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

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


• 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


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


• Approx. 24 % of growth in need is generated from outside communities.

• 1,210 people experienced homelessness in 2015.

Kenora District Overview: DSSAB Housing Stock


Kenora District Housing Stock – Group of Legacy Programs from 1950s to 1990’s



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



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:



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


• 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


Post EOA – Planning and Preparing for EOA


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.




• 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


Initial reactions from housing providers? • Lack of Trust


Housing Providers Portfolio Viability post EOA:


Housing Providers Portfolio Viability post EOA:


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: [email protected]

Name: Margaret McCutcheon

Telephone #: 416-338-8217

E-mail: [email protected]

Documents

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