Appraisal Challenges in First Nations

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Appraisal Challenges in First Nations

• Initiating Collaborative Opportunity
• Ottawa Chateau Laurier
• June 8, 2012

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How the AFN Functions

• Represents the collective voice of the Chiefs of
  634 First Nations
• An Elected National Chief is supported through
  consultation with 10 Regional Vice Chiefs
• Mandates and Directions are provided through a
  process of Assembly Resolutions
• These Resolutions normally come from Chiefs
  Committees that are supported by Technical
  Working Groups

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How the AFN Functions contd

• Chiefs Committees are formed to address the needs
  and priorities of the collective FN voice
• AFN Secretariats have been developed to reflect
  these needs and priorities and carry out the
  identified work required
• Representatives on the Chiefs Committee on
  Housing and its supportive Technical Working
  Group are appointed by the Regional Chiefs
• The Housing Secretariat funding comes partially
  from ANNDC to meet mutually negotiated
  deliverables

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How the AFN Functions contd

• Secretariat represents collective FN interests on
  a number of National Committees
• National Housing Liaison Committee
• National First Nation Indoor Air Quality
  Committee
• Interdepartmental Mould Working Group
• Recent 1996 On Reserve Housing Evaluation
  Advisory Committee
• No binding decision making on any of these
  committees from the First Nation perspective

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The First Nation Vision

• Recognize the FN as the authority having
  jurisdiction and gear all program strategies to
  respect that authority.
• Anticipation of the building of a Institutional
  Framework to support the capacity for FN to
  exercise the inherent jurisdiction in Housing and
  Infrastructure
• A framework that sees the creation of FN
  Regulatory Environments and the means of
  Operational Control that allows the transition of
  programs, activities and initiatives from federal
  departments and agencies into First Nation hands

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We live in some Harsh Environments
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Some Very Harsh Environments
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Policy Renovation

• Clear distinction between imposed AANDC housing
  policy and the development of a policy that
  supports FN needs and priorities at the FN level
• Illustrate an inclusive manner for policy
  formulation, implementation and delivery by AANDC
  and CMHC
• Changing intent and limitations of current
  external interventions and supports to internal
  First Nation control
• Consideration of First Nation capacity
  development through a First Nation Institutional
  framework
• Re-focus on economic development, job opportunity
  and First Nation objectives

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A Legacy of Government Intervention
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How Do You Appraise This?
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Are we Achieving Minimum Standards?

• Building Code Standards that ensure that all
  homes built in First Nations provide for
• Health
• Safety
• Fire Protection
• Structural Stability
• Accessibility

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GoC Policy Evaluation

• There is consensus that the role of AANDC and
  CMHC is, and should be, primarily that of a
  funder.
• First Nations expect support in building capacity
  to take complete control over management of
  housing
• AANDC capacity building support has lacked
  strategic preparation, clear vision of needs, and
  without a strategy
• Any implementation was compromised by the lack of
  a clear and communicated policy, flexible
  operational guidelines, and appropriate
  capacities
• Improvements are required to housing design,
  planning processes, capacity development, and to
  communications and knowledge transfer

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AFN Resolution No. 14/2007

• Resolution No. 14/2007 calls for a comprehensive
  approach that includes all aspects of housing,
  from social housing and the care and control of
  band owned housing assets to individual home
  ownership.
• The Chiefs in Assembly directed the AFN to
  advocate for a balanced Housing Framework that
  maintains the ability of FN communities to move
  forward with local, territorial and regional
  housing strategies.
• Work towards replacing external GoC controls and
  interventions by creating and implementing
  internal First Nation solutions that provide new
  options and opportunities.

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What Will it Look Like

• Sound and Comprehensive Housing Policies
• System of land tenure and lot servicing
• Appropriate codes, standards and by-laws
• Compliance and enforcement measures
• Quality assurance and performance measures
• Predictable and sustainable financial practices
• Defines the parameters that an independent
  housing authority functions
• Developed collaboratively and ratified by
  community consensus

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Model Housing Policies

• Governance structure and operational controls
• Housing program options
• Construction procedures and guidelines
• Application and selection process
• Occupancy regulations and responsibilities
• Financial management and administration
• Oversight and appeals mechanisms

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AFN Responsibility

• Aggressively pursue a position at the table in
  the development of a National Strategy that is
  inclusive of local, territorial and regional
  First Nation jurisdictions while accommodating
  the recommendations of the 1996 On Reserve
  Housing Policy Evaluation.
• Continue the developmental work in defining the
  parameters of a First Nation regulatory
  environment.
• Continue defining the operational controls that
  assist First Nations in creating local or
  collective housing authorities that will create
  an institutional framework that allows for the
  transfer of federal programs, activities and
  initiatives into First Nation hands.

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Systems of Land Tenure

• Certificates of Possession
• Long Term Lease Hold Purchase
• Land Trusts
• Designated Lands for Development
• First Nation Land Management Act Codes
• Land Lease Cooperative (Designated Land)
• Land Lease Non Profit (Designated Land)
• But Who Controls the LAND?

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Is Aboriginal title really worth less?

• What are the features of converting title into a
  marketable asset?

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Remembering Musqueam

• Why 50? Economist blamed
• lease disputes
• political conflict
• taxation issues
• In short, legal uncertainty

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Remembering Musqueam

• The majority of the Supreme Court of Canada
  Judges opined that current land value was to be
  calculated as leasehold lands, with its
  on-reserve status.
• Thus the Court determined that fee simple lands
  are not the same as reserve lands. Furthermore,
  Supreme Court agreed with the trial judge that
  the values should be discounted by 50 based on
  the appraisal reports filed with the court.
  Hence, the market value of a leasehold
  residential property located on Musqueam was
  discounted by 50 of that of a similar property
  located on fee simple lands.

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How 2 small changes changed everything

• CMHC (mortgage insurance on designated lands)
• increased demands by prospective purchasers which
  include high ratio buyers
• lowers the rate of interest by bringing in a
  conventional mortgage rate
• the number of conventional lenders willing to
  lend on such properties increased.

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How 2 small changes changed everything

• FNLMA Nipissing First Nations Band Council
• agreed to extend lease periods to facilitate
  amortization requirements
• provided fast, simple confirmation of BCR
  authorizing lease assignment
• provided clear rules in granting BCR

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Securing Lenders

• What is needed
• basic property rights
• equal treatment of assets for security
• predictable priority rules
• searchable property or asset registry
• predictable enforcement of creditors rights
• clear conflict rules (third parties)

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What can be mortgaged?

• Designated lands
• Sub leases under Certificates of Possession
• Permits issued under Land Codes of the FN Land
  Management Act
• Bands with self government deals (ie,Westbank)
• 28(2) permits (exceptional)
• Nisgaa (issues)
• Cree-Naskapi (of Quebec) Act (federal)

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Where is Fee Simple??

• First Nations have a relationship with our
  territories that is rooted in our spirituality as
  a gift from the Creator.
• Our spiritual connection with our territories is
  the foundation of our life as Peoples. First
  Nations have a sacred responsibility to honour
  and preserve our spiritual connection to our
  territories.
• The proposed Property Ownership Act would endorse
  fee simple title of First Nation reserved
  lands, a concept that is in direct contradiction
  to First Nation sacred responsibilities and
  distinct relationship to our territories.
• We collectively affirm our inherent Aboriginal
  and Treaty rights and jurisdiction to advance our
  own land tenure systems as directed and mandated
  by our peoples, consistent with our spiritual
  connection with the land

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Developing a Regulatory Environment

• First Nation regulatory environments at the local
  level that are based on good governance
• Provision of capacity development measures that
  assist in creating all of the key features
  necessary for independent operational control of
  a housing portfolio
• Ensure a system of advisory support for the
  development of housing authorities that will act
  as an operational control of the housing
  portfolio within the regulatory environment
• Strategic Framework Agreements with various
  housing and infrastructure technical service
  providers such as housing managers, financial
  officers, land managers, building officers,
  firefighters, etc

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Operational Control of Housing

• Working within a mandate from Chief and Council
  but operating the housing portfolio
  independently.
• The housing portfolio operates within the
  parameters of the predetermined and ratified
  regulatory environment.
• Independent governance and decision making
  process endorsed by Chief and Council.
• Set aside finance and funding mechanisms.
• Sustainable management and administrative
  practices removed from band administration.
• Professional capacities for construction
  management, operations and portfolio asset
  maintenance.

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Future Steps and Measures

• improve relationships in a multi jurisdictional
  environment with First Nation communities and
  their duly mandated organizations whether they be
  on or off reserve
• improve the functional capacity within the First
  Nation housing sector to allow full engagement
  and participation in new and existing housing
  opportunities
• increase the control and influence of First
  Nations over housing issues, programs, services,
  strategies, and decisions that affect the living
  conditions of First Nations
• improve integrated and reciprocal housing
  services between First Nations and those existing
  mechanisms found in the multi jurisdictional off
  reserve environment

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Session Questions

• What role do you see this new relationship
  between First Nations and the AIC in the future
  delivery of programs, activities and initiatives?
  Is there one?
• With such a large gap in the human, technical,
  financial and institutional capacities of First
  Nations what measures need to be undertaken to
  overcome the gaps and how would you prioritize
  those measures?

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Session Questions

• How can the AFN assist in developing a
  collaborative First Nation network for housing
  that defines the process that a First Nation must
  undertake to build the desired capacity to
  undertake activities with the AIC?
• Are First Nations ready to individually or
  collectively create the necessary Regulatory
  Environments to govern all aspects of housing
  within their jurisdiction that satisfies the AIC.
  What steps and measures are required to achieve
  this?
• What degrees of consultation with First Nations
  need to take place following the recommendations
  made that will guide the new relationship with
  the Appraisal Institute of Canada?

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