expiry of operating agreements - are you ready?
Post on 15-Jun-2015
248 views
DESCRIPTION
Presentation on End of Expiry Overview of Federal and Provincial Statistics Demonstration of the new Assessment Tool New Brunswick Non-Profit Housing Association Annual Conference 2012 - Phil Brown, President, Canadian Housing & Renewal Association (CHRA)TRANSCRIPT
Expiry of Operating Agreements
Outline for the day
- Presentation on End of Expiry- Overview of Federal and Provincial Statistics- Demonstration of the new Assessment Tool - Group Table work
- Operating differences between the pre & post
- Discuss & determine steps to be taken & when
- Present their findings to the group
New Brunswick Non-Profit Housing Association Annual Conference
Phil Brown, President, Canadian Housing & Renewal Association (CHRA)
May 11, 2012Fredericton, New Brunswick
CHRA … since 1968, a voice for the full range ofaffordable housing and homelessness
issues and solutions in Canada
5
CHRA’s Four Pillars:
1. Keeping homes affordable2. Ending homelessness3. Renewing our communities4. Supporting a sustainable housing
profession
6
Our Characteristics:
1. Membership-based – 250 members and growing2. Diverse representation – Our members include
social housing providers, every provincial/territorial housing department, municipalities & many others, like NBNPHA; the tent is large!
3. National - We advocate to the federal government
Social Housing in Canada• From 1949-1993, the Government of Canada funded the
development of social housing, which was undertaken by provinces/territories, non-profits, and co-ops.
• Across Canada, 5% of households – or around 615,000 - live in social housing where rent is subsidized.
• Subsidies linked to mortgages flow to providers through CMHC, P/Ts or, in Ontario, municipalities
• Some agreements/subsidies have already expired, with significant declines beginning around 2015.
As cited by Steve Pomeroy, Is Emperor Nero Fiddling as Rome Burns? Assessing Risk when Federal Subsidies End (2011)
Social Housing: The Challenge
Once subsidies end, the challenge for social housing providers is whether they will have the capacity to continue to provide affordable housing to the same degree and to the same number of households.
This is because they may face cash-flow shortfalls and/or have capital repair/replacement liabilities
CHRA Research – Key FindingsWas Chicken Little Right? (2006), Courage Under Fire (2011), Is
Emperor Nero Fiddling as Rome Burns? (2011)• Identified financial viability and capital reserve replacement
after expiry as key issues• As much as 50% of total social housing stock is at-risk• Projects which have high RGI ratios or high capital liabilities
are more likely to have declines in affordability or be lost.• Size of provider matters when it comes to a group’s ability to
research and plan ahead. • Actions proposed for providers at-risk lead to diminished
affordability (i.e shallower rent subsidy)
CHRA Policy & Advocacy
• Task Group on Expiry of Operating Agreements• CHRA Advocacy Plan • Strategic Outreach to MPs and members 2012-13 • Highlighting EOA issue within ongoing advocacy
efforts
CHRA Technical Assistance• Simplified Assessment Tool (SAT) released at
CHRA Congress 2012. • Developed in partnership with NBNPHA, and 4
other provincial non-profit housing associations• The SAT is a user-friendly tool to help social
housing providers examine the likely impact of expiring subsidies.
• Accompanying guide provides background and details options providers can consider to ensure they can continue to provide housing after expiry.
Looking Forward• Understand the impact• Improve communication– On potential impact– On opportunities for a champion
• Define the ‘ask’ • Rally partners and allies
Operating Agreements
Before Expiry
- Rules of operations
- Subsidies
- Mortgage payments
After Expiry
- Some restrictions removed
- Subsidies end
- Mortgage payments end
Rules that continue to Apply
Non Profit Corporations:
- Letters Patent
- By-laws
- Policies & Procedures
Things to Consider
Continue to:
- Operate as a Non Profit – Provincial Property Tax Exemption
- Be Affordable - targeting low to moderate income clients
- Be Viable - ensuring sufficient revenues for maintenance & repairs(Replacement Reserve)
- Be Accountable – tenants, communities, lenders
How Many Units are Affected in NB?
•Over 5,300 social housing units managed by Non-profit and co-op housing providers
•Over 5,000 provincially owned & administered RNH & Public Housing units
When This Will Take Place?*
2000-2012 2013-2014 2015-2016 2017-2018 2019-2020 2021-2022 2023-2024 2025-2026 2027-2028 2029-2030
1914
3227
65
39
60
73
57
19
Number of Expired Agreements
2000-2012 2013-2014 2015-2016 2017-2018 2019-2020 2021-2022 2023-2024 2025-2026 2027-2028 2029-2030
130 131
454
619
1017
766
628
1084
418
137
Number of units involved
* Includes Non-profits, Co-ops and Skigin-Elnoog Projects only
Evaluate your Project
How Do You Prepare?
Demonstration
- CHRA web-site www.chra-achru.ca,
Introduction to the New Evaluation Tool