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President defends comops CS Dear Sir: Having read the editorial in your February 29, 1984 issue, I would like to express my serious concern that your publication has ex- pended such little effort to conduct complete and thorough research into the matter of co- operative housing. I am sure that with the proper facts in hand, the editorial, "Co-ops: help for those without need", would have been rever- sed a full180 degrees. Because of space con- straints, I will attempt to provide the correct information for only those points where the editorial was most seriously in error. I will do this not to change your mind but in an at- tempt to repair the damage the editorial may have done to the public perception of housing co-operatives. Firsty,' CMHC does not provide the mor- tgage to a co-operative. The mortgage is ob- tained from a recognized lending in- stitution. CMHC insures the mortgage; the same way is insures the mor- tgages ,of almost all private building projec- ts, rental or free-hold. Secondly, although it is true that CMHC will provide grants to help cover the difference between total monthly unit charges and the total monthly mortgage cost, over 90 per cent of all private rental starts also require gover- nment assistance. The difference is that a co-op is a non-profit cor- poration. The co-op program is the only federal program that provides assistance for non-profit -.housing. However, their are a myriad of programs, tax shelters. and tax breaks provided for private builders and landlords by the federal government. The fact that the sub- sidies per unit for non- profit co-operative housing are higher than for private housing is true. But the increased cost is justified, I believe, by the fact that the program is providing for the housing needs of some in our society which are not being met in the private mnarket place. The third and most serious error is that the editorial not only missed the point but stated the exact op- CARDIAC REHABILITATION The Cardiac Rehabilitation Organi- zation will hold its next program for beginners in March. Acceptance is re '.ric- ted to people who suffer from cardiovascular dlisease: i.e., angina, heart attack, pre- and post by-pass surw ery and hypertension. For more inform .ion call 725-8502 or 723-07. posite a number of times. For example, the statement that in order to live irn the Pringle Creek Co-op a family must earn $25,000 a year or more is patently not true. Membership in a co-op is not governed by a minimum income criteria. Much of the monthly CMHC subsidy goes to pay the balance of the monthly housing charge in cases where 25 per cent of some family's income is not sufficient to meet that charge. The subsidy also keeps the regular monthly housing charge equal to that of market rents in the area, thus housing those of moderate incomes above the rent sup- plement level who have difficulty finding affor- dable housing in the private market place. The primary purpose of the co-ops is to provide housing for low and moderate income families and, in the case of the Pringle Creek Co- op, some handicapped persons as well. It's un- fortunate however that the editorial has led to great confusion as to what constitutes lower and middle income families. Its quotation of "$15,000 per year" is the average individual in- come across Canada. The 1981 Census of Canada indicates the average family income in the Town of Whitby is in excess of $30,000 per year. I would not hazard to guess what the average family income in the Pringle Creek Co- op will be, but given that there is no minimum in- come requirement and that the goal is to provide housing for lower and middle in- come families, in- cluding those on rent supplements, the average family income in the Pringle Creek Co- op will be substantially lower than that for the town as a whole. Based on the series of incorrect information which I have pointed out, the editorial arrives at its central thesis as stated in its title, that co-op housing provides subsidies for those who do not need it. Just as the "facts" that lead to the conclusion -are wrong, so is the con- clusion itself. According to a CMHC report done in 1983, 96 per cent of the benefits of co-ops go to low and moderage income families. Pringle Creek Co-op will be providing badly needed affordable housing for single parent families, for the handicapped (it has specially designed units for handicapped per- sons), and for low in- come families. However, it is also an important goal of all non-profit and co-op housing programs not to segregate and ghettoize those of the less advan- taged in our society. Consequently, the Pringle Creek Co-op will also house those of mid- die income and high in- come who prefer the co- operative lifestyle, thus providing for people of a wide range of backgrounds to live together in a true sense of community. On the surface this would appear to be providing at least some of the units in the project for those who could find housing elsewhere just as easily. The immediate respon- se is that this is a waste of government sub- sidies. I submit, however, that this is emminently better than creating another Jane- Finch corridor area where due to an undue concentration of sub- sidized housing, low in- come families must live with the stigma of con- stantly being reminded of their economic plight because of where they live. Those of average or above average in- come do not live in a co- op for the sake of a sub- sidy. They live there because of thier belief in the co-operative lifestyle. With this new infor- mation at your disposal I trust that most of the concerns stated in your editorial, but more im- portantly the concerns that the editorial may have placed in the min- ds of your readers, have been alleviated. Yours truly, Jo-Ann Jordan President Pringle Creek Co-op. Midway Carpet Ltd. HUR9-6 1305 Harwood Ave. N., Ajax HURS. à F2 A PATIO DOOR VERTICAL FOR EASTER $s RETAIL VALUE $362.00 • NO PURCHASE NECESSARY PRIZE DRAWN 5 P.M. APRIL 21ST BEFORE YOU BUY -COMPARE-- QUALITY & PRICE SAVE VERTICAL BLINDS UP TO 50/O OFF VENETIAN BLINDS 35° OFF ROLL SHADES 30% OFF CUSTOM MADE DRAPES 20/o OFF BRING IN YOUR OWN MEASUREMENTS and receive 2 single rolls of wallpaper with every $150.0 spent. McMARR INTERIORS 1397 HARWOOD N. AJAX 686m4500 e= A ~ ~ ~ ~ . =71v:~ ~~-114 mm" 1 mubmmmmd WHITBY FREE PRESS, WEDNESDAY, MARCII 7, 1984, PAGE 5 LETTERS TO THE EDITOR