| It could be described as the privatization of homelessness. Governments are turning to the private sector to solve the problem of a chronic shortage of affordable housing units in Alberta. In Calgary, one of the largest private-public affordable housing projects is now underway.
Holy Cross Manor, an affordable housing complex (and private retirement facility) that is scheduled to open in 2007, will be located at the former Holy Cross Hospital site in the city’s southwest. The project is bringing together public and private money in a search for fresh solutions to the intractable problem of homelessness in Calgary.
Carrie Nielson is chairperson of Homeless Awareness Calgary, an 11-year-old organization that is committed to educating the public about the issues that surround homelessness. She says private-public partnerships may be the only way to build enough affordable housing units to meet the demand.
"I think it’s OK," she says.
However, Nielson remains concerned that private companies will not be attracted to such projects because the profit margin for private companies to build affordable housing is "so slim."
"The value of a home in Calgary is very high," says Nielson. "That’s why there isn’t enough affordable housing. Developers want to get their bucks back."
In Alberta, responsibility for affordable housing falls under the jurisdiction of the Ministry of Seniors and Community Supports with the province and federal governments teaming up to fund projects. To access funding to build affordable housing units, groups must first approach the Alberta government with a plan outlining the details of the proposed project.
In some cases, the groups can include private for-profit companies, such as Holy Cross Manor. The 130-unit project is designated as affordable housing for low-income seniors and families, and is part of a $20 million federal-provincial government initiative announced in January of this year to fund the construction of 432 affordable housing units in Calgary, Edmonton, Fort McMurray, Stony Plain and Villeneuve.
Holy Cross Manor is the name of two distinct projects at the same site. One is the affordable housing project located in the Grey Nuns Building, where rents are projected to be approximately $455 per month for a studio apartment and $590 per month for a one-bedroom apartment.
According to Alberta Seniors and Community Supports spokesperson Jason Chance, affordable housing units built or renovated under the provincial-federal government program "must remain affordable for at least 20 years" and "must be at least 10 per cent below market value."
The other part of the project is a retirement facility, located in another building at the Holy Cross site and funded entirely by private money. It will eventually have up to 1,000 units, which will include additional services such as meals, with rents in excess of $1,500 per month for a one-bedroom apartment.
The money behind the Holy Cross Manor project, according to Alberta Seniors and Community Supports, breaks down to a federal Canada-Alberta Affordable Housing Program grant of $2.2 million and a provincial contribution of $2.2 million, in addition to a financial contribution of $1.9 million and land valued at $2.5 million from Holy Cross Manor.
In addition to being the name of the project, Holy Cross Manor is also the name of a subsidiary company of Enterprise Universal Inc., whose shareholders include brothers Dr. Peter Huang, regional chief of ophthalmology for the Calgary Health Authority, and his brother, ear, nose and throat specialist Dr. Ian Huang. Enterprise Universal purchased the Holy Cross Hospital site from the Calgary Health Authority for $4.5 million in 1997 – at that time the deal sparked controversy because the Holy Cross Hospital had just undergone more than $30 million in renovations.
According to Holy Cross Manor spokesperson Jason Hatcher, Enterprise Universal Inc. wants to operate the Holy Cross site "in continuing with a health and wellness tradition."
He says any profit from the rental of the 130 affordable housing units will be reinvested back into the building. "The government is having a very difficult time attracting private industry to get involved in these types of projects," he says. "The reason no one wants to do it is there is very little profit."
Nielson agrees the blend of public and private money may be the only way large-scale affordable housing projects will be built. She hopes more private companies put concern for people before profits and get involved in building affordable units in Calgary.
Her concerns about the lack of housing are validated by statistics. Despite the valiant efforts of a few dedicated organizations, the homelessness "problem" continues to mount. Since the City of Calgary began to tabulate such figures, the number of people deemed homeless has grown to more than 2,500 in 2004 from 447 in 1992.
On the May evening in 2004 when the most recent homeless survey was conducted, more than 100 families were amongst those who had no place to live. The survey also notes race and age: 77 per cent were Caucasian, 13 per cent were Aboriginal and nine per cent were visible minorities; four per cent were preschoolers, two per cent were school-age children, three per cent were youth, eight per cent were young adults, 46 per cent were working-age adults, 34 per cent were middle-aged adults and two per cent were seniors.
The executive summary goes on to state that there is a "considerable range of housing forms available to meet the needs of various sub-populations who do not have a permanent residence to which they can return whenever they choose."
However, a check with the Calgary Housing Corporation, the municipal not-for-profit agency responsible for affordable housing, indicates that the needs of Calgary’s population are not being met at this time. In 2004, Calhome, as it is also known, had more than 2,000 people on its waiting list for affordable housing units.
With the number of homeless people in Calgary on the rise, the provincial and federal governments are now turning to private enterprise to fix what they have been unable to. Scheduled to be completed in 2007, Holy Cross Manor is one example of what some homeless advocates hope will be a trend of more private business interests getting involved in housing the city’s poorest and most disadvantaged citizens. |
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