2016 Annual President s Report

Transcription

1 2016 Annual President s Report Quality Homes Vibrant Communities Service Excellence Business Foundations

2 2016 President s Report Report Section Page Performance Highlights 3 Performance Discussion 4-29 Appendix A: Financial s Appendix B: Scorecard & Summary Statistics Appendix C: Glossary of Terms For more information or to request this report in an accessible format, contact policy@torontohousing.ca... 2

3 Performance Highlights Full Year s 2016 Our excess of revenue over expenses was $44 million & our operating cash surplus was $33.9 million (including operating capital) 54% of metrics with targets improved from 2015 levels 49% of metrics are exceeding or are within 5% of their target level Over $238 million in capital repairs were completed on over 16,000 projects 743 market units within our new revitalization communities were sold or pre-sold by our development partners Tenants moved into 40 new rental units in revitalization communities Over 500 residents were connected to training opportunities Over 700 joint patrols were conducted with Toronto Police Services 96 community education sessions were held Over 2,000 referrals were made to external support services to support vulnerable residents 70% of routine maintenance requests were closed within 5 business days (service level target is 80%) 82% of administrative requests were closed within 2 business days (service level target is 80%) There were an average of 1.19 service disruptions per elevator cab per month (compared to industry standard of 1.20) The average speed of answer for tenant calls to Client Care improved by 10% year-over-year Net commercial revenue increased by 5% to $33.7 millon 97.3% of Rent-Geared-to-Income units were occupied, and 97.1% of market units were occupied $8.5 million was raised from the sale of 8 standalone homes... 3

4 Performance Discussion Financials Revenue Total revenue was $665.7 million, which was 9% ($53.5 million) favourable to budget and 3% greater than 2015 revenue, as a result of the following favourable gains: $11.9 million on the sale of 16 homes; $9.9 million on the sale of land due to recognition of all accounting gains related to sale of Regent Park Phase 3 Blocks 30 and 32, and Lawrence Heights Block 1a; $0.6 million gain on easement; $1 million operating results from commercial revenue; $4.1 million return on investment, and; $25.7 million funding from the Housing Connections Rent Supplement program, which has no impact to net income as this is a flow through with offsetting expenses. Operating Expenses Total expenses were $621.6 million, which was 3% ($20.5 million) below budget and 1% higher than The variance was due to: one-time Ontario Clean Energy Benefits and water credits of $21 million; gross utilities expenditures tracking $11.8 million lower than budgeted due to warmer weather, and; a $14.4 million timing difference of staff hiring and savings generated by all departments These items were partially offset by $25.7 million in expenses related to the Housing Connections Rent Supplement program that were not budgeted. Capital Expenditures Total capital expenditures were $260.9 million, with an additional $88.2 million in development expenditures, for a total of $349.2 million compared to the 2016 budget of $446.7 million. Total capital expenditures were 46.6% greater than they were in

5 Excess of Revenue over Expenses: As a result of the increased revenue and savings noted above, the 2016 excess of revenue over expenses was $44.1 million instead of the loss of $29.9 million that was budgeted, which was $74 million favourable to budget. Liquidity Unrestricted and internally restricted cash tracked steadily at $17.4 million as of both December 31, 2016 and December 31, Externally restricted cash primarily held for upcoming capital expenditures totalled $29.6 million, which was a decrease of $2.8 from December 2015, primarily due to capital expenditures incurred during the year. The line of credit usage increased by $17.1 million year-over-year to $34.7 million as at December 31, TCHC operating cash surplus including operating capital was $33.9 million, an increase of $9.5 million from December 31, Cash Reserves: In addition to the cash noted above, TCHC has $51.9 million in investments held by Infrastructure Ontario (IO), along with $215.9 million in long-term reserves IO refinancing that was planned to close in November 2016 was delayed to Q Note: TCHC s audited financial statements contain a more detailed discussion on the organization s financial position and will be finalized in April 2017 upon completion of the external audit.... 5

6 Goal 1: Improved Building Conditions Capital Program Homes Total Completed in 2016 (in $M) Total Completed in 2015 (in $M) Planned Repairs $152.4 $78.9 Demand Repairs Capital Operations Energy Capital Carry Forward from Previous Years Total $240.0 $174.4 A total of $240 million in capital repairs were completed on over 16,000 projects, representing 96% of the original $250 million capital repairs target for % ($220.6 million) of the capital repairs were completed for the 2016 capital program, while the remaining 8% ($19.5 million) was spent on the delivery of carry forward projects from the 2014 and 2015 capital programs. At year-end, purchase orders for the remaining 2016 capital repair work had already been issued. This work will be completed during The 2016 Facilities Condition Index for the entire TCHC portfolio is currently being calculated and will be reported on in the Monthly President s Report during Q Goal 2: Replacement of Aging Buildings Measure # of Units Value ($M) Total Planned, Under Design and In 7,527 $2,155.9 Construction 2016 Sales 743 $410.5 Occupied/Closed in $

7 During 2016, the Development Division managed six active revitalizations with a planning, design and construction pipeline valued at $2.2 billion in development activity, representing over 7,500 units. A total of 743 market units were sold or presold during 2016, and 40 families moved into new rental units delivered through revitalization activities. Since 2013, 993 families have moved into new rental units delivered through revitalization. This work is fostering new high-quality housing in vibrant mixed-use and mixed-income communities with new parks, community facilities and services. Revitalization Communities Highlights: Allenbury Gardens: We began the above grade construction for the Phase 1 rental townhouses and the sales launch for VIVO, the first market building for Phase 2. At the end of 2016, VIVO was 93% sold and the two market buildings in Phase 1, Soul and Connect, were sold out. Phase 2 predevelopment work has begun and a design team has been secured. One revitalization scholarship was awarded. Alexandra Park: The refurbishment of 20 Vanauley was completed, including upgrades to the in-suite heating and cooling system, replacement of all windows and balcony doors, installation of exterior cladding, construction of new landscaping and refurbishment of all common areas. Construction was completed for 40 Phase 1A Rent-Geared-to-Income (RGI) townhouses. Thirty eight households were relocated into the new townhomes by year-end, 2 new roads were completed and opened, and 35 Phase 1B townhomes were demolished. The first market building, SQ, celebrated its roof-topping in May and is on track for completion next summer, while the second market building, SQ2 will begin below grade construction in the first quarter of A developer partner for Phase 2 of the project was selected through a public request for proposals process.... 7

8 250 Davenport: The refurbishment work is almost complete with new water risers, new windows and balcony doors, exterior cladding, and hallway lighting upgrades complete or nearly complete at the end of Work has been underway on the lobby and recreation space, HVAC and electrical systems, underground garage, elevator upgrades, and roof that will be completed in the first half of Final zoning approvals for the market building have been achieved and a first submission of the site plan has taken place. Sales for the market building, AYC 181 Bedford Condos and Townhomes, were launched in October Eighty two percent of units were sold as of the end of $3.5 million in land deposits were also received based on project milestones. Lawrence Heights: Site servicing was completed and construction started for the Phase 1A rental apartment building and market building. Registration of the Phase 1A subdivision, and Phase 1A land transfer to the developer partner were underway. Tenant relocation has been completed in preparation for the Phase 1B building demolition in Over 25 community engagement events were held including community cafes, summer events, a scholarship dinner and job fair. Fourteen scholarships were awarded to tenants. Leslie Nymark: City Council approved the Official Plan and Zoning By-Law Amendments in early The majority of tenants were relocated in preparation for demolition and the sales launch for Scala Condos, of which about 80% of units were sold.... 8

9 Regent Park: We celebrated the opening of the Regent Park Athletic Grounds, the completion of 4 new roads, and 2 families moving into replacement units in the first Phase 3 building, a row of 22 back-to-back townhouses. The Sutton was launched with the sale of 18 townhouses and in the last quarter of 2016, the 159 unit tower, The Bartholomew, completely sold out. $6,700 in community grants were awarded from the Regent Park Legacy Fund, and work was performed on a youth-led Regent Park Safety Strategy, a community-based Asset Mapping Project, and 170 tenant leaders were engaged for the start of the Regent Park Tenant Governance Strategy. A heritage commemoration strategy was finalized and we hosted tours with audiences from Australia, Shanghai, Nigeria and the Region of Peel, Ryerson University, York University and Wayne State University. Goal 3: Safer and More Secure Communities Community Safety Initiatives Measure Y-o-Y Target Variance Joint Patrols Conducted with Toronto Police Services % Number of Parking Tickets Issued Number of Community Safety Audits Conducted Community Education Sessions Held 42,000 46,790 28,064 67% Community Safety Unit (CSU) officers were actively engaged in a number of community safety initiatives, enabling them to strengthen trust and relationships with tenants, local police and agencies. 46,790 parking tickets were issued to address illegally parked or unknown vehicles, which was 67% above the number of tickets... 9

10 issued in More tickets were issued in 2016 as a result of re-instating the Parking Enforcement Unit in late 2015 in response to tenant feedback. 742 joint patrols were conducted with Toronto Police Services (TPS) during the year, which was 19% lower than the 917 patrols conducted in The decline in patrols was partly due to a lack of availability from TPS to conduct the patrols. TCHC management have been engaging in discussions with TPS to secure additional officers to participate in the joint patrols, and will aim to complete at least 600 joint patrols in 2017, subject to TPS availability. In September 2016, the Toronto Police Services Board approved TCHC s application to increase CSU s compliment of special constable designations to 99, up from 83, which will strengthen how CSU works with TPS on the ground and will foster more consistency and collaboration. Applications for the current Community Patrol Officers who do not have the Special Constable designation have been submitted to TPS for approval to appoint the designation and it is anticipated that these officers will be sworn in with their Special Constable designation by May CSU also conducted 15 safety audits to identify opportunities to improve community safety, in accordance with Crime Prevention Through Environmental Design principles, and delivered 96 community education sessions on topics such as fire prevention, safety awareness, CSU s roles and responsibilities, youth involvement, and tenant engagement and safety. Fire safety was a particular area of focus during the year, with Toronto Fire Services providing fire safety training and educational materials to tenants in 60 communities during Fire Safety Awareness week in June Front-line staff also participated in a three-part training program on fire safety and emergency preparedness that began in May Crimes and Reported Incidents Measure Y-o-Y Variance Crime Against Persons % Crime Against Property 2,673 2,409 11% Reported Incidents 37,227 35,807 4% Number of Arrests % Number of Provincial Offences Tickets Issued %... 10

11 There was a slight decrease (3%) in the number of crimes against persons during 2016 to 747 persons, while the number of crimes against property increased by 11% to 2,673 crimes. TCHC currently has over 6,000 security cameras installed across all TCHC developments to deter criminal activity and aid in investigations after crimes occur. In 2017, 2,000 analog cameras across 80 locations will be replaced with new, high-resolution digital cameras that have more responsive features, including better imaging in low-light conditions. These are the same model of cameras used by other institutions such as Pearson Airport, the Los Angeles Police Department, and Ottawa Community Housing. In an effort to reduce crimes and incidents, TCHC meets regularly with police divisions to develop plans that address anti-social activities within our communities. TCHC also continues to partner with Crime Stoppers to promote awareness of the Crime Stoppers program and provide our tenants with an anonymous avenue to report suspicious or illegal activity. Fifteen Crime Stopper education sessions were held in 2016, with an additional 20 sessions planned for Evictions for Cause Measure Y-o-Y Variance Number of Evictions for Cause % Number of Legal Notices Issued for Evictions for Cause % TCHC is committed to promoting successful tenancies and maintains an eviction rate of less than 1%. However evictions for cause are pursued when problems cannot be resolved in the interest of the community. In 2016, TCHC issued 726 legal notices to tenants for eviction for cause, an 18% increase over 2015 levels. A total of 84 tenants were evicted for cause, twice the number of evictions that occurred in Both the number of legal notices issued and the number of evictions for cause have fluctuated each year

12 Goal 4: Support for Vulnerable Tenants Measure Target 2016 Number of New Files From Vulnerable Tenants Addressed Number of Referrals to External Support Services ,586 N/A 900 2,053 N/A This year staff managed over 2,500 new cases of vulnerable tenants to support their successful tenancies Over 2,000 referrals were made to external health, social service and community supports. There were also 7 high needs buildings requiring intense social supports. We developed a strategy to provide targeted intervention for residents with excessive clutter issues in those buildings. At Greenwood Towers (one of the seven buildings), this approach has resulted in a much improved resolution rate on units with pests or other unit condition issues, and an 80-per-cent reduction in pest complaints from tenants. In addition, the team has been able to access enhanced support from a community services provider, who established an on-site office, to provide vulnerable tenants with supports to maintain successful tenancies. Staff also received mental health awareness training in partnership with the Canadian Mental Health Association during 2016, which improves our ability identify vulnerable tenants and connect them to appropriate supports. Goal 5: Enhanced Community Development and Tenant Engagement Measure Target Number of Tenants That Have Input into Developing New System 1,000 3,277 N/A Number of Tenants Connected to Various Training Opportunities N/A... 12

13 Tenant Engagement System TCHC s current tenant engagement system provides opportunities for tenants to participate in decision-making on issues that affect them. This includes elected tenant representatives and tenant-staff committees and advisory groups. In Fall 2015 we created a tenant-staff working group to design a consultation process to review the existing engagement system. In 2016, this group hosted consultations across the portfolio to explore the options for how the new engagement system can provide a variety of meaningful ways for tenants to participate in decision-making, governance and community building at the local, regional and city-wide levels. 3,277 tenants provided input into the new system through tenant consultation sessions and surveys. The working group has reviewed the feedback, and a new tenant engagement system is expected to be developed by Q In addition to the formal tenant engagement system, tenants are also engaged through many TCHC programs, including: Leadership building programs for children and youth (e.g. Youth Action grants, Rookie League, If I Ruled T.O. conference,); Engagement programs for seniors (tenant councils, seniors financial forum); and Employment and training opportunities like Youthworx. Training Opportunities The Resident and Community Services (RCS) team connected 582 tenants to various training opportunities in 2016, such as entrepreneurship and mentorship programs, education and access to the labour market. In partnership with the Black Business Professionals Association, the Youth Entrepreneurial Development Training Program was launched in September 2016, where 12 youth were connected with industry experts and mentors in the culinary and creative arts industries to help develop their ideas into a feasible start-up business. RCS also delivered financial literacy workshops, and the YouthWorx program, where youth tenants were hired for the summer to do various small scale light repair jobs. During 2017, RCS will continue to embed it priority population focus, with youth being the largest population of residents living in our communities. RCS will also continue to deliver and/or connect tenants with various training opportunities, which support the city s poverty reduction & youth job creation strategies

14 Goal 6: A Culture of Customer Service to Tenants Client Care Centre The Client Care Centre operates 24 hours a day, seven days a week and on average receives over 1,200 calls per day regarding a wide range of issues. Overall, Client Care improved its customer service levels during 2016, with 11 of the 13 service level measures (85%) improving year-over-year. The percentage of calls with a hold time exceeding two minutes decreased from 39% in 2015 to 35% in Tenant Calls Measure 2016 Target Y-o-Y Variance Average Speed of Answer (seconds) % % of Calls Answered Within 90 Seconds 90% 45% 44% 2% Abandonment Rate 10% 18% 20% -10% Client Care received 319,869 calls from tenants during 2016, which was on par with 2015 call levels. While service levels for these calls are not yet meeting their target levels, there have been notable improvements since The average speed of answer for tenant calls improved by 10% (19 seconds) to two minutes and 58 seconds and answer speeds were also more consistent throughout the year. The abandonment rate for these calls also declined by two percentage points to 18%. This improved service level was largely a result of one-on-one coaching provided by Client Care supervisors that helped make staff more aware of their key performance indicators and focused them on performance improvement. In 2017, Client Care will continue to focus on its coaching and performance management program to bring service levels closer to target levels, and to improve the overall quality of interactions between Client Care representatives and tenants.

15 Elevators Measure 2016 Target Y-o-Y Variance Average Speed of Answer (seconds) % % of Calls Answered Within 30 Seconds 90% 74% 71% 4% Abandonment Rate 10% 11% 11% 0% Disruptions per Elevator Cab per Month % Client Care received 57,181 calls from elevator cabs within TCHC buildings during 2016, which was significantly (65%) above 2015 levels. Call volumes increased during the second half of the year, especially during November and December, directly as a result of faulty telephones in a handful of elevator cabs that were constantly calling Client Care in error. TCHC has been working with Bell to resolve these issues and is also implementing new telephone lines in the affected buildings. In addition, 30 phones were installed in elevators in 12 communities during the year to enhance resident safety. An additional 42 elevator cab phones will be installed in 15 communities in 2017, and all elevator cabs will have a telephone by The increased elevator call volumes to Client Care resulted in a slight decline in the average speed of answer for elevator calls by one second to 25 seconds, which is still within the target of 30 seconds. However, the percentage of calls answered within 30 seconds improved year-over-year, from 71% in 2015 to 74% in 2016, while the abandonment rate remained constant at just one percentage point above the 10% target level

16 Since the majority of elevator calls received by Client Care were made by accident or in error, only 15% (8,468) of the calls answered by Client Care agents resulted in work orders for elevator cabs. As a result, despite the increased elevator call volumes, the rate of service disruption to TCHC s elevators decreased slightly, from 1.21 disruptions per elevator cab per month in 2015 to 1.19 in In addition, 44 aging elevators were replaced/upgraded in 2016, with an additional 50 replacements planned in 2017 in order to further improve elevator performance and reliability. TCHC also took steps towards improving elevator performance reporting in 2016 by installing elevator monitoring software in 80 elevator cabs within 36 buildings. The software monitors elevator operations and sends a signal to Client Care when there is a service disruption, who then dispatches a contractor to fix the elevator. The software is being installed in all new or upgraded elevators, and by mid-2018, a total of 140 new elevators will have the elevator monitoring capability. Emergency Calls Measure 2016 Target Y-o-Y Variance Average Speed of Answer (seconds) % % of Calls Answered Within 30 Seconds 90% 55% 51% 8% Abandonment Rate 10% 7% 8% -13%... 16

17 Client Care received 2,736 emergency calls during 2016, a 23% decrease from 2015 levels. The year-over-year decline was primarily a result of capital repairs and upgrades to building systems, which improved their reliability and lowered the number of emergency maintenance issues experienced by residents. As a result, the average speed of answer, the percentage of calls answered within 30 seconds, and the abandonment rate for emergency calls all improved during Alarm Calls Measure 2016 Target Y-o-Y Variance Average Speed of Answer (seconds) % % of Calls Answered Within 30 Seconds 90% 57% 55% 4% Abandonment Rate 10% 4% 5% -20% Client Care received 60,131 alarm calls during 2016, which was 5% above 2015 levels. Despite this increase, the average speed of answer, the percentage of calls answered within 30 seconds, and the abandonment rate for alarm calls all improved during Community Safety Response Measure 2016 Target Y-o-Y Variance Average Speed of Answer (seconds) % % of Calls Answered Within 20 Seconds 80% 77% 80% 4% Abandonment Rate 8% 8% 8% 0% Response Time for Non- Emergency Calls (in minutes) In 2016, CSU received 90,915 calls from tenants, of which 30,911 (34%) of those calls were dispatched. Call volumes were 16% below 2015 levels

18 The average speed of answer for these calls declined by three seconds during the year to 13 seconds, which is still well within the target level of 20 seconds. The percentage of calls answered within 20 seconds also declined in 2016, from the target level of 80% to 77%, while the abandonment rate remained constant at the target level of 8%. The decline in two of these three measures occurred primarily as a result of unanticipated shortage of CSU dispatch staff in September as well as a service disruption to the dispatch phone system in November. Additional dispatchers have since been hired, and a back-up analog phone system is now in place. CSU also started measuring the average response time for the calls that are dispatched, with the service standard for non-emergency calls identified as 30 minutes, and averaging 33 minutes during the year. CSU expects to meet the target for these calls in 2017 as a new deployment model is in place and the full complement of special constables has been reached. The average response time for emergency calls was 16 minutes, and CSU has set a service standard of 20 minutes for these calls beginning in Goal 7: Services that Meet Tenants Expectations Service Request Response This measure is separated into Administrative, Routine Maintenance and Emergency Maintenance requests and shows the percentage of service requests that are closed within the committed turnaround time (e.g., five days for routine maintenance requests). Administrative Requests Measure 2016 Target Y-o-Y Variance % of Administrative Requests Closed Within 2 Business Days 80% 82% 80% 2% The service level for administrative requests closed within 2 business days improved slightly in 2016 to 82%, up from 80% in 2015, and exceeded the target level of 80%. The volume of requests received during the year was a contributing factor to this... 18

19 improvement, as there was a 7% decrease in the number of administrative requests received (total of 42,007 requests) compared to 2015 levels. Routine Maintenance Requests Measure 2016 Target Y-o-Y Variance % of Routine Maintenance Requests Closed Within 5 Business Days 80% 70% 71% -1% A total of 295,854 work orders for routine maintenance requests were received during the year, which was 6% lower than 2015 volumes. The most frequently requested routine maintenance services were for pest control, followed by plumbing, appliances, and doors. The decline in the service standard from 71% in 2015 to 70% in 2016 primarily occurred during the fourth quarter, following the transition to a centralized dispatch team for maintenance requests. The new team assumed the responsibility of dispatching and tracking vendor work to provide building site staff with more time to complete repairs instead of managing vendors. While this new business process will improve service levels for these maintenance requests over the long-term, the decline in Q was a result of both site staff and vendors adjusting to the new process. In 2017, the new process is expected to strengthen contractor performance management and increase the service level

20 Emergency Maintenance Requests Measure 2016 Target Y-o-Y Variance % of Emergency Maintenance Requests Closed Within 4 Hours 90% 90% 87% 3% 11,155 work orders for emergency maintenance were received during the year, which was 3% lower than 2015 volumes. The service level for emergency maintenance requests closed within 4 hours increased to 90% in 2016, from 87% in 2015, meeting the target level of 90%.

21 Accessibility Accommodations Measure Y-o-Y Variance Number of Accessibility Accommodation Requests Received % Number of Accessibility Accommodation Requests Processed % TCHC received 255 requests for accessibility accommodations from tenants and processed 94% of those requests by year-end, with the remainder to be completed in A total of $3.4 million was spent on in-unit accessibility accommodations in 2016, with an additional $5.6 million spent on building common areas. Goal 8: Financial Sustainability Arrears Management Rent and parking arrears are the most significant driver of arrears, representing two thirds of the overall balance, followed by retroactive charges and legal, maintenance and other charges

22 Measure Dec (in $M) Dec (in $M) Y-o-Y Variance $ of Rent and Parking Arrears $8.64 $ % $ of Retroactive Charges $3.45 $ % $ of Other Balance $0.73 $ % Total $ in Arrears $12.80 $ % The balance of rent and parking arrears increased by 21% to $8.6 million in 2016, up from $7.1 million in A total of 7,842 households have rent and parking arrears, with 2,026 (26%) of those households comprised of seniors. More than half of rent and parking arrears (53%) remain less than 60 days old (i.e. owing only this month and last month s rent), with 80% of these arrears at the managed (legal) stage of the collection process. 90% of files that have not yet moved to the managed stage are comprised primarily of tenants whom owe only the current or previous month s rent. In August 2014, TCHC implemented revised arrears collection processes that were predominantly focused on personal contact with tenants, rigorous documentation on the various steps taken to resolve arrears issues, and early intervention to prevent arrears from accumulating. Since implementing the revised processes, total arrears have increased by 45% ($4 million). However, the vast majority of the increase is related to the growth among repayment agreements in the interest of preserving... 22

23 tenancies. The percentage of total arrears within repayment agreements has increased from 17% to 41%, and the total amount or arrears within repayment agreements has increased by 246%. Sale Eviction Prevention The effort to preserve tenancies through the resolution of arrears is an important mandate of the collections process and most specifically among seniors and those who are vulnerable. TCHC recognizes that at certain times tenants will have trouble paying rent and only pursues eviction for arrears as a last resort, after staff have done everything possible to work with tenants on the repayment of rent. A total of 200 tenants were evicted during 2016 for non-payment of arrears, which was slightly (2%) lower than 2015 levels. During 2016 a total of 346 files were referred to the Office of the Commissioner of Housing Equity (OCHE) to support successful tenancies, of which 75% (258) were seniors and 25% (88) were vulnerable tenants. The OCHE and TCHC began collaborating during Q3 on developing new processes to better identify vulnerable tenants and to improve the rates of referral to the OCHE. TCHC and the OCHE also began working on the development of an Action Register that would provide a framework to assist in improving the timing for serving a tenant with a legal notice for collection of arrears and the timing for referring files to the OCHE. A larger volume... 23

24 of files are anticipated to be referred to OCHE in 2017 as a result of planned hiring of additional front-line staff within the Asset Management Division. Sale of Standalone Homes Measure 2016 Target 2016 Variance from Target Number of Houses Sold 8 8 0% Funds Raised (projected) $5,000,000 $8,553,235 77% Number of Families Relocated % Total Estimated Relocation Costs $7,600 $10,377 36% Overall, 2016 was a successful year for the sale of standalone properties. Due to the resilient housing market and diligent staff efforts, all eight standalone homes were sold and the $5 million target for proceeds was exceeded by $3.5 million. Seven of the eight households were successfully relocated, with the remaining household to be relocated in Of the 158 stand-alone houses that were approved for sale by City Council, 17 remain to be sold. These will not be targeted for sale in 2017 mainly due to regulatory restrictions that will likely take an extended prior of time to resolve as well as the prohibition against evicting rent-geared-to-income tenants due to sale of properties. While efforts will continue to be made to sell these properties in the future, as a result of current restrictions preventing immediate disposition, the four sale of stand-alone homes measures listed above will not be reported on in the 2017 Monthly President`s Reports. Rent Calculation Audits Measure # of Rent Calculations Audited 19,280 Undercharge Error Rate (%) 1.24% Overcharge Error Rate (%) 0.90% N/A - Measure was introduced in April

25 Each year our Tenant Service Coordinators (TSCs) manually process over 45,000 rent calculations as required by the Housing Service Act. In late 2015, we hired Administrative Audit Assistants to review the rent calculations conducted by TSCs during the rent review process to confirm the calculations and correct any errors. The number of reviews conducted, as well as the error rates for the reviews, were introduced as measures in the April 2016 Monthly President s Report. A total of 19,280 rent calculations were audited during Q2-Q4 2016, with an average undercharge error rate of 1.24% and an overcharge error rate of 0.90%. All identified over and under charges were respectively corrected. Given the relatively low instances of miscalculation, Asset Management is changing the internal process of reviewing all RGI calculations to a sample-based program. The review of RGI calculations will be transferred from Asset Management s Program Services team to Internal Audit by the end of February As a result, these measures will no longer be reported on in the Monthly President s Report. Vacancy Measure 2016 Target Y-o-Y Variance Average Vacancy Rate - RGI 2.00% 2.72% 2.49% 9% Vacancy Loss - RGI $4.48M $6.43M $5.79M 11% Average Vacancy Rate - Market 2.00% 2.92% 2.33% 25% Vacancy Loss - Market $1.56M $2.38M $1.72M 39%... 25

26 During 2016, the average RGI vacancy rate increased by a quarter of a percentage point to 2.72%, while the average market vacancy rate increased by three fifths of a percentage point to 2.92%. The average number of days to re-occupy vacated units increased from 117 days in 2015 to 171 days in Key drivers of the vacancy rates include: Unit size: There is low demand for bachelor units, especially within the seniors portfolio. A quarter of TCHC s portfolio is comprised of bachelor units but approximately a third of all vacant units are bachelors. Hard-to-Rent units: Roughly a quarter of all vacant units are located in communities with difficult social dynamics, geographical proximity challenges and/or unit condition issues. These units require a significant volume of offers (all of which are open for 5 days) before acceptance. Units held for internal transfer: Approximately 5% of all vacant units are being held at the operating unit level for internal transfers that are requested by tenants. While the increase in 2016 of both the market and RGI vacancy rates are not favourable, more than half of the approximately 1,500 vacant units are actively within the leasing process and are either: Leased by a new tenant but awaiting the move-in; Offered to prospective tenants with a response pending, or;... 26

27 Undergoing interior repairs. Asset Management has been working to sub-categorize vacant units into the above stages, along with units that are held for internal transfer and those that are vacant but not actively within the leasing process, for inclusion in the Monthly President s Report (MPR). It is expected that the vacancy unit breakdown by leasing stage will be included in the MPR by the end of the first quarter of Asset Management is also in progress of implementing its Vacancy Management Strategy to lower vacancy rates closer to the target level of 2%. The strategy is primarily focused on: Marketing Strategy for Market Rent Units: Market rental vacancies were advertised on the TCHC public website in Q3 and beginning in December market rental vacancies were widely advertised on multiple public websites with a streamlined inquiry process (managed within Client Care), that is anticipated to attract a generally higher volume of interest and reduce the time to occupy a vacant unit. Over-housed Units: Where three offers have been made to tenants that are over-housed and twelve months have passed, the loss of subsidy to those tenants is currently being processed. This will motivate over-housed tenants to reconcile their housing situation to avoid arrears, and will vacate larger units for offer to qualifying families. Capital Repair Deployment: During 2017 RGI units that have been identified as having strategic value to produce market rent revenue will be converted to market rental units. Remaining 2016 unit turnover capital will be deployed to repair the interiors of these units, and a corresponding conversion from market to RGI will be made elsewhere in the portfolio to maintain the required service level of subsidies. We will also conduct comprehensive evaluations of the unique improvement needs within the Hard-to-Rent portfolio. Goal 9: An Empowered, Skilled and Engaged Workforce During 2016 TCHC hired 930 staff, with an average time-to-fill of 23 business days for those positions. Approximately 40% (386) of the hires were for short-term or seasonal positions, such as youth hired for small scale labour jobs during the... 27

28 summer through YouthWorx, or to support recreational programs such as Rookie League. An additional 15% (140) of the hires were internal staff taking on acting assignments and lateral transfers. A new online application system to improve recruitment capacity was also launched during the year, and TCHC successfully negotiated new collective agreements, which included a new recruitment model to fill vacancies more efficiently. At year-end, TCHC had 1,805 employees, including 72 staff that are on Long-Term Disability and 122 staff hired with funding provided by the City of Toronto to support the implementation of initiatives recommended in the 2015 Mayor s Task Force Report on TCHC. Department Total Vacancies in 2016 Management / Exempt Union Total Number of Hires in 2016 Asset Management Community Safety Unit Corporate Facilities Management Resident and Community Services Total The majority of these hires were for short-term and seasonal positions. 2 Note that the number of vacancies and the number of hire do not align, as multiple positions on one job posting were counted as one vacancy

29 Goal 10: Proactive Approaches to Communication and Planning Measure 2016 Target Y-o-Y Variance Percentage of Ombudsman Inquiries Closed Each Month 90% 98% 100% 2% Percentage of City Councillor Requests Closed Within 5 Business Days 90% 94% N/A new measure introduced in July 2015 During 2016, TCHC received 102 inquiries from the Toronto Ombudsman, representing a 28% increase from the 80 requests received in On average, 98% of requests were closed each month, and all requests were closed by the end of the year. TCHC also began tracking the number of requests received from City Councillors and other elected officials in July 2015, along with the service levels for those requests. In 2016, TCHC received 2,644 requests from City Councillors and other elected officials, and closed 94% of those requests within five business days

30 Appendix A: 2016 Financial s (Amounts in '$000s) YoY YoY Actual Budget Variance from Budget Actual Variance $ $ $ % $ $ % s of Operations Revenue 665, ,188 53,513 9% 645,788 19,913 3% Expenses 621, ,057 20,481 (3%) 618,466 (3,110) (0.5%) Excess of revenue over expenses 44,125 (29,869) 73, % 27,322 16,803 61% Capital Expenditure Base Building 232, ,400 (12,643) (5%) 172,675 60,082 35% Energy Capital 5,938 4,600 1,338 29% 716 5, % IT Capital 3,855 9,020 (5,165) (57%) 3, % Corporate Capital 2,489 3,500 (1,011) (29%) 3,216 (727) (23%) 245, ,520 (17,481) (7%) 180,314 64,725 36% Other Capital 15,930 14,346 1,584 11% 4,761 11, % Total (excluding Development) 260, ,866 (15,897) (6%) 185,075 75,894 41% Development 88, ,787 (81,584) (48%) 53,037 35,166 66% Total Capital Expenditure 349, ,653 (97,481) (22%) 238, ,060 47% 30

31 Appendix A: 2016 Financial s (Amounts in '$000s) YoY YoY Actual Budget Variance Actual Variance Other Key Balance Sheet Items $ $ $ % $ $ % Cash on hand - unrestricted and internally restricted 17,416 14,733 2,683 18% 17, % Cash on hand - externally restricted 29,579 44,882 (15,303) (34%) 32,416 (2,837) (9%) MFS investment 215, ,653 10,242 5% 196,269 19,626 10% Investments held by IO 51,925 37,531 14,394 38% 244,097 (192,172) (79%) Investments related to development projects 2,003 24,916 (22,913) (92%) 17,391 (15,388) (88%) Total cash on hand and investments 316, ,715 (10,897) (3%) 507,555 (190,737) (38%) Line of Credit Usage (34,667) (58,263) 23,596 (40%) (17,566) (17,101) 97% Total cash and investments, less line of credit 282, ,452 12,699 5% 489,989 (207,838) (42%) Long-term debt 1,394,415 1,670, ,663 17% 1,494, ,415 7% Net Working Capital (20,774) (40,257) 19,483 (48%) (40,257) 19,483 (48%) As at YoY Variance Financial Ratios Dec Dec Difference % Current Ratio % Quick Ratio % Interest coverage ratio % 31

32 Appendix A: 2016 Financial s Statement of Operations Quarter-to-quarter comparison amounts in $000s 2016 Budget Q1 Q2 Q3 Q4 Total 2016 Variance Revenue Subsidies - TCHC 49,487 50,196 49,556 52, , ,202 2,487 Residential RGI Rent 56,056 56,558 55,934 56, , ,053 3,149 Market Rent 18,468 18,645 18,666 18,832 74,611 76,428 (1,817) Commercial rent 3,743 3,484 3,536 4,499 15,262 14, Amortization of deferred capital contributions 11,495 11,808 11,516 11,603 46,422 45, Parking, laundry and cable fees 4,167 4,261 4,501 4,496 17,425 17, Investment income 5, ,378 2,482 10,260 6,219 4,041 Joint venture income (loss) 109 (440) 218 (130) (243) 444 (687) Gain on sale of housing projects 8,531 5,055 2,311 1,018 16,915 5,000 11,915 Gain on sale of land - 23,894-4,145 28,039 18,134 9,905 Gain on sale of capital assets Gain on easement (7) Plant ,313 1,985 (672) Other ,444 2,582 (138) Subsidies for task force initiatives ,128 (3,128) 158, , , , , ,188 27,780 Subsidies - AHCI 6,389 6,396 6,439 6,510 25,734-25, , , , , , ,188 53,514 32

33 Appendix A: 2016 Financial s Statement of Operations Quarter-to-quarter comparison amounts in $000s 2016 Budget Q1 Q2 Q3 Q4 Total 2016 Variance Expenses Operating & maintenance 36,359 42,683 39,196 43, , , Utilities 39,502 30,587 6,796 33, , ,303 31,877 Depreciation expense 36,266 36,834 38,264 40, , ,718 (2,624) Municipal taxes 3,740 3,703 4,234 4,812 16,489 15,535 (954) Interest 19,045 18,706 18,373 17,958 74,082 78,127 4,045 Community safety services 3,749 4,469 4,076 4,578 16,871 17, Residential services 1,921 2,146 3,453 2,879 10,399 11,825 1,426 Tenancy management 1,918 1,845 1,913 1,928 7,604 9,051 1,447 Corporate services 5,427 5,019 5,804 4,482 20,732 25,516 4,784 Human resources 2,978 2,378 2,475 3,815 11,645 12, Information technology 2,239 2,376 2,927 2,629 10,171 11,871 1,700 Plant ,299 2, Loss from guaranteed equity housing (447) Task force initiatives* ,128 3, , , , , , ,056 46,214 Rent supplement program 6,389 6,396 6,439 6,511 25,734 - (25,734) 159, , , , , ,056 20,480 4,846 24,059 20,649 (5,428) 44,126 (29,868) 73,994 Excess of Revenue Over Expenses * Year-to-date, $3.766 million has been received as Mayor's Task Force subsidies funding and is accounted for within subsidies revenue. $3.468 million has been spent on Mayor's Task Force-related operating expenses, and an additional $1.751 million has spent on Mayor's Task Force capital expenses. Spending is accounted for within the various expense line items above such as Operating and Maintenance, Utilities, Residential Services, Corporate Services and Information Technology. Both actual results of revenue and expense are not included in the Task Force Initiatives line item to prevent double counting of these expenses. 33

34 Appendix B: Performance Scorecard & Summary Statistics Rows shaded in grey are summary statistics. Ref # Measure 2016 Target Quality Homes % variance from Capital program: complete $220,000,000 $240,031,393 $174,400,273 38% 2 Carry Forward from Previous Years - 19,458,600 16,965,825 15% 3 Planned - 152,434,553 78,925,831 93% 4 Demand - 55,693,130 67,895,037-18% 5 Capital Operations - 10,569,534 9,896,737 7% 6 Energy Capital 1,875, ,842 7 Current Year Program Completed 220,572, ,434,448 40% 8 Capital projects - 9 # jobs in progress - 3,453 12,107-71% 10 # jobs completed - 12,827 1, % Portfolio Summary 10, Average # occupied units - 55,405 55, % 12 Average # RGI units - occupied - 49,716 49, % 13 Average # market units - occupied - 5,689 5, % 14 Average # vacant units - 3,355 2,952 14% 15 Average # rentable vacant units - 1,551 1,407 10% 16 Average # non-rentable vacant units - 1,803 1,545 17% 17 Average # units out of service % 18 Average # units held for operational purposes - 1,275 1,027 24% 19 Average # units held for relocation % Revitalization Total Planned, Under Design and In Construction 20 Total Units 7,527 7,727-3% - 21 Total Value 2,155,861,000 $2,209,335,000-2% 22 Market Units - 5,614 5,739-2% 23 Market Value 1,749,673,000 $1,783,711,000-2% 24 Rental Units - 1,327 1,387-4% 25 Rental Value 383,988,000 $405,389,000-5% 26 Refurbishment Units % - 27 Refurbishment Value 22,200,000 $20,700,000 7% 34

35 Appendix B: Performance Scorecard & Summary Statistics Rows shaded in grey are summary statistics. Ref # Measure 2016 Target % variance from 2015 Quality Homes (cont'd) Sales 28 Market Units % - 29 Market Value 410,486,000 $402,707,000 2% Occupied/Closed - 30 Market Units % - 31 Market Value 0 $103,406, % 32 Rental Units % - 33 Rental Value $14,312,000 $31,779,000-55% 34 Refurbishment Units 0 0 0% - 35 Refurbishment Value 0 0 0% 36 Portfolio Facilities Condition Index 12.4% Metric not available 10.8% until Q Vibrant Communities Community safety 37 Joint patrols conducted with Toronto Police Service % 38 Community education sessions held N/A 39 Crime against persons % 40 Crime against property - 2,673 2,409 11% 41 Reported incidents - 37,227 35,807 4% 42 # of arrests % 43 # of Provincial Offences tickets issued % 44 # of evictions for cause % 45 # of legal notices issued for evictions for cause % 46 # of parking tickets issued 42,000 46,790 28,064 67% 47 # of community safety audits conducted N/A Supporting vulnerable residents 47 # of new files from vulnerable residents addressed 720 2,586 N/A 48 # of referrals to external support services 900 2,053 N/A Resident engagement 49 # of residents that have input into developing new system 1,000 3, # of residents connected to various training opportunities N/A (new measure in 2016) 35

36 Appendix B: Performance Scorecard & Summary Statistics Rows shaded in grey are summary statistics. Ref # Measure 2016 Target Service Excellence Client Care Centre Tenant Calls 51 Total calls made to Client Care - 396, ,106-1% 52 Total calls received - 319, , % 53 Total calls answered - 230, ,115 2% 54 Average speed of answer (seconds) % 55 % calls answered within 90 seconds 90% 45% 44% 2% 56 Abandonment rate 10% 18% 20% -10% Elevator Calls 57 Total calls made to Client Care - 301, ,171 66% 58 Total calls received - 57,181 34,756 65% 59 Total calls answered - 49,799 30,036 66% 60 Average speed of answer (seconds) % 61 % calls answered within 30 seconds 90% 74% 71% 4% 62 Abandonment rate 10% 11% 11% 0% Emergency Calls 63 Total calls made to Client Care - 2,869 3,680-22% 64 Total calls received - 2,736 3,532-23% 65 Total calls answered - 2,454 3,161-22% 66 Average speed of answer (seconds) % 67 % calls answered within 30 seconds 90% 55% 51% 8% 68 Abandonment rate 10% 7% 8% -13% Alarm Calls 69 Total calls made to Client Care - 63,428 60,484 5% 70 Total calls received - 60,131 57,362 5% 71 Total calls answered - 56,987 53,988 6% 72 Average speed of answer (seconds) % 73 % calls answered within 30 seconds 90% 57% 55% 4% 74 Abandonment rate 10% 4% 5% -20% % variance from

37 Appendix B: Performance Scorecard & Summary Statistics Rows shaded in grey are summary statistics. Ref # Measure 2016 Target Service Excellence (cont'd) 75 % calls with hold time exceeding 2 minutes - 35% 39% -10% 76 Elevators: # of disruptions per cab per month % Community safety response 77 Total calls received - 90, ,628-16% 78 % calls dispatched - 34% 31% 9% 79 Abandonment rate 8% 8% 8% -1% 80 Average speed of answer (seconds) % 81 % calls answered within 20 seconds 80% 77% 80% -4% 82 Response time for emergency calls (minutes) TBD 16.3 N/A 83 Response time for non-emergency calls (minutes) N/A Service Request Response 84 Administrative requests: % closed within 2 days 80% 82% 80% 2% Maintenance requests 85 Routine requests: % closed within 5 days 80% 70% 71% -1% 86 Emergency requests: % contained within 4 hours 90% 90% 87% 3% Internal transfers (Priority) Special priority 87 Newly updated or new applications % 88 # of households on waitlist % Overhoused 89 Newly updated or new applications % 90 # households on waitlist - 1,419 1,338 6% Medical priority 91 Newly updated or new applications % 92 # households on waitlist - 1,259 1,375-8% Safety at risk 93 Newly updated or new applications % 94 # households on waitlist % Underhoused by 2 bedrooms 95 Newly updated or new applications % 96 # of households on waitlist % % variance from