As N.L. struggles to house people with complex needs, a homeowner feels caught in the middle
$1.82M spent on mental health and addictions rental subsidy last year
Sheltered, a CBC Investigates series, examines the housing crisis in Newfoundland and Labrador — telling the stories of the people living it, while scrutinizing the policies and politics behind it.
They are considered difficult to house: individuals whose needs are so complex the typical rental market is unattainable and for whom communal living, like shelters, isn't ideal.
The little-known solution: a Newfoundland and Labrador Health Services rental subsidy provided to private landlords and property managers with sometimes sky-high rates — a system separate from private shelters.
The health authority defends the amount of money it — along with two other government departments — spends, on the subidy, saying it's a critical program that keeps people housed.
But one property owner and a provincial politician say there must be a better way to balance housing needs for vulnerable people and those of the wider community, with greater accountability and oversight.
For the last three years, music teacher Susan Evoy has been living next to one of these rental properties, in a duplex in downtown St. John's.
"The government is hemorrhaging money to house these people without proper supports, without wraparound supports," Evoy said.
"And it's a place that's derelict … and I'm trapped in the middle."
It's not just the condition of the attached house that's a problem, Evoy said, but the prevalence of the violence, drug use and instability that comes with the tenants who live there.
CBC News is not disclosing the address of the property but reviewed dozens of surveillance videos captured outside Evoy's property, which speak to the severity of her living conditions.
"I'm going to slice your f--king head off," a man screams in one video, as he paces outside.
He turns toward Evoy's door and adds, "And you, too, if you want to think I'm talking about you."
Others show a series of shocking scenes. Hordes of teenagers — some who appear on the border of childhood — coming and going at all hours. A male tenant wielding what appears to be an axe and threatening those who come close. Items thrown from windows. Walls shaking. Screams. Visits from the police.
"I do not feel safe in my own home," Evoy said.
Newfoundland and Labrador Health Services provides most of the funding, through a mental health and addictions subsidy for people who are "unable to live communally due to a history of homelessness or rooflessness" or are at risk because of their mental health or addictions illnesses.
The health authority told CBC News it spent about $1.82 million in total in 2023 for the subsidy, which is offered only in the Eastern zone.
In many cases, landlords and property managers receive three streams of funding to house these individuals: income support through the Department of Children, Seniors and Social Development, rent supplements through the Newfoundland and Labrador Housing Corp. and the subsidy through N.L. Health Services.
'Steady traffic of people'
Evoy said the trouble began when a long-term tenant of the rental property left in 2020. Since then, Evoy said, the property has been used to house people with barriers to housing.
That alone is not a problem, she said, adding she is sympathetic to the individuals and the need for housing for people with mental health and addictions issues.
"It's been a steady traffic of people, with people who are selling illegal drugs. It's been steady foot traffic. There's been a lot of violence in the house next door. There's been threats to us. Our property has been damaged. Our property has been stolen," she said.
"The house itself is not in good condition."
The Royal Newfoundland Constabulary denied an access-to-information request asking for the number of calls that have been made to the address, citing privacy concerns.
However, Evoy estimates that it has been over 100.
The first tenant described themselves to Evoy as a cocaine dealer who was in the process of trying to go back to school, she said.
The second tenant, Evoy said, was quiet but soon a number of men appeared to move in with her, bringing with them fighting and drugs.
After that came squatters before other tenants moved in.
Evoy said things began to ramp up last year when a young man was moved into the property. She said she has been threatened and had her property damaged.
"The first night the police advised [us], 'Do not engage with this tenant under any circumstances. He is violent, he is unpredictable, capable of anything and we wouldn't put anything past him,'" she said.
The tenant, who is now facing unrelated criminal charges, appeared to have left the house in the spring, Evoy said.
Evoy said much of her frustration lies with the different government departments and agencies involved. She said she has made contact with many without much satisfaction, and has been told to contact police.
"[If] the City of St. John's is limited in what they can do, and the RNC is limited in what they can do, and the tenant is not responsible for their own actions, then who is responsible?" Evoy said.
Who is accountable?
The property is managed by Steve Saunders, a landlord, property manager and owner of Riverwalk, a former hotel turned emergency, for-profit shelter in Mount Pearl.
"Some people have said to me, 'That's awesome work you're doing, Steve, but I wouldn't do it,' or, 'Please don't put any of your tenants on my street, will you.' I really don't get it … yes, there are challenges but give me a break," Saunders wrote CBC News in an email.
Saunders declined an interview but answered a list of questions provided by CBC News, adding he is passionate about housing issues and is proud of the work he has done.
He took issue with Evoy's comments about the condition of the home but said he would not discuss specifics.
Saunders said his properties are checked at least four times a week and repairs are completed in a timely manner, once permits are received from the respective municipality. He has three full-time maintenance crews on staff, he said.
He said he and his staff provide ample oversight at all properties. "Some are more challenging but we adjust for that," he said.
In a statement, a spokesperson from the Newfoundland and Labrador Housing Corporation said staff there perform an initial inspection on homes where rental supplements are provided. However, there are no checks carried out after that.
Evoy said she's watched as what appears to be a lone social or case worker arrives at the home but she doesn't believe the tenant received the care and wraparound services he required.
"If the person housed next to me frequently is going to throw things out of a window or is violent, is an attached house the best answer for this tenant?" Evoy said.
"I think they are setting people up for failure."
Evoy's MHA — provincial NDP Leader Jim Dinn — agrees.
"It's not good enough to tell this person that if you see any suspicious activity, call the police. That's a poor strategy as far as I'm concerned," said Dinn, who has been a vocal opponent of the government's approach to low-barrier housing.
"Eventually they're going to end up unhoused or back into the justice system or they're going to be evicted."
Saunders, however, said everyone is entitled to live where they choose, and that includes attached housing.
"Maybe Evoy and Dinn should take off their rose-coloured glasses and get off their high horse," Saunders wrote.
"Dinn would be the first one crying foul if I discriminated against someone and said, 'Oh I can't rent to you there because that's attached' or some other foolish reason.'"
'There's a lot of work to do'
Health authority spokesperson Mikaela Etchegary said 273 private landlords and property managers were enlisted to participate in the Eastern zone last year, to house 377 people.
The mental health and addictions subsidy is provided to private landlords with single units up to larger property management companies, Etchegary said.
Numbers obtained by CBC News through an access-to-information request show over $21,000 was paid to Saunders within a nine-month span in 2023 for the property next to Evoy's home. That equals over $2,430 a month — for just one of the three available streams of funding. In that same time frame, the health authority paid Saunders over $350,000 for that home and 29 others. There is one renter per address.
Documents obtained through access to information show Saunders has been steadily receiving more money each year. In total, Saunders has received over $719,000 in three years.
During that same time period, Saunders received over $250,000 from the housing corporation in rent supplements.
Saunders would not comment on the amount of money he receives but said his rents include heat, light, Internet, cable, telephone, garbage collection as require and snow clearing for individuals with disabilities.
"I provide these services to ensure that their mental health doesn't get worse and they don't feel trapped in their house with no means of communication or entertainment," he wrote.
N.L. Health Services told CBC News it's not responsible for overseeing the condition of properties, and that it is mostly just the "funder."
The amounts paid to some landlords are quite high, acknowledged Leslie Brown, director of community mental health and addictions for N.L. Health Services' Eastern zone.
"The subsidy program really is the last option. We will make sure that, you know, other communal living opportunities are explored, and if none of those are successful and the person wants to live in a particular rental situation, then that's where our subsidy kicks in," she said in a recent interview.
Brown said clients are followed by case managers under the health authority's ACTT — assertive community treatment team — and FACT — flexible assertive community treatment — programs.
However, Brown said there is no oversight of the properties themselves, or the landlords who own them, and there hasn't been a value-for-money assessment of the program — at least, not yet.
"It uses free market," she said, stressing autonomy and choice are the biggest factors that come into play.
"I think that there is definitely work that we can do to make sure that we build up the capacity of the community so that the choice is better."
Brown said they have heard anecdotal success stories where individuals are happy and thriving in their accommodations.
The gratification I personally feel when I see first-hand how some of my tenants do after being rejected so much and knowing someone actually cares about them is sometimes overwhelming.- Steve Saunders
Brown said the subsidy program is assessed annually to ensure it's still meeting their needs but there is an internal acknowledgement that things can be improved.
"This is not a perfect system. Our housing program is certainly not perfect, and there's a lot of work that we need to do to make sure that this significant amount of money that we're spending is being spent in the best possible way."
Brown said a recently formed group made up of government partners will tackle complex housing directly, "recognizing that what we have is not necessarily sustainable."
But without it, she asked, what would happen?
Saunders said he believes the government, along with community support organizations, "are doing the best they can right now."
He insisted he's no "average landlord," and said he and his staff are trained in things like mental health first aid, naloxone administration, suicide prevention, conflict resolution and de-escalation training.
"The gratification I personally feel when I see first-hand how some of my tenants do after being rejected so much and knowing someone actually cares about them is sometimes overwhelming," Saunders said.
What's the alternative?
Meanwhile, Dinn said he has been inside some of the private properties used to house individuals who rely on the subsidy, and condemns them as "hovels."
He said the money should instead go to community-based housing with organizations like Stella's Circle, instead of using the private market.
At minimum, Dinn said, there should be inspections, standards and oversight of the properties being utilized.
"It seems no one has any responsibility for it," he said.
"To say, 'Well, it's their choice and we're just paying the money' — no, it's your responsibility."
Previous stories from Sheltered, a CBC N.L. Investigates series:
- N.L. planning to hire staffer so landlord and tenant violations can go to court
- Inside Canada's hidden housing crisis in northern Labrador
- Meeting over dire Inuit housing conditions encouraging, says national advocate
- He was wrongfully kicked out of his apartment. Why hasn't his landlord been fined?
- Minister says he 'misspoke' as pressure mounts on N.L. government over housing claims
- The housing minister said 750 new homes have been built in 2 years. It's less ... much less
- Tent city protesters don't want to go into shelters. These complaints we obtained explain why
- Inside a new shelter that is trying to fill a desperate gap in emergency housing
- Hotels instead of homes: N.L. spending millions on emergency shelter
- More than $1.4M spent on hotel as Labrador town debates new shelter
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