Expiry of Operating Agreements Peer Exchange · 3 4 96 Urban Native ... • HSC to prepare and present a viability assessment to each Housing Providers ... Before 2015 2015-2019 2020-2024
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Expiry of Operating Agreements
Peer Exchange
INNOVATION FORUM 2017
APRIL 6. 2017 >> NOVOTEL HOTEL >> TORONTO
Engagement & Consultations
Expiry of Operating Agreements (EOA) Peer Exchange
Engagement and Consultations
April 5, 2017 Henry Wall, Chief Administrative Officer
Kenora District Overview: Geography
Mission: Dedicated to Improving Lives
• The KDSB provides services to a catchment area of 407,000 km2
• The District’s vast geography
includes 9 municipalities and 4 unincorporated territories
• The District encompasses 40 some First Nation communities
• Has a Population of 65,000 to 75,000. Grew 13% from 2011-16.
Kenora District Overview: Geography
Mission: Dedicated to Improving Lives
• The KDSB provides services to a catchment area of 407,000 km2
• The District’s vast geography
includes 9 municipalities and 4 unincorporated territories
• The District encompasses 40 some First Nation communities
• Has a Population of 65,000 to 75,000. Grew 13% from 2011-16.
Kenora District Overview: Changing Demographics
Mission: Dedicated to Improving Lives
26%
21%
45%
12%
31% 23%
59%
0%
10%
20%
30%
40%
50%
60%
70%
Total CensusFamily
Households
Total CoupleFamily
Households
Total Lone-Parent FamilyHouseholds
No Children atHome
1 Child 2Children
3 orMore Children
Family Household Change 2011 - 2020 District of Kenora
Kenora District Overview: Growing need for Affordable
Housing
Mission: Dedicated to Improving Lives
• Approx. 24 % of growth in need is generated from outside communities.
• 1,210 people experienced homelessness in 2015.
Kenora District Overview: DSSAB Housing Stock
Mission: Dedicated to Improving Lives
Kenora District Housing Stock – Group of Legacy Programs from 1950s to 1990’s
Kenora District Overview: DSSAB Housing Stock
Mission: Dedicated to Improving Lives
Type Ownership # Of Groups* # Of Projects # Of Units Public Housing
(LHC) Owned by Service
Managers
1
25
526
Former Provincial Non-Profit
Owned by Sponsor
Organizations
7
36
454
Former Federal
Non-Profit
Owned by Sponsor Organizations
3 4 96
Urban Native Non-Profit
Owned by Sponsor Organizations
1
1
10
Total
N/A
66
1,086
• 41 projects consisting of 560 units with the Non-Profit Housing Providers’ portfolio will be reaching the expiry of operating agreements and mortgages
Kenora District Overview: DSSAB Housing Stock
Mission: Dedicated to Improving Lives
Adequately Funded
Capital Reserve
Under-Funded Capital Reserve
Positive NOI
1
Project is viable, can
maintain the current rental
mix and has the capacity to
maintain building in good
physical condition.
2
Project is generating a cash flow
surplus, but asset/capital reserve is
underfunded.
Negative
NOI
3
Project is not viable and
cannot sustain the current
rental mix; the asset/capital
reserve, however, is
adequately funded.
4
Project is at risk and unable to undertake the necessary capital renewal or replacement activities to maintain the asset.
In April 2016, the KDSB retained the Housing Services Corporation (HSC) to help complete full housing viability assessment by portfolio. Summary findings:
Kenora District Overview: DSSAB Housing Stock
Mission: Dedicated to Improving Lives
Total Units% of Total
Units
Total
Projects
Rating 1 209 37% 10
Rating 2 25 4% 3
Rating 3 153 27% 11
Rating 4 173 31% 17
The Results:
Preparing for EOA
Mission: Dedicated to Improving Lives
• Engaged with the Housing Providers and began quarterly meetings. • Starting with face to face meetings and then alternating to telephone meetings • Developing plans for services and knowledge sharing
• Developed an annual capital fund specific for the Housing Providers.
• Most of the housing stock build 30 years ago.
• Nearly all of the 2016 Social Infrastructure Fund (SIF) funding used to support the Housing Providers
• Help Housing Providers in the development of their Housing Condition Assessments
• HSC to prepare and present a viability assessment to each Housing Providers
• KDSB took on the property management services for one of the Housing Providers
Mission: Dedicated to Improving Lives
Post EOA – Planning and Preparing for EOA
Mission: Dedicated to Improving Lives
Approximately 1,210 people stayed at one of the three District emergency shelters in 2015 City of Kenora – Chronic run away youth from group homes – 800/year. over 600 youth in care in Kenora at any given time Opportunity: Taking existing housing stock and looking at opportunities to optimize building space and units.
Post EOA – Planning and Preparing for EOA
Post EOA – Planning and Preparing for EOA
Mission: Dedicated to Improving Lives
• Preparing to diversify housing portfolios
• Converting housing stock to alternative uses: • Converting seniors housing to non-elderly housing • Convert housing units to supportive housing units.
• Explore alternative governance and corporate structures
The Good, the Bad and the Ugly
Mission: Dedicated to Improving Lives
Initial reactions from housing providers? • Lack of Trust
Mission: Dedicated to Improving Lives
Housing Providers Portfolio Viability post EOA:
Mission: Dedicated to Improving Lives
Housing Providers Portfolio Viability post EOA:
Mission: Dedicated to Improving Lives
SHARE
Expiry of Operating
Agreements
Peer Exchange
20
April 6, 2017
Lisa Goodfellow, Program Manager, Housing
Services
Types of Housing Programs
• Section 26/27
• Section 95 (Private and Municipal Non
Profit)
• Urban native( Pre and Post 86)
• Public Housing
• Provincial Non-Profit and Co-op’s
• Rent Supplement
21
Ottawa Service Manager Social Housing Snapshot
22
Ottawa Service Manager Affordable Housing Snapshot
23
Timelines of Ottawa EOAs
0
20
40
60
80
100
Before 2015 2015-2019 2020-2024 After 2024
Former Federal
Programs
HSA Programs
# o
f Exp
iring P
roje
cts
24
Decreasing Federal Funding Transfer to Ottawa
$0
$5
$10
$15
$20
$25
$30
$35
2008 2012 2016 2020 2024 2028
$ M
illio
ns
*Data projected post 2020
Federal Funding
Public Housing
Funding
25
Social Housing Expenditures
26
Capital Reserve Contributions $646M
Refinancing, Property Tax Savings, and Capital Funding $255M
Unfunded Capital Needs $680M
Ottawa 30 Year Capital Needs
$1.6 B /
30 Years
EOA Planning and Engagement
When was social housing transferred to us?
April 1, 2002
When did we start planning for EOA?
April 2, 2002
28
EOA Strategy
1. Engage City Council – housing is a priority
2. Create opportunities for long term sustainability and growth of reserves
3. Early and ongoing support for Providers
4. Utilize all available tools to inform and plan
5. Empower Providers to influence change
29
Steps Along the Way
30
Funding
Formula -
Surpluses and
Reserves
Capital
Planning -
BCA’s and LT
forecasting
Program
Management -
Portfolio vs.
Program
Tools and
Resources –
IT, templates
and guides
HP Engagement
- Consultation
and Decision
Making
Funding Formula
• Allow providers to keep 50% share of operating surplus
• All programs allowed operating surplus up to $300 per unit + interest
• Market units in 100% RGI portfolio
• ‘lend’ reserve surpluses to other programs, track with interest charge
• LHC municipal property tax exemption
• Capital program rebates to reserves
31
Capital Planning
• Fund BCA studies in 2004 and 2011
• Fund Asset Planner licenses and annual updates (HSC) starting in 2011
• Municipal HHIP - capital repair program starting in 2011, other HHIP surpluses for social housing repair
• Capital Need reports in 2007 & 2017
• EOA portfolio review (HSC) in 2013 & 2016
32
Program Management
• Portfolio based approach for multi-program providers
• Operating Agreement with OCHC creating one funding model for all programs
• Facilitate asset sale, transfer and shared services
• Pilot EOA models with SHIP EOA providers
33
Tools and Resources
• Foster development and use of IT solutions (SHAMIS, Asset Planner, HCI)
• Development of Housing Standards
• Operation Review template (legislation and best practices)
• Business Case/Project Plan approach to capital programs
• SM EOA Toolkit, Template & Guide
34
Housing Provider Engagement • Community based approach to policy
development
• Consistent key messages
• Utilize tools to gradually build provider awareness and capacity
• Link capital programs to use of tools
• Empower providers to influence policy and change
• Increased staff presence on site
35
So now the end is near… or is it?
36
Last Year
• Development of SM EOA toolkit
• Review of portfolio viability
• Used SHIP to promote provider assessment and to pilot EOA strategy
• “Beginning the Conversation” event
• Developed the 2017 EOA engagement and consultation series framework
37
This Year • Finalize portfolio viability review
• Capital Need and EOA Report to Council in September
• Provider EOA engagement and consultation workshop series
• City staff ‘one on one’ with providers
• Provider Asset Planner annual updates
• Formalize asset transfer, merger and sale policy
38
EOA Stakeholder Engagement and
Consultation Series
39
Setting the EOA Context
Governance, Mission, Mandate,
Community Capacity Building
Asset Management and Capital
Planning Financial Viability
Approach • Gradual introduction of EOA principles
• Build on previous learning
• Analysis and education takes time
• Understanding of mandate, vision, mission and ability critical for proper review of individual EOA strategies
• One size does not fit all
• ‘One on one’ meeting to supplement and personalize
40
Feedback from First Session
Knowledge Gained – excellent
Interest in additional sessions -yes
Topics for future information sessions :
Self Assessment – very important
EOA toolkit – very important
Asset/Capital Planning – very important
Financial Viability – very important
41
What We Are Hearing
• When can we start redeveloping?
• Leave us alone! Go away!
• We have a plan, I think sort of….
• How is the City going to fix this?
42
What We Are Hearing
• Where will all the RGI tenants go, we can’t support them? We need rent supplements!!!
• We have a diversified long-term strategic plan, we will be just fine.
• The ‘for sale’ sign is ready.
43
Thank you!
44
Transforming through Engagement
Maria Varlokostas,
Manager, Housing Benefits & Support
Margaret McCutcheon, Housing Consultant
City of Toronto, Housing Stability Services
April 6, 2017
Overview
Today we want to talk about:
• The City of Toronto’s approach to addressing EOA
• Our stakeholder engagement strategy
• What we learned and next steps
• Our big questions for the future
City of Toronto Social Housing Portfolio
• City oversees ~92,500 units of social and affordable housing, including ~69,000 rent-geared-to-income (RGI) units
• Social housing is delivered by 247 housing providers (TCH, private non-profit, co-op)
• The annual budget for social housing system management is $566.4 M
• There are ~89,900 active households on the RGI waiting list
Impact of EOA in Toronto
• Former federal non-profits provide 9,300 units or 10% of units under City administration.
• These include ~1700 rent supplement units and ~860 internally-funded RGI units.
• There are about 100 federally funded and administered co-ops in Toronto with 7,200 total units.
• About 2,300 of these units are internally subsidized.
Our Approach to Address EOA • Adopted a strategic direction to develop a new partnership
model based in mutual interests in consultation with housing providers facing EOA
Steps include:
-Analysis of portfolio
-Clarifying the City’s goals and interests
-Consulting with providers to identify their goals and document issues and opportunities
-Investigating options for a toolbox of supports and incentives
Engagement Strategy Plan
Consultation with housing providers
Mutual Interests Discussions
Partnership Negotiations
Partnership Agreement
What we planned ....
Engagement Strategy Overview
The reality...
Section 95 Consultations
Federal Co-ops
Mayor’s Task Force - TCHC
SSHA Realignment
Housing Access Revitalization
Budget Pressures
Property Management Companies
CMHC Loan Prepayment Program
MHO LTAHS Review
Raising the Bar Initiative
Mutual Interest Discussions
City Internal Engagement
Partnership Negotiations
Life after EOA Forum
Section 95 Housing Provider Consultation
The City held consultations with Section 95 housing providers in 2014 and federal co-operatives in 2015
•Shared Discussion Guide prior to session to help providers prepare
•City and two housing providers presented on preparing for EOA
•Small groups discussed opportunities and challenges for providers post-EOA, and how the City might help
Housing Provider Feedback: Common Needs and Interests
Status Post-expiry
Governance Supports
Affordability Assistance
Tenants Services
Refinancing/Financial Viability
Capital Renewal/Development
Mutual Interests Meetings with Providers
• Developed agenda and discussion process for one-on-one meetings with providers
• Began discussions with other Divisions on City interests and options
• Unique situations complicated creation of a uniform strategy
• Realized both City and providers had more to learn and prepare to move forward
The Challenge of Imagining Change
Life after Operating Agreements Forum
•City of Toronto and CMHC co-hosted a full-day learning and networking forum for City-administered providers
•Agenda based on provider interests with presentations from CMHC and Ministry of Housing
Sessions focused on:
•planning for EOA
•legal and financing implications
•development & redevelopment
•support partnerships for tenants
How we’ve responded
• Using analysis tools developed for Service Managers Housing Network and in-house with providers
• Holding more one-on-one meetings with providers
• Working with City Divisions to develop incentives
• Drafting pilot partnership agreement
• CMHC Loan Prepayment program sparked discussions with Section 26/27 providers
• SSHA Housing Stability Services Realignment has focused resources for EOA providers
Transforming social housing
The City’s EOA strategy intersects with other initiatives to renew our approach to social housing:
• Toronto Community Housing Mayor’s Task Force and Service Manager Assessment
• My Choice Rental/Housing Access Revitalization
• Raising the Bar Social Housing Standards and Supports
The Engagement Spectrum
Inform Provide information to providers to help them understand issues, options
Consult Obtain provider feedback on analysis, options, decisions
Involve Work directly with providers to ensure concerns are considered and understood
Collaborate Partner with providers on each aspect of the decision-making process
Empower Place final decision-making in hands of providers
Where are we on the spectrum? Where do we want to be?
Less More
Consultations Discussions
Forum
Negotiations
Our Questions
• Where is the sector going: what is a “modernized sector” and what might we gain or lose?
• What will happen when the HSA Part VII providers reach mortgage maturity?
• What is the Service Manager role and how does that change in a post-expiry world?
• How do we support providers to thrive in a modernized sector?
Thank you
Contact information:
Name: Maria Varlokostas
Telephone #: 416-338-8224
E-mail: Maria.Varlokostas@toronto.ca
Name: Margaret McCutcheon
Telephone #: 416-338-8217
E-mail: Margaret.McCutcheon@toronto.ca
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