CMHC Update

OFNTSC Meeting October 25, 2012

The Ontario Aboriginal Housing Centre Centre Manager Program Delivery Program Administration Capacity Development

Program Delivery Update

Section 95 12/13 Expression of Interest (EOI) Summary

 Deadline for applications was April 12, 2012  46 EOI’s received  28 from the north – 251 units requested  18 from the south – 115 units requested  366 units requested in total  Just over $60 million in total capital funding was requested  16 EOI’s rejected  10 not eligible for Ministerial Loan Guarantee (MLG) per AANDC  5 rejected by CMHC , 4 due to operational concerns, 1 due to past incomplete Section 95 project(s)  1 rejected due to an incomplete EOI application package  5 EOI’s conditionally accepted by CMHC (waiting list if o/s Final Capital Cost Audit received in a timely manner)

Program Delivery Update

Section 95 Continued

 Conditional funding allocation, rejection and waiting list letters sent to FN’s August 2, 2012  Based on a 60% north and 40% south budget allocation split:  8 conditional allocations in the south (43 units)  6 conditional allocations in the north (36 units)  I recent decline in the north will be re-allocated down north waiting list  Expect to produce approx 79-80 units with 20.19M Lifetime Subsidy budget  Just received new interest rates – will result in a few additional Section 95 units  At Oct 17,2012, there were 21 accounts suspended for Outstanding Final Capital Cost (FCC) Audits

Program Delivery Update

Section 95 Active Projects

 Post CEAP, our team has been able to focus on following up on and closing out outstanding projects. At Sept 28, 2012:  51 active projects with 37 First Nation’s  354 units in total Note: Projects approved by CMHC that have not reached 100 % completion

Program Delivery Update

10 8 6 4 2 0 20 18 16 14 12 16: Progressing well 18: Have reached IAD 17: Have not started construction Active Section 95 Project Info as at September 28, 2012 CANADA MORTGAGE AND HOUSING CORPORATION 8: CEAP

Program Delivery Update

Maximum Unit Prices (MUP’s)

 Ontario MUP’s have been reviewed and increased in light of increased constructions costs and upcoming changes to the National Building Code (NBC)

Operating Cost Benchmarks (OCB’s)

 Program Administration completed a comprehensive OCB review  No changes to OCB’s for 2012-2013.

Program Delivery Update

RRAP (Residential Rehabilitation Assistance Program)

 Expect to produce approx 205 units/projects with $3.2M budget this fiscal  Deadline for applications was October 12, 2012  Still some RRAP budget available. Priority to those that can start and complete work before March 31, 2013

RRAP, Mold and Aboriginal Capacity Development

 Two RRAP projects with units that have moisture (aka mold) issues  Training being provided on mold remediation and better building practices to help build FN capacity while also renovating these two units

Program Delivery Update

SEP Reno (Shelter Enhancement Program)

 Conditional allocation letters sent out August 28, 2012 to 4 Shelters  3 of 4 Shelters have now received final approval letters  Total final allocations expected to be just over $250,000

HASI (Home Adaptations for Seniors Independence)

  Small budget of just over $58,000 $45,500 in approvals for 13 units at Oct 10, 2012  Expect to take up full budget this year

Program Delivery Update

Renovation Programs Issue

 It’s been a slow year to-date in getting projects completed  At Oct 10, 2012 – we had 226 units and $2.8M in outstanding Reno projects (not including 12/13 approvals)  We will be increasing follow-up with RRAP agents and First Nations to help us track progress on each project more closely  May be looking at completing progress inspections on some projects to gauge progress. If you have progress inspections for any of your projects, please submit them as soon as possible  Some older projects may get cancelled if there are no signs of progress soon

Program Delivery Contacts

Contact

Craig Brown –

Senior Advisor

Lise Gagnon –

Advisor

Tim Young –

Advisor

Mervin Spence –

Advisor

Gayle Dorey –

Administrator RRAP, HASI, SEP

Toronto

Office

Sudbury Sudbury Thunder Bay Toronto

Phone Number

(416) 218-3481 (705) 523-2919 (705) 523-2924 (807) 343-2017 (416) 250-2773 CANADA MORTGAGE AND HOUSING CORPORATION

Program Administration Update

Audited Financial Statements (2011-2012 Fiscal)

 CMHC administers Section 95 projects with 101 First Nations in Ontario  Audited Financial Statements are due July 31, 2012  To date there are still 35 communities that still have not submitted their Audited Financial Statements  Reminder letters were sent out by Advisors reminding communities that if the Audited Financial Statements were not received by September 14, 2012 subsidy would be suspended effective October 1, 2012.

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Program Administration Update

Client Visits

 In 2012, 31 First Nations are scheduled for client visits  All client visits are scheduled to be completed by the end of September including all reports outlining CMHC’s findings  Currently only 3 communities still have outstanding CV’s to be completed.

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Program Administration Update

What does CMHC look at in Client Visits?

 Governance structure – separation of duties and signing - look at cheque signing, disbursements, receipts  Record keeping – are there tenant files, are there maintenance files?

 Operational practices – is there annual inspections on units, does regular maintenance take place?

 Housing policies – are they in place? Are they enforced?  Financial operations – are rents being charged, are tenants declaring income to receive subsidies, is there budget planning with the finance department? CANADA MORTGAGE AND HOUSING CORPORATION

Program Administration – CV’s cont.

Why is this important?

  Strong practices enable housing to remain viable and also can provide long term affordable housing Units not only need to be built well, they need to be managed and maintained well – they are a valuable asset to the community that if managed well can provide safe, secure and affordable housing over the long run.

What are we seeing?

 Some communities do not charge rent – poor revenue stream with an associated debt to pay (mortgage and operating costs) can lead to deficits or borrowing from other operations.

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Program Administration – CV’s cont.

 It has been noted that some communities do not carry out regular maintenance on their units – no maintenance files are evident and no tracking of work or cost of repair work on each unit  It has been noted that many communities are not setting aside the required reserves to ensure funds are available for future capital replacements. This can result in a need to borrow from other sources CANADA MORTGAGE AND HOUSING CORPORATION

Program Administration Update

Physical Condition Reviews (PCR’s)

 41 First Nations are scheduled to have PCR’s completed this calendar year  As of October 19, 2012 - 16 First Nation communities have had their inspections completed and entered into our PCR database. 25 communities still remain outstanding CANADA MORTGAGE AND HOUSING CORPORATION 17

Program Administration – PCR’s cont

 PCR’s look at how the buildings are being maintained – the annual maintenance process which can feed into the communities budgeting process for expenses  Once the inspections are completed, the reports will be forwarded to clients for their review  PCR reports are intended to identify any health and safety items & CMHC looks to the community to provide a plan to correct these issues as soon as possible. If units are showing signs of premature wear, CMHC can review and help to set up improved maintenance practices. CANADA MORTGAGE AND HOUSING CORPORATION 18

Program Administration Contacts

Contact

Trim Kianieff –

Senior Advisor

Rysleah Price –

Advisor

Frank Horn –

Advisor

Priscilla Prias-Molina Rock Wang –

Advisor

Brad Anderson –

Advisor

Susan Bjorn –

Advisor

Denise Guitard –

Advisor

Office

Toronto Toronto Toronto Toronto Toronto Thunder Bay Thunder Bay Thunder Bay

Phone Number

(416) 250-3202 (416) 250-3230 (416) 250-3210 (416) 218-3353 (416) 250-3253 (807) 343-2015 (807) 343-2033 (807)343-2036 CANADA MORTGAGE AND HOUSING CORPORATION

Aboriginal Capacity Development

 Overall, our training is focused around three key pillars: 1.

2.

3.

Housing Quality (HQI) Housing Management (HMI) Homeownership (FNHS)  Our staff also provide one-on-one training with First Nations to help them understand our programs, Section 95 Operating Agreements and sound property management practices  Currently a busy time for training sessions within the region

Upcoming Training Sessions

Date

October 17- 19 October 24-25

Session

Better Builder Series Housing Challenges & Responses

Location

Mississauga First Nation Onigaming First Nation November 5-6 November 8-9 Section 95 Financial Planning Section 95 Financial Planning Munsee-Delaware First Nation Wazhusk Onigum First Nation November 5-9 November 13-15 November 16 *Note all dates subject to change Basic Home Maintenance, Lets Clear the Air, Mold Remediation. HRV install Basic Home Maintenance North Spirit First Nation Ochiichawe`babiaining First Nation Naicatchewenin First Nation CANADA MORTGAGE AND HOUSING CORPORATION

Upcoming Training Sessions Cont.

Date Session

November 10-11 Housing Maintenance Planning November 13-14 Housing Maintenance Planning November TBC Basic Home Maintenance November TBC Basic Home Maintenance November TBC HRV install November TBC Section 95 Financial Management November TBC Housing Maintenance Planning November TBC Section 95 Financial Management *Note all dates subject to change CANADA MORTGAGE AND HOUSING CORPORATION

Location

Fort Frances / Kenora TBC Timmins Keewaywin First Nation Deer Lake First Nation Fort Severn First Nation Grassy Narrows First Nation London Kasabonika Lake First Nation

Other Training Sessions CMHC can offer...

 Arrears Management  Introduction to Ventilation Systems  First Nations & Inspecting Existing Dwellings  Developing a Community Housing Policy  Housing Committees that Work  Community Housing Options  Property Maintenance Planning and Management  Introduction to IAQ & Mold for Leadership or Occupants  Housing Policy Says

Capacity Development Resource Allocations

Development Focus 2012: Courses Delivered and Planned Maintenance planning 7% Housing Management 5% Financial Management 26% HQI (Physical Condition) 31% Mold 31% CANADA MORTGAGE AND HOUSING CORPORATION

Capacity Development Update

The Stories of our Houses Initiative:

• Three First Nations are once again being profiled to capture housing success stories •Wikwemikong, Saugeen, Moose Cree last year •Batchewana, Kasabonika Lake and Couchiching this year

The Objective:

To celebrate and share promising approaches to First Nation housing and to encourage First Nations to learn from each other.

Capacity Development Contacts

James Danielson – Senior Advisor

Thunder Bay Office Tel: (807) 343-2009 Fax: (807) 345-0696 Email: [email protected]

Jean-Louis Charette – Advisor

Thunder Bay Office Tel: (807) 343-2019 Fax: (807) 345-0696 Email: [email protected]

Joann Santi - Administrator

Sudbury Office Tel: (705) 523-2927 Fax: (705) 522-5700 Email: [email protected]

Moving Forward

New Directions for 2013

 Internally within our region, likely moving closer to a full service client model  CMHC will be seeking action plans from First Nations to identify how and when some major operational issues will be resolved (for example, how and when an underfunded Replacement Reserve will get funded)  Possibility that there will be national eligibility criteria used to determine if First Nations are eligible for new Section 95 funding CANADA MORTGAGE AND HOUSING CORPORATION 27

Thank You Questions?

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