Manitoba NDP scaling back former PC government's 700-unit social housing pledge

Manitoba housing advocates say they are disappointed the NDP government is scaling back a commitment made by the Progressive Conservatives to create 700 new social housing units.

The PCs, who were defeated in October's provincial election, pledged last February to construct 300 new social housing units and add 400 more units through rent supplements. 

More than $13 million was earmarked for capital investment for the 300 new units through a request for proposals issued in July. A further $3.4 million was pledged for rental supplements. 

But $6 million allotted for this RFP wasn't budgeted and the NDP government has "adjusted" the proposal, wrote Orinthia Babb, a spokesperson for Housing, Addictions and Homelessness Minister Bernadette Smith.

Under the NDP, just over $7 million is now budgeted for the first round of capital investment for the 300 new units.

That decision is disappointing, says Christina Maes Nino, executive director of the Manitoba Non-Profit Housing Association.

"We need housing today. We needed housing yesterday. We need housing tomorrow," she said.

Kirsten Bernas, chair of the provincial committee of the Right to Housing Coalition, agrees.

"It's extremely disappointing to see them roll back the target put in place by the last government, [which] was already falling short of the need," she said.

The NDP government is still committed to building the 700 units, Babb said. Details will have to wait until its first budget is released this year.

'Deeply affordable' units promised

The 300 newly built units the Tories promised last winter were intended to be rent-geared-to-income units — meaning tenants would only pay 30 per cent of their income for rent.

Those units, sometimes referred to as "deeply affordable," are most coveted by housing advocates, who say the province needs to build 1,000 each year during the next 10 years to meet demand. 

The February announcement was the largest social housing commitment the Tories made during their nearly eight years in power.

A recent CBC investigation into Manitoba Housing revealed that during the PC's reign, the province sold off more units than it created. The investigation also found a system in decay, where more than 2,000 units sat vacant while thousands of people languished on a waitlist. 

Progressive Conservative housing critic Carrie Hiebert, who was elected in the Morden-Winkler riding in October, said the former PC government had budgeted for the 700 units, and she's tired of hearing the NDP claim otherwise.

"It's frustrating because it's doing nothing but hurting those people who need the housing," she said.

The NDP's expensive election promises are "just resulting in the cuts, and I'm sad about that," said Hiebert.

The housing minister's spokesperson says the government inherited a social housing promise without a plan attached to make it happen. 

Along with the funding shortfall for the RFP, the NDP argue the Tories had "unrealistic" construction costs per unit — meaning the amount they were offering per unit wasn't feasible to construct the necessary new units, the spokesperson said.  

The result was a social housing "pledge with no plan to pay for these units and no realistic budget to get it done," Housing Minister Smith said in a prepared statement.

Paul Thomas, professor emeritus of political studies at the University of Manitoba, said there is a little wiggle room in a budget for a new government to fill an alleged funding gap left by the previous government.

But he acknowledged the NDP haven't been in power long enough to address every gap.  

"It's not unusual when a new government takes over to discover that the financial picture painted by the outgoing government was not as rosy as was portrayed," Thomas said. 

"I give them some latitude here to say, 'Well, this is moving this giant ship of state on many different files. It will take time.' " 

Scaled-back plan

In December, the NDP government announced a $2.8-million scaled-back plan to turn 250 units into social housing by using existing Manitoba Housing units, non-profit homes and private rentals with government rent supplements. 

At the time, the government also promised a second phase of funding this year, offering $2.9 million for housing programs specific to women and the LGBTQ community.

Housing spokesperson Babb said that under the Tories there were "zero" agreements made for the promised 400 rent-supplement units. The new government was able to find funding to follow through on 250 of those units, Babb said. 

As for the 300 newly constructed units, the deadline to submit a proposal was in September, before the Oct. 3 provincial election. Submissions were made from the non-profit and for-profit sector to partner with the province to build them. 

The aim was to notify successful bidders by December. However, Babb said the proposals are still under review.

Advocates like Bernas and Maes Nino are still holding on to hope that 2024 will bring new social housing commitments.

Maes Nino said the non-profit sector is ready to build these new units outlined in the RFP — it just needs the funding commitment. 

"I had people literally calling me saying they were calling staff back from summer holidays to make sure that they met the [September] deadline to get these projects," she said.

"They're just waiting on government to jump in and to contribute."

Bernas said the housing coalition is meeting with the NDP's housing minister this week. She doesn't know if they'll get any more clarity on the future of these units, but they will highlight the need to see 1,000 new units built in 2024. 

During the election campaign, the NDP "made a commitment to end chronic homelessness in two terms," Bernas said.

"This government's not going to be able to meet that commitment without a significant investment in social housing."