PEEL HOUSING CORPORATION BOARD OF DIRECTORS

Transcription

1 PEEL HOUSING CORPORATION BOARD OF DIRECTORS AGENDA PHC - 2/2016 DATE: Thursday, February 4, 2016 TIME: LOCATION: 8:30 AM 10:30 AM Regional Council Chamber, 5 th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario MEMBERS: D. Austin G. Miles F. Dale J. Mirza S. Elias E. Moore C. Fonseca P. Palleschi M. Mahoney B.Shaughnessy R. Mendis Chaired by President P. Palleschi or Vice President G. Miles 1. DECLARATIONS OF CONFLICTS OF INTEREST 2. APPROVAL OF MINUTES 2.1. Minutes of the Board of Directors (PHC-1/2016) meeting held on January 7, APPROVAL OF AGENDA 4. DELEGATIONS 5. IN CAMERA MATTERS Delegations 5.1. Mark R. MacDonald, National Industry Leader, Public Sector and Mohamed Bhamani, Senior Manager, KPMG LLP, Regarding Potential Redevelopment Options for Twin Pines (A delegation that is subject to a recommendation that the Procedure By-law be waived in order that it may be heard by the Board In Camera)

2 PHC-2/2016 Board of Directors Agenda -2- Thursday, February 4, Jeffrey Wood, Senior Vice President, Transaction Real Estate and Ray Drost, Senior Vice President, Transaction Real Estate, Ernst & Young LLP, Regarding Potential Redevelopment Options for Twin Pines (A delegation that is subject to a recommendation that the Procedure By-law be waived in order that it may be heard by the Board In Camera) Staff Reports 5.3. Closed Session Report of the Board of Directors Meeting (PHC-1/2016) meeting held on January 7, REPORTS 6.1. Healthy Homes: Smoke-Free Living 6.2. Service Manager Review of 2013 and 2014 Audited Financial Statements and Annual Information Return - Management Response (For information) 7. COMMUNICATIONS 8. GENERAL MANAGER'S UPDATE 9. OTHER BUSINESS 10. NEXT MEETING Thursday, March 3, 2016, 8:30 a.m. - 10:30 a.m. Regional Council Chamber, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario 11. ADJOURNMENT

3 2.1-1 PEEL HOUSING CORPORATION BOARD OF DIRECTORS MINUTES PHC-1/2016 The Board of Directors of Peel Housing Corporation met on Thursday, January 7, 2016 at 8:36 a.m., in the Council Chamber, Regional Administrative Headquarters, 10 Peel Centre Drive, Suite A, Brampton. Directors Present: Directors Absent: Also Present: D. Austin; F. Dale; C. Fonseca; M. Mahoney; R. Mendis; E. Moore; B. Shaughnessy S. Elias (personal matter); G. Miles (vacation); P. Palleschi (illness) D. Szwarc, Chief Administrative Officer, Region of Peel; G. Bursey, Acting Commissioner of Human Services, Region of Peel; J. Smith, Commissioner of Health Services, Region of Peel; M.S. Mwarigha, General Manager; D. Bingham, Treasurer; J. Arcella, Deputy Treasurer, B. Colavecchia, Manager, Housing Operations and Tenancy Management; M. MacCrae, Manager, Housing Operations and Tenancy Management; P. O Connor, Corporate Counsel; K. Lockyer, Regional Clerk; A. Macintyre, Corporate Secretary; C. Law, Deputy Corporate Secretary; V. Montesdeoca, Legislative Technical Coordinator Chaired by Director E. Moore 1. DECLARATIONS OF CONFLICTS OF INTEREST 2. APPROVAL OF MINUTES 2.1. Minutes of the Board of Directors Meeting (PHC-7/2015) meeting held on November 5, 2015 Moved by Director Austin, Seconded by Director Fonseca; That the November 5, 2015 Peel Housing Corporation (PHC-7/2015) Board of Directors Meeting minutes be approved, as amended. Carried APPROVAL OF AGENDA Moved by Director Dale, Seconded by Director Mahoney; That the agenda for the January 7, 2016 Peel Housing Corporation Board of Directors meeting be approved. Carried * See text for arrivals See text for departures - 1 -

4 2.1-2 PHC-1/2016 Thursday, January 7, DELEGATIONS 4.1. Ray Drost, Senior Vice President, Jeffrey Wood, Senior Vice President, Transaction Real Estate, and Sophia Campbell, Manager, Corporate Finance, Ernst and Young, Regarding the Financial Viability of Peel Housing Corporation See also Resolutions Received Ray Drost, Senior Vice President, Transaction Real Estate, Ernst and Young provided an update on the financial viability project for Peel Housing Corporation (PHC). He provided details on how E&Y collected information related to all housing sites; how they would be valuating each site as an income-producing asset; and details regarding the six typologies they consider for increasing revenue and maximizing value at each site. In response to a question from Director Mendis, Ray Drost stated that they are looking to reduce the amount of properties in a current negative financial position significantly by reducing costs at these sites as much as possible. He added that there may be different options looked at for each site, in order to both maximize potential income from the site, but also maintaining the social benefit of maintaining or possibly expanding the number of housing units. Director Moore emphasized that the final recommendations should take into account the overall social benefit to the community surrounding housing sites, not just each site individually. 5. IN CAMERA MATTERS At 9:20 a.m., the following motions were placed: Moved by Director Dale, Seconded by Director Fonseca; That the Board of Directors of Peel Housing Corporation waive clause 4.12 of Bylaw Number 1, and proceed In Camera to consider a report relating to a Twin Pines Update. Moved by Director Dale, Seconded by Director Fonseca; Carried That the Board of Directors of Peel Housing Corporation, in accordance with section 239(2) of the Municipal Act, 2001, as amended, proceed In Camera to consider the following: Twin Pines Update (Advice that is subject to solicitor-client privilege, including communications necessary for that purpose) Carried

5 2.1-3 PHC-1/2016 Thursday, January 7, 2016 Moved by Director Shaughnessy, Seconded by Director Mahoney; That the Board of Directors of Peel Housing Corporation proceed out of In Camera Carried The Board of Directors of Peel Housing Corporation moved out of closed session at 10:30 a.m Twin Pines Update (Advice that is subject to a recommendation that the Procedure Bylaw be waived in order that it may be considered by the Board in camera) Moved by Director Shaughnessy, Seconded by Director Mendis; That the direction given "In Camera" to the Chief Administrative Officer and the General Manager, be approved, and voted upon in accordance with section 239(6) (b) of the Municipal Act, Carried Twin Pines Update (Advice that is subject to solicitor-client privilege, including communications necessary for that purpose) Received REPORTS 6.1. Agreement with the City of Mississauga for Construction of a Multisport Court at Springfield Gardens Moved by Director Mahoney, Seconded by Director Austin; That the General Manager be authorized to execute, on behalf of Peel Housing Corporation, a land lease agreement with the City of Mississauga in a form satisfactory to Corporate Counsel, at Springfield Gardens, of a multisport court in accordance with the report of the General Manager, titled Agreement with the City of Mississauga for Construction of a Multisport Court at Springfield Gardens. Carried Director Mahoney applauded the project and thanked staff for bringing it forward for approval Performance Report For the Vera M. Davis Long Term Care Home 6.3. Progress Update on Financial Viability Work See also Resolutions Received Received

6 2.1-4 PHC-1/2016 Thursday, January 7, COMMUNICATIONS 7.1. Veronica Hall, Peel Housing Corporation Board Director, Letter dated December 21, 2015, Providing her Resignation from the Peel Housing Board of Directors Moved by Director Fonseca, Seconded by Director Austin; That the letter of resignation from Veronica Hall, dated December 21, 2015, be received; And further, that Junaid Mirza, appointed by the Shareholder on February 26, 2015 as an alternate member of the Board, be invited to join the Board of Directors effective for the February 4, 2016 Board meeting. Received GENERAL MANAGER'S UPDATE M.S. Mwarigha, General Manager, Peel Housing Corporation, updated the Board on new developments occurring at the federal level with regards to municipal housing initiatives. He highlighted the recently released mandate letters of the Ministries of Family, Children and Social Development, and Infrastructure and Communities, tasked with developing a national housing strategy and providing funding to municipalities for new buildings and repairs to existing infrastructure. He stated that there will be an opportunity for advocacy for Peel Housing Corporation related to these federal strategies. Director Moore stated that any new advocacy positions brought before the Board should be specific to the Region of Peel and the local circumstances of what is required for housing. 9. OTHER BUSINESS 10. NEXT MEETING Thursday, February 4, 2016, 8:30 a.m. - 10:30 a.m. Regional Council Chamber, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario 11. ADJOURNMENT The meeting adjourned at 10:50 a.m. President Secretary - 4 -

7 6.1-1 REPORT Meeting Date: Peel Housing Corporation DATE: January 28, 2016 REPORT TITLE: FROM: HEALTHY HOMES: SMOKE-FREE LIVING M.S. Mwarigha, General Manager, Peel Housing Corporation RECOMMENDATION That a smoke-free policy be developed and brought back to the Peel Housing Corporation (PHC) Board for approval as the first phase of the PHC Healthy Homes Initiative. REPORT HIGHLIGHTS On November 5, 2015, the Peel Housing Corporation (PHC) Board requested that staff report back regarding adopting a policy on tobacco use in PHC buildings. PHC is implementing the Healthy Homes initiative, the first phase of which is smoke-free environments. Research confirms that there are negative health impacts of second-hand smoke exposure, an issue which is compounded in multi-unit dwellings. PHC has completed a comprehensive review of smoke-free policies for its portfolio in order to mitigate the effects of second-hand smoke exposure. It is recommended that in collaboration with Peel Public Health, the impacts of implementing the first phase of the Healthy Homes initiative be further explored. DISCUSSION 1. Background On November 5, 2015, the Peel Housing Corporation (PHC) Board requested that staff report back at a future meeting regarding the adoption of a policy to address tobacco use in PHC buildings. Staff are addressing this issue through the Healthy Homes initiative. PHC is in the process of implementing a holistic Healthy Homes approach for its portfolio, with an emphasis on working with tenants to create healthy and supportive environments. Some of the collaborative initiatives to be implemented under Healthy Homes include: smoke-free environments, mandatory tenant insurance, nutrition and food security, active living programs, pest management and hoarding prevention. Launching smoke-free environments as the first step of Healthy Homes implementation will allow PHC to work collaboratively with tenants using a new tenant engagement model of creating healthy and supportive environments.

8 HEALTHY HOMES: SMOKE FREE LIVING Smoke-Free Environment Initiative (a) Aims and Objectives PHC is the largest not-for-profit rental social housing landlord in the Region of Peel. Currently 20 per cent of PHC tenants are seniors and 45 per cent are children; these proportions are almost double those in the general population. Families, children and seniors living in social housing often have little influence over their housing options, and are vulnerable to involuntary exposure to second-hand smoke. As a result, the health benefits associated with the implementation of a smoke-free policy is of particular relevance for PHC buildings. (b) Risks of Second-Hand Smoke Exposure There is an established body of evidence highlighting the linkages between exposure to second-hand smoke and a variety of diseases and premature death in children and adults. Adults who are regularly exposed to second-hand smoke have been found to be at a higher risk for lung cancer and ischemic heart disease 1. The problem of second-hand smoke exposure is particularly exacerbated in multi-unit dwellings where second-hand smoke is compounded from several sources. For example, children who live in multi-unit dwellings in which no one smokes inside their individual unit have a 45 per cent increase in cotinine levels compared to children who live in detached houses 2. Cotinine is a nicotine metabolite that is found in the blood postnicotine exposure. As a result, smoking in multi-unit dwellings is a concern for all residents, whether they smoke or live in proximity to a unit where smoking occurs. Close to one third of Ontarians living in multi-unit dwellings are regularly exposed to drifting second-hand smoke from neighbouring units 3. Second-hand smoke can move from one unit in a multi-unit dwelling to another through cracks in walls, doorways, plumbing and electrical systems, heating and air conditioning ducts and outdoor seating areas 4. (c) Limitations of Existing Residential Legislation Through existing legislation, smoking is prohibited in certain outdoor and common spaces on PHC properties. The Region of Peel Outdoor Smoking By-law prohibits smoking within nine metres (30 feet) of entrances and exits of PHC multi-unit residential buildings with common entrances. And under the Smoke-Free Ontario Act smoking is prohibited in enclosed common areas such as elevators, lobbies and hallways. However, existing legislation does not cover individual units and as a result, smoking in units is permitted. Under the Residential Tenancies Act, 2006, tenants have a right to the reasonable enjoyment of their unit. In the past, complaints related to second-hand smoke exposure

9 HEALTHY HOMES: SMOKE FREE LIVING inside individual units have been addressed on a case-by-case basis and PHC has worked in collaboration with the affected parties to develop solutions. However, an overall approach would be more efficient and effective. Hence, PHC and the Region of Peel Health Department started a project to implement a smoke-free environment across the portfolio. 3. Research of PHC Portfolio Completed to Date PHC, in collaboration with Peel Public Health, has completed a comprehensive review in order to develop evidence-informed smoke-free policies in multi-unit dwellings and identify their benefits and impacts. A detailed search of the available evidence, as well as a scan of existing policies within the housing system in Ontario, was completed. The following conclusions were drawn from the research: More than 100 social housing providers in Ontario have implemented smoke-free policies. Currently there are no social housing buildings in Peel with smoke-free policies in place. A new housing development at Queen St. and Hansen Rd. in Brampton will be the first smoke-free social housing building in Peel Region (Occupation: July 2016). Successful policy implementation relies on tenant engagement to promote selfenforcement. Smoke-free policies can lead to improved health outcomes for tenants. Smoke-free policies can lead to reduced insurance premiums for landlords and increased longevity of the housing stock. The findings of PHC and Public Health research confirmed the need for and value of implementing a smoke-free environment policy across the portfolio. 4. Next Steps Implementing smoke-free environments as part of the Healthy Homes initiative will further explore the most appropriate smoke-free policy options for the PHC portfolio. This policy development work will be completed in collaboration with Peel Public Health, and a major component of the work will be to compile a comprehensive profile of PHC residents and their smoking status and behaviours. An in-depth understanding of the benefits and impacts that can be realized from the implementation of such a policy will also be completed

10 HEALTHY HOMES: SMOKE FREE LIVING CONCLUSION The first phase of the Healthy Homes initiative will focus on the implementation of smoke-free environments and the existing collaboration with Peel Public Health will be leveraged to further the evidence informed smoke-free policy work completed to date. Policy options best suiting the needs of PHC residents will be developed and brought forward for consideration. M.S. Mwarigha, General Manager, Peel Housing Corporation For further information regarding this report, please contact Mwarigha, Extension Authored By: Ifrah Shah - 4 -

11 6.2-1 REPORT Meeting Date: Peel Housing Corporation For Information DATE: January 27, 2016 REPORT TITLE: FROM: SERVICE MANAGER REVIEW OF 2013 AND 2014 AUDITED FINANCIAL STATEMENTS AND ANNUAL INFORMATION RETURN - MANAGEMENT RESPONSE Mwarigha M.S., General Manager, Peel Living OBJECTIVE To provide information on the nature and content of the Service Manager s communication to the Board of Peel Housing Corporation regarding audited financial statements and annual information returns for the years ended December 31, 2013 and December 31, REPORT HIGHLIGHTS Housing Services Act, 2011 requires Service Managers to review the annual information return and audited financial statements for all housing providers. The observations resulting from the review of the annual information return and audited financial statements for Peel Housing Corporation are summarized in this report. This report provides a summary of management s response to the Service Manager s review. There were no new observations made since the last board report in Regional staff will continue to work with the Service Manager to take the necessary steps to establish compliance. DISCUSSION 1. Background The Housing Services Act, 2011 requires Service Managers to complete an annual review of the audited financial statements and annual information returns of all housing providers. The results of the review are provided to Peel Housing Corporation (PHC) management for comment and to take the necessary steps to implement recommendations if warranted. The attached letter to the Board (Appendix I) provides observations and recommendations from the Service Manager regarding their findings. There were no new observations made by the Service Manager for 2013 and This report serves as PHC s response to the attached Service Manager letter and is consistent with the 2012 report provided in 2013.

12 6.2-2 SERVICE MANAGER REVIEW OF 2013 AND 2014 AUDITED FINANCIAL STATEMENTS AND ANNUAL INFORMATION RETURN - MANAGEMENT RESPONSE 2. Observations, Recommendations and Management Response The Service Manager observes increasing rent arrears, decreased capital replacement reserve fund, overpayment of subsidy in both 2013 and 2014, and rent-geared-to-income (RGI) actual being below target. Management response to each of the areas of observation and related recommendations is described in this section. a) Net Tenant Arrears Management Response Net tenant arrears as a percentage of monthly tenant related revenues and as a percentage of annual revenues remain slightly higher than other external housing providers. This is a result of the integrated human services approach to tenancy management which was adopted in 2010 and challenges within the collection process. There are three main components that make up the $954,529 in tenant related receivables; they include rent arrears, backdated rent arrears and invoices. Approximately 50% of the tenant receivables are rent arrears which have had some impact from PHC s approach to tenancy management and achieving the goal of promoting successful tenancies as outlined in the Region s Human Services Plan. The approach balances three components to achieve multiple positive outcomes retention of tenancies, management of arrears, and associated legal/write-off cost and savings for PHC. The balance of the tenant receivables are backdated rent arrears which are subsidies paid to households in excess of their entitlement and invoices for chargebacks to tenants. PHC recognizes the need for improvements in the collection process for these arrears and is working with its internal service provider to improve these processes. Staff will report back to the PHC Board in the next six months to provide a progress update. b) Capital Replacement Reserve Fund Management Response PHC continues to seek opportunities to increase contributions to its reserves as well as options to mitigate the future state of good repair costs. Work on a long-term financial strategy is currently underway and will include updated Building Condition Assessments, which are necessary for determining long-term capital funding requirements. The Service Manager is aware that all at risk capital work was addressed in formulating the 2015 and 2016 budgets. No Service Manager loan was requested for the 2015 capital budget; however a loan request of up to $8 million may be required for the 2016 capital budget to address mold remediation work for three buildings. c) Subsidy Reconciliation Management Response Variances in the subsidy calculation are anticipated each year as the subsidy request is based on budget assumptions, for example, mortgage renewal terms, vacancy losses, operating expenditures and property tax increases. The Service Manager is responsible for reconciling subsidy payments with all housing providers and discrepancies are adjusted in the following subsidy submission. PHC s subsidy submission has been amended and the 2015 budget was adjusted to account for changes in subsidy requirements

13 6.2-3 SERVICE MANAGER REVIEW OF 2013 AND 2014 AUDITED FINANCIAL STATEMENTS AND ANNUAL INFORMATION RETURN - MANAGEMENT RESPONSE d) Rent-Geared-to-Income (RGI) Target Management Response Management recognizes that PHC is 198 units below its RGI targets as set by the Service Manager. A mitigation plan will be developed in consultation with the Service Manager, and the results of the consultation will be reported to the PHC Board. 3. Next Steps Next steps will include the development of a mitigation strategy with the Service Manager regarding issues identified in the review, including both RGI and Rent Supplement targets particularly as they relate to the socio-economic balance in individual buildings. The resulting strategy will be communicated to the PHC Board in the second quarter of CONCLUSION PHC management has identified strategies and will be taking steps to address the matters raised by the Service Manager. Mwarigha M.S., General Manager, Peel Living APPENDICES 1. Appendix I - Letter to Peel Housing Corporation Board Audited Financial Statements and Annual Information Returns for the Years Ended December 31, 2013 and December 31, 2014 For further information regarding this report, please contact Mwarigha, Extension 3549, muliwa.mwarigha@peelregion.ca. Authored By: John Arcella, Mary Jo MacCrae - 3 -

14 SERVICE MANAGER REVIEW OF 2013 AND 2014 AUDITED FINANCIAL STATEMENTS AND ANNUAL INFORMATION RETURN - MANAGEMENT RESPONSE Appendix I 6.2-4

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16 SERVICE MANAGER REVIEW OF 2013 AND 2014 AUDITED FINANCIAL STATEMENTS AND ANNUAL INFORMATION RETURN - MANAGEMENT RESPONSE Appendix I 6.2-6