Funding and Finance

Summary

BC First Nations expressed a desire to terminate the program and competitive application-based housing and infrastructure funding approach that ISC and CMHC have used in the past. They seek to replace it with a system that allocates funds based on long-term collective housing & infrastructure needs developed through compiling needs of comprehensive community plans. This system will use ISC and other government funds, Authority earned funds and other private funding sources to address needs over time. Rather than managing poverty and dependency on government funding, First Nations see housing and infrastructure as an opportunity to build wealth and gain self-determination.

Respondents look to the Authority to become a strong central voice to advocate for increased funding for new programming and for reparations for past conditions. The Authority will also build financial tools and capacity for First Nations to maximize housing revenues from their rental portfolios, to expand financial opportunities and support the development of First Nations housing and infrastructure-related businesses through First Nations financial management organizations.

Recommendations

ADVOCACY • Authority to negotiate a settlement for the current substandard conditions based on past government control of housing and infrastructure • Central voice to advocate for increased and more appropriate funding • Central voice to advocate for new funding to develop new programs • Work with financial institutions to develop financial instruments that are appropriate for First Nations, including private lenders, governments, financial institutions, resource revenues, and gaming revenues • Work with the First Nations Financial Management Association (FNFMA) to develop financial opportunities for housing and infrastructure projects such as monetizing government funds, resource income, gaming income, etc. • Seek commitment from government to fund housing managers

NEW FUNDING APPROACH • Build a flexible funding distribution system to fit First Nations’ needs • Provide funding to on- and off-reserve citizens in a fair way • Equitable distribution of funds between large and small First Nations • Stop competitive funding applications • Fair distribution of funds—based on needs identified in comprehensive plans • Find a new way to deliver rushed short-term B-based funding • Give adequate time for applications • Provide assistance so First Nations can successfully complete their own: • Housing and infrastructure asset assessment • Financial assessments—work with First Nations Financial Management Board (FNFMB) • Examine alternative funding approaches such as Habitat for Humanity

NEW FINANCIAL TOOLS • Authority to become an information hub for financing opportunities (provincial, federal) and act as a ready source of information • Authority to provide a central data program – both accessible and secure • Develop province-wide easily accessible shared rental policies • The first stream of funds needed to stabilize housing • Develop policies that enable the internal sale of on-reserve houses to provide mobility between residents • Align with urban Indigenous housing providers • Don’t fight over the money • Ensure fair dispersal of government funds to on- and off-reserve housing programs • Build a for-profit investment venture for BC First Nations

Funding and Finance

Challenges

Assembling a funding and finance system for a First Nation is complicated due to the vast and ever changing array of programs and offerings. It is further complicated because many of the programs are not suitable for many First Nations. Some of the most common barriers to funding and financing success are as follows:

• Mindset that all housing and infrastructure funding comes from government • The dependency on government has prevented many First Nations from reaching out to access alternative funding and financing opportunities • Some participants were concerned that the federal government should not be let off the hook for the responsibility it bears for the past failed programs • Almost 25% of BC First Nation have under 250 members, with less than half of their members living in their community. • Current system benefits wealthy First Nations • Making the financial equation work for low income, seasonal income, and occupants on Social Assistance is difficult • The current system is based on a competitive application process for limited resources pitting one First Nation against the other, often causing animosity between neighbours • Acquiring enough Operation and Maintenance funds for community facilities, community buildings, fire halls, offices, etc. • The high cost of replacing old infrastructure • Management • Inadequate information systems • Incomplete asset information • Capacity • Focus on building capacity needed to implement new funding/finance instruments • Young people to become financially literate in regards to housing

Capacity

• Make it a priority to build financial capacity in individual citizens, First Nations, and First Nations agencies and businesses • Advocate for education and training funding on an ongoing basis

CAST IRON STORM SEWER COVER DESIGNED BY COAST SALISH ARTISTS KELLY CANNELL AND SUSAN POINT

Opportunities

To move beyond dependency on government funding towards a multifaceted system that provides a wide range of funding and financial opportunities for First Nations housing and infrastructure projects that enables First Nations to emerge from poverty and build wealth.