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

Some First Nations leaders and advocates are saying alternative financing solutions need to be explored to help close the infrastructure gap on-reserve, especially when it comes to housing.

"We're really going to be pressing the government to come and find unique solutions 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 infrastructure to non-Indigenous communities by 2030, the Assembly of First Nations said in a report released Tuesday.

Haymond said the numbers are staggering, particularly with housing. The report estimates $135.1 billion and 157,453 new homes are needed to address overcrowding, on-reserve migration, unit replacement, servicing of new lots, repairs and population growth.

Haymond leads the housing and infrastructure file at the Assembly of First Nations of Quebec-Labrador and is co-chair of the chiefs committee on housing and infrastructure at the Assembly of First Nations. 

"Given the fact that government's never going to be able to provide us the funding that we need in a timely manner, we would be foolish if we didn't look at other options," said Haymond.

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

Like other communities, access to housing loans are capped by the capacity of individual First Nations to guarantee housing finance.

"A modest three-bedroom, 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 homeownership."

He hopes that alternative initiatives are explored, such as the Yänonhchia' Indigenous Housing Finance Network. It's an Indigenous-to-Indigenous 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 reliance on government for housing and infrastructure services in communities. 

Smith, a member of Missanabie Cree First Nation in northern Ontario, said private capital could be used for First Nations housing and infrastructure if the political will exists.

"There's billions of Indigenous 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 Indigenous communities to fix these kinds of infrastructure, housing gaps."

The cost of inaction

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

Ontario Regional Chief Glen Hare said in a statement 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 long-overdue 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 growing demographics in this country. We will persevere. We will close this gap."