Alternative financing solutions needed to close infrastructure gap, say First Nations leaders and advocates

Ka’nhehsí:io Deer

Some First Nations leaders and advocates are saying alternative financing solu‐ tions need to be explored to help close the infrastruc‐ ture gap on-reserve, espe‐ cially when it comes to housing.

"We're really going to be pressing the government to come and find unique solu‐ tions to the housing crisis," said Lance Haymond, chief of Kebaowek First Nation in the Abitibi-Témiscamingue region of Quebec.

The federal government must invest $349.2 billion now to ensure First Nations have access to similar infra‐ structure to non-Indigenous communities by 2030, the As‐ sembly of First Nations said in a report released Tuesday.

Haymond said the num‐ bers are staggering, particu‐ larly with housing. The report estimates $135.1 billion and 157,453 new homes are needed to address over‐ crowding, on-reserve migra‐ tion, unit replacement, ser‐ vicing of new lots, repairs and population growth.

Haymond leads the hous‐ ing and infrastructure file at the Assembly of First Nations of Quebec-Labrador and is co-chair of the chiefs com‐ mittee on housing and infra‐ structure at the Assembly of First Nations.

"Given the fact that gov‐ ernment's never going to be able to provide us the fund‐ ing that we need in a timely manner, we would be foolish if we didn't look at other op‐ tions," said Haymond.

Kebaowek does not rely solely on social housing and funding through Indigenous Services Canada and Canada Mortgage and Housing Cor‐ poration, but commercial banks will only finance homes if the loans are guar‐ anteed by the First Nation.

Like other communities, access to housing loans are capped by the capacity of in‐ dividual First Nations to guar‐ antee housing finance.

"A modest threebedroom, two-bathroom house in my community is around $300,000. We have to increase our loan amount so that members can continue to build on their own," he said.

"But it's taxing on the community to guarantee every single mortgage, whether we're building social housing or whether we're building private homeowner‐ ship."

He hopes that alternative initiatives are explored, such as the Yänonhchia' Indige‐ nous Housing Finance Net‐ work. It's an Indigenous-toIndigenous housing finance model that was piloted in Quebec to get more homes built where banks won't go.

Using private capital

Tracee Smith, president and CEO of Keewaywin Capital, agrees that there needs to be a shift away from total re‐ liance on government for housing and infrastructure services in communities.

Smith, a member of Mis‐ sanabie Cree First Nation in northern Ontario, said pri‐ vate capital could be used for First Nations housing and in‐ frastructure if the political will exists.

"There's billions of Indige‐ nous money sitting in our banks," she said.

"The government can start mandating the financial institutions where most of this money sits to start doing something different, like lending more money to In‐ digenous communities to fix these kinds of infrastructure, housing gaps."

The cost of inaction

The federal government's Budget 2022 outlined a con‐ tribution of $4.3 billion over a seven-year period to improve Indigenous housing.

Ontario Regional Chief Glen Hare said in a state‐ ment that in Ontario alone, it will cost almost $26 billion to ensure that First Nations people have the same quality of housing as the rest of the province.

He is calling on the federal government to make longoverdue investments.

"Every day this gap gets wider. It is 2024. Inaction is not just going to cost more money, but it is a stain on this very country. It is time to close the infrastructure gap," he said.

"Despite all of this, our people thrive. First Nations are among the fastest grow‐ ing demographics in this country. We will persevere. We will close this gap."