P.E.I.'s affordable housing program isn't delivering desired results, says Auditor General
Prince Edward Island's Affordable Housing Development Program fell short of its intended purpose, the province's Auditor General says.
A report from the Office of the Auditor General found glaring issues with how the program is run, as well as with its overall impact on the creation of affordable housing units in the province.
"The program has not had the planned or expected impact on increasing the inventory of affordable rental units for those in core housing need," the report said.
"When units are not completed in a timely manner, housing availability is not improved, housing costs increase, and those who are in most need of housing are at risk of homelessness."
The government measured the performance of the program based on the number of approved projects — not the number of projects actually completed, the AG report said.
"The fact that they're approved, that's great," said Darren Noonan, P.E.I.'s Auditor General. "But the ultimate goal is to get families off [the social housing] registry and into housing units."
What is the Affordable Housing Development Program?
The aim of the Affordable Housing Development Program is to increase the overall number of affordable housing units on P.E.I. and help fulfill the Housing Action Plan's goal to create 1,000 affordable units over four years.
Through the program, the government provided developers forgivable loans of up to $55,000 per unit, which was intended to support construction costs in exchange for keeping rental rates at an affordable level.
Between 2020 and 2023, the government has provided $12.7 million in forgivable loans for 261 affordable units over a four-year period. Of those, 69 are completed, 63 are in progress and 129 have not started construction.
At the time the program was started, there were just over 1,000 families on the social housing registry, Noonan said.
Had the program produced the 261 units it was intended to, it could have provided homes for about 25 per cent of the registry, Noonan said.
The Auditor General's report
The Office of the Auditor General also found that the government did not adequately collect information on dates of funding agreements, updates from developers or expected construction dates.
That absence of documentation "reflects a lack of attention to the program," Noonan said.
The government should be working with developers as partners, he said.
"If they're not starting a project, find out why. What can they do to help?" he said. "It's a big problem, the number of affordable housing units on the market, so there has to be a way to work with developers to help fix the problem."
The Office of the Auditor General provided five recommendations to the province, all of which were accepted.
The province said in the audit that it will improve its record-keeping and how it reports on the housing program.
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