& ONE PROBLEM we _ the end of World War II were in need of major repairs. {The relationship between ‘age and poor standards is geo- ‘graphically consistent: the percentage of sub-standard heusing units declines with the age of structure in each metropolitan area. Within the beundaries of the central cit- ies of metropolitan areas, cen- sus tracts with a high propor- tion of substandard dwellings also have a high percentage of dwellings built before 1920. “[The various indicators of housing inadequacies overlap in. some measure. The over- crowded home may also be a } 1 = THE WESTERN CANADIAN LUMBER WORKER structurally deficient home. Many of the 250,000 homes in need of major repairs could be brought to an accentable standard. Of the 250,000 fam- ilies not maintaining their own households, not all are low income people acting from economic necessity. Nevertheless, despite all the qualifications that have to be made, there is a clear indication that the shortage of acceptable dwellings is some hundreds of thousands. It cannot be put at less than 300,000 units. It may be judged to be much more. | | - “PROGRAMME | costs such as legal fees, com- eke. to raise the average eost of N.H.A. financed houses to $17,402 in 1965 from | $16,478 the previous year. “,.. The average borrow- /er’s income was $6,655; he ‘was 35 years of age and had two children. He also noted that more than 65 per cent of all housing started in 1965 was financed by conventional _mertgage loans by life insur- / ance and trust companies and ‘that N.H.A. loans were in- ‘creased on single dwellings from $15,600 to $18,000 .. . “What are the changes needed to have an active _housing program to fill the needs of all Canadians? The gfundamental problem with re- gs to Canadian housing ‘pqgiey under the National \Heusing Act has been the al- ‘mest exclusive concentration om loans for new houses. Al- though there is-nothing wn ad am much can 4 a eral agency to” lend money and ensure i, oan fair and reason- Oe rates to buyers w homes, this attacks le small part of Can- sing problem. The is that only people well off can new homes e NEHA. mortgage was $6,375, far above the na- tional average income. Thus those who had most bene- fited under the National Housing Act were in the higher income brackets, a sit- uation which Professor James Murray, in a study for the Ontario Association of Hous- ing Authorities, called “so- cialism for the rich and pri- vate enterprise for the poor.” For the person in the higher- middle income bracket the National Housing Act has been a fair success. “For those in the lower in- come groups, however, hous- ing policy in Canada has been ~ a total failure. Since public housing plans were started in 1949, a total of only 10,625 public housing units had been completed to the end of 1964. In 1964 C.M.H.C. approved only 790 units in federal- provincial housing projects. This was down from the 989 units approved the year be- fore. But what is the need in Canada? Professor Mur- ray’s study estimated that by 1981 the need will be for one million low income dwelling units and an additional one million units for so-called moderate income persons earning between $3,000 and $4,800 a year. The output to date has not even scratched the surface of the needs for publicly assisted housing in ‘Canada... “The New Democratic Party suggests the following program for housing in Can- ada, particularly concentrat- ing on the needs of those in the low and middle income groups for whom private en- terprise has failed in the pro- vision of adequate housing: “First, there should be a federal ministry of urban af- fairs and housing. The pres- ent set-up of having housing as an appendage to the De- partment of Labour is not adequate ... The department would also be responsible for financing houses through loans and grants. “The department would be responsible for social, eco- nomic, technical, and design research into housing and community problems. It would be responsible for co- ordination of the measure- ment of national housing needs as forwarded by the provinces and the determina- tion of national priorities and programs, again with the necessary consultation with and agreement of the prov- inces. One would like to see C.M.H.C., taking. an. active part in implementing the plans set forth by Professor Murray with regard to hous- ing needs determined for the year 1981. “Second, N.H.A. loans must be available to purchasers of existing homes whether they lie within a designated urban renewal area or not. Often people in the lower and mid- dle income groups cannot afford the purchase of new homes but would be able to finance the purchase of older homes if. mortgages were available demanding reason- able down payments and bear- ing low interest rates... “The third step with regard to housing which we in the New Democratic Party feel is necessary is that the N.H.A. interest rate must be reduced from the current 634 per cent. This high interest rate means in effect that people are paying for their houses an amount double that which they originally paid for their homes .. . “TI suggest also, Mr. Speak- er, that in all N.H.A. mort- gages there should be an al- lowance of approximately $2,- 00C for the purchase of. fix- tures, furnishings and appli- ances by the purchaser. This amount should be included in the N.H.A. loan. As the situ- ation stands today, people buy a new home and then are im- mediately faced with the nec- essity of purchasing these new appliances and furnish- ings and paying very high in- terest rates. to loan companies. This operates as a hardship upon them in keeping up the payments on their home. “Fourth, housing must be made available to persons at a cost of not more than 25 per cent of their income. Rentals for public housing projects must be limited to this figure. “Fifth, public housing pro- jects must be fairly small in size and integrated with the rest of the community ... “Sixth, special emphasis must be given to adequate housing for the elderly. In particular, there needs to be ve = TOO MANY OF THESE an increase in availability of suitable accommodations for unattached people, that is, widowed, elderly people, at a cost which they can be ex- pected to afford. “Seventh, urban renewal plans must be totally co-ordi- nated and provision must be made for persons displaced by slum clearance. These per- sons must be guaranteed good housing at rents they can af- ford when they are moved out of their present premises. Much new housing for lower income persons must be pro- vided before really serious at- tempts at slum clearance can bring the type of social prog- ress visualized by the plan- ners, “Righth, loans for home im- provements should be en- couraged more than in the past. The 1965 annual report of C.M.H.C. indicates that for the fourth consecutive year there has been a decline. Homes in good repair are the best defence against blighted areas and also provide an avenue of employment during seasonal lay-offs in some in- _ dustries. “We in the New Demo- cratic Party, Mr. Speaker, feel that these measures would go a long way to solv- ing Canada’s housing needs. The building of homes helps in the building of character and a sense of pride and ac- complishment which should be experienced and enjoyed by all Canadians.” QaooeeaouuauQQooou eee eee ee es es ee eEmoerrrreoeoeoeoeoeeO Dw WHERE MONEY COMES FROM During 1966 the money supply going to housing dried up or was diverted to other channels. Money for house-building in Canada normally comes from four sources: 1. Conventional lenders, outside National Housing Act... 52% 2. ‘Personal and family lenders, outside NHA — 15% 8. Approved lenders under National Housing Act 16% 4. Direct lending under National Housing Act — ee 171% - 100% THIS HAPPENED IN 1966 In 1966, as compared to 1965, this happened: 1. Conventional lenders dropped their loans ch ea eS nem 35% 2. Personal and family lending remained steady 3. Approved lenders under NHA dropped _______ 50% A eimect jending ander NECA, jnereased 10% So it was the approved lenders under NHA and the conventional lenders who pulled their lending out of housing and diverted it to more profitable fields. As long as housing depends on the conventional money market for funds, it will be im- possible to match building to need. In times of greatest need, money will desert the housing field and gravitate to the areas of more profitable return. :