Non-profit means that the developer does not profit
from selling the development or the individual units. Generally these developments serve
those with insufficient income or equity to meet their housing needs. There are several
different types of non-profits:
| Private |
Community based organizations such as churches or
service clubs mostly building family or senior's projects. Some of these
organizations, like the March of Dimes, serve a special need. |
| Municipal |
Owned a corporation set up by a municipality with
council representation on the Board of Directors |
| N.R.H. |
Niagara Regional Housing
manages units which are
generally 100% subsidized. |
| Cooperative |
These developments are managed by resident boards of
directors. They are not exactly rentals. They are ruled by the same
legislation as credit unions. Residents participate in management with volunteer
time. |
| Region of Niagara |
The Region operates nursing homes. |
| Native |
Separate legislation allows for native groups to
develop and manage affordable housing. |
Go to
the Options directory to see what
is available for seniors.
A new trend is to develop non-profit housing that serves only those who
can afford to pay the actual costs. Life lease housing is an example of resident
funded developments.
Few Units Being Built
To further complicate matters, building for profit rental housing has
become an economic impossibility. The "economic rent," the cost of
operating and paying the financing costs, is much higher than the "market rent,"
what the comparable rents are in other similar buildings. For example, if the market
rent is $650 a month for a two bedroom apartment in Niagara Falls, the economic rent for a
comparable new apartment would be $950 per month.
With fewer affordable units available, government-assisted developments have
long waiting lists, over 7,000 in Niagara. Also,
governments halted development programs for ten years at a time when need
was growing at its fastest
rate. The hope is that the private sector will do the job. Clearly, as seen
above, that is not going to happen.
A new program now exists in Ontario which provides a grant
of up to $70,000 for the creation of a unit that remains affordable by CMHC
standards. JustShelter Realty Services provides consulting services to
groups wishing to take advantage of the program. It is currently
working on a 40 unit apartment in St. Catharines.
A Big Definition
Non-profit housing has been developed in Niagara since the mid 60's with the
biggest push coming in the 80's. Over a thousand units are now occupied by people
whose needs range from simple poverty, to supportive living for the elderly, physical or
developmental disabilities, mental illness, abusive relationships, or even supportive
housing for the young.
Except for Niagara Regional Housing buildings and those serving special need, non-profit
housing has a mix of incomes, including those who can pay a full market rent. This
encourages a healthy community and works against the social stigma of warehousing the
poor.
In this section, you will find many examples of non-profit housing. In fact,
there are for-profit developments which serve people who receive assistance directly.
Per diem rates at nursing homes are indirectly subsidized by government. |
