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Forecasting the Future
Addressing efficiencies
in the future
Forecasting the Future:
Addressing efficiencies in the future
Chair: Ingrid Fife, Member of CIH Influence Board
Will Perry, Director of Strategy, HouseMark
Neil Hadden, Chief Executive, Genesis HA
Howie Wong, Chief Executive Officer, Housing Services Corporation,
Canada
Will Perry
Director of Strategy, HouseMark
Efficiency – step 1
Wdyjsoytsagadslbi?
Efficiency… (Warning: may contain mild egg-sucking)
Process Outputs Inputs
Act here
So far, so simple, but…
£
Why bother?
Non bullet pointed text (Arial 24).
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Italics can be used for emphasis.
Think investment?
Think commercial?
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Think collaborative?
Conclusion
Nothing is less productive than to make more efficient what
should not be done at all. Peter Drucker
The worst enemy of life, freedom and the common
decencies is total anarchy; their second worst enemy is
total efficiency.
Aldous Huxley
Will Perry
Director of Strategy
HouseMark
07725 203886
@Will_HouseMark
Forecasting the Future
Addressing efficiencies
in the future
Addressing efficiencies in the future
Neil Hadden, CEO
Genesis Housing Association
Contents
• Genesis – who are we?
• Our transformation programme
• Our vision
• Socially hearted, commercially minded
• Our approach to asset management
• Concluding thoughts
Stock location
18
Tenure split
Tenure Under
management
General needs 16709
Care and support 2861
Temporary housing 3518
Leasehold and shared ownership 5640
Key worker accommodation 1211
Non-social housing 3016
Pipeline 2013/14
805
-
-
1230
-
715
Genesis Way targets Recurring savings
• Staffing structure
– Reduce duplication of function and identify gaps
– Allows Genesis to operate more efficiently in a lower cost environment
• Procurement
– More robust contract management, improving value for money for
Genesis and residents
• Better ways of working
– Leaner, more efficient processes focused on customers
– New, more effective systems eg customer relationship management tool
TOTAL SAVINGS
One off savings
– Office accommodation
£4m
£4m
£2m
£10m
£2.5m
Our vision
To be a leading property
based service provider
Our corporate strategy
• Provide consistent and reliable services
• Maintain a healthy financial position
• Develop an effective and efficient organisation
• Invest in our workforce
• Optimise the value of our portfolio
Socially hearted, commercially
minded • Sector debating its purpose and objectives
• Welcomes new freedoms but wary of risks
• For some, moving away from our roots
• For others, liberating, more autonomy
• Concerns around welfare reform and affordable rent
• Mergers more likely to be about increasing capacity
• Does the sector have the right skills
• Focus on value for money and better asset management
• New partnerships emerging eg health
• Need to measure social value
Key elements of IPD performance
measurement standard
• Performance measurement and reporting on a continuous and regular basis
• Primary focus on activities related to investing in developing and managing property
• Adoption of generally accepted definitions underlying these activities
• Measurement on activity based costing basis
• Measurement of cash flows on accrual basis
• Comprehensive measurement – all property related activities
• Measurement on basis of external value – gross OMV
• External valuation of cash flows and values
8.5% 7.8%
3.9%0.4%
-12.4%
-20%
-15%
-10%
-5%
0%
5%
10% Income Return Capital Growth Total Return
Total return per segment %per segment – all schemes
Source: IPD Social Housing Index Pilot Phase 2 – March 2012
27.6
125.4
29.1
97.9
153.8
-100
-50
0
50
100
150
200
250
300
350 Net Income (n.i)
Standing investments
Social dividend
Source: IPD Social Housing Index Pilot Phase 2 – March 2012
All property - segments
Total return per segment
Source: IPD Social Housing Index Pilot Phase 2 – March 2012
Income return All property
Source: IPD Social Housing Index Pilot Phase 2 – March 2012
Social dividend Standing investments – estimated market comparable income return
Genesis Benchmark
Source: IPD Social Housing Index Pilot Phase 2 – March 2012
Concluding thoughts
• Greater autonomy and independence
• We face market pressures, requiring discipline
• Focus on efficiency
– We create our own futures
Forecasting the Future
Addressing efficiencies
in the future
Howie Wong
Chief Executive Officer, Housing
Services Corporation, Canada
Background on the Canadian Social Housing Sector
Rental housing only
Offered to tenants for 30% of gross income (historically was 25%)
Governed by federal, provincial and municipal regulations
Built with government capital subsidies, financial guarantees
Received time-limited operating subsidies
In Ontario, administration and funding of social housing downloaded to
local governments with a fixed tax base
– Housing downloaded along with social services
– High percentage of vulnerable tenants, but limited supports
– Growing waiting lists, aging stock, rising capital costs
Social Housing: Canada & Ontario
Social Housing in Canada = 630,000 units
46%
33%
10%
3% 3%
2% 3%
Non-Profit
Public
Co-Op
Private Rent Supplement
Non-Profit Rent Supplement
Urban Native
Affordable Rental (new)
Canada’s
Housing Market
• 68% home ownership
• 26% private sector
rentals
• 6% social housing
sector
Ontario Sector Overview
Top 10 providers by number of units
1 Toronto Community Housing Corporation (TCHC) 58,326
2 Ottawa Community Housing Corporation (OCHC) 14,829
3 Peel Living 8,000
4 CityHousing Hamilton (Hamilton Housing Corp.) 7,034
5 Windsor-Essex Community Housing Corporation (WECHC) 4,708
6 London & Middlesex Housing Corporation 3,772
7 Ontario Aboriginal Housing Support Services Corporation 3,000
8 Regional Municipality of Waterloo 2,689
9 Niagara Regional Housing Inc. 2,636
10 Victoria Park Community Homes Inc. (ALL) 2,345
• 696 providers
have less than
50 units
• 556 providers
have 50-99 units
• Only 24
providers have
more than 1000
units
Sector Challenges
Fragmentation of Administration = Loss of
Sector Mindset:
• Declining budgets, competing social services and infrastructure priorities have prompted local authorities to focus on local bottom line
• Lack of consistent data and processes
• Housing run by property managers vs. housing professionals
Vast geography, miniscule size and scale of providers
• Small, disparate collection of providers – cottage industry
• Historical schisms
• Rules impede mergers, entry into non-rental marketplace
Download took housing off of the political map:
• Dwarfed by bigger priorities (e.g. healthcare)
• Housing is a voter issue; focus on people, not buildings
Overcoming the Challenges
HSC is working with a coalition of the willing on moving the
yardstick:
Collaboration, partnerships, and joint ventures on back office
services
Improving data management and the case data makes
Exploring alternate financing for development and
redevelopment
Professionalize housing by establishing educational path and
standards for practitioners
Data Management
The download impacted data sharing and data consistency.
Moreover, it has necessitated the strategic use of data.
Build
ing A
sset Quantify the financial state
and building needs:
Asset planning software
Capital reserves
Expiring subsidies
Rent arrears database
Province-wide housing management system
Socia
l Im
pacts
Measure the impacts of policy decisions on residents:
Correlation between building risk and vulnerable tenants
Resident satisfaction surveys
Evidence-based research on the social determinants of health, social return on investment, human services integration
Fu
ndin
g
Oppo
rtu
nitie
s
Open access to non-traditional pools of gov’t funding:
- Health budgets
- Homelessness eradication
- Social finance
Mobilize collective scale to access financial markets for:
- Refinancing
- Development and redevelopment
Alternate Financing
Worldwide demand for metals and minerals resources has impacted housing supply in northern Ontario, created housing shortage
Local governments engaging industry to co-fund housing strategy
Local governments working together to examine alternative financing opportunities for development and redevelopment (e.g. community bonds)
Opportunity to create a model with transferable potential for other parts of Ontario, manage issues of size and scale
Professionalization
Rebuild sector consciousness, manage the demographic shift
and evolve cottage industry business approach by
professionalizing the sector
Partnering with Chartered Institute of Housing to create CIH
Canada
Enable people to deliberately choose housing as a profession
Create advocates through education and thinking beyond the
property management lens
Support rebuilding of professional and sector standards
Howie Wong CEO, Housing Services Corporation
30 Duncan St., Suite 500
Toronto, ON Canada
M5V 2C3
P: 416 594 9325 | Toll Free: 1 866 268 4451
F: 416 594 9422
Forecasting the Future
Addressing efficiencies
in the future
IMPORTANT INFORMATION
Please note the following changes in session timings:
The Housing Minister’s session will now take place at
12:45 pm to 1:30 pm on Thursday 27 June
Other changes to session timings:
Spotlight session
– Delivering more for and with local rural communities
11:30 am to 12:15 pm on Thursday 27 June
Think Tank – Best Practice
– Welfare reform: the impact on customers
11:30 am to 12:15 pm on Thursday 27 June
Savills is delighted to be a sponsor at the
CIH Conference & Exhibition 2013
Visit us at Stand D14 www.savills.co.uk/housingconsultancy
Be proud to be professional
Join our new campaign at CIH stand E32
www.cih.org/proudtobeprofessional
Fast track your housing career
with our new online learning experience
www.cih.org/learnonline
Five great reasons to be a CIH member
www.cih.org/membership
Delivering housing with care and
support for older people
11-12 September 2013, Solihull Book your place:
www.cih.org/eventsfinder
If you found this session useful,
other sessions you might like…..
Ministerial Session Thursday 11.30-12.30 Exchange Auditorium
Conference summary –
where next for housing? Thursday 2.15 The Hub