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1. OTTAWA COMMUNITY HOUSING CORPORATION
OPERATING AGREEMENT SOCIÉTÉ DE LOGEMENT COMMUNAUTAIRE D’OTTAWA -ACCORD
D’EXPLOITATION |
Committee Recommendation
That Council approve the proposed Operating Agreement between Ottawa Community Housing Corporation (OCHC) and the City of Ottawa, attached as Document 1, which defines a funding formula for the OCHC Public Housing and redefines the funding formula for the OCHC Section 95 Municipal Non-Profit Housing.
Recommandation du Comité
Que le Conseil approuve l’accord
d’exploitation proposé entre la Société de logement communautaire d’Ottawa
(SLCO) et la Ville d’Ottawa, présenté dans le document 1 ci-joint, qui définit
la formule de financement des logements publics de la SLCO et qui redéfinit la
formule de financement des logements municipaux à but non lucratif, article 95
de la SLCO.
Documentation
1. Deputy
City Manager's report, City Operations, dated 15 January 2009
(ACS2009-COS-HOU-0001).
Community
and Protective Services Committee
Comité des services communautaires et de protection
and Council/et au
Conseil
15 January 2009/ 15 janvier 2009
Submitted by/Soumis par: Steve
Kanellakos, Deputy City Manager/
Directeur municipal adjoint
City Operations / Opérations municipales
Contact
Person/Personne ressource :
Housing/Logement
(613) 580-2424 x 44117 stephen.arbuckle@ottawa.ca
SUBJECT: |
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OBJET : |
SOCIÉTÉ DE LOGEMENT COMMUNAUTAIRE D’oTTAWA -ACCORD D’EXPLOITATION |
That the Community and Protective Services Committee recommend that Council approve the proposed Operating Agreement between Ottawa Community Housing Corporation (OCHC) and the City of Ottawa, attached as Document 1, which defines a funding formula for the OCHC Public Housing and redefines the funding formula for the OCHC Section 95 Municipal Non-Profit Housing.
(a) OCHC and the Service Manager seek to create a stable and predictable funding model for OCHC in order to mitigate any impacts on tenants;
(b) OCHC and the Service Manager seek to simplify and harmonize the
social housing program structures and funding and reporting requirements;
(c) OCHC and the Service Manager agree that timely information will be
required to fulfill the City’s reporting obligations to the Province of Ontario
and other agencies
La raison principale pour laquelle un accord
d’exploitation est préparé entre la Ville comme gestionnaire de services et la
SLCO est de réorganiser et de stabiliser les accords de financement de la
Société de logement communautaire d’Ottawa (SLCO) et de la Ville. L’objectif
est que la SLCO puisse gérer son exploitation comme s’il s’agissait d’un
portefeuille, tout en profitant d’un financement prévisible et durable. Alors
que la SLCO doit toujours maintenir une qualité générale de services pour ses
12 272 unités d’habitation dont le loyer est indexé sur le revenu, elle
peut moduler les services selon les différents programmes d’habitation pourvu
que la qualité globale demeure constante. Une formule de financement de
référence établie qui fluctue en fonction des variations du revenu et des coûts
permettra de s’assurer que l’aide est équitable et versée sur la foi des données.
Cet accord permet un financement prévisible, qui assure la parité entre les
programmes de logements publics et de logements municipaux à but non lucratif
et les autres programmes de parc de logements de la SLCO. La pérennité du
portefeuille de logement exige que la SLCO puisse gérer son portefeuille de la
même façon que les autres propriétaires gèrent leur parc de logements, y
compris par l’établissement de fonds de réserve pour mettre de côté les surplus
de fin d’année en prévision des besoins futurs. Il en va de l’intérêt de la
Ville d’offrir une formule de financement qui permet à la SLCO de planifier
pour l’avenir et pour assurer sa viabilité.
La SLCO est une société entièrement détenue par
la Ville d’Ottawa, mais sans lien de dépendance avec elle, responsable de
l’offre de 14 800 appartements au nom de la Ville d’Ottawa, et dont
12 272 (82 %) sont subventionnés comme logement à loyer indexé sur le
revenu.
L’exploitation de la SLCO est régie par la Loi sur la réforme du logement social
(LRLS) qui définit aussi le rôle de la Ville comme gestionnaire de service
responsable d’offrir le financement subventionnaire et d’assurer la
surveillance et de veiller à ce que 55 fournisseurs de logements à Ottawa,
dont la SLCO, soient conformes à la loi.
Présentement, la Ville finance la SLCO selon
14 accords de différents programmes, établis avec les propriétés de
moments précis et élaborés à partir d’anciens programmes d’habitation fédéraux
et provinciaux. Certains de ces accords exigent que le gestionnaire de services
approuve les dépenses de plus de 2 000 $ prises dans les réserves de
capital des projets.
D’autres accords exigent que les surplus, en
tout ou en partie, retournent à la Ville au lieu de rester aux propriétaires de
logements. Ils gèrent 8 618 appartements de logements publics (plus
de la moitié des 14 800 appartements détenus et gérés par la SLCO)
qui ont été financés en fonction des coûts réels d’exploitation. Cela signifie
que le gestionnaire de service participe activement à l’examen minutieux des
dépenses de la SLCO dans le cadre de ce programme.
À la suite de discussions et d’observations des
pratiques en cours dans d’autres municipalités de l’Ontario et en collaboration
avec la SLCO, une proposition sera faite pour créer un accord d’exploitation
entre la Ville d’Ottawa comme gestionnaire de service et la SLCO qui définit
les attentes du Conseil en ce qui a trait aux rôles, au budget et aux rapports.
Les principes de l’accord proposé sont les suivants :
(a)
La
SLCO et le gestionnaire de service cherchent à créer un modèle de financement
de la SLCO stable et prévisible afin de minimiser les conséquences pour les
locataires;
(b)
La
SLCO et le gestionnaire de service cherchent à simplifier et à harmoniser les
structures des programmes de logement social ainsi que les exigences de
financement et de reddition de compte;
(c)
La
SLCO et le gestionnaire de service s’entendent pour dire que l’information
devra être acheminée à temps pour répondre aux exigences de reddition de
comptes de la Ville à la province de l’Ontario et aux autres agences.
Le
gestionnaire de service devrait veiller au financement et à la budgétisation
par la Ville et il devrait se charger de surveiller la SLCO telle que définie,
y compris les examens de l’exploitation et les vérifications de la conformité
des logements à loyer indexé sur le revenu et les aspects relatifs aux revenus
inscrits dans la loi. Le modèle proposé a été soumis au personnel de la Ville,
à celui de la SLCO et au Conseil, et il a reçu l’aval de toutes les parties.
The responsibility for social housing was formally transferred to the City of Ottawa in 2001 with the creation of the Social Housing Reform Act (SHRA or “the Act”), which for the first time provided overarching legislation specific to the funding and management of all publicly funded social housing in Ontario, including rules for how residents access and maintain eligibility for Rent Geared to Income subsidies.
On January 1, 2001 the Public Program Portfolio (the former Ottawa Housing Corporation) was transferred to the City. On April 1, 2002 the second and final phase was initiated with the transfer of responsibility for fifty-five (55) Non-Profit and Co-operative Housing Providers, which included the former City Living Non-Profit Corporation.
Ottawa Housing Corporation and the City of Ottawa Non-Profit Housing Corporation were merged into the new Ottawa Community Housing Corporation (OCHC). OCHC is one of 55 social housing providers the City of Ottawa is legislated to fund and administer, and represents about 60% of the social housing stock in the City and 65% of the subsidized stock mandated by provincial legislation.
Although OCHC is incorporated as a private business corporation, City Council is the sole shareholder of OCHC, and Council has a strong interest in the operations and issues of providing social housing to over 32,000 people.
OCHC is the second largest landlord in Ontario, operating over 14,800 units of housing on behalf of the City of Ottawa, 12,272 (82%) of which are subsidized as rent-geared to income (RGI) housing. OCHC has over 280 staff, and manages over 168 housing properties of which 146 projects are under the administration of the City of Ottawa, as Service Manager, under the SHRA or existing Federal Operating Agreements. There are additional individual rent supplement units within some of the additional 22 equity projects directly owned and solely administered by OCH. The book value of OCHC assets is over $397 million (as of December 31, 2006). The recent Building Condition Assessment study estimates the replacement cost of OCHC housing to be approximately $1.6 billion.
|
Program |
OCHC |
Other
Non-Profit and Coop Providers |
Private
Landlords |
Total
Service Manager |
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Number of Social Housing Providers |
1 |
54 |
N/A |
55 |
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Number of Social Housing Projects |
168 (146 under
administration of the Service Manager) |
143 |
N/A |
289 |
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Number of Housing Units: |
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Public Housing |
8,618 |
0 |
0 |
8,618 |
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Provincial Reformed |
2,689 |
4,068 |
0 |
6,761 |
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s.95 Municipal NP |
1,044 |
113 |
0 |
1,157 |
|
s.95 Private NP |
0 |
697 |
0 |
697 |
|
s.95 Urban Native |
0 |
225 |
0 |
225 |
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Limited Dividend |
1,018 |
453 |
0 |
1,472 |
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Rent Supplement - Private |
0 |
0 |
1,613 |
1,613 |
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Rent Supplement - NP
out of program |
278 |
194 |
0 |
472 |
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Service Manager Totals |
13,647 |
5,750 |
1,613 |
21,015 |
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Other OCHC Housing Stock (non SHRA): |
1,134 |
0 |
0 |
1,134 |
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Federal Cooperatives |
0 |
2,281 |
0 |
2,281 |
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Affordable Housing |
60 |
630 |
30 |
720 |
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Grand Total |
14,841 |
8,661 |
1,643 |
25,150 |
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*
The City administers an additional 964 rent supplements on market units
within the non-profit portfolio. |
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The City acts as the Service Manager under the Provincially legislated Social Housing Reform Act. The Service Manager oversees both funding
of subsidies and compliance with the Act and related operating agreements. The legislation mandates that the City
maintain a Service Level of 16,502 units of rent-geared-to-income housing
units. The Service Manager is
accountable to the Province and ensures that housing providers comply with
those agreements. The Act also deals with matters such as maintenance of
appropriate capital and operating reserves; annual reporting; and policies and
processes to manage tenant access to subsidies, including monitoring
eligibility. The Province also retained
authority for matters such as disposal or sale of social housing assets and
other business decisions affecting the original operating agreements, all of
which require Ministerial approval based on recommendations from the Service
Manager.
The Housing Programs Division of Social Services is responsible for the
City’s legislated role as Service Manager, and is delegated responsibility for
fiscal and legislative accountability for the prescribed social housing
programs administered by OCHC and all other social housing providers, including
bringing forward budget recommendations to Council for the City’s share of
required social housing subsidies, and reporting to the Province on overall
compliance with legislation.
For most social housing programs, including the approximately 37% of
OCHC’s portfolio that is not Public Housing (Table 1), subsidy funding is
determined via the relevant program agreements for each project.
Program agreements are the legal contracts put in place by the Federal
or Provincial government when the relevant housing projects were built. There are at least 8 distinct formal
programs covering 55 housing providers and 289 distinct housing projects in
Ottawa. In addition, there are 6 rent
supplement programs, with units in both social housing and private market
housing projects.
Annual
budget requirements brought forward by the Housing Programs Division of Social
Services as Service Manager are in effect required under legislation. Annual reporting by providers to the Service
Manager address compliance with legislation and program agreements, and is
subject to Provincial audit. City
Council can choose to exceed those formulas on a case-by-case basis, but the
practice has been that any problems or deficiencies inherent within this funding
model need to be addressed by asking the Province to change the formulas. This happened in 2007 when the Province
revised its benchmarking formula
(funding baseline, revenue and cost factors) for the 2,689 units under
the SHRA Provincial Reformed funding program.
The Service Manager also recently revised program funding agreements for
relevant programs allowing providers to retain the share of operating surplus
that otherwise is supposed to be returned to the Service Manager. The intent is that the City’s share of
operating surpluses should be used to help address the growing capital repairs
issues in social housing.
Public
Housing
The exception to this formula driven funding and administration of
social housing is the 8,618 units of Public Housing from the former Ottawa
Housing Corporation, now operated by OCHC as the Local Housing Corporation
(LHC). Unlike all other social housing
programs, subsidy funding for Public Housing is not prescribed under legislation,
and is currently based on actual operating costs. OCHC is not currently allowed to maintain an operating surplus or
capital reserves for this portion of their housing portfolio.
This means that subsidy funding for both operating and capital repairs
is budgeted each year, and accounts are reconciled in the following fiscal year
based on audited costs. Any operating
surpluses are returned to the City, and any allowable costs over budget are
paid as additional subsidy. This has
meant that the Service Manager has been more actively involved in overseeing
the financial status, and to some extent, the operations of this portion of the
OCHC housing stock. As a result, much
time has been spent reconciling actual subsidies to actual costs, which delays
development of following years budgets, and creates significant fiscal
uncertainty and risk for both OCHC and the City.
It also results in increased uncertainty for both the City and OCHC that
impinges on the ability to plan for the longer term.
In mid-2006, discussions resumed between the Housing Programs Division and OCHC staff towards a more fiscally sustainable and operationally appropriate relationship. In particular, the additional oversight, uncertainty and risk engendered by the way the Public Housing component of the portfolio was being funded were raised as a concern.
In
general terms, the intent was to move towards a benchmarked budget, based on a
reasonable baseline that would be increased based on defined revenue and cost
factors.
City
staff and OCHC staff agree that establishing a more predictable funding process
is necessary. Long-term sustainability
of this stock requires that OCHC be able to manage their portfolio the same way
other landlords manage their housing stock, including retention of year-end
surpluses for future needs.
Table 2: Public Housing Subsidies/Costs (all $
amounts expressed in millions)
|
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2002 |
2003 |
2004 |
2005 |
2006 |
2007 (unreconciled) |
2008 (Budget) |
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Operating
Subsidy |
$4.80 |
$6.93 |
$6.94 |
$8.53 |
$8.45 |
$12.01 |
$14.58 |
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Capital
Subsidy |
$5.58 |
$6.63 |
$6.63 |
$6.63 |
$6.63 |
$8.15 |
$8.30 |
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Debentures
Subsidy |
$10.44 |
$10.44 |
$10.44 |
$10.44 |
$10.44 |
$10.44 |
$10.44 |
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Total
Subsidy |
$20.81 |
$24.00 |
$24.01 |
$25.60 |
$25.51 |
$30.60 |
$33.32 |
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Federal
Funding |
$12.37 |
$12.37 |
$12.37 |
$12.37 |
$12.37 |
$12.37 |
$12.37 |
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Municipal
Funding |
$8.44 |
$11.63 |
$11.64 |
$13.23 |
$13.14 |
$18.23 |
$20.95 |
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Total
Other Revenues |
$35.38 |
$35.13 |
$35.31 |
$35.16 |
$35.40 |
$35.39 |
$35.76 |
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Total
Operating Expenses |
$55.81 |
$59.20 |
$60.04 |
$61.40 |
$62.13 |
$66.29 |
$68.75 |
As noted above, the Service Manager has already moved towards a more
sustainable model for all programs, including the beginning of a “block
funding” approach for Public Housing.
In short, this means defining a base budget and recommending that
Council agree to increase the amount of funding by an agreed annual cost factor
rather than the actual costs model currently used for public housing.
For the 2007 City budget, staff recommended funding for Public Housing
be increased by $5.1 Million (34%), including an additional $1.5 million
increase to the baseline budget for capital repair subsidies, consistent with
the proposal from OCHC noted above.
This was increased by an additional $2.7 Million for 2008. Council as part of the annual budget process
approved both increases.
Other funding solutions provided to OCHC in 2007 include an additional
$2.1 million payment to operate OCHC’s “Safer Communities” program, which freed
up operating funding across the whole OCHC portfolio. In mid 2007, the City took over direct funding of the Centralized
Waiting List for social housing, freeing up approximately $336,000 in operating
subsidies. Subject to developing a
revised funding agreement, the intent is to allow OCHC to keep operating
surpluses that result from these budget increases, on the understanding that these
funds will be used to address capital repair needs across the portfolio.
Staff strongly recommend that the funding model be
enshrined in an Operating Agreement that clearly specifies the expected roles
of Council, the Service Manager and OCHC, and documents how budgets will be
developed and funded. A proposed
Operating Agreement is discussed below and attached as Attachment 1.
The Operating Agreement changes how the
subsidy for Public Housing is calculated by changing it to the Provincial
Reformed funding formula model.
The Section 95 Municipal Non-Profit Housing
program is currently formula driven but the formula is flawed which has
resulted in perennial deficits. By this Agreement, the Section 95 MNP housing
will also be funded according to the Provincial Reformed funding formula. The
funding formula for the Provincial Reformed housing is based on benchmarks that
were established through a rigorous process across the province. They provide
for individual revenue and cost benchmarks established using actual provider specific
historic financial information, that are adjusted annually based on various
indices as set out by the province which are reflective of the local situation.
The Operating Agreement achieves the
following:
·
Moves
the Section 95 MNP and Public Housing to the Provincial Reformed funding model
as defined through the SHRA. This funding formula reflects both changes in
revenue and expenses so that subsidies are adjusted according to set annual
indices that are reflective of current market conditions;
·
Creates
more predictable year-to-year funding that will result in long-term
sustainability of the housing portfolio, which benefits both the City and OCHC
and the residents.
·
Defines
information and reporting requirements, which allows the City to have appropriate
oversight in its role as Service Manager while OCHC is able to manage the
day-to-day operations.
·
Allows
operating and capital reserves for the Public Housing portfolio and allows an
operating reserve for the Section 95 MNP portfolio (capital reserves already
exist), which assists OCHC to address in-year expense fluctuations;
·
Provides
equitable treatment for the Section 95 MNP, Public Housing and Provincial
Reformed portfolios;
·
Allows
OCHC to manage on a portfolio wide basis while maintaining the established
service level standards for the number of units of RGI.
Therefore, staff recommend that Council adopt the attached Operating Agreement (Document 1)
between OCHC and the City of Ottawa which defines the funding model for the
Public Housing program and redefines the funding model for the Section 95
Municipal Non-Profit Housing Program.
The 2009 subsidy budget associated with changing the funding model for
Public Housing to a benchmark funding formula program is consistent with the
2009 budget presented to Council in December 2008. Funding for Public Housing
is currently at Council’s discretion, although the City is required to maintain
service level standards for the administration of RGI housing. Public Housing
contributes significantly toward achieving these targets.
This report is recommending that Public Housing be funded based on a funding formula that is
equivalent to other legislated social housing programs. This means that future costs for social
housing subsidies will increase or decrease according to a prescribed revenue
and cost factor formula.
The subsidy budget associated with redefining the funding model for the Section
95 Municipal Non-Profit Housing Program is at no additional cost to the City,
as it is contained within the legislative budget increases for Non-Profit
Housing in the 2009 budget presented to Council in December 2008.
Legal Services Comment
An operating agreement between the City
and OCHC was originally contemplated by City Council on July 24, 2002 when City
Council approved the recommendations of the Health Recreation and Social
Services Committee as set out in Report 28 of the Committee, Item no. 5
entitled “Recommended Shareholder Direction for the Ottawa Community Housing
Corporation” (“HRSS Report 28”).
HRSS Report 28 highlights the two roles that the City has in
relation to OCHC; the first role as shareholder and the second role as
Service Manager under the Social Housing Reform Act, 2000. The
Shareholder Direction addresses the accountability of OCHC to the City as its
shareholder. The purpose of the Shareholder Direction is to provide an overall
framework of how OCHC is expected to operate its entire portfolio. In HRSS
Report 28 the purpose of the operating agreement between the City and OCHC is
described as follows:
“An
operating agreement between the Service Manager and OCHC will be developed to
govern much of the Corporation’s housing stock…. With respect to OCHC’s
rent-geared-to-income units, an operating agreement between the Service Manager
and OCHC will govern the level and operation of these units.”
The
attached version of the Operating Agreement (Document 1) has been the subject
of discussions and negotiations between OCHC and the City since at least June
14, 2007 and City Legal Counsel has been actively involved in these discussions
and negotiations.
Pursuant to the provisions of the Social Housing Reform Act, 2000, (the “SHRA”) the Service Manager only
has a “duty” to pay subsidies that are calculated in accordance with the
benchmarking formula set out in sections 102 to 111 of Part VI of the SHRA to
housing providers who operate housing projects that are subject to part VI of
the SHRA (in the Operating Agreement these projects are referred to as the
“Provincial Reformed” stock).
The Operating Agreement goes further and provides that the annual subsidies
for the 8,618 Public Housing units and the 1,044
Section 95 Municipal Non Profit units are to be calculated according to the
benchmarking formula that is set out in sections 102 to
111 of Part VI
of the SHRA (reference section 4.2 of the Operating
Agreement).
If City Council wishes to change the funding formula that is set out in the Operating Agreement then the City would need to amend or terminate the Operating Agreement in accordance with section 10.18 of the Agreement that requires 180 days written notice prior to June 30th in any calendar year, failing which the provisions of the Agreement apply during the following calendar year.
The Operating
Agreement has been developed through collaboration between City Staff, OCHC
Staff and their respective Legal Councils.
The agreement has been discussed with the OCHC Board of Directors and
their Chair Diane Holmes. The OCHC Board endorsed this agreement at their
December 18, 2008 Board meeting.
Changing the funding model for the
OCHC public housing portfolio to a benchmarked funding formula agreement will
not impact the 2009 budget adopted by Council.
Future
year financial impacts will depend on how closely those costs and revenues that
are benchmarked reflect (and are updated to reflect) the actual operating costs
and revenues, since under the proposed agreement, a share of operating
surpluses would be allowed to be retained by OCHC for the purposes of maintaining
operating and capital reserves, rather than being returned to the Service
Manager.
Document 1: Proposed Operating Agreement between the City of Ottawa and Ottawa Community Housing Corporation.
DISPOSITION
The City Operations Department will action any direction received as part of consideration of this report.
Document 1
OPERATING AGREEMENT
This
Agreement made in triplicate, dated this day of , 2009
(The
City will insert the date that this agreement is signed on behalf of the City
of Ottawa)
BETWEEN:
CITY
OF OTTAWA
(the “City”)
OF THE FIRST PART
and
(“OCHC”)
OF THE SECOND PART
WHEREAS:
THEREFORE, the parties agree as follows:
1.0 INTERPRETATION
1.1 Definitions under
the Act and Regulations
In this Agreement, unless there is something in the subject matter or context inconsistent therewith, terms and expressions used in this Agreement that are defined terms and expressions under the Act or Regulations shall have the same meaning as in the Act or Regulations.
1.2 Definitions
under this Agreement
“Act” means the Social Housing Reform Act, 2000 of the Province of Ontario, and any statute that may be substituted therefore, as may be amended from time to time;
“Annual Information Return” means such social housing annual information return as may be prescribed under the Act.
“Auditor” means a person appointed by the City to conduct an audit or investigation of OCHC, pursuant to the provisions of this Agreement or the Auditor General of the City of Ottawa.
“Effective Date” means January 1, 2009.
“Federal Operating Agreement” means an operating agreement to which the Government of Canada or Canada Mortgage and Housing Corporation was a party under a prescribed housing program, as may be amended from time to time.
“Housing Program” means one of the programs listed in Table 1 of Ontario Regulation 368/01 of the Act and may be referred to in this Agreement as the program category number used in that table;
“Housing Properties” for the purpose of this Agreement means Housing Projects as defined within the Act.;
“MMAH” means the Ontario Ministry of Municipal Affairs and Housing, Province of Ontario
“Non-Profit Rent Supplement Agreement” means an operating agreement under a rent supplement program administered by the City with respect to units in housing properties owned, leased or operated by OCHC.
“Portfolio” means those housing properties owned, leased or managed by OCHC and funded and administered under a housing program.
“Public Housing” means the 8,618 units in the housing projects formerly owned by Ottawa Housing Corporation, the Government of Ontario or Ontario Housing Corporation under the Housing Programs being program category number 1a in Table 1 of Ontario Regulation 368/01 and listed in Ontario Regulation 369/01 Schedule 7, Items 1-62.
“Regulations” means regulations made pursuant to the Act, and any regulations that may be substituted therefore, as may be amended from time to time.
“The City of Ottawa Housing Provider Service Agreement (2003)” means the agreement between the City and OCHC pursuant to Section 16 of the Act in respect of certain duties and powers of the Service Manager as set out in Part V of the Act a copy of which is attached to this agreement and marked as Schedule “A”.
“Shareholder” means the City of Ottawa as sole Shareholder of OCHC.
“Shareholder Direction” means the Shareholder Direction approved by City Council as Shareholder of OCHC on August 28, 2002, as amended at the annual general meeting of OCHC that was held on July 14, 2004 and as may be further amended from time to time.
“Term” of this agreement means January 1, 2009 until such time as this agreement is terminated in accordance with the provisions of this agreement.
2.0
NUMBER OF RENT-GEARED-TO-INCOME
UNITS AND MODIFIED UNITS
2.1
Number of Rent-Geared-to-Income
Units (Service Level Standards)
OCHC shall ensure that it provides the required number of households receiving rent-geared-to-income assistance under Part V of the Act, as confirmed through the annual reporting process. Legislated Service Level Standards are, by program: Public Housing: 8,612
Provincial Reformed: 2,606
Section 95 Municipal Non Profit: 660
Rent Supplements:
394
OCHC will ensure that the overall service level standard of 12,272 units is achieved and maintained at the required level. Program service levels may vary as long as the total service level is achieved.
The above-mentioned units are identified for the purpose of legislated service level standards only. There are additional units within each program and within the OCHC portfolio which may include separate Rent Supplement agreements, as outlined in 4.1 below.
2.2 Increase or Decrease Either party may request an increase or decrease the number of households referred to in Section 2.1 of this Agreement by the number specified by notice after mutual consultation upon not less than three (3) months prior notice. Funding will be adjusted to enable administration and operation of additional subsidy units, where both parties have agreed to a change. Such an increase or decrease will be phased in as agreed by the parties.
2.3 Number of Modified
Units
OCHC shall ensure that it provides a minimum of 204 modified units as confirmed through the annual reporting process. OCHC will not decrease the number of modified units without the City’s prior written permission.
3.0 OPERATION AND MANAGEMENT OF HOUSING PORTFOLIO
3.1
Generally
OCHC shall carry on its business and exercise its powers in compliance with its incorporating documents and by-laws, the Act, the Regulations, the Shareholder Direction, and all Federal Operating Agreements and Non-Profit Rent Supplement Agreements, The City of Ottawa Housing Provider Service Agreement (2003) and this agreement.
3.2
Compliance with City of Ottawa Housing Provider Service Agreement
(2003)
The Parties agree that they shall comply with the provisions as outlined in The City of Ottawa Housing Provider Service Agreement (2003) as amended from time to time .
3.3
Operating Requirements
OCHC shall operate and manage its public housing subject to the provisions of Part VI of the Act and Ontario Regulation 339/01 in accordance with that Act and the Regulations, with respect to the following matters:
(a) compliance with the prescribed conflict of interest provisions;
(b) compliance with property management provisions;
(c) compliance with eligibility rules, occupancy standards, priority rules and selection of households;
(d) participation in the centralized waiting list system;
(e) entering into leases and occupancy agreements and calculation of rent for all rent-geared-to-income units;
(f) compliance with mandates;
(g) compliance with the retention of records;
(h) compliance with the provisions of annual reports;
(i) permitting the City to carry out an audit or investigation;
(j) permitting the City to carry out its remedies.
3.4
Restrictions by Transfer Order
concerning OCHC Housing Properties operating under Federal Operating Agreements
The parties acknowledge that, pursuant to the terms of the transfer order(s) transferring the administration and funding of Federal Operating Agreements to the City, and in respect of that part of the portfolio that is subject to Federal Operating Agreements:
(a) the Minister retains the right to amend the reporting requirements imposed to OCHC;
(b) the City may however impose additional reporting requirements on OCHC;
(c) the City shall not, without prior written consent of the Minister, provide the City’s consent for any transfer, lease or disposition of or offer to list, advertise or hold out for transfer, lease or disposal of a housing property, or any part of it, that is subject to a mortgage insured under the National Housing Act;
(d) the City shall not, without the prior written consent of the Minister, provide the City’s consent for altering any condition or state of the property, excluding repairs and maintenance, against which a mortgage insured under the National Housing Act is registered;
(e) the City shall not, without prior written consent of the Minister, provide the City’s consent for amalgamating any projects, providers or properties, any one of which is subject to a mortgage insured under the National Housing Act;
(f) the City shall not, without the prior written consent of the Minister, exercise any mortgage remedies against any project of OCHC, or agree to any amendment of the existing mortgage terms and conditions, where such mortgage is guaranteed by the Ministry;
(g) OCHC is required to complete an Annual Information Return (AIR) as set out by the City; and
(h) the City shall not approve any new or replacement mortgage by OCHC on a housing property, or any part of it, without prior consent of the Minister.
4.0
SUBSIDY FUNDING
4.1
Preamble
One of the purposes of this agreement is to streamline and stabilize the funding arrangement for OCHC. The intent is that OCHC shall be able to manage its operations on a portfolio basis while having a predictable and sustainable level of funding.
4.2
Funding Model for Provincial
Reformed, Public Housing and Section 95 Municipal Non-Profit Programs:
By this agreement, and by the powers entrusted to the Service Manager by the Act, the parties agree that the level of funding for all of OCHC’s Public Housing and Section 95 Municipal Non-Profit stock shall be calculated in the same manner that the City is currently required (i.e. pursuant to sections 102 to 111 in Part VI of the SHRA) to calculate the annual subsidy for the Provincial Reformed stock This means that the City will use the benchmarking formula set out in sections 102 to 111 of Part VI of the SHRA , as amended by sections 24 to 34.2 of Ontario Regulation 339/01 of the SHRA, to calculate the annual subsidy that the City is to pay to OCHC for all of OCHC’s Public Housing stock and Section 95 Municipal Non-Profit Stock . Ongoing changes in subsidy funding will follow the SHRA Part VI funding model formula as established by the MMAH. This funding model uses annually updated indices that reflect changes in both revenue and expense benchmarks. The SHRA benchmark funding model remains in place for the Provincial Reformed properties. As such, all three programs will be subsidized under the same funding formula. This provides a more predictable funding model, one that allows both the City and OCHC to sustain adequate, predictable funding and OCHC to maintain both Operating and Capital reserves on an ongoing basis.
OCHC Programs and funding arrangements covered within this operating agreement:
The subsidy funding for the following OCHC housing program remains unchanged:
1. Provincial Reformed
– 2,689 units. The SHRA benchmark-funding model remains
in place for the Provincial Reformed program.
As identified above the
subsidy funding method for the following OCHC housing programs has been revised
effective January 1, 2009:
1. Public Housing –
8,618 units.
2.
Section 95 Municipal Non Profit – 1,044 units.
The 2009 subsidy benchmarks for the Public Housing and the Section 95 Municipal Non Profit programs are attached in Schedule B.
4.3 Funding Model, - Limited Dividend Federal and Equity Programs:
The following OCHC housing programs remain outside of this operating agreement:
1. Limited Dividend Federal 1,018 units. Subsidy funding remains as before
through independent rent supplement agreements, which may be amended from time
to time with the mutual consent of both parties.
2. Equity –
1,412 units. Subsidy funding remains as before through independent rent supplement
agreements, which may be amended from time to time with the mutual consent of
both parties.
4.4 Establishment of
Revenue and Expense Benchmarks for Public Housing and Section 95 Municipal Non
Profit stock
It is acknowledged that the Housing Branch, City of Ottawa and OCHC have worked together to develop the benchmarks required for the implementation of the funding formula. The revenue and expense benchmarks have been established using a methodology consistent with that used for the Provincial Reformed portfolio legislated funding model implementation in 2006.
4.5 Annual Subsidy Estimate Request
OCHC shall provide the City with its subsidy estimates no later than October 1st for the following calendar for the properties funded under the three programs identified in 4.1 above and being the Public Housing, Section 95 Municipal Non-Profit and Provincial Reformed.
4.6 Annual Subsidy Estimate Confirmation
The City shall provide OCHC with confirmation of the annual subsidy estimate for the properties funded under the three programs identified in Section 4.1 above no later than December 1st for the following calendar year. The City agrees that, pursuant to this Agreement, the level of funding for the Public Housing Stock shall be set using the benchmarking formula set out in sections 102 to 111 in Part VI of the SHRA, as amended by sections 24 to 34.2 of Ontario Regulation 339/01 of the SHRA, and that this level of funding shall be maintained by City Council unless this Agreement is amended or terminated pursuant to section 10.18 of this agreement.
4.7 Annual Budget
OCHC shall provide the City with its Board-approved budget for the entire OCHC portfolio for the following calendar year, once approved.
4.8 Annual Reconciliation
OCHC shall provide the Annual Information Return and financial statements by May 31st for the previous fiscal year. Once received, the year-end RGI subsidy, mortgage payments and property taxes will be reconciled to the actual amounts as reported in the Annual Information Return and financial statements.
The City shall provide OCHC with a final financial reconciliation by November 1st for the previous fiscal year.
4.9 Redevelopment of
the Portfolio
Any additional funds required for redevelopment of the portfolio would be subject to authorization by City Council.
4.10 Payment Schedule
Payments of the subsidy funding shall be made in equal monthly instalments on the first business day of the month, with monthly adjustments for increased or decreased mortgage payments based on actual renewals.
4.11 Dispute Resolution
If either party disagrees with the subsidy calculation, they will follow the dispute resolution process as set out in 12.05 of the City of Ottawa Housing Provider Service Agreement (2003) or as amended from time to time.
5.0
REPORTS, RECORDS
5.1
Annual Information Return
OCHC shall give the City, within five (5) months of the end of its fiscal year, completed annual reporting requirements and audited financial statements in a form acceptable to the Housing Branch, City of Ottawa.
Both parties acknowledge that an Annual Information Return is currently required for the Public Housing, Section 95 Municipal Non Profit, and Provincial Reformed programmes along with those units covered within Rent Supplement Agreements. Accordingly, the parties acknowledge that they may be required to comply with the reporting requirements under the Act unless the Minister approves an alternate reporting format.
6.0 DEFAULT
6.1
Triggering Events
OCHC agrees that the triggering events listed in Section 115 of the Act shall apply to all of OCHC’s housing properties subject to the Act and to the Public Housing and Section 95 Municipal Non-Profit, and that all the City’s remedies contained in Part VI of the Act, and all of the provisions of the Act and Regulations in connection with such remedies, shall apply to those properties. OCHC shall comply with all of the obligations of a housing provider under Part VI of the Act in connection with the City’s exercise of such remedies.
6.2 Additional Triggering Events
The parties agree that the following events shall be deemed to be triggering events for the purpose of this agreement
(a) a breach of a Federal Operating Agreement;
(b) a breach of a Non-Profit Rent Supplement Agreement;
(c) a breach of this agreement.
6.3
Remedies
The parties agree that if a triggering event listed in Section 115 of the Act occurs, or a triggering event for the purposes of this agreement occurs, the City may, subject to the prior approval of the City as Shareholder for any action that requires Shareholder approval, exercise any one or more of the following remedies:
(a) the remedies contained in Part VI of the Act, with the necessary changes in connection with public housing and housing properties operating under Federal Operating Agreements and Non-Profit Rent Supplement Agreements;
(b) the remedies contained in a Federal Operating Agreement;
(c) the remedies contained in a Non-Profit Rent Supplement Agreement;
(d) remedy such default on behalf of OCHC;
(e) suspend or terminate the Schedule;
(f) exercise any other remedy it has in law or equity.
6.4
Notice
The City shall not exercise a remedy under this agreement unless:
(a) the City has given OCHC notice specifying the particulars of the triggering event; the activities that OCHC must carry out or refrain from carrying out or the course of action that OCHC must take or refrain from taking; and a reasonable period of time within which OCHC must remedy such default; and
(b) OCHC fails to comply with the notice.
6.5
Remedies Cumulative
All of the remedies and rights of the City under the Act, the Regulations, the Shareholder Direction, the Federal Operating Agreements, the Non-Profit Rent Supplement Agreements, in this Agreement or otherwise available in law or equity are cumulative and no right or remedy is intended to be exclusive. Each right or remedy shall be exercisable by the City in its sole and absolute discretion, and each right or remedy shall be in addition to every other right or remedy available to the City from time to time.
7.0
AUDIT
Without limiting the audit provisions in (9.4) of the Shareholder Direction, OCHC shall permit the Auditor at any time during the Term of this agreement and for seven (7) years after its expiry or termination, and during OCHC’s usual business hours, to review all of OCHC’s materials, records and other documents relating to this agreement, and to enter and inspect any of OCHC’s housing properties at any reasonable time, provided that the City gives OCHC reasonable notice of its intention to do so.
8.0
NOTICES
Any approval, consent, notice, communication, request, demand or document required or permitted to be given under this agreement (“Notice”) to either party shall be sufficiently given if it is in writing and delivered by hand, fax or mail to the parties at the following addresses:
City: City of Ottawa
Housing Programs
Social Services Department
100 Constellation Crescent
8th Floor East
Nepean, Ontario
K2G 6J8
Attention: General Manager, Social Services
Fax: (613) 580-2648
OCHC: Ottawa Community Housing Corporation
39 Auriga Drive
Nepean, Ontario
K2E 7Y8
Attention: Chief Executive Officer
Fax: (613) 731-4463
If any Notice is so given, it shall be deemed to have been received on the date of delivery if delivered by hand, on the next business day if transmitted by fax, and on the third business day following the date of mailing. Any party may, from time to time, by Notice given as provided above, change its address for the purpose of this Section.
Any Notice permitted or required to be given by the City may be given by the General Manager, Social Services City of Ottawa, from time to time, his or her successor, or his or her designate(s) from time to time (collectively, the “General Manager”). However, the General Manager specifically reserves the right to submit the issue of the giving of any Notice, or of the contents of any Notice, to City Council for its determination.
9.0
COMMUNICATIONS WITH THE MINISTRY AND THE CITY
9.1
Ministry
Any matter under the Act or Regulations that requires OCHC to seek the prior consent of the Minister shall be referred by OCHC to the City for service manager consent.
Without limiting the generality of the foregoing, OCHC shall obtain the City’s prior consent, and the City shall, on behalf of OCHC, seek the Minister’s consent with respect to any of the following:
(a) the disposition, mortgaging, encumbering, developing or redeveloping, or granting an interest in any real property transferred by a transfer order, pursuant to Subsection 50(1) of the Act, unless such transaction is an exception described in Subsection 50(2) of the Act;
(b) the transfer, lease or other disposition of or the offering, listing, advertising or holding out for transfer, lease or other disposition of a housing property or any part of it, including any chattels in it, pursuant to Subsection 95(1) of the Act, unless such transaction is an exception described in Subsection 95(2) of the Act;
(c) mortgaging, replacing or an existing mortgage, or otherwise encumbering a housing property, or the extension of the term of or otherwise amending any existing or approved mortgage or other encumbrance of the housing property, pursuant to Subsection 95(3) of the Act, unless such transaction is in compliance with paragraph 95(3)(a);
(d) authorizing the phase-in of the reduction in the subsidy and setting a schedule for phasing in the reduction over a series of years, pursuant to Subsection 103(5) of the Act;
(e) determining final amounts for benchmark revenue, operating costs, affordable mortgage payments, and benchmark market rents, pursuant to Subsection 104(5) of the Act;
(f) amending the benchmark operating costs in respect of its housing properties, pursuant to Subsection 107(3) of the Act;
(g) entering into a new debt repayment schedule with the Minister pursuant to Section 109 of the Act;
(h) seeking any exemption from any of the requirements of the Act or Regulations.
Any matter under this Agreement that requires the City to seek the approval of the Minister may be submitted to City Council by the General Manager, Social Services, City of Ottawa, for its determination, and in that event, the provisions of this Agreement pertaining to Ministerial approval shall be subject to City Council’s determination.
9.2
City
All formal communications and dealings between the City and OCHC, as parties to this agreement, shall be made in the manner provided by Section 8.0 of this agreement. No communication or dealing between OCHC and any department, committee, or body functioning under the administration of the City shall be deemed to be a communication or dealing under the provisions of this Agreement, or to effect the City with notice of any such communication or dealing under this Agreement, unless made in the matter provided by Section 8.0 of this Agreement. No communication or dealing between OCHC and the City as a party to this Agreement shall relieve OCHC from the responsibility of discharging its lawful obligations to the city imposed by statute, regulation, by-law or by any other lawful manner separate and apart from the obligations imposed by this Agreement.
Any matter that requires OCHC to seek the consent of the service manager shall be brought to the attention of the City by notice from OCHC, in accordance with Section 8.0 of this Agreement.
OCHC agrees to notify the service manager when OCHC seeks Shareholder approval under the Shareholder Direction if the approval sought relates to the service manager’s duties and functions under the Act. Such notice shall be in accordance with the provisions of Section 8.0 of this Agreement.
10.0 GENERAL
10.1
Compliance with Shareholder Direction, etc.
Nothing in this agreement shall relieve OCHC from its obligations and duties under the Shareholder Direction, the Act, the Regulations, its incorporating documents and by-laws, the Federal Operating Agreements and the Non-Profit Rent Supplement Agreements.
10.2
No Restrictions on City
Nothing in this Agreement shall be construed as limiting the powers and remedies of the City under the Shareholder Direction, the Act, the Regulations, the Federal Operating Agreements and the Non-Profit Rent Supplement Agreements or otherwise available to the City, from time to time.
10.3
Amendments to Federal Operating Agreements and
Non-Profit Rent Supplement Agreements
The parties agree that if any provisions of this Agreement are inconsistent with Federal Operating Agreements or Non-Profit Rent Supplement Agreements, such Federal Operating Agreements and Non-Profit Rent Supplement Agreements shall be deemed to have been amended by the parties in accordance with the provisions of this Agreement.
10.4
Amendment to Provincial Accountability Rules
The parties agree that if any provisions of this Agreement are inconsistent with the provincial accountability rules prescribed in Ontario Regulation 644/00 pursuant to Section 32 of the Act, such provisions of this Agreement shall be deemed to be amendments, deletions or additions to the provincial accountability rules and shall be effective as of the Effective Date. To the extent that any provincial accountability rule is not inconsistent with the provisions of this Agreement, the parties shall continue to be bound by such provincial accountability rule.
10.5
Amendments
No modification or amendment to this Agreement shall be made unless agreed to by the parties in writing.
10.6
Successors
This Agreement shall be binding and inure to the benefit of the parties and their respective successors.
10.7
Assignment
OCHC shall not assign any or all of its rights or any or all of its obligations under this Agreement to any person without the prior written consent of the City.
10.8
No Interference
All rights and benefits and obligations of the City under this Agreement shall be rights, benefits and obligations of the City in its capacity as a service manager under the Act and shall not derogate from or interfere with or fetter the rights, benefits and obligations of the City in its functions and capacity as a municipal corporation.
10.9
Further Assurances
Each of OCHC and the City shall execute and deliver all such further documents and do such further acts and things as the other party may reasonably request from time to time to give full effect to this Agreement.
10.10
Waivers and Consents
No term or provision of this Agreement shall be deemed waived and no breach consented to, unless such waiver or consent shall be in writing and signed by an authorized member or staff of the party claimed to have waived or consented. No consent by a party to, or waiver of, a breach under the Agreement shall constitute a consent to, waiver of, or excuse for any other, different or subsequent breach.
10.11
No Partnership or Joint Venture
This Agreement is not intended to create, nor does it create, a joint venture or partnership between OCHC and the City. OCHC is an agent of the City only for the limited purposes provided for in the Act. It is acknowledged and agreed that OCHC does not acquire any right, title or interest in any property of the City by virtue of this Agreement.
10.12
Invalidity
If any part of this Agreement is held or rendered invalid or illegal by a court of competent jurisdiction, the remainder of this Agreement continues to apply.
10.13
Headings
The headings in this Agreement are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.
10.14
Time
Time shall be of the essence of this Agreement.
10.15
Number and Gender
In this Agreement, words in or implying the singular include the plural and vice versa, and words having a gender include all genders.
10.16
Effective Date
This Agreement shall be in effect as of the Effective Date.
10.17
City of Ottawa Housing Provider Service Agreement
(2003).
The City of Ottawa Housing Provider Service Agreement (2003) delegates certain duties and powers of the Service Manager as set out in Part V of the Act, including income testing for housing properties . The parties agree that all of the terms of The City of Ottawa Housing Provider Service Agreement (2003) and as amended from time to time shall continue in full force and effect and shall be binding upon the parties hereto.
In the event of a conflict between the terms of this agreement and the terms of the Housing Provider Service Agreement (2003), the terms of this agreement shall prevail.
10.18 Termination of Agreement; Either party may terminate this Agreement at any time without cause upon not less than one hundred and eighty days (180) days written notice to the other party. That notice may only be given prior to June 30th in any calendar year failing which the provisions of this Agreement shall apply during the following calendar year notwithstanding any subsequent notice of termination.
IN WITNESS WHEREOF each party to this agreement has caused this agreement to be executed by a person who is fully and completely authorized to sign this agreement on behalf of the party that is shown above the person’s signature.
CITY
OF OTTAWA
Per:____________________________
Name:
Title:
I have authority to bind the
Corporation
OTTAWA COMMUNITY HOUSING CORORATION
Per:______________________ Per:__________________
Name: Jo-Anne Poirier Diane Holmes
Title: Chief Executive Officer Chair, Board of Directors
I have authority to bind the Corporation I have authority to bind the
Corporation
SCHEDULE
B
2009 Subsidy estimate for Public Housing:
|
SERVICE MANAGER: City of Ottawa |
|
|
|
|
HOUSING PROVIDER: Ottawa Community Housing Corporation |
Group
# |
E00049 |
|
|
PROGRAM: Public Housing |
Total
# Units |
8,618 |
|
|
Eastern
Region |
|
|
|
|
Line |
SUBSIDY ESTIMATE |
2009 |
|
|
Calculations |
Provider Totals |
||
|
L1 |
Market Rents @ 100 % Occupancy |
|
$86,956,860 |
|
L2 |
Less Vacancy Loss |
|
$130,954 |
|
L3 |
Net
Market Rents @ 100 % Occupancy |
L3=L1-L2 |
$86,825,906 |
|
L4 |
Benchmark
Non-Rental Revenue (Parking and Laundry) |
|
$1,333,320
|
|
L5 |
Total Revenues |
L5=L3+L4 |
$88,159,226 |
|
L6 |
Operating
Costs - Maintenance and Administration |
|
$21,186,753 |
|
L7a |
Operating
Costs - Utilities: Natural Gas (3 year average) |
|
$5,204,366 |
|
L7b |
Operating
Costs - Utilities: Oil & Other (3 year average) |
|
$0 |
|
L7c |
Operating
Costs - Utilities: Hydro/Electricity (3 year average) |
|
$5,374,086 |
|
L7d |
Operating
Costs - Utilities: Water (3 year average) |
|
$6,152,405 |
|
L8 |
Operating
Costs - Insurance |
|
$659,277 |
|
L9 |
Operating
Costs - Bad Debts |
|
$358,500 |
|
L10 |
Capital
Reserves |
|
$8,452,158 |
|
L11 |
Total Operating Costs |
L11=SUM(L6:L10) |
$47,387,545 |
|
L12 |
Net Operating Income (NOI)=Affordable Mtge Pmt (AMP) |
L12-L5-L11 |
$40,771,681 |
|
L13 |
Actual Mortgage Payment |
|
$10,439,447 |
|
L14 |
Mortgage Subsidy (Actual Payments less AMP) |
L14=L13-L12 |
($30,332,234) |
|
L15 |
Property Taxes (Estimated Actual) |
|
$11,813,445
|
|
L16 |
RGI revenues (RGI units @ market rents) |
|
$82,838,460 |
|
L17 |
Actual RGI Revenues Received |
|
$30,100,000 |
|
L18 |
RGI Subsidy (RGI units at market rent less RGI rents) |
L18=L16-L17 |
$52,738,460 |
|
L19 |
Operating Expense Ratio (OER) |
L19=L11/L5 |
N/A |
|
L20 |
1- OER |
L20=1-L19 |
N/A |
|
L21 |
SMs Required Subsidy Payment |
L21=L14+L15+L18 |
$34,219,671 |
|
|
SM Additional Payment (projected surplus) |
|
$0 |
|
|
Debentures Subsidy |
=L13 |
$10,439,447 |
|
|
Net SM Required Subsidy Payment |
L21-Debentures |
$23,780,224 |
|
L22 |
SMs Required Subsidy Monthly Payment |
L22=L21/12 |
$1,981,685 |
2009 Subsidy estimate for Section 95 Municipal Non Profit:
|
SERVICE MANAGER: City of Ottawa |
|
|
|
|
HOUSING PROVIDER: Ottawa Community Housing Corporation |
Group
# |
E00049 |
|
|
PROGRAM: Section 95 Municipal Non Profit |
Total
# Units |
1,044 |
|
|
Eastern
Region |
|
|
|
|
Line |
SUBSIDY ESTIMATE |
2009 |
|
|
Calculations |
Provider Totals |
||
|
L1 |
Market Rents @ 100 % Occupancy |
|
$10,781,880 |
|
L2 |
Less Vacancy Loss |
|
$109,117 |
|
L3 |
Net
Market Rents @ 100 % Occupancy |
L3=L1-L2 |
$10,672,763 |
|
L4 |
Benchmark
Non-Rental Revenue (Parking and Laundry) |
|
$34,257
|
|
L5 |
Total Revenues |
L5=L3+L4 |
$10,707,020 |
|
L6 |
Operating
Costs - Maintenance and Administration |
|
$2,642,253 |
|
L7a |
Operating
Costs - Utilities: Natural Gas (3 year average) |
|
$174,653 |
|
L7b |
Operating
Costs - Utilities: Oil & Other (3 year average) |
|
$0 |
|
L7c |
Operating
Costs - Utilities: Hydro/Electricity (3 year average) |
|
$108,290 |
|
L7d |
Operating
Costs - Utilities: Water (3 year average) |
|
$728,667 |
|
L8 |
Operating
Costs - Insurance |
|
$79,836 |
|
L9 |
Operating
Costs - Bad Debts |
|
$54,090 |
|
L10 |
Capital
Reserves |
|
$624,678 |
|
L11 |
Total Operating Costs |
L11=SUM(L6:L10) |
$4,412,467 |
|
L12 |
Net Operating Income (NOI)=Affordable Mtge Pmt (AMP) |
L12-L5-L11 |
$6,294,553 |
|
L13 |
Actual Mortgage Payment |
|
$3,783,558 |
|
L14 |
Mortgage Subsidy (Actual Payments less AMP) |
L14=L13-L12 |
($2,510,995) |
|
L15 |
Property Taxes (Estimated Actual) |
|
$1,640,205
|
|
L16 |
RGI revenues (RGI units @ market rents) |
|
$6,862,480 |
|
L17 |
Actual RGI Revenues Received |
|
$1,691,300 |
|
L18 |
RGI Subsidy (RGI units at market rent less RGI rents) |
L18=L16-L17 |
$5,171,180 |
|
L19 |
Operating Expense Ratio (OER) |
L19=L11/L5 |
N/A |
|
L20 |
1- OER |
L20=1-L19 |
N/A |
|
L21 |
SMs Required Subsidy Payment |
L21=L14+L15+L18 |
$4,300,390 |
|
|
SM Additional Payment (projected surplus) |
|
$0 |
|
|
Debentures Subsidy |
=L13 |
|
|
|
Net SM Required Subsidy Payment |
L21-Debentures |
$4,300,390 |
|
L22 |
SMs Required Subsidy Monthly Payment |
L22=L21/12 |
$358,366 |