Lesson 5:

Corporate Plan Document

A corporate plan document typically outlines the strategic vision, mission, and goals of an organization over a specified period. For Canada Mortgage and Housing Corporation (CMHC), the plan includes current details about its objectives related to providing affordable housing, supporting economic growth, and contributing to social inclusion. It also address the strategies CMHC plans to implement to achieve these objectives and the key performance indicators that will be used to measure progress.

Goals of the 2022-2026 Corporate Plan for CMHC

• Ensuring that people who need housing the most have fair and reliable access to homes that are secure and affordable.
• Making sure that Canada has enough homes and different types of housing options to meet the needs of all kinds of people.
• Creating a housing system that is strong and stable, taking care of social, financial, and environmental issues, including those related to climate change.

Housing in Canada According to the CMHC Corporate Plan (2022-2026)

Canada’s housing situation has been shaped by various factors such as immigration, changing household characteristics, an aging population, high house prices in cities, limited affordable rental options, and climate change. Access to affordable housing remains a significant issue, with systemic racism and discrimination posing additional barriers. Even before the pandemic, many people in Canada found it hard to afford quality housing. Here are a few important points when it comes to housing in Canada today:

• Impact of the Pandemic: The pandemic has disproportionately affected renters and those already facing affordability challenges. Rental demand temporarily decreased due to decreased immigration and student demand. However, demand is still higher than rental supply, pushing rental prices up. Eventually, pent-up immigration and ambitious targets will likely increase demand again. During 2021 to 2023, vacancy rates are expected to remain higher than before the pandemic. The pandemic also impacted the homeownership market. Pent-up demand and limited supply led to rising home prices. Remote work trends encouraged people to move further from cities, increasing demand in previously less popular markets.
• Affordability Challenges: House prices are increasing faster than average incomes, making it difficult for homeowners to afford their mortgage despite lower interest rates. Rents have also risen faster than incomes. Lower-income households and those affected by the pandemic’s economic impact face particular affordability challenges.
• Core Housing Need: More than 1.7 million households (12.6% of households) are in core housing need. These households cannot afford more than $660 per month for housing and often rely on government support for basic necessities. Core housing need means their housing is below at least one of the adequacy, affordability, or suitability standards, and they would have to spend 30% or more of their income on median rent for acceptable alternative housing.
• Importance of Housing: Housing goes beyond shelter; it plays a vital role in individual and community success, stability, and pride, leading to positive outcomes for the country.

Introduction to Housing Market Assessment (HMA)

Understanding the housing market is essential for creating vibrant and sustainable communities. A Housing Market Assessment (HMA) is a valuable tool that helps us analyze and comprehend the dynamics of housing supply, demand, and affordability. By using various methodologies and data sources, the HMA provides insights into the current housing landscape, helping policymakers and stakeholders make informed decisions to ensure equitable access to secure and affordable housing. Let’s delve into the methodologies of HMA, including the Starts and Completions Survey and Market Absorption Survey, and explore how past HMAs have influenced vital decisions in community housing development.

Methodologies for Housing Market Assessment (HMA)

• Market Research and Data Collection: Gathering data on housing supply, demand, and market trends through various sources such as surveys, census data, building permits, and real estate transactions.
• Demographic Analysis: Studying population growth, migration patterns, and household characteristics to understand housing needs and preferences.
• Economic Analysis: Examining economic indicators like employment rates, income levels, and interest rates to assess affordability and housing market stability.
• Market Absorption Survey: Collecting data on how quickly new housing units are sold or rented in the market to gauge demand and absorption rates.
• Supply and Demand Analysis: Balancing the available housing supply with the demand, considering factors like vacancy rates, rental and sales prices, and the inventory of unsold or unrented units.
• Housing Affordability Analysis: Assessing the affordability of housing options for different income groups by comparing housing costs to household incomes.
• Policy and Regulatory Review: Examining local, regional, and national housing policies and regulations to identify potential barriers or incentives affecting the housing market.
• Stakeholder Engagement: Involving community members, developers, housing authorities, and other stakeholders in the assessment process to gather insights and feedback.

Starts and Completions Survey Methodology

The Starts and Completions Survey collects data on new housing construction activity in Canada. The methodology involves:

• Data Collection: Gathering information from building permits, local government records, and other reliable sources to identify new residential construction projects.
• Survey Sample: Selecting a representative sample of housing construction projects across different regions and types of housing (single-family, multi-family, etc.).
• Data Validation: Ensuring the accuracy and completeness of the collected data by cross-referencing with other sources and conducting on-site inspections if necessary.

Market Absorption Survey Methodology

The Market Absorption Survey assesses how quickly newly constructed homes are sold or rented. The methodology includes:

• Survey Sample: Selecting a sample of recently completed housing units from the Starts and Completions Survey to track their sales or rental status.
• Data Collection: Gathering information on sales or rental activity for the selected housing units over a specific period, usually several months.
• Analysis: Analyzing the data to calculate absorption rates, indicating the pace at which the market is absorbing the new supply.

Analysis and Impact on Community Housing Decisions

To analyze the impact of a past HMA on community housing decisions, several factors need consideration:

• Policy Changes: Evaluate if the HMA influenced changes in housing policies or regulations, such as zoning modifications, affordable housing incentives, or increased housing development initiatives.
• Community Investment: Assess if the HMA findings led to targeted investments in specific housing types or areas based on identified needs and demand.
• Affordability Measures: Analyze if the HMA informed efforts to improve housing affordability through subsidies, rental assistance, or housing finance programs.
• Development Focus: Determine if the HMA results influenced the focus of housing developers, leading to an alignment of supply with demand.
• Impact on Residents: Examine how the HMA impacted the overall quality of life for residents, particularly in terms of access to affordable and suitable housing options.
• Ongoing Review: Assess if the HMA’s recommendations were revisited and updated regularly to adapt to changing market conditions and evolving community needs.

A comprehensive evaluation will reveal the extent to which the HMA influenced community housing decisions, enhanced housing availability and affordability, and contributed to overall housing stability and development in the community.

How can an HMA be used by housing managers?

A housing manager in a First Nation community in Canada can utilize Housing Market Assessment (HMA) as a valuable tool to gain comprehensive insights into the unique housing challenges and opportunities within their community. By conducting an HMA, the housing manager can better understand the specific housing needs of community members, assess the demand for various housing types, and identify affordability issues that may be affecting residents.

First and foremost, the HMA can assist the housing manager in identifying the current housing supply and demand dynamics in the community. This information is crucial for determining whether the existing housing stock is sufficient to meet the needs of the growing population or if there is a shortage of certain types of housing, such as family units or homes for elders.

Moreover, the HMA can help the housing manager gauge the affordability of housing options for different income groups within the First Nation community. By analyzing data on housing costs and household incomes, the housing manager can identify affordability gaps and develop strategies to address them, such as exploring housing subsidy programs or advocating for increased funding for affordable housing initiatives.

Additionally, the HMA can shed light on external factors that may impact the community’s housing market, such as changes in government policies or economic trends. This awareness enables the housing manager to proactively adapt to potential challenges or opportunities, ensuring a more resilient and sustainable housing strategy for the First Nation community.

By utilizing the HMA, the housing manager can make well-informed decisions, prioritize key housing projects, and advocate for the necessary resources to address the community’s unique housing needs effectively. Ultimately, the HMA empowers the housing manager to create and implement housing solutions that align with the values, culture, and aspirations of the First Nation community, fostering a sense of pride, ownership, and improved quality of life for its residents.

Housing Market Assessment (HMA) – Case Study: Maplewood First Nation Community

Maplewood First Nation Community is a small Indigenous community located in a rural area of Canada. With a growing population and limited housing options, the community faces unique challenges in meeting the housing needs of its residents. To address these challenges, a Housing Market Assessment (HMA) was conducted to understand the current housing landscape, assess demand and affordability, and inform strategic decisions for community housing development.

1. Methodologies Used:
   • Community Survey: A survey was conducted to gather insights from community members regarding their housing preferences, affordability concerns, and housing priorities. This helped to ensure that the HMA reflects the needs and aspirations of the residents.
   • Demographic Analysis: Data on population growth, household sizes, and trends in migration were analyzed to understand the changing housing demands in the community.
   • Supply and Demand Analysis: An inventory of existing housing stock was conducted, and data on vacancies, occupancy rates, and rental rates were collected to assess the demand-supply balance.
   • Affordability Assessment: Data on household incomes and housing costs were analyzed to evaluate the affordability of housing options for different income groups in the community.
2. Findings:
   • Housing Shortage: The HMA revealed that Maplewood First Nation Community was experiencing a shortage of housing units, particularly for families and elders. The existing housing stock was not sufficient to meet the growing demand, leading to overcrowding and higher rental costs.
   • Affordability Challenges: Many households in the community faced significant affordability challenges, with a substantial portion of their income spent on housing. This posed barriers to accessing suitable and secure housing for lower-income residents.
   • Housing Preferences: The community survey indicated a preference for culturally relevant and sustainable housing designs that honor their traditions and respect the environment.
3. Impact on Community Housing Direction
   • Priority on Family Housing: The HMA findings highlighted the urgent need for more family housing units. As a result, the housing manager and community leaders prioritized the development of multi-bedroom homes to accommodate larger families.
   • Affordable Housing Initiatives: To address affordability concerns, the community sought partnerships with government agencies and non-profit organizations to secure funding for affordable housing initiatives. This included exploring subsidies, rent-to-own programs, and housing grants.
   • Cultural Relevance in Design: The HMA’s insights into housing preferences encouraged the community to collaborate with architects and builders who could incorporate traditional elements and eco-friendly features into new housing projects, ensuring cultural relevance and sustainability.
   • Community Land Development: The HMA informed decisions about the strategic use of community-owned land for housing development. Priority was given to locating housing projects in areas with existing infrastructure and easy access to services.
4. Conclusion
   • The Housing Market Assessment played a vital role in guiding the Maplewood First Nation Community’s housing decisions. By providing valuable data and insights, the HMA empowered community leaders and the housing manager to take proactive steps in addressing housing challenges and fostering a more sustainable, culturally relevant, and affordable housing landscape for their residents. The HMA’s impact on housing decisions led to the improvement of living conditions, increased community pride, and a stronger sense of belonging among the residents of Maplewood First Nation Community