Kitchener MP looking to nail down affordable housing definition before feds deliver Fall Economic Statement

A private member’s motion going to Parliament Hill this week is calling for a change to the criteria that CMHC can use to define affordable housing. It’s being proposed by Kitchener Centre MP Mike Morrice, who said housing dollars aren’t being used properly.

There are multiple definitions of affordable housing being used by companies to apply for federal funding. The Canada Mortgage and Housing Corporation (CMHC) defines affordable housing as housing that costs less than 30 per cent of a household’s pretax income.

“What we found, and this is following the research of experts across the country, there’s at least six different criteria they’re using outside of their own definition when it comes to actually applying for and getting access to so called affordable housing money from the government,” said Morrice.

“Since 2005, rents have doubled, wages certainly not the case. The crisis is in part because we’ve seen the cost of housing go up exponentially in a time when wages haven’t kept up.”

Motion 170 narrows down the definition of affordable housing into two criteria – affordable and deeply affordable.

Morrice wants CMHC to stick to the currently agreed upon definition of affordable, meaning housing costs don’t exceed 30 per cent of a household’s pretax income.

Deeply affordable is referred to as low income or people making less than 50 per cent of average income in their community.

“Use those two definitions – across all federal housing funds, so that the limited federal dollars that are going to affordable housing actually builds affordable housing,” said Morrice.

In a statement to CityNews Kitchener, a media relations officer for the Office of the Minister of Housing, Infrastructure, and Communities said to solve the housing crisis, more housing needs to be built across the board.

“From middle class apartments to social and affordable housing for the most vulnerable. Earlier this year, the federal government introduced the most ambitious federal housing plan in over 40 years. The housing crisis cannot be solved through a one-size-fits-all approach. That’s why Canada’s Housing Plan includes a suite of measures designed to address every aspect of the housing crisis, and get more homes built at levels of affordability needed to meet the diverse needs of people across the country. Each of these measures is grounded in a core commitment to ensure that no Canadian must pay more than 30% of their income for housing.”

The private member’s motion going forward aims to create the two definitions that could be used when companies apply for federal housing funds, which Morrice said could help ease the current housing crisis.