tax-for-first-time-homebuyers-81304347.html

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Healthy businesses are essential to sustainability

Kudos to Vancouver Mayor Gregor Robertson and city council for continuing the one-per-cent tax shift in the 2010 operating budget. It takes strong leadership and political courage to do the right thing for the city’s residents and employers.

It’s a myth that the one per cent tax shift is a tax break for businesses. The tax shift is a gradual correction of a long-standing inequity — it is not a handout to our city’s businesses. In fact, many businesses will see their property taxes increase in 2010.

Businesses — big and small — support paying their fair share of taxes, just as long as it’s an equitable share. Commercial property owners and their tenants already pay an increasingly disproportional share of taxes. In Vancouver, we have reached the point where eight per cent of the properties pay more than 50 per cent of the property taxes. This is not sustainable.

Annual budget increases have become the norm without evaluation of the city services being delivered. The Vancouver Fair Tax Coalition has long advocated the city stop increasing its budget without an examination and a justification of how it is spending money. Every family and employer in Vancouver reviews their own priorities for spending, and it would be imprudent if the city didn’t do the same.

Each year, residents assume a budget increase is needed to retain services, programs and amenities. But on closer examination, some programs might be out of date or no longer a priority, while others might be deserving of more support. Rationalizing programs and expenditures in every budget will lead to better use of our tax dollars, and benefit both residential and business taxpayers.

City Manager Penny Ballem and her staff deserve praise for using the Vancouver Services Review to ensure we get the most for our tax dollars. Ever increasing budgets and taxes cannot continue, and the Vancouver Services Review is an important first step in the right direction.

Vancouverites support the idea that our city should be livable, green and sustainable. But it is important to remember that sustainability is a balance of social, economic, and environment elements in our city. All three are important and need to be balanced.

The economic element is taken for granted all too often, and it is a key driver of sustainability. Social and environmental factors cannot be maintained without jobs, employers, and commercial enterprises.

Vancouver city council seems to understand healthy businesses are essential to economic sustainability and job creation. Neighbourhoods flourish because residents are drawn to the shops, restaurants and stores in the area. Local offices and businesses provide jobs and allow citizens to live, work and shop in one community.

A lack of jobs and economic vitality means people commuting outside the city and that impacts both the environment and the social aspects of our neighbourhoods.

As taxpayers, we have to accept that the city can’t increase its spending every year nor can it be responsible for all our service wants and needs. Tightening the city’s financial belt is a responsible and necessary step toward ensuring Vancouver’s sustainability.

http://www.vancouversun.com/business/Healthy+businesses+essential+sustainability/2351284/story.html#ixzz0oNTWwmGD

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Housing here slightly less affordable

OWNING a home in Manitoba just became a little less affordable thanks to a bump up in mortgage rates and higher house prices.

RBC Economics said Tuesday the cost of home ownership in the province edged up by 0.2 to 0.4 percentage points in the July-to-September period.

The good news is it was “arguably the weakest deterioration” in affordability across the country, the bank said in its latest quarterly housing affordability report. In fact, this was the first decrease in affordability in Manitoba since early 2008.

RBC said the erosion in affordability was part of a countrywide trend.

“The reversal in the improving trend in affordability was caused by a recent pickup in key mortgage rates as well as gains in property values… ,” it said, noting the average posted rate on five-year conventional mortgages — the basis for the calculations in the RBC measures — went up modestly from a generational low of 5.45 per cent in the second quarter to 5.73 per cent in the third quarter.

And generally strong resale market activity across the country has heated up housing prices again since midsummer, after months of widespread softness, said senior RBC economist Robert Hogue.

He said that trend is likely to continue because house prices aren’t expected to fall any time soon and mortgage rates are headed higher in 2010.

He said Manitoba markets, in terms of affordability, are pretty close to long-term averages right now.

RBC’s affordability research measures the proportion of pre-tax household income required to service the cost of mortgage payments, property taxes and utilities.

Here’s how the affordability of four housing groups shaped up in Manitoba:

  • Affordability of detached bungalows increased by 0.4 per cent to 34.8 per cent, compared to a one per cent hike to 40.2 per cent in Canada.
  • Affordability of standard two-storey homes went up by 0.3 per cent to 37.5 per cent (1.2 per cent jump to 45.8 per cent in Canada).
  • Affordability of standard townhouses inched up by 0.2 per cent to 23 per cent (0.7 per cent increase to 32.3 per cent in Canada).
  • Affordability of standard condominiums increased by 0.3 per cent to 20.5 per cent (0.5 per cent increase to 27.6 per cent in Canada).

http://www.winnipegfreepress.com/business/Housing-here-slightly-less-affordable.html

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Province caps rent increases at 1%

WINNIPEG – Renters will see a maximum one per cent rent hike next year, the province announced today.

That’s much lower than last year’s cap, which was 2.5 per cent.

The rent control guideline takes into account cost increases including utilities, property taxes and other expenses in running an apartment complex.

The cap applies to most residential rental property including apartments, single rooms, houses and duplexes.

http://www.winnipegfreepress.com/breakingnews/Province-sets-rent-control-cap-at-1-57362362.html

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2008 GST Reduction Was Not Universally Praised

“I came to this very store and promised Canadians that a new Conservative government would cut the GST from seven to six to five per cent and at midnight tonight we will deliver on that promise, three years ahead of schedule,” he said at a photo opportunity in a Mississauga store Monday.

Harper said this latest cut will result in an additional $6 billion in tax relief for Canadian consumers in 2008.

But NDP Leader Jack Layton said the GST announcement and other Conservative tax cuts will do little to increase wealth in Canada. In an end-of-year interview, Layton noted that the tax cuts could widen the gap between rich and poor, while the average family could see higher property taxes, post-secondary education fees and other bills.

“Those with the highest salaries – the millionaires, the big banks, the (profitable) corporations… The ones that don’t need the help – are going to get the most help; the oil and gas companies in the tar sands, continuing to get subsidies as well as a big boost from the corporate tax cuts,” Layton said.

Patti Croft, chief economist with the investment firm Phillips, Hager and North, said anyone making big-ticket purchases will benefit from the consumption tax reduction. But, she said: “In general most economists would prefer a cut in income taxes. It’s a more efficient way to reduce the tax burden. By cutting the GST, hopefully it causes Canadians to spend more.”

Ottawa realtor Duane Leon, however, predicted that even though the cut could shave thousands of dollars off the price of a newly built home, there would be little impact on the real estate market. Many builders have already announced that price increases in the thousands of dollars for new construction that will take effect early in the new year, he said, adding this will offset any benefits to buyers from the GST reduction.

The only buyers who will see an actual one per cent price drop in the purchase price of a newly built home are those who bought in 2007 and take possession in 2008, said Leon, an agent with RE/MAX Metro-City Realty. GST is not charged on resales of existing properties.

The director of the Canadian Taxpayers Federation, however, defended this second trim in the GST, saying it will save the average household between $150 and $200 annually.

“While some have criticized cutting the GST, it is a broad-based tax cut that puts $5 billion back in the pockets of over-taxed Canadians,” John Williamson said in a statement. Noting that this is the second GST cut that the Tories have made since July 1, 2006, he added: “This is good news particularly since $10 billion in the pockets of Canadian consumers is preferable to Ottawa hoarding the cash.”

The president of the Canadian Federation of Independent Business agreed.

“The one percentage point cut puts over $5 billion dollars back into the national economy, at a time when sales are traditionally sluggish in many sectors,” said Catherine Swift.

“Our members’ No. 1 priority is tax reduction of all kinds,” she said. “They want to see more money left in Canadians’ pockets.”

The Goods and Services Tax was introduced by the Conservatives in 1992. All 10 premiers opposed the tax, lobby groups railed against it and one poll showed 80 per cent of Canadians objected

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