Institutional Change in the Dutch and Ontarian Non-Profit Housing Sectors: Defining Possible Avenues of Change

This Major Research Paper provides a comparative study of non-profit housing in Ontario and the Netherlands. As Ontario and Canada as a whole are currently experiencing a re-examination of the role of non-profit housing, this research sought to examine each jurisdiction’s sector in detail to determine if inspiration for the future development of the Ontario sector could be taken from the Netherlands. To provide a full picture of each unique system and their historical development, a series of interviews was conducted with housing experts in each jurisdiction. Section One provides a case study of the Dutch housing association model. With insights from interviewees, the development of the sector is outlined, focusing on the associations’ growth following the post-war reconstruction period to become large-scale social institutions. It outlines the impact of dramatic reforms that took place in 1995, which severed the associations’ close financial links with the national government and provided them with free reign to conduct a wide variety of social and market activities – many of which were highly successful. In recent years, high profile scandals have resulted in a new series of reforms, restricting their market activities and subjecting them to new accountability measures and a substantial new tax. However, the current refocusing of housing associations on their core tasks and the increasing failure of the market to satisfy middle income housing needs make it likely that the more harmful of these reforms will be reversed in the future, allowing the sector to resume an expanded role in the market. In Section Two the role of Ontario’s non-profit sector is examined. From 1973- 1993 there was a strong federal program for developing non-profit and co-operative housing, which was then devolved to the province. In the subsequent decades there has been very little new non-profit housing development, although there are promising indicators that this might be changing, most notably in the form of the National Housing Strategy. However, the new programs for supporting affordable housing development are premised upon a residual role for the non-profits and create a framework in which non-profits often compete with private developers for funding. Thus while there may be organizational improvements made within the sector, it seems unlikely that the current path will allow non-profits to have the opportunity to play much more than a residual role. Contrary to the original aims of this research, the comparative analysis has found that the success of the Dutch housing association sector is not primarily based on the superiority of its model, but rather stems from political choices made over many years. The Dutch case demonstrates that consistent, meaningful political support is necessary for the development of a mass social institution. While there are many operational practices which can be learned from the Dutch housing sector, the lack of political consensus on the role of the government in housing in Canada and Ontario makes it unlikely for the province to replicate the success of the Netherlands without a significant political and institutional shift.