REPORT Meeting Date: December 13, Regional Council
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1 REPORT Meeting Date: December 13, Regional Council DATE: November 13,201 2 REPORT TTLE: MANAGEMENT AND OPERATNG FRAMEWORK FOR HOUSNG OWNED BY THE REGON OF PEEL FROM: Janet Menard, Commissioner of Human Services RECOMMENDATON That the Region of Peel enter into a governance and management (operational) framework, to be established, with, including additional operating funds, to operate and maintain buildings owned by the Regional Corporation. ng buildings have been built with Regional Corporation ownership to realize financial advantages related to the cost of development. * initially assumed operation and management responsibilities without additional operating funding from the Regional Transferring ownership to would incur costs without producing additional housing benefits or stock. The present arrangement places an unfunded financial and administrative burden on Peel Operating agreements with andlor with other established housing providers is an appropriate remedy. These agreements ensure adequate resourcing for (Residential Property Management) and continues our deliberate engagement with community partners in the DSCUSSON 1. Background The Region of Peel has been a leader in the development of affordable housing over the last ten years increasing the supply by over 1,000 units (see Appendix for further information). Since 2003, six affordable housing buildings have been built with Regional Corporation ownership. This was done because of financial advantages related to the cost of development that are available to the Region but not. As a result, the Regional Corporation's role and the role in the Peel housing system, with intertwining relationships, can be categorized into three main areas.
2 tts-er -2- November 13,2012 MANAGEMENT AND OPERATNG FRAMEWORK FOR HOUSNG OWNED BY THE REGON OF PEEL The Region of Peel as the: 1. Service System Manager oversight of the entire housing system including: 8 housing providers governed by the Housing Services Act (including Peel Living); and, new affordable housing developments developed under federallprovincial Affordable Housing Programs: 2. Owner of (68 buildings). 3. Owner of six affordable housing developments built under the various federallprovincial Affordable Housing Programs: four buildings completed and operated by ; and two buildings currently under construction. Chart 1: Region of Peel Housing Governance & Deliverv Model Peel Regional Human Services Department Peel Housing Corporation Board of Directors L ndependent Boards of Diredors for Communitybased HSA & AH P Housing Providers Service System Management - Residential Property Management - (68 buildings) t -e _ , -*-- Use the Centralized Wait List 47 Housing Providers (59 buildings) c- - Gowning Body 2. Analysis (See Appendix for supplementary information.) a. nitial Operation and Maintenance by nitially, assumed the operations and maintenance responsibilities for these buildings without additional operating funding from the Regional Corporation. As well, when the existing four new affordable housing projects were added to the portfolio they became part of the financial and management framework. While this was initially feasible, over time, the additional projects added complexity from a budgeting and financial perspective. They also caused administrative challenges as the new
3 tts-'f5\ -3- November 13,201 2 MANAGEMENT AND OPERATNG FRAMEWORK FOR HOUSNG OWNED BY THE REGON OF PEEL affordable housing programs have a different management and financial framework than the other Housing Services Act (HSA) programs that constitute the majority of Peel Living's portfolio. This arrangement also blurs the lines of responsibility for the Service System Manager who has a funding obligation to and community housing providers under the HSA but has no obligation with respect to Regionally owned affordable housing buildings beyond an oversight role in the development stage and ensuring adherence to federal and provincial funding obligations. b. Future Options One possible solution is the transfer of ownership of these buildings to. However, formal transfer of the ownership would incur costs without providing additional benefits or stock. Leaving the current arrangement continues the unfunded financial and administrative burden on. A two-pronged approach is proposed to resolving this concern. 1. The Regional Corporation, as owner of the building, enter into a formal agreement with to operate and maintain some of these buildings, and fund for the service. 2. The Regional Corporation invite other housing providers to manage and operate housing projects that the Regional Corporation is involved with. To date, other planned arrangements include: a e Villa Polonia, Steeles Avenue West, Brampton; Supportive Housing in Peel (SHP) Queen Street East, Brampton; and Wisma Mega lndah ncorporated, Creditview/Eglinton, South Parade Court, Mississauga.
4 tts-at -4- November 13,201 2 MANAGEMENT AND OPERATNG FRAMEWORK FOR HOUSNG OWNED BY THE REGON OF PEEL CONCLUSON The Region of Peel will seek to continue to be a leader in the development of affordable housing projects. The original intent of having Regionally owned developments embedded in the Peel Living portfolio this is no longer viable without additional resources and a clear management and operating agreement that provides resources to. Janet Menard, Commissioner Human Services Approved for Submission: D. Szwarc, Chief Administrative Officer For further information regarding this report, please contact Joan Kaczmarski at extension 7242 or via at joan. kaczmarski@peelregion. ca Authored By: Michelle Waye c. Legislative Services
5 tts-'t5\-5-1- November 13,2012 MANAGEMENT AND OPERATNG FRAMEWORK FOR HOUSNG OWNED BY THE REGON OF PEEL APPENDX Region of Peel Housing System (1 Reglon of Peel Service System Management Res~onsiblllties 11 HSA' Houslng Providers 1 Emergency Shelters (395 beds] 1 2 Transitional Houslng Projeck Sewices Preventlng Homelessness in Peel Program Homelessness Partnering 1 - rl The Rent Supplement Program supports all three programs with 3,718 RG and Housing Allowances Notes: 1. HSA = Housing Services Act 2, An additlorial 450 in development Y~egion of Peel owned + 2~f development Non Profit - AHP -1 in development wlth the Reglov of Peel 1-1in 1 development through Aboriginal AHF Program households assisted (includes 4for Habitat for Humanity) housing Se~ice System is also bupported through: ;- 13 Federal Cooperatives (1,350 Units) r Community Shelters (4 Providers) 1 L Supportive Housing (16 Providers) 1 ' Habltat for Humanity 1 i ~ Service System Manager Role: - mandatespans full range of contlnuurn from homelesspess preventlon to houslng programs and homeownershlp; - administer and fund provincial {Social Housing Reform ActlHousing Senilces Act) and local programs {e.g Home in Peel); management of Centralized Waitlist; servicesystem planning, research and policy analysis and strategy implementation.
6 APPENDX 1 November 13, &s-~\-(b MANAGEMENT AND OPERATNG FRAMEWORK FOR HOUSNG OWNED BY THE REGON OF PEEL APPENDX Region of Peel owned Affordable Housing Developments Project Nance Horwood Place, 529 Main Street North, Brampton Snelgrove, Hurontario Street, Brampton, Coptic Orthodox Church Chapelview, 16 John Street, Brampton Millbrook Place, 177 Dundas St. West, Mississauga Total Units Year Completed January June 2012 June 2010 December 2003 Operator Creditview/Eglinton, South Parade Court, Mississauga Canadian Legion, Queen Street East, Brampton Total Units (n Development) Target date: January (n Development) Target date: Summer Wisma Mega lndah nc.* To be determined *The Region is currently finalizing an operating and management agreement with Wisma Mega lndah ncorporated to manage the CreditviewEglinton project.
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