Appearance before the Standing Committee on Public Accounts on Report 2, Housing in First Nations Communities, 2024 Reports 2 to 4 of the Auditor General of Canada, 11 April 2024

Logistics

Date: April 11, 2024

Time: 3:30 p.m. – 5:30 p.m.

Location: 035-B West Block

Subject: 2024 Reports 2 to 4 of the Auditor General of Canada to the Parliament of Canada
Report 2: Housing in First Nations Communities

Appearing

Context on Committee Membership

• MP Valerie Bradford (LIB – ONT) may ask about a national housing strategy.
• MP Jean Yip (LIB – ONT) may ask why there is little progress on improving housing conditions.
• MP Shaun Chen (LIB – ONT) has previously asked about the rates of necessary home repairs in recent years in the Auditor General's report.
• MP Iqra Khalid (LIB - ONT), Parliamentary Secretary to the Minister of National Revenue, may ask questions that relate housing to gender-based violence.
• MP Brenda Shanahan (LIB - QC) may ask about best practices to address housing issues, infrastructure investments, and a national housing strategy.
• MP John Williamson (CPC - NB) (Chair) may ask about housing costs for Indigenous peoples.
• MP John Nater (CPC - ONT) may ask about housing costs.
• MP Jake Stewart (CPC - NB) may ask about the increase in housing costs.
• MP Arnold Viersen (CPC - AB) may ask about housing prices and will likely try to gear his questions towards discussing the carbon tax.
• MP Nathalie Sinclair-Desgagné (BQ) (Vice-Chair), Critic for Public Accounts; Pandemic Programs; Economic Development Agencies, has been vocal in her advocacy for Québec-related issues. She may ask about closing the infrastructure gap and funding for structural mitigation projects. She may also ask if the housing finance network can be used as a possible solution to housing issues.
• MP Blake Desjarlais (NDP - AB), Critic for Treasury Board; Diversity and Inclusion; Youth; Sport and Post-Secondary Education, is Indigenous, born in Edmonton and raised in the Fishing Lake Métis Settlement. He has previously asked about Auditor General's report, specifically on the lack of plan to close the housing gap and having mould in homes. He will likely ask about the underfunding of Indigenous housing, the high rates of overcrowding and need for major repairs in housing, and call for an investment in a "for Indigenous, by Indigenous" housing strategy. He may tie housing to related issues, such as the need for housing supports after environmental emergencies, infrastructure maintenance, the houselessness crisis, and child and family service inaction. He may ask about Indigenous people struggling with financial stability for housing growth and infrastructure maintenance, which forces them into urban centres without their community and cultural supports.

Previous Appearances at PACP

• November 30, 2023 – Follow-up Study on Report 3: Access to Safe Drinking Water in Indigenous Communities. ISC Minister Hajdu, ISC Department officials, and CIRNAC Department officials appeared.
• March 20, 2023 – Report 8, Emergency Management in First Nations Communities. ISC Minister Hajdu and ISC Department officials appeared.

PACP Background

Pursuant to Standing Order 108(3) of the House of Commons, the mandate of the Standing Committee on Public Accounts is to review and report on:

• The Public Accounts of Canada;
• All reports of the Auditor General of Canada;
• The Office of the Auditor General's Departmental Plan and Departmental Results Report; and,
• Any other matter that the House of Commons shall, from time to time, refer to the Committee.

When the Speaker tables a report by the Auditor General in the House of Commons, it is automatically referred to the Public Accounts Committee. The Committee selects the chapters of the report it wants to study and calls the Auditor General and senior public servants from the audited organizations to appear before it to respond to the Office of the Auditor General's findings.

Additionally, when appearing at PACP on an OAG report, the committee requires the department to provide, 48 hours in advance of the appearance, in both official languages, a Management Action Plan (MAP), which provides a detailed plan to address the audit recommendations that the department has agreed to. This is expected to include specific actions, timelines, and responsible individuals. The MAP must also be provided to the OAG within six (6) months of the audit being tabled in the House of Commons.

In the Media

• Assembly of First Nations national chief calls for action following reports on housing, policing | CBC News
• Feds have made little progress fixing First Nations housing: AG (aptnnews.ca)
• Housing money hasn't changed since '90s says grand chief (aptnnews.ca)
• Ottawa's approach to First Nations housing 'cost lives' on reserve, says NAN Grand Chief - Northern Ontario Business
• FNLC Dismayed by Lack of Progress in Improving First Nations Housing and Infrastructure - UBCIC

Meeting Proceedings

The meeting is scheduled for April 11th, 2024, from 3:30 p.m. – 5:30 p.m..

The Chair will call the meeting to order and provide instructions for the meeting proceedings. He will then introduce the witnesses and invite a representative from each department/organization to deliver opening remarks of five (5) minutes. This will be followed by a Q&A period (details below).

It is recommended that all speakers speak slowly and at an appropriate volume to ensure they are heard by the interpreters. All witnesses are asked to mute their microphones unless they are speaking.

Following the opening remarks, there will be rounds of questions from Committee members (as listed below). The rounds of questioning will repeat when the second panel commences in the second hour.

Committee members will pose their questions in the following order:

• First round (6 minutes for each Party)
  • Conservative Party of Canada
  • Liberal Party of Canada
  • Bloc Québécois
  • New Democratic Party of Canada
• Second round
  • Conservative Party of Canada (5 minutes)
  • Liberal Party of Canada (5 minutes)
  • Bloc Québécois (2.5 minutes)
  • New Democratic Party of Canada (2.5 minutes)
  • Conservative Party of Canada (5 minutes)
  • Liberal Party of Canada (5 minutes)

The meeting can be watched via ParlVU, however there may be an up to 70-second delay with the webcast.

Other Information for Appearing In-Person

• Witnesses should arrive early to allow time for security screening. Screening could take 30 minutes or more for those without a Hill pass.

Key Messages

• Indigenous Services Canada (ISC) welcomes the recommendations from the Office of the Auditor General's (OAG) report and the opportunity to highlight the housing challenges in First Nations communities.
• The work underway at ISC and Canada Mortgage and Housing Corporation (CMHC), in partnership with First Nations, closely aligns with the recommendations outlined in the report.
• ISC will continue to work with First Nations partners to co-develop and implement community-led housing strategies in response to their needs and the recommendations of the Auditor General.

Background

• The audit focuses on housing in First Nations communities on reserves for the 5-year period starting April 1, 2018 and ending March 31, 2023 and examines whether ISC and CMHC supported First Nations to close the housing gap by improving housing conditions and increasing First Nations' capacity to manage housing.
• The audit report, tabled in the House of Commons on March 19, 2024, includes both ISC and CMHC and includes the following key findings:
  • high risk of not closing the housing gap by 2030;
  • unaddressed long-standing mould issues and limited assurance on whether all federally funded housing met building code standards;
  • inequitable funding for communities with the poorest housing conditions and no comprehensive picture of First Nations' capacity needs for managing housing;
  • complex application process to access various housing programs offered between departments; and
  • lack of overarching policy framework to guide transfer of housing to First Nations.
• The audit recommends that ISC and CMHC, with First Nations, should:
  • develop and implement a strategy to close the housing gap by 2030;
  • better understand the extent of mould in housing and support First Nations to reduce mould;
  • obtain assurance that federally funded housing meets building codes and support First Nations to address deficiencies;
  • use the most recent census data in funding formulas to reflect demographics;
  • work with First Nations with the poorest housing conditions so they receive the support they need and prioritize capacity funding to communities that need it the most;
  • review the structure/delivery of programs to streamline and facilitate access to funding; and
  • finalize policy framework for the transfer of department responsibilities to First Nations.
• In response to the recommendations, ISC and CMHC will:
  • continue to seek and advocate for resources to close the First Nations housing gap.
  • advance the co-developed First Nations Housing and Related Infrastructure Strategy including the pillar dedicated to Funding and Finance.
  • support First Nations' access to information and resources to address mould, building code compliance issues, and identified construction issues.
  • identify and support First Nations most in need of housing and prioritize capacity management funding.
  • continue to use recent census data and other population health factors in funding frameworks.
  • ISC and CMHC will establish joint governance and oversight mechanisms to support First Nations in the management of their housing affairs.
  • ISC will continue efforts to finalize a policy framework for the transfer of housing services.
  • CMHC will increase awareness and revise programs, and both ISC and CMHC will ask for building code compliance confirmation for renovation work.

Current Status

• To address the housing gap, ISC and CMHC will use the National First Nations Housing and Related Infrastructure Strategy to set measurable housing targets and track progress, aligned to available funding.
• ISC and CMHC will also formalize information sharing to coordinate policy responses and align program delivery. This should help First Nations in navigating the various housing programs and funding available to them.
• The address the issues of mould, ISC will advise, guide, and share data to First Nations and First Nations organizations while recognizing that First Nations have control over which priorities need to be addressed in their communities. To address building code compliance, ISC will explore how to better track code compliance and continue to support First Nation organizations to offer training and information-sharing concerning housing management, operations, and building code compliance.
• In terms of inequitable funding for First Nations with the poorest housing conditions, ISC will look at its current allocation methodologies and explore changes to ensure that communities are supported based on need. The department will also continue to provide capacity funding and support First Nation organizations for the delivery of technical services and certification ($223 million until 2027).
• With respect to the overarching policy framework to guide the transfer of housing to First Nations, ISC will continue work on finalizing a strategy that will make use of existing resources to engage First Nations on a policy framework on the premise that all eventual approaches would be opt-in and First Nations-led.

Report Ref. No. 1

Report Ref. No. 2

Report Ref. No. 3

Report Ref. No. 4

Report Ref. No. 5

Report Ref. No. 6

Report Ref. No. 7

Key Messages

• The Office of the Auditor General of Canada (OAG) has conducted three previous audits of housing in First Nations communities.
• In 2003, the OAG examined the activities of the Government of Canada in regard to housing programs on First Nations reserves. The OAG followed-up with audits of on-reserve housing as part of a broader review of programs for First Nations in 2006 and again in 2011.
• Among the recommendations made in previous audits, the one regarding the issue of mould on reserves has persisted. Obtaining assurance that housing projects comply with the national building code, which has always been a condition of funding, was deemed addressed in 2011, but returned as a concern in 2023, likely given that the audit period ran concurrent to the global pandemic, which may have resulted in inspection delays. The 2003 audit noted the complexity of federal programs and funding and recommending streamlining of program structure and delivery. The 2006 update noted that progress had been made with respect to integration of programming but the 2024 audit notes that further streamlining is needed. Previous audit reports highlighted, but made no specific recommendations on, closing the housing gap.

Background

• In 2006, the OAG found that most of its recommendations from 2003 had been sufficiently addressed, including obtaining assurances that all federally subsidized housing on reserves met the national building code. However, the OAG found that the issue of mould on reserves persisted. It found that mould contamination remained a significant problem and that a comprehensive strategy and action plan had not yet been developed by the Government of Canada to address the issue. The extent of the issue had also not been evaluated yet.
• In its 2006 report, the OAG listed a series of factors needed for success—factors which were not fully embedded in the Government's approach to addressing Indigenous issues—including: co-ordination of government programs; meaningful consultation with First Nations; developing capacity within First Nations; and, establishing First Nations institutions.
• In its 2011 report, the OAG again examined whether there had been progress made on previous findings and recommendations from 2003 and 2006. It found that progress on mould was still not satisfactory, but that most of its previous recommendations had been addressed.
• The 2011 report also found that the state of housing stock on reserves had worsened since the OAG's previous audit; however, the report made no recommendation to address that finding. The OAG found that, despite new investments since the 2003 First Nations' housing audit, federal housing initiatives were not keeping pace with needs. The report found that the housing shortage on reserves had worsened since the initial 2003 audit, due to increases in the demand for housing, the number of housing units that needed to be replaced, the number of units that required significant renovations, and the rise in the average cost to build or renovate homes.

Current Status

• While ISC recognizes that mould can have serious impacts on health, the Department respects First Nations' management over their housing affairs and will continue to support First Nation led decisions that address mould remediation in conjunction with other First Nations' self-determined priorities. With the support of EPHO resources, ISC will, in consultation with First Nations partners:
  • share information with First Nations communities on available applicable resources for housing such as CMHC's On Reserve Renovations Programs and the Rehabilitation Renovation Assistance Program (RRAP) programs within existing authorities for mould remediation through housing renovation programs;
  • share information and support shared understanding on how to address indoor air quality and concerns surrounding mould in housing in First Nations communities; and,
  • discuss how to build First Nations' capacity in mould prevention and assessment of mould in on-reserve housing including knowledge and awareness of remediation measures.
• The Department recognizes that it can be complex for First Nations to navigate various federal funding programs. While ISC and CMHC collaborate and share information, a formal mechanism will be established to ensure that programming, approaches and communications are aligned to the greatest extent possible to streamline First Nations' access to funding.
• ISC recognizes that building codes help protect the health and safety of occupants, while assisting with the longevity of built homes. It is important to note that First Nation communities manage community-level housing and are the authority having jurisdiction over building code compliance.
• ISC's housing programming currently includes a requirement for building code compliance and ISC remains committed to working with First Nations in the management of their housing affairs. In order to support building code compliance, ISC will:
  • as part of systems improvement processes, will explore how to better track and monitor compliance through established reporting processes, so as not to increase administrative burden on First Nations; and,
  • support First Nation organizations that provide technical services and provide resources to support First Nations in ensuring compliance.

Key Messages

• In response to long-standing housing gaps in First Nations communities, since 2016 the Government of Canada has committed nearly $4 billion, through Indigenous Services Canada (ISC), for on-reserve housing.
• Since 2016 and as of December 31, 2023, in partnership with the Canada Mortgage and Housing Corporation, Indigenous Services Canada is supporting the construction, renovation and retrofit of 33,790 homes on reserve, of which 22,022 are complete.
• The Government of Canada will continue to work diligently with partners to ensure that Indigenous people across the country have access to safe and adequate housing.

Background

• In 1996, the Government of Canada introduced the On-Reserve Housing Policy. It allows First Nations to play a key role in how, where and when housing funds are invested and reflects the following principles:
  • First Nations control
  • First Nations expertise
  • shared responsibilities
  • increased access to private sector financing
• The 1996 On-Reserve Housing Policy applies to First Nations in all provinces and Yukon, except for approximately 200 First Nations in British Columbia who did not opt into the policy. In British Columbia, First Nations can apply for housing funding through the Housing Support Program, which allows smaller First Nations in British Columbia to receive fair access to funding.
• The First Nations On-Reserve Housing Program has flexible terms and conditions; First Nations can use core (or A-base) funding from ISC to support a variety of needs, including construction, renovation, insurance, debt servicing or inspections. These activities are also eligible expenses under the Programs targeted (or B-base) funding stream.
• ISC disburses an average of $149.5 million per year to First Nations, on a formula basis, through its core (or A-base) funding stream. Since 2016, the Government of Canada has committed $3.93 billion in targeted (or B-base funding) through ISC, until 2026-2027, to support closing the housing gap in First Nations on-reserve. Of this, ISC has disbursed over $1.95 billion to First Nations to support their housing needs and priorities. All of the funding provided to the Department, since 2016, for on-reserve housing has been disbursed to First Nations (i.e., no lapses in funding).
• Housing on-reserve is a shared responsibility. While the Government of Canada, primarily through Indigenous Services Canada and the Canada Mortgage and Housing Corporation, provides funding to First Nations for housing, First Nations plan and manage housing on-reserve. This includes developing housing plans, making decisions on which projects to prioritize and procuring labour and supplies. First Nations are also the authority having jurisdiction over building code compliance on-reserve.
• The Protocol for ISC-Funded Infrastructure, available online, provides a list of applicable statutes, regulations, policies, codes, etc. with which eligible recipients must familiarize themselves as a condition of funding.
• Contribution agreements with funding recipients also outline a need for final completion reports signed by a qualified inspector confirming compliance with the National Building Code or other applicable standards. A qualified inspector can be a journeyman carpenter, journeyman electrician, journeyman plumber, certified housing inspector or professional engineer.
• ISC works in collaboration with First Nations partners to enable funding recipients to meet or exceed National Building Code standards, through specific investments in capacity building, First Nations-led training opportunities, and the development of First Nations community building codes.
  • For example, ISC supports the First Nations National Building Officers Association to develop and deliver training modules on technical issues to First Nations housing professionals. This includes, for example, the development of a technical guide for Northern housing that outlines best practices for housing solutions in the North and information on preventing and mitigating radon in housing.
  • The First Nations National Building Officers Association is also working with the National Research Council to develop building standards for First Nations communities that exceed National Building code requirements.
• As a result of the pandemic, many First Nations were unable to have their homes and infrastructure inspected, due to either labour force availability or community restrictions enacted to safeguard members' health and well-being. ISC is aware that there is currently a backlog of inspections require for all infrastructure types, not just housing.
• Budget 2022 committed an additional $2 billion over five years to support the long-term reform of the First Nations Child and Family Services Program and the housing needs of First Nation children. Of this, $209.4 million was disbursed to First Nations in 2023-24, the first year of funding.

Current Status

• Budget 2021 and 2022 investments will continue to support First Nations to increase the number of available homes and address critical housing needs.
• Budget 2022 provided an additional $66 million over 3 years beginning in 2024 to enhance housing management capacity on reserve through training and certification and the provision of technical services.
• $2 billion in housing funding, over 5 years, has been committed in the Agreement-in-Principle on Long-Term Reform of the First Nations Child and Family Services Program and Jordan's Principle. This funding began flowing to First Nations this fiscal year and will support First Nations with the purchase, construction, and/or renovation of housing units to meet the needs of children and families.

Key Messages

• First Nations led the co-development of a National First Nations Housing and Related Infrastructure Strategy, endorsed by the Assembly of First Nations (AFN) Special Chiefs Assembly on December 5, 2018.
• The Strategy identifies goals and actions to help support the transfer of care, control and management of housing to First Nations, while respecting regional differences and First Nations readiness.
• The Assembly of First Nations, Indigenous Services Canada and the Canada Mortgage and Housing Corporation continue to meet regularly to advance the implementation of the Strategy.

Background

• As part of the 2016 National Housing Strategy, the Government committed to co-develop distinctions-based Indigenous housing strategies for First Nations, Inuit, and Métis, grounded in the principles of self-determination, reconciliation, respect, cooperation, and partnership.
• The co-developed 10-Year National First Nations Housing and Related Infrastructure Strategy, endorsed by Chiefs in December 2018 identifies a path forward that supports First Nations transition to care, control and management of housing and related infrastructure, and acknowledges that First Nations are developing their own regional and sub-regional strategies and approaches that they will implement at their own pace.
• The strategy identifies four key goals:
  • Governance and delivery, which recognizes the requirement for new systems, institutions and ways to deliver housing services to First Nations people;
  • Funding and finance, which recognizes that First Nations must be in control of funding and underscores the importance of sufficient, sustainable and predictable funding to support the transfer of care, control and management of housing;
  • Skills and Capacity, which recognizes that investments in skills and capacity are required to support home occupants, housing and related infrastructure personnel and First Nations organizations that serve them; and,
  • First Nations information sessions, which underscores the importance of sharing information with and between First Nations leadership.
• A 2021 report produced by the AFN and the Institute of Fiscal Studies and Democracy provided a cost analysis of the housing gap and future needs of First Nations. At that time the estimated cost to close the housing gap and provide for future needs to 2040 was $59.4 billion, based upon the AFN's 2018 First Nations On-Reserve Housing and Related Infrastructure Needs Survey. This includes:
  • $22.7 billion in current needs (as of 2021), including repairs, lot servicing and new construction;
  • $21.0 billion to support the migration of First Nation members seeking to move on-reserve (from off-reserve); and,
  • $15.7 billion in future needs (new construction to accommodate population growth).
• A subsequent report, which was released on April 9th by the AFN, has revised this figure to $135 billion for housing and also considers the additional cost of closing the gap for all infrastructure by 2030.

Current Status

• ISC is a member of the Joint Working Group (JWG) on housing that created the National First Nations Housing and Related Infrastructure Strategy and, through the JWG, continues to advance the implementation of the Strategy. Other members of the JWG include the AFN, the Canada Mortgage and Housing Corporation, with regular participation by Infrastructure Canada. Regional representatives and technical experts join the discussions as well.
• ISC investments are well-aligned to the goals of the First Nations Housing and Related Infrastructure Strategy. For example:
  • In alignment with the Governance and Delivery pillar, ISC has supported the establishment of the Manitoba Indigenous Housing Capacity Enhancement and Mobilization Initiative (MIHCEMI), which supports First Nations in the Manitoba region to enhance housing management capacity and existing governance structures;
  • In alignment with the Funding and Finance pillar, ISC is supporting the Yanonhchia initiative, which builds upon a successful pilot project in Quebec region to increase First Nations access to private financing and support private homeownership on-reserve; and,
  • In alignment with the Skills and Capacity pillar, ISC supported the AFN to conduct a skills and capacity assessment of First Nations housing managers and to organize a roundtable to identify short- and long-term strategies to address First Nations' housing skills and capacity needs.
• On average the JWG meets bimonthly, with weekly working level update meetings taking place each Friday. Closing the infrastructure gap remains a primary motivation for the JWG, in addition to advancing the transfer of care, control and management of housing to First Nations.
• On April 9, 2024, the AFN published the co-developed report on closing the infrastructure gap. ISC will continue to work with partners through the JWG to identify actions and measures to close the housing and infrastructure gaps in First Nations.

Key Messages

• The Government of Canada has committed to closing the infrastructure gap in First Nations, Inuit and Métis communities by 2030. Since 2016, ISC has committed more than $25 billion to support these efforts.
• In 2022, Indigenous Services Canada engaged with First Nations to identify their infrastructure needs. The priority infrastructure needs identified by First Nations were community buildings, housing, transportation infrastructure, water, wastewater and utilities, and emergency services. Infrastructure needs identified were estimated at a cost of approximately $120 billion.
• The Department also supported the Assembly of First Nations to undertake a comprehensive study of the infrastructure needs of First Nation communities. The Assembly of First Nations report, which will be released soon, indicated a need for $349.2 billion to close the gap in First Nations. Of this, the Assembly of First Nations estimated a total of $135 billion would be required to close the housing gap.
• The reason for the difference is that Assembly of First Nations study included considerations for additional costs, such as the transition to a net-zero carbon economy and accessibility of on-reserve infrastructure, in alignment with the Accessible Canada Act.

Background

• As mandated through the 2020 Fall Economic Statement, Indigenous Services Canada and Crown-Indigenous Relations and Northern Affairs Canada worked collaboratively with Indigenous organizations and communities to better understand the infrastructure needs of Indigenous communities.
• ISC engaged individual First Nations in spring 2022 to understand infrastructure needs and order of paramountcy. This exercise saw a response rate of 72% (405/564) and estimated the cost of closing the First Nations infrastructure gap by 2030 to be $120 billion at the time.
• A 2021 report produced for the Assembly of First Nations by the Institute of Fiscal Studies provided a cost analysis of the housing gap and future needs of First Nations. At that time the estimated cost to close the housing gap and provide for future needs to 2040 was $59 billion, based upon the Assembly of First Nations' 2018 First Nations On-Reserve Housing and Related Infrastructure Needs Survey. A subsequent report, which is anticipated to be released shortly by the Assembly of First Nations, has revised this figure significantly upwards and also considers the additional cost of closing the gap for all infrastructure by 2030.
  • Through this research, the Assembly of First Nations identified a need for $60 billion by 2040, which includes $44 billion for current needs and $16 billion for future needs, to bring First Nations housing up to par with the standard of housing that most Canadians experience.
  • The revised figure is anticipated to be $135 billion by 2030. The main difference in estimated cost to close the housing gap for the revised figure is due to inflation between 2021 – 2023 and beyond, expected population growth, and the addition expenses required to expedite the closing of the housing gap by 2030 (i.e. capacity supports, additional construction labour).
• ISC also worked with the Assembly of First Nations, which estimates that $349.2 billion is needed to close the First Nations infrastructure gap by 2030. The report also called for moving away from project-based investment approaches, guaranteeing reliable funding as well as the co development of a self-governed First Nation Infrastructure Bank, amongst others.
• The Assembly of First Nations study leveraged the results of ISC's engagement in addition to updating their previous studies (including the Assembly of First Nations /Institute of Fiscal Studies and Democracy study from 2021 on housing) and included additional infrastructure needs beyond what communities identified such as: net zero carbon, all season road access and accessibility. The Assembly of First Nations additionally incorporated assumptions accounting for inflation, beyond the Colliers model used by Indigenous Services Canada.
• In the spring of 2022, ISC provided $1,042,948 to support Assembly of First Nations' direction for creating a pre-budget submission for identifying the infrastructure needs of First Nations. The Assembly of First Nations developed a report entitled: Closing the Infrastructure Gap by 2030: A Collaborative and Comprehensive Cost Report Identifying the Infrastructure Investment Needs of Canada's First Nations (Closing the Infrastructure Gap 2030).

Current Status

• Starting in spring 2023, Indigenous Services Canada began further engagement with First Nations on ways to improve how infrastructure programs are delivered.
• Indigenous Services Canada will continue to work with partners to define a bold, new approach to how the Department funds First Nations infrastructure.

Key Messages

• The First Nation Infrastructure gap is large, estimated by the Assembly of First Nations to be over $300B.
• While ISC is seeing progress in its program delivery, there are opportunities to modernize.
• In the last year, ISC has engaged rights-holders and partners on a series of reforms aimed at building: an investment approach whereby rights-holders determine infrastructure priorities; a series of financial transformations to monetize and leverage available funding; and partnership opportunities with other government departments and provinces/territories to ensure more streamlined funding to First Nation communities.

Background

• The causes of the infrastructure gap in First Nation communities are multifaceted, rooted in colonialism and include: lack of alignment on federal funding supply and community priorities; underfunding; lack of available land; inaccessible financing options; and varied community capacity. Construction cost increases, labour shortages and climate change events have only exacerbated these challenges.
• To support modernization, over the last year ISC has engaged First Nation partners, other government departments and financial institutions on establishing:
  • an opt-in infrastructure investment approach;
  • a suite of financial tools including monetization, the creation of community-based reserve and endowment funds (to serve as a capital reserve), access to low-cost government loans or advanced payments and a lifecycle asset management funding approach; as well as,
  • opportunities to streamline federal Indigenous infrastructure investments to support community-led decision-making on infrastructure projects.

Current Status

• Modernizing how the federal government funds existing infrastructure in First Nation communities on reserve supports: the Government of Canada's commitment to close the infrastructure gap; the Government of Canada's reconciliation commitment; the Government of Canada's commitment to co-develop an economic reconciliation framework; ISC's vision and legislative mandate to implement the gradual transfer of responsibilities to Indigenous Peoples; the New Fiscal Relationship Working Group recommendations; and, the UN Declaration on the Rights of Indigenous Peoples Act (UNDA).

Key Messages

• The Government of Canada recognizes that mould is a health hazard and is working to support First Nations people living on reserves to have access to healthier homes.
• Environmental Public Health Officers (EPHOs) conduct public health inspections of on-reserve housing units upon request. As part of a health inspection, EPHOs provide written reports to community leadership, occupant and housing manager/director where applicable, outlining health concerns as related to the house including recommendations on remediation and preventative measures, to allow the community to make informed decisions on their housing units.
• While Environmental Public Health Officers employed by ISC and First Nations organizations can support First Nations in identifying mould in housing, it cannot impose inspections upon First Nations and/or the occupants of housing on-reserve at any time. The privacy of home occupants needs to be respected.

Background

• Environmental public health inspections identify deficiencies and health hazards including but not limited to mould, dampness, safety concerns, sanitation, pest, food and drinking water safety, and wastewater disposal.
• The level of concern depends on the extent of mould growth, how long it has been present and the susceptibility and overall health of the individuals exposed. Some people are considered at greater risk of experiencing health effects from mould exposure, such as infants, children, seniors, pregnant people and those with respiratory conditions such as asthma.
• A changing climate in Canada is predicted to result in increased moisture levels and mould exposure in the indoor environment. Changing or intensifying weather patterns, rainfall, storms, and flooding may produce higher levels of water infiltration and dampness in buildings, scenarios conducive to mould proliferation.
• EPHOs employed by ISC and First Nations organizations look for evidence of mould and potential underlying causes of mould during housing inspections upon request by First Nations. EPHOs provide advice on mould remediation, cleaning and prevention.
• Mould is a symptom of other issues (e.g. moisture intrusion, plumbing leaks, insufficient ventilation). Addressing root causes, such as mould, requires looking at and addressing the underlying causes. Inspections include all factors in addition to presence of mould.
• The Environmental Public Health Program is not funded for home renovations or repairs to address moulds, nor has it ever historically. However, mould remediation as well as undertaking the repairs required to address the underlying causes of mould, are eligible expenses under ISC's First Nations On-Reserve Housing Program and under many Canada Mortgage and Housing Corporation programs, including the Residential Rehabilitation Assistance Program.

Current Status

• Public health inspections of on-reserve housing are done upon request, which can vary from year to year.
• Mould identified as a portion of the number of inspections decreased from 50.7% in 2017/18 to 23.5% in 2021/22.
• Data available from EPHOs' inspections are not representative, as inspections are conducted only upon request by First Nations and as needed. Approximately 1 – 3% of homes on reserve are inspected a year.
• Of note, COVID and associated public health measures decreased the number of home inspections undertaken in 2020-2022.

Key Messages

• ISC provides funding to First Nations through both core (A-base) and targeted (B-base) funding allocations.
• In addition to providing targeted funding to First Nations for construction, renovation, lot servicing and subdivisions, in Budget 2022, ISC also introduced a Housing Management Subsidy, recognizing that housing managers are instrumental to supporting housing in First Nations.
• ISC's national allocation methodologies consider a number of factors, such as population, housing conditions, and Community Well-Being.
• Regional offices work closely with First Nations to disburse funding. In many cases, regional offices have developed funding frameworks in collaboration with First Nations to guide funding allocations.

Background

• Funding provided through ISC's On-Reserve Housing Program can be divided into two broad categories:
  • A-Base, or core funding, is the permanent ongoing funding provided to First Nations through regional offices and based upon historical departmental reference level information. The A-Base funding levels have been fixed since the 1990s and are allocated to First Nations based on historical reference level information.
  • B-Base, or targeted funding, is allocated to the regions using a methodology that is based 50% upon on-reserve population and 50% on regional housing needs. Regions subsequently flow funding to First Nation communities for the management of their projects according to project proposals and prioritization against available funds. The process for allocating funds to communities may vary between Regions, but often involves soliciting Calls for Proposals.
• Targeted infrastructure funding for housing is allocated to regional offices using a formula based on: the regional on-reserve population (50%); Census data on overcrowding (25%); Census data on major repairs required (12.5%); Community Wellbeing Index scores (7.5%) and Income Assistance Rates (5%).
• When possible, the Department identifies regional allocations on a multi-year basis (e.g., a three-year basis) in order to provide regional offices and First Nations additional predictability to allow for planning and sequencing of projects. This is of particular importance to communities that are undertaking larger projects, such as subdivisions.
• ISC Regional offices subsequently flow funding to First Nation communities for the management of their projects. The process for allocating funds to communities may vary between regions, but often follows funding frameworks that were developed with First Nation partners.
• Departmental analysis shows that, contrary to the Office of the Auditor General's (OAG) findings, ISC's allocation methodologies are prioritizing communities with the poorest housing conditions. Moreover, while the OAG focused on small communities, ISC's analysis shows that communities with smaller populations tend to have better Community Well-Being Index housing scores.
• Budget 2022 provided $157 million over five years to be used as a Housing Management Subsidy. This Subsidy is to subsidize a portion of the costs for hiring and retaining dedicated housing professionals.
• In 2022, ISC provided regional offices with funding based on a methodology that considered a base subsidy for each First Nation with additional funding allocated based on number of housing units and remoteness.
• ISC engaged First Nations, Tribal Councils, and regional ISC housing staff in the Fall and Winter of 2022, to help inform the creation of a new methodology for subsequent years. The results of this engagement indicated that while both number of housing units and remoteness must be considerations, size is the more important factor. A new methodology was developed that gives greater weight to the number of housing units but still considers remoteness.
• The parameters set for the use of the Housing Manager Subsidy were also broadened to reflect the fact that not every First Nation may have the readiness to hire a dedicated housing professional. Funding can also be directed to Tribal Councils or other organizations if First Nations indicate that is their preference.
• ISC amended its housing and infrastructure Data Collection Instrument in order to collect information on the prevalence of housing managers and to support data analysis on the outcomes of the Housing Management Subsidy and housing managers' presence in communities.

Current Status

• While ISC will continue to review and revise its allocation methodologies in order to better support First Nations' needs, most regional offices have already identified to First Nations their funding allocations for the remainder of the Budget 2022 envelope to support longer-term planning and predictability.

Key Messages

• Indigenous Services Canada (ISC) acknowledges that accessing funding for housing can be challenging, specifically for First Nations communities that may not have the capacity to navigate the applications to various federal housing programs.
• The department will continue to subsidize housing manager positions and continue to support First Nations organizations, such as the First Nations Housing Professional Association (FNHPA), which has developed a rigorous training program and provides certification for housing managers.
• While ISC has made efforts to streamline application and reporting processes, it acknowledges that there is more work to do. In particular, the Department engaged First Nations in 2023 to identify new approaches to supporting First Nations infrastructure on a community basis, rather than asset by asset.

Background

• ISC's Capital Facilities and Maintenance Program is the Government of Canada's main vehicle to support community infrastructure for First Nations on reserves, including on-reserve housing through the First Nations On-Reserve Housing Program (a sub-program).
• As part of Capital Facilities and Maintenance Program's funding process, First Nations develop and submit First Nation infrastructure investment plans, which identify communities' infrastructure needs. Adjustments to the plan may occur throughout the fiscal year as community, project and financial circumstances change.
• For the First Nations On-Reserve Housing Program, funding is disbursed through either the core (or A-base) funding stream or the targeted (or B-base) funding stream.
• Core (or A-base) funding is disbursed on a formula basis to each First Nation; there is no application process required.
• For targeted (or B-base) funding, application processes respect regional differences and, as such, can vary by region. For example:
  • In the Atlantic region, there is no application process for construction, renovation, lot servicing, subdivisions. Targeted funds are allocated to First Nations on a formula basis that accounts for, among other things, population, housing conditions, remoteness and income assistance rates, as well as capacity needs, with allocations for new construction, renovations and capacity; however First Nations are free to move funding between these categories as needed.
  • In the Alberta region, there is no application process. Based on extensive engagement with First Nations of Alberta, the region employs a principles-based allocation methodology;
  • In the Quebec region, there is a multiannual call for proposals, covering a three-year period to give First Nations additional time to plan and sequence housing investments.
• While the processes can vary across regions, ISC regional offices continue to work with partners to revise or refine process with a view to reducing or streamlining application and reporting processes for recipients.
• Through its new fiscal relationship, the Government of Canada is committed to working with First Nations to establish a new fiscal relationship that moves towards sufficient, predictable and sustained funding for First Nation communities.
• The funding agreement models have been streamlined to facilitate the use of a single agreement for all programs and funding from both ISC and Crown-Indigenous Relations and Northern Affairs Canada (CIRNAC) and further reduce reporting requirements. In 2023, the Department engaged with partners to identify new approaches to how the Government of Canada funds First Nations infrastructure. First Nations called for increased control over funding, planning and management of infrastructure, in addition to streamlined reporting and long-term funding solutions.
• As part of these discussions, First Nations also discussed the need for better coordination between federal departments and with provinces and territories.
• While ISC and the Canada Mortgage and Housing Corporation (CMHC) acknowledge that there are opportunities to better share information and minimize application and reporting burdens for partners, the organizations often collaborate to support First Nation housing projects. Recent examples include:
  • A January 2024 announcement in Membertou First Nation to build an additional 32 housing units in the community, with contributions from CMHC through the Rapid Housing Initiative, ISC through its First Nations On-Reserve Housing Program and from Membertou First Nation itself; and,
  • A December 2023 announcement in Lil'wat Nation for the repair of 23 existing affordable housing units, with contributions from CMHC, ISC, BC Hydro and Lil'wat Nation itself.

Current Status

• In order to explore ways to streamline access to funding, ISC and CMHC are committed, through the establishment of an Assistant Deputy Minister-level committee, to work together to ensure that programming, approaches and communications are aligned to the greatest extent possible to facilitate First Nations access to funding.
• Indigenous Services Canada will continue to work with First Nations communities and organizations, with other government departments, and with financial institutions to define a bold, new approach to how the department funds on-reserve infrastructure. This includes engaging on an infrastructure investment approach where partners would determine investment priorities supported by flexible, long term and predictable funding to maintain, renovate and replace existing ISC-funded infrastructure and housing on-reserve. This is part of Canada's commitment to closing the infrastructure gap in Indigenous communities by 2030.

Key Messages

• The housing gap for First Nations, Inuit and Métis Peoples continues, and it is a daily reality in urban, rural and northern areas across the country.
• ISC will continue to take part in advancing the Budget 2023 commitment of $4 billion over 7 years starting in 2024 – 25 for the implementation of the Urban, Rural and Northern Indigenous Housing Strategy, which was in addition to the Budget 2022 commitment of $300 million to address urgent and unmet needs and support the Indigenous-led engagement on this Strategy.
• The Government of Canada will also work with First Nations, Inuit, Métis, as well as Modern Treaty and Self Governing Indigenous Government partners on their distinctions-based housing strategies to support their members living in urban, rural and northern areas.

Background

• The Government of Canada recognizes that Indigenous Peoples living in urban, rural, and northern areas face significant housing needs and that there is an urgent need to act now.
• As such, on June 8, 2023, Indigenous Services Canada (ISC) announced immediate funding in the amount of $287.1 million to address the critical need for safe and affordable urban, rural and northern Indigenous housing projects.
• On December 13, 2023, the Government of Canada also announced its intention to launch a Request for Proposals, in January 2024, to offer an open and transparent opportunity for interested Indigenous-led organizations to be considered to lead the establishment of a For Indigenous By Indigenous (FIBI) National Indigenous Housing Centre.
• Once selected, the Government of Canada will finalize an agreement with the proponent to establish the National Indigenous Housing Centre, whose key role will be to provide funding to address core Indigenous housing needs in urban, rural and northern areas. The broader vision of the Centre will be further refined by the successful applicant of the Request for Proposal.
• These funding initiatives are part of the Government of Canada's commitment to address the social determinants of health and advance self-determination in alignment with the United Nations Declaration on the Rights of Indigenous Peoples Act (UNDA) and Articles 21 and 23.

Current Status

• National Indigenous Collaborative Housing Incorporated (NICHI) will deliver immediate Budget 2022 funding through a For Indigenous, By Indigenous approach to research, advocacy, partnerships and supporting housing providers in the building of homes.
• The immediate funding is being prioritized by NICHI and rolled out across the country through their Open call-out for Expression of Need, which was completed on January 12, 2024.
• NICHI has established an Indigenous Project Selection Advisory Council and an initial tranche of notional projects has been selected by the Council and approved by the NICHI board of directors.
• Further details on funding announcements will be available on the NICHI website in April/May.
• The Request for Proposals for the National Indigenous Housing Centre closed on March 4, 2024. CMHC continues to lead the procurement process.
• ISC will work with First Nations on their distinctions-based housing strategies to support their members living in urban, rural and northern areas.

Key Messages

• Indigenous Services Canada is committed to supporting First Nations partners in advancing their self-determination through the development of an overarching policy framework for the transfer of departmental responsibilities to First Nations.
• This Framework, informed via feedback from First Nations partners at the National and Regional levels, will support the Department in ensuring that a consistent approach is applied to the transfer of departmental responsibilities.
• This work remains a priority for the Department, and that is why ISC is working diligently to finalize a strategy to engage First Nations on a policy framework, with the launch of discussions with partners to begin in the Fall of 2024.
• In tandem with the overarching policy framework, Indigenous Services Canada has developed a process and obtained funding for transferring housing and other infrastructure.
• Indigenous Services Canada has allocated $108.89 million over eight years to support the transfer of departmental responsibilities for housing and other infrastructure.
• As of March 31, 2023, the Department has provided a total of $18.28 million to support nine First Nations organizations to explore the transfer of housing services, through a First Nations-led and -paced process.

Background

• The Department of Indigenous Services Act (2019) commits to "give effect to the gradual transfer to Indigenous organizations of departmental responsibilities with respect to the development and provision of those services."
• As stated in the action plan on the United Nations Declaration on the Rights of Indigenous Peoples Act, Indigenous Services Canada is committed to "[engaging] with partners on the co-development of a Service Transfer Policy Framework. The purpose of the Framework would be to jointly advance the transfer of responsibility for the design, delivery and management of services from Indigenous Services Canada to Indigenous partners."
• Recognizing that many First Nations are interested in assuming greater control of housing and infrastructure services, ISC has allocated $108.89 million over eight years to support activities relating to transferring departmental responsibilities for housing and other infrastructure.
• First Nations-led organizations received funding to engage with First Nation communities to undertake a range of activities, including developing an approach for delivering housing and establishing service standards.
• The housing and infrastructure service transfer process has three phases:
  • Engagement and Proof-of-Concept, in which First Nation organizations engage First Nations, collect data and develop a scope of services and service delivery model in collaboration with interested First Nations;
  • Negotiations/Institution-Building, in which organizations establish financial needs, levels of service standards and interim operations; and,
  • Implementation, in which the organization and Canada establish terms for the transfer, including funding and evaluation requirements.
• The first transfer of services within the realm of housing and infrastructure was completed with the Atlantic First Nations Water Authority in 2022, which assumed full control of water and wastewater service delivery for a number of First Nations in 2022.

Current Status

• Indigenous Services Canada continues to support First Nations organizations to explore the transfer of housing. To date, nine First Nations organizations have received funding to explore the transfer of housing and two have reached the second phase of transfer through the signing of a framework agreement (the First Nations Capital and Infrastructure Agency of Saskatchewan and Confederacy of Mainland Mi'kmaq).

Key Messages

• A Report of the Standing Committee on Indigenous and Northern Affairs (INAN) on "The Effects of the Housing Shortage on Indigenous Peoples in Canada" was tabled in Parliament on June 13, 2022.
• The Committee heard that several factors contributed to the lack of housing including colonialism, racism and discrimination, housing unaffordability, Indian Act barriers, the lack of developable land and infrastructure in many communities, population growth, limited capacity at the community level and chronic underfunding.
• The report made a number of recommendations aligned with the recommendations of the Office of the Auditor General for which the Government of Canada provided a response and identified actions that were planned or underway.

Background

• The report's recommendations and the actions identified in the Government Response included:
  • Recommendation 1: "That all federal policy or legislative proposals relating to Indigenous housing be co-developed with Indigenous Peoples." The Government Response referenced the co-developed 10-year First Nations Housing and Related Infrastructure Strategy, which was endorsed by the Assembly of First Nations Special Chiefs Assembly in December 2018 and outlines the path forward to transition the care, control and management of housing to First Nations.
  • Recommendation 8: "That the Government of Canada, in providing funding for housing, take into consideration the rapid growth of First Nations, Inuit and Métis populations, and the increasing population on First Nations reserves resulting from changes to the registration provisions of the Indian Act." The Government Response noted that ISC's funding approach takes into account population projects, sourced from Statistics Canada, to develop scenarios for future years and population growth among First Nations.
  • Recommendation 9: "That the Government of Canada work to close the gap by providing additional and appropriate funding and support to First Nations, Inuit and Métis communities and organizations to recruit, retain and train Indigenous staff working on housing, including training to increase the capacity of communities to build and maintain their own housing." The Government Response recognized that it will take more than bricks-and-mortar investments to close the housing gaps in Indigenous communities. Since 2016, ISC has provided additional support for capacity-building in First Nations and First Nation organizations and, in 2022, introduced a Housing Capacity Enhancement Initiative to provide dedicated support to First Nations to hire, train and retain dedicated housing managers, including for salary costs.
  • Recommendation 17: "That the Government of Canada work with Indigenous governments, communities and organizations to address barriers, requirements and application processes for all housing programs where Indigenous organizations, communities and governments are eligible to apply to ensure these programs meet the needs of Indigenous Peoples and communities." The Government Response noted that ISC regularly updates its funding parameters with recommendations from its employees that work directly with First Nations. This has included clarifying that funding from ISC's on-reserve housing program can be used to construct or renovate housing to support reunification of families, multi-unit homes, energy-efficient renovations and transition homes. Recognizing that it can be challenging to develop housing plans and navigate housing funding programs without dedicated personnel, as noted above, in 2022, ISC introduced the Housing Capacity Enhancement Initiative to support communities to hire, train and retain dedicated housing professionals.
  • Recommendation 19: "That the Government of Canada work with Indigenous organizations and communities, as well as relevant provincial and territorial partners, to explore ways to support homeownership tailored to the needs of Indigenous communities." The Government Response noted that ISC is leveraging Budget 2022 funding to support the National Aboriginal Capital Corporations Association and Aboriginal Savings Corporation of Canada to establish a national network of Indigenous Financial Intermediaries. This model will support First Nations to overhaul community housing systems, expectations, policies, and land, infrastructure and ownership title regimes, as well as to access affordable housing financing.

Next Steps

• ISC continues to work with First Nations and First Nation organizations to address the recommendations of the INAN report.

Key Messages

• ISC reports on housing, as well as other infrastructure under the Departmental Result: Indigenous communities have sustainable land management and infrastructure.
• In 2024-25, the Department will report against two indicators, one of which is new.
• There are reporting challenges associated with housing indicators, mainly due to misalignment of timing between formal public reporting processes (e.g., the Departmental Results Report) and timing of reports received from First Nations.
• However, there has been a year-over-year increase in housing results, with First Nations reporting increased adequacy of homes on-reserve since 2018-19.

Background

• In 2024-25, results for the First Nations On-Reserve Housing Program are reported under the Departmental Result, Indigenous communities have sustainable land management and infrastructure, which includes results for all ISC infrastructure programs as well as its lands and emergency management programs.
• There are two indicators related to housing, for which additional information can be found below.

1. Percentage of First Nations housing that is adequate as assessed and reported by First Nations: this is an existing indicator with a steady target of 75%.
   • Measuring the percentage of housing that is adequate annually allows Indigenous Services Canada to test if its investments are impacting the quality of on reserve housing units. Information is collected through ISC's "Community Infrastructure and Housing Annual Report" a two-pager data collection instrument.
   • ISC requests that First Nations share their Data Collection Instrument with the Department by May 31 of each year, with the exception of Ontario First Nations that have until October 15 of each year.
   • For this reason, the Department has experienced a significant lag in reporting results against this indicator. It is exploring how to ensure that these reports are publicly available in GC INfoBase outside of the Departmental Results Report process.
   • However, analysis shows that there have been incremental increases in the results over the last five years, from 72.7% in 2018-19 to 74.1% in 2022-23.
2. Percentage of First Nations households living in a dwelling that contains more than one person per room.
   • This is a new indicator in 2024-25 and a target is being developed.
   • Measuring the percentage of First Nations households living in overcrowded housing (where a dwelling houses more than one person per room) in conjunction with the indicator on housing adequacy allows Indigenous Services Canada to assess the housing needs on reserves.
   • The source of data is the Census; as such, information will be collected and reported on every five years.
   • The target for March 2026 is 10.7%, which would represent a 2% decrease over Census 2021 results of 12.7% overcrowding on-reserve.

Current Status

• The Department will continue to explore how to ensure that its housing-related results are publicly available.

Results/Performance Information