PEEL HOUSING CORPORATION BOARD OF DIRECTORS

Transcription

1 PEEL HOUSING CORPORATION BOARD OF DIRECTORS AGENDA PHC - 8/2016 DATE: Thursday, October 6, 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: F. Dale G. Miles C. Fonseca E. Moore M. Mahoney B. Shaughnessy Chaired by Vice-President G. Miles 1. DECLARATIONS OF CONFLICTS OF INTEREST 2. ADMINISTRATIVE MATTERS 2.1 Resolution to Present a By-law for Enactment Regarding Quorum Requirements of the Peel Housing Corporation Board of Directors Meetings(See also By-law ) 2.2 Removal of General Manager 2.3 Resignation of Peel Housing Corporation Directors 3. APPROVAL OF MINUTES 3.1 Minutes of the Board of Directors Meeting (PHC-7/2016) meeting held on September 15, APPROVAL OF AGENDA 5. DELEGATIONS 5.1 Marlyn Addai, President, Board of Directors Cedar Grove Residents Community Corporation, Regarding the Twin Pines Project 5.2 Dan Ferguson, Partner, Weir Foulds LLP, Regarding the Twin Pines Project

2 PHC-8/2016 Board of Directors Agenda -2- Thursday, October 6, Mohamed Bhamani, Senior Manager, KPMG LLP, Regarding the Twin Pines Project 6. REPORTS 6.1 Affordable Housing Program Update (Oral) Presentation by Janice Sheehy, Commissioner of Human Services Vera M. Davis Performance Management System Report (For information) 6.3 Semi-Annual Financial Report - June 30, 2016 (Unaudited) (For Information) 7. COMMUNICATIONS 8. GENERAL MANAGER'S UPDATE 9. BY-LAWS 9.1 By-law : A By-law to Amend By-Law Relating Generally to the Conduct of the Business and Affairs of Peel Housing Corporation. (See also Administrative Matters Item 2.1) 10. IN CAMERA MATTERS Closed Session Report of the Peel Housing Corporation Board of Directors Meeting (PHC 7/2016) held on September 15, OTHER BUSINESS 12. NEXT MEETING Thursday, November 3, :30 a.m. - 10:30 a.m. Regional Council Chamber, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario 13. ADJOURNMENT

3 2.1-1 PEEL HOUSING CORPORATION Resolution Moved By: Seconded By: Date October Item Number 2.1. That a By-law to amend By-law , being a by-law relating generally to the conduct of the business and affairs of Peel Housing Corporation (PHC), by amending quorum requirements of PHC Board of Directors meetings, be presented for enactment. CARRIED President V A 2000/02

4 2.2-1 PEEL HOUSING CORPORATION Resolution Moved By: Seconded By: Date October Item Number 2.2 That Shadrack Mwarigha be removed as General Manager, Peel Housing Corporation, effective September 19, CARRIED President V A 2000/02

5 2.3-1 PEEL HOUSING CORPORATION Resolution Moved By: Seconded By: Date October Item Number 2.3 That the resignation of the following four Peel Housing Corporation Directors be accepted: D. Austin; S. Elias; R. Mendis; J. Mirza. CARRIED President V A 2000/02

6 3.1-1 PEEL HOUSING CORPORATION BOARD OF DIRECTORS MINUTES PHC-7/2016 The Board of Directors of Peel Housing Corporation met on September 15, 2016 at 8:41 a.m., in the Regional Council Chamber, Regional Administrative Headquarters, 5 th Floor, 10 Peel Centre Drive, Suite A, Brampton. Directors Present: Directors Absent: Also Present: D. Austin; C. Fonseca; M. Mahoney*; R. Mendis; G. Miles; E. Moore ; B. Shaughnessy F. Dale, due to a personal matter; S. Elias; J. Mirza D. Szwarc, Chief Administrative Officer; J. Sheehy, Commissioner of Human Services; M.S. Mwarigha, General Manager; D. Bingham, Treasurer; J. Arcella, Deputy Treasurer, B. Colavecchia, Manager, Housing Operations and Tenancy Management; P. O Connor, Corporate Counsel; A. Macintyre, Corporate Secretary; C. Thomson, Deputy Corporate Secretary; V. Montesdeoca, Legislative Assistant Chaired by Vice-President Miles. 1. DECLARATIONS OF CONFLICTS OF INTEREST - Nil 2. APPROVAL OF MINUTES 2.1. Minutes of the Board of Directors Meeting (PHC-5/2016) meeting held on June 2, 2016 Moved by Director Austin, Seconded by Director Mendis; That the June 2, 2016 Peel Housing Corporation (PHC-6/2016) Board of Directors Meeting minutes be approved. Carried APPROVAL OF AGENDA Moved by Director Fonseca, Seconded by Director Moore; That the agenda for the September 15, 2016 Peel Housing Corporation Board of Directors meeting include an oral update on the Affordable Housing Program, to be dealt with under Reports Item 5.7; * See text for arrivals See text for departures - 1 -

7 3.1-2 PHC-7/2016 Thursday, September 15, 2016 And further, that the agenda for the September 15, 2016 Peel Housing Corporation Board of Directors meeting include an oral In Camera report regarding personal matters about an identifiable individual, including Regional employees; And further, that the agenda for the September 15, 2016 Peel Housing Corporation Board of Directors meeting be approved, as amended. Moved by Director Fonseca, Seconded by Director Moore; Carried That Christine Thomson be appointed, in place of Curtiss Law, to the office of Deputy Secretary of Peel Housing Corporation effective September 15, 2016 to act at any time the office of Secretary is vacant, or if for any reason the Secretary is unable to act. Carried DELEGATIONS 4.1 Jeffrey Wood Partner, Ernst & Young LLP; and Christine Pacini, Partner, SHS Consulting, Providing an Update on the Business Transformation and Strategic Plan Moved by Director Austin, Seconded by Director Shaughnessy; Received That two workshops be scheduled to discuss the Strategic Plan, Business Transformation Model and the Shareholder Direction; And further, that the two workshops be scheduled to take place as soon as possible and be held between 4:00 p.m. and 7:00 p.m. Carried Jeffrey Wood, Partner, Ernst & Young LLP and Christine Pacini, Partner, SHS Consulting, presented an update on the Peel Living Business Transformation Project, including the findings of the Financial Viability Review and the Service Delivery Model Review. They provided an update on the status of the Tenant and Community Value and Strategic Plan and highlighted key strategic questions with the Board, as well as, discussed the Board s participation in the strategic planning process. In response to a question from Director Mendis, Christine Pacini advised that Toronto Community Housing was not included in the review of local housing corporations due to its complexity and the age of its buildings, being much older than those in the Region of Peel. M.S. Mwarigha noted that information related to the flow of engagement for the Board with respect to the development of the Strategic Plan was included in the materials provided as part of the General Manager s update

8 3.1-3 PHC-7/2016 Thursday, September 15, 2016 Board Members discussed the need to have discussions on the business of social housing and Peel Living s future model to develop a better understanding of Peel Living s value to its tenants and the community. Director Mahoney arrived at 9:21 a.m. 5. REPORTS 5.1. Twin Pines Project Phase 1 Strategic Outcomes, Delivery Options and Business 5.2. Twin Pines Project Financing Moved by Director Fonseca, Seconded by Director Mahoney; Received That the Board approve a loan request of $1.5 million from the Region of Peel for the cost of the Twin Pines Project; And further, that the Treasurer be authorized to execute the necessary loan documents with the Region of Peel for the total amount not to exceed $1.5 million repayable at the call of the Commissioner of Finance and Chief Financial Officer of the Region of Peel or upon the request of the Treasurer to make re-payment; And further, that the Treasurer be authorized to re-negotiate the terms of the loan and of the previous $2.7 million loan from the Region of Peel for the purchase of 1725/1731 Dundas Street East upon the finalization of the future plans for the Twin Pines Project; And further, that the Treasurer be authorized to establish a capital budget in the amount of $1.5 million; And further, that the Treasurer be authorized to execute the required documents with the Region of Peel. Carried In response to a question from Director Mendis, M.S. Mwarigha advised that the additional required funds relate to site testing and internal charges related to the management of the project Twin Pines Infrastructure & Operational Status Report Received Procurement Activity Semi-Annual Report - January 1 to June 30, 2016 Received

9 3.1-4 PHC-7/2016 Thursday, September 15, Peel Housing Corporation Investment Report 5.6. Update on Garden Gate Circle Media Issue (Oral) Presentation by Janice Sheehy, Commissioner of Human Services Received Received Janice Sheehy, Commisisoner of Human Services, provided a summary of the works undertaken to fix problems in a townhouse unit that was the subject of recent media coverage, as well as, next steps. Janice Sheehy confirmed that all required work in the unit has been completed including the installation of new floor and fixtures in the powder room and added mobility bars; conducted pest control for mice; replaced glass in some windows and the patio door screen; raised and repaired the deck; completed the drywall including sanding and painting, and; replaced the electrical breaker box. The Commissioner advised that an external contractor conducted a visual re-inspection of all units at Garden Gate Circle which focused on a number of major categories, including: mould; health and life safety equipment including smoke and carbon monoxide detectors; electrical and plumbing systems; windows and doors; and, general conditions inside and outside the unit. The same re-inspection process was undertaken at the Chamney Court community in Brampton and a full report on both re-inspections will be available in the near future. To ensure that all systems are in working order, and to address improvements that are needed, a full-scale maintenance review is underway. The review will look at how maintenance requests are received, how work orders are generated and how the completed work is logged. It will also examine the building condition assessments and capital repair needs already noted on file. Staff will report to a future Board meeting with a complete report and action plan. Councillor Moore noted the perceived confusion of Region of Peel staff reporting on an issue that falls under the authority of the Peel Housing Corporation Board of Directors. The Commissioner of Human Services was requested by Councillor Mahoney to provide Members of the Board of Directors with a written summary of the actions being taken that can be shared with residents. Additional Item Item 5.7: 5.7 Update on the Affordable Housing Program (Oral) This item was dealt with under Resolution

10 3.1-5 PHC-7/2016 Thursday, September 15, 2016 Items Related to In Camera Matters Items 8.1 and 8.2 were dealt with. 8. IN CAMERA MATTERS At 10:06 a.m., the following motion was placed: Moved by Director Shaughnessy, Seconded by Director Fonseca; 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: Closed Session Report of the Board of Directors (PHC-6/2016) meeting held on June 2, 2016 Additional Item: Personal matters about an identifiable individual including Regional employees Carried Moved by Director Austin, Seconded by Director Fonseca; 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 10:47 a.m. 8.1 Closed Session Report of the Board of Directors (PHC-6/2016) meeting held on June 2, 2016 Additional Item Item 8.2: Received Personal Matters about an Identifiable Individual Including Regional Employees (Oral) Received Additional Item Item 5.7: 5.7 Update on the Affordable Housing Program (Oral) Deferred to the October 6, 2016 Board of Directors meeting

11 3.1-6 PHC-7/2016 Thursday, September 15, COMMUNICATIONS - Nil 7. GENERAL MANAGER'S UPDATE Due to time constraints, the Vice-President requested that Board members review the material distributed by the General Manager and raise any questions at the next meeting of the Board. 8. IN CAMERA MATTERS These Items were dealt with under Resolutions and OTHER BUSINESS - Nil 10. NEXT MEETING Thursday, October 6, 2016, 8:30 a.m. - 9:30 a.m. Regional Council Chambers, 5th Floor Regional Administrative Headquarters 10 Peel Centre Drive, Suite A Brampton, Ontario 11. ADJOURNMENT The meeting adjourned at 10:50 a.m. Vice-President Secretary - 6 -

12 5.2-1 Presentation by Cedar Grove Residents Community Corporation to the Board of Directors of Peel Living October 6, 2016

13 5.2-2 Introduction 1. WeirFoulds LLP has acted for Cedar Grove Residents Community Corporation (the Corporation ) since its incorporation as a nonshare capital corporation in This presentation is intended to repeat the points raised many times prior to this. It is a high level outline, which is noncomprehensive and without prejudice, of some of the legal and factual arguments the members of the Corporation have continually preserved. 3. Important to speak to Board directly and stress these issues to ensure they remain top of mind to continuing and new members of the Board. 4. While the Corporation reserves all its rights, it continues to wish to work with Peel Living on a without prejudice basis to come to an acceptable resolution. 2

14 5.2-3 The Issue The failure to extend the security of Tenure provision in our agreements and the proposal for Redevelopment of the Park has created great social and economic disruption to residents. The members of the Corporation take the position that Peel Living is committed to provide them security of tenure and to compensate them for any breach of this commitment, if it is breached. Any redevelopment of Twin Pines, if any, must: 1) provide equivalent housing and security of tenure to members; 2) preserve investments and compensate members for losses; and 3) address the social and economic impact on and needs of members. 3

15 5.2-4 Background 1. The Corporation was incorporated by residents who wanted to become members and to cooperate with Peel Living (Peel Non-Profit Housing Corporation as it was then known) in the purchase of the Park and in the ongoing operation and management of the Park. 2. Peel Living entered into an agreement with the Corporation on November 26, 1996 to address, among other things, qualifications for membership, the members $1,000,000 contribution to the purchase price for the Park, operations of the Park and other matters. 3. Peel Living also has individual tenancy and subsidy agreements with members, so there are legal relationships between Peel Living and each resident, as well as a legal relationship between the Corporation, and its members, and Peel Living. 4. There are approximately 210 family units in this community impacted by these issues. 4

16 5.2-5 Members As Equity Partners with Peel Living 1. The members funded $1,000,000 of the original purchase price of the Park in 1996 and have left that investment in the Park with only a nominal interest rate of $5,000 per annum to ensure ongoing administration and audit requirements were funded. 2. The purchase price of the Park paid by Peel Living was very significantly reduced from the original purchase price agreed to in a proposed sale to private sector interests. That transaction was aborted because of the opposition of the members. Peel Living s acquisition costs were well below the asking price and market value assessments at the time, primarily because of the then opposition of the Residents. 3. Rents paid by the Residents have fully amortized the acquisition costs and financings arranged by Peel Living for the acquisition of the Park while funding all capital and operating expenses of the Park. 5

17 5.2-6 Guarantee of Security of Tenure 1. Context behind the 20 year period when document was signed. 2. Evidence Members will be able to provide consisting of written and verbal statements on security of tenure during 1996 transaction and when agreement was signed. 3. Written and verbal statements made numerous times throughout the history of the 20 year relationship concerning security of tenure. 4. Meeting with Mayor McCallion and senior Peel Living staff in March 2010 provided further assurances on security of tenure. 5. Undertakings given by the Mayoral and City Council candidates in interviews during the most recent municipal election regarding security of tenure. 6

18 5.2-7 Guarantee of Security of Tenure (cont d) 6. The course of conduct of Peel Living during the 20 year history of the Park creates obligations concerning security of tenure: Peel Living actively participated in transactions by consenting to leases and dealing with parties coming into the Park knowing that they were spending significant sums to purchase mobile home units (up to $150,000) and incurring significant mortgage debt to purchase into the Park on reliance upon security of tenure. Actions/non-actions by Peel Living as owner and landlord and the reliance by members coming into the Park creates an obligation on Peel Living regarding security of tenure. These arguments are the same as the arguments brought in a class action by the Residents against the Palletts, as previous owners, which were persuasive enough on the Palletts to have them abort their transaction and sell the Park to Peel Living at a reduced price. 7

19 5.2-8 Impact on Members of Tenure Concern 1. Purchase and sale transactions of mobile homes have been severely diminished stranding people and causing them to be unable to deal with changes in life circumstances: changing employment; moving to old age home or dealing with health issues, etc. 2. Members equity in their homes have plummeted, threatening lost life savings and bankruptcy. 3. Mortgages are not being advanced or renewed causing financial distress. 4. Related social and medical problems. 5. Process continues in an uncertain way causing numerous ripple effects in the community. 8

20 5.2-9 Commitments to Residents of Twin Pines (Key Principles) given on September 28, 2012 Report 1. Peel Living is committed to the Twin Pines neighbourhood, ensuring that it remains affordable and offers a mix of housing options, for current and future residents. 2. Peel Living will explore the creation of more housing and will examine the viability of ownership options in the future Twin Pines, as a reflection of the character of the community. 3. Residents who qualify for affordable housing will be offered the option to remain in the future Twin Pines community. 4. Peel Living is committed to undertaking a Financial Impact Assessment for each resident to understand the personal financial issues of the residents and to take that into consideration when developing options in a future plan for Twin Pines. 5. In a master planning process for Twin Pines: The planning process will clearly outline when each stage will happen and what decisions will be made at each stage. A collaborative approach will be undertaken that is sensitive to resident concerns, including their housing needs and financial circumstances. A Community Involvement Strategy will outline how local residents will have input at each stage of the process. The process will also include a plan on how residents and neighbouring stakeholders will be communicated with going forward, so they can stay updated on the process and key developments. 9

21 Adopted Report Included Staff Recommendations that Inform and Interpret these Commitments There will be no homelessness created after the October 2016 expiry date and all tenants will have the option to remain part of the future Twin Pines Staff propose that the Peel Living Board of Directors consider the following key commitments requested by residents: Preserving the character of the neighbourhood in terms of affordability and exploring the viability of ownership options Ensuring that the housing needs of residents are met in a future Twin Pines model Developing a framework for communication and resolving resident concerns Ensuring the Community Planning Process is inclusive and sensitive to their housing needs 10

22 Adopted Report Included Staff Recommendations that Inform and Interpret these Commitments (cont d) Any tenure arrangements related to the new Twin Pines will be shaped and defined by a Community Planning Process which includes: Examination of the social and financial impact on people; Involve the community residents and key stakeholders throughout the process; The Commitments given in September 2012 are additional obligations of Peel Living to the members of Cedar Grove Residents Community Corporation. 11

23 Fundamental Requirements 1. Any Development must guarantee continued equivalent housing and security of tenure to members, preserve the character of the community and minimize disruption to members. 2. The investments of the members must be preserved and compensation for any losses must be provided. 3. The social and economic impact of any development for members must be addressed. 12

24 Conclusion Reaffirm commitment by members to work cooperatively with Peel Living. This has been and continues to be without prejudice to all legal rights of members and is a general non-comprehensive high level description of issues and positions. Members expect legal obligations of Peel Living with respect to security of tenure created during the 20 year relationship and the commitments in September 2012, upon which members have relied, to be performed in full. Members of the Corporation have put Peel Living on notice of damages and disruption being incurred and seek a resolution to address these damages and preserve the interests of the residents. 13

25 6.2-1 REPORT Meeting Date: Peel Housing Corporation For Information DATE: September 23, 2016 REPORT TITLE: FROM: 2015 VERA M. DAVIS PERFORMANCE MANAGEMENT SYSTEM REPORT Janice Sheehy, Acting General Manager, Peel Housing Corporation OBJECTIVE To summarize key performance results for the operation of Vera M. Davis Community Care Centre (Davis Centre) that is licensed to Peel Housing Corporation, confirming compliance with the Corporation s obligations under the Long Term Care Homes Act, 2007, and its regulations. REPORT HIGHLIGHTS In 2011, Peel Housing Corporation endorsed Regional Council as Committee of Management for the Davis Centre, in addition to the four long term care homes owned by the Region of Peel. Annually, the Committee of Management reports to the Peel Housing Corporation Board to ensure compliance with all requirements under the Long Term Care Homes Act, Resident satisfaction for the Davis Centre continues to be the highest of the five long term care homes, achieving 8.6 out of 10 in overall satisfaction. The Davis Centre kitchen renovation is underway, with the design phase near completion and construction planned for early DISCUSSION 1. Background In 1984, the Davis Centre, comprising of 64 resident beds, began its operations. At that time, 40 of those beds were designated to Peel Housing Corporation as nursing home beds under the Nursing Homes Act, with the remaining 24 beds operated by the Region of Peel under the Charitable Institutions Act. In 1984, Peel Housing Corporation and the Region of Peel entered into a lease and management agreement for the Davis Centre. In 2007, this agreement was amended to transfer full responsibility for the operation, maintenance and the administration of the reserve fund of the Davis Centre to the Region of Peel. The ownership of the facility has remained with Peel Housing Corporation to permit the continued use of the existing operating license and avoid provincial costs associated with land transfer tax required to legally change ownership of the land.

26 2015 VERA M. DAVIS PERFORMANCE MANAGEMENT SYSTEM REPORT On July 1, 2010, the Long Term Care Homes Act, 2007 was proclaimed in force, repealing the Nursing Homes Act and the Charitable Institutions Act. At that time, many long term care homes held more than one designation. The Ministry of Health and Long Term Care (the Ministry) advised that the previous designation with the majority of beds would govern the new designation. As a result of this direction, the Davis Centre is now a licensed long term care home under the Long Term Care Homes Act, 2007 with the single license issued to Peel Housing Corporation. On July 7, 2011 Peel Housing Corporation, approved a recommendation that Regional Council act as the Committee of Management for the Davis Centre, on behalf of Peel Housing Corporation. Regional Council also acts as Committee of Management to the four long term care homes owned by the Region of Peel. In compliance with the Long Term Care Homes Act, 2007, Regional Council, as Committee of Management, annually reports to Peel Housing Corporation to confirm compliance with all its legislative requirements. Peel Long Term Care ensures its performance through the Peel Long Term Care Performance Management Reporting System. 2. Findings The Performance Management Reporting System is a summary of key results and outcomes of four programs that are foundational for Peel Long Term Care to ensure quality resident care: Peel Long Term Care Continuous Quality Improvement Program Health Quality Ontario Annual Quality Improvement Plans Ministry of Health and Long-Term Care Legislation Voluntary Accreditation from the Council on Accreditation of Rehabilitation Facilities In summary, the report findings include: Resident satisfaction for the Davis Centre continues to be the highest of the five long term care homes, achieving 8.6 out of 10 in overall satisfaction. The Davis Centre continues to meet and exceed Peel Long Term Care s volunteer service hours at 8.2 hours per resident (target 7 hours per resident). The Davis Centre is performing well for those residents experiencing an unplanned weight loss (0.6 per cent) and residents who had new pressure ulcers (1.0 per cent) compared to the provincial average of 6.7 per cent and 2.9 per cent respectively. Performance on resident falls (13.8 per cent), improved physical functioning (30 per cent) and restraints use (6.2 per cent) performance has slightly softened compared to the Divisional targets. This is attributed to a combination of complex health conditions and rising end of life needs. In 2015, 60% of residents at the Davis Centre were diagnosed with dementia or a related Alzheimer s disease, an increase of 3% from Quality Improvement Initiatives Near the end of 2014, a detailed building assessment was completed on the Davis Centre to ensure the facility is in a state of good repair. Many repairs have been completed as a result of the assessment, enhancing the operations of the facility. Overall, the assessment concluded that the Davis Centre remains in good standing and is able to provide its value for another 30 years as intended. To continue sustaining the Davis Centre s state of good repair, a 20-year maintenance plan will be developed to extend the life of the facility

27 VERA M. DAVIS PERFORMANCE MANAGEMENT SYSTEM REPORT The Davis Centre kitchen renovation is underway, with the design phase near completion and construction planned for early Once commenced, the multi-phased construction is estimated to be nine months in total. Phasing the renovation work will minimize service disruptions to residents and staff. In 2015 Peel Long Term Care conducted internal service reviews of how we design and deliver care to our residents and caregivers to continue meeting their current and future needs. These reviews identified enhancements to our model of care that will benefit the Davis Centre by providing greater medical oversight, leadership and workforce development opportunities for staff. CONCLUSION Peel Long Term Care is committed to its mandate of providing service excellence in a safe and compassionate environment where everyone can thrive. Through its performance management system, Peel Long Term Care has been able to actively monitor, track and evaluate the Davis Centre s performance to ensure it continues to optimize the quality of life for residents and clients. More detailed information on the performance results of all five Peel Long Term Care Homes can be found in the Long Term Care 2015 Performance Results and Planning report dated September 22, Janice Sheehy, Acting General Manager, Peel Housing Corporation For further information regarding this report, please contact Nancy Polsinelli Director, Long Term Care, nancy.polsinelli@peelregion.ca

28 6.3-1 REPORT Meeting Date: Peel Housing Corporation For Information DATE: September 20, 2016 REPORT TITLE: SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) FROM: Mwarigha M.S., General Manager, Peel Living David Bingham, Treasurer, Peel Living OBJECTIVE To present the financial report for the six months ended on June 30, 2016 and the year-end projections. REPORT HIGHLIGHTS Current Operations December 31, 2016 projects show a favourable budget variance at year-end of $120,000 before discretionary reserve transfers representing 0.1 per cent of the total expenditure budget. Discretionary contributions to the capital replacement reserves are forecasted to be $83,000 lower than budget at December 31, Contributions to working fund reserves are forecasted to be $203,000 higher than budget at December 31, Capital Operations Gross capital spending for the six months that ended on June 30, 2016 was $2.5 million and forecasted spending from July 1 to December 31, 2016 is $7.1 million for a total of $9.6 million. Capital spending is in line with budget. Reserves Overall PHC Reserve balances are forecasted to reach $16.2 million by year-end, an increase from 2016 s opening balance of $15.6 million DISCUSSION 1. Current Operations Appendix I summarizes Peel Housing Corporation s Statement of Operations for the six months ended June 30, 2016 and the 2016 year-end projections.

29 6.3-2 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) The year-end projections indicate a net favourable variance at year-end of $120,000 before discretionary reserve transfers, some of which may be utilized prior to year-end. This projected favourable net financial position is primarily due to lower operating costs of $297,000 and offset by lower revenues of $177,000. Expenditures are in line with previous years for all sections except Bad Debt, Insurance and Intercompany Loan Payments, which are projected to be under budget, and Utilities, which is projected to be significantly higher than budgeted. The year-end operating projections are as follows: Lower revenue of $177,000 as a result of: o $723,000 decrease in subsidy due to higher rental revenues and lower expenditures o $52,000 increase in revenue transfers to the Region of Peel for its sites; revenues generated by ROP-owned sites slightly higher than budget o $48,000 decrease in other revenues (laundry, parking, resident recoveries etc.) o Offset by higher rental revenue of $646,000 (increased number of market and RGI units, as well as increased rent amounts). Expenditure decrease of $297,000 is due to: Lower costs related to the following: o $394,000; salaries for superintendents and cleaners (2016 slightly under budget due to staffing adjustments), o $315,000; property taxes (budgeted tax rate used for 2016 higher than actual), o $290,000; insurance and bad debt (Insurance: Loss Management believes premium for November & December as well as insurance-related expenses will decrease; Bad Debt: Fewer move outs with less arrears), o $284,000; building systems and services (PMs did not include unforeseen emergency work in estimate and they re trying to reduce costs), o $170,000; transfer to ROP pertaining to ROP-owned sites that are estimated to be incur higher expenses than budgeted o $116,000; mortgages, loans and depreciation (lower mortgage rate for renewing sites, and lower interest rate for renewing Intercompany Loans), o $97,000; administration (Chargeback from the Region of Peel s Housing Operations and Management Services (HOMS), Offset by higher utility costs of $1.4 million (higher hydro and water rates coupled with higher consumption). The changes in revenues and expenditures result in an increased contribution to working fund reserves of $203,000 and lower discretionary replacement reserve contribution of $83,000. These variances are a result of the subsidy program formula s which are driven by revenue and expenses. 2. Capital Operations The table below summarizes capital operations from January 1, 2016 to June 30, 2016 and the forecast for July 1, 2016 to December 31, It includes the 2016 capital budget, any in-year changes, and any close-outs to arrive at the projected gross carry forward balance of capital projects into

30 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) Description Jan 1 to June 30 ($ 000,000 s) Forecast From July 1 to Dec 31 ($ 000,000 s) Carry Forward Balance 2015 and Prior $6.7 $18.7 Approved 2016 Capital Budget 14.5 Total Approved Capital Available Year to Date Spending (2.5) (7.1) Available Capital Works (July 1, 2016) $18.7 Projected Carryforward - (January 1, 2017) $11.6 For the period ending June 30, 2016, there are 53 active capital sub-projects of which 38 are anticipated to be completed by the end of As a result, there will be 15 projects with a remaining budget of $11.6 million that will be carried forward into Gross capital expenditures for the 6-month period ending June 30, 2016 was $2.5 million. The forecasted capital spending for July to December is estimated to be $7.1 million, for a total in-year capital spend of $9.6 million for PHC estimates that $2.1 million of the $9.6 million will be recovered as part of the approved infrastructure loan reimbursements from the Service Manager. A summary of capital project expenditures, as well as a forecast from July 1, 2016 to December 31, 2016 is presented in Appendix Il Capital Projects All outstanding projects within these years are expected to be completed by the 2016 yearend with only the possibility of holdbacks remaining to be released in Final work is anticipated to take place for Sydenham Place s balconies and Arcadia Glen s pedestrian bridge. The total expenditures over these three project years are expected to remain within budget. PHC will seek the closing of all these projects and their accounts by 2016 year-end Capital Projects The 2014 capital works are estimated to be completed under budget. Most of the 2014 projects are funded by a Service Manager Loan and the majority of these projects will be substantially completed by year-end. One major project involving the plumbing upgrade at Queen Frederica and funded by PRHC reserves will carry forward to capital works are fully funded by reserves and are currently in progress with the majority of the projects to be substantially completed in the 2017 calendar year. PHC anticipates to be within budget on all the projects within each funding portfolio 2016 capital works are primarily in their early stages capital projects are funded by both reserves and a Service Manager Loan. The three projects of significance are mouldremediation projects at: Mason s Landing, Middleton Way, and Colonial Terrace. Work has begun on Middleton Way, with the work at Colonial Terrace and Mason s Landing anticipated to begin in late 2016 and early 2017 respectively. At this time, there are no major budgetary concerns to note for the 2016 capital program. The following chart summarizes estimated spending vs. budget remaining for all open PHC capital projects: - 3 -

31 6.3-4 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) Capital Budgets: Spent-to-Date vs. Budget Remaining 100% 12% 17% 80% 54% 60% 90% 40% 88% 83% 20% 46% 0% 2013 Capital 2014 Capital 2015 Capital 2016 Capital 10% Spent-to-Date June 30, 2016 Budget Remaining 1. Reserves and Reserve Funds A high-level overview of the Corporation s reserves as at June 30, 2016 and a forecast to December 31, 2016 is provided below. These figures do not include any unrealized gains or losses on investments held for trading. Description Working Fund Reserves ($ 000 s) Energy Reserves ($ 000 s) Capital Replacement Reserves ($ 000 s) Total ($ 000 s) June 30, 2016 Balance $8,293 $1,068 $6,431 $15,792 Contributions Into Reserve Mandatory & Discretionary Transfers (to)/from Capital & Operations Estimated loan from Service Manager Projected Dec 31, 2016 Balance 1,308-5,121 6,429 (1,600) - (6,051) (7,651) - - 2,050 2,050 $8,001 $1,068 $7,551 $16,

32 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) Appendix III provides a detailed breakdown of fund balances and commitments by program and type as of June 30, Appendix IV provides a forecast of reserve activity from July 1 to December 31, 2016 and illustrates the forecasted closing reserve balance without commitments. Since the 2014 budget year, PHC has made a commitment to establish its yearly capital budgets to match its mandatory reserve contributions budgeted for that respective year, approximately $6.5 million. In the event that PHC needed to perform capital work that could not have been accommodated within this limited budget, an application was made to the Service Manager for a capital infrastructure loan. These loans are interest-free until the Expiry of the Operating Agreement. The result of these actions has prevented PHC reserves from going into deficits and has also allowed increased discretionary contributions (improved operational savings) to assist in replenishing the replacement reserves. Based on forecasted activity, total PHC reserves will grow from $15.60 million on January 1, 2016, to $16.6 million by December 31, Debt Obligations a) Mortgages For the year ending 2016, principal repayments (principal reduction) are estimated to total $23.1 million. Projected principal payments remaining, based on current mortgage terms and estimated future renewal rates, are approximately $195.9 million to be repaid from b) Long-Term Debt The table below summarizes PHC s long-term debt obligations. Debt increase for 2016 is due to an additional Service Manager capital loan ($6.3 million pending) intended to address mould remediation at three PHC properties. Additionally there will be the added capitalization of the interest cost related to the Dundas Street land purchase (adjacent to Twin Pines). Service Manager capital loans are payable over 15 years commencing one year after the property s mortgage end date. The first loan repayments will commence in 2017 for Arcadia Glen and Springmill Terrace. Provincial loans will be forgivable after 20 years (year 2025) once program requirements are met. Additionally, PHC has received approval to repay the $1,000,000 loan to the Cedar Groves Members Association of Twin Pines in advance. This debt will be repaid in September of

33 6.3-6 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) Long-term Debt Projected Year End Region of Peel Loan 2005 Summerville Pines $ 11,480,646 $ 11,480,646 Region of Peel loan Service Manager capital reinvestment (PHC is authorized to receive a total loan up to this amount) 19,283,816 25,583,816 Region of Peel Loan 2013 Land Acquisition (Twin Pines) 2,684,763 2,763,363 Provincial Loans (forgivable) 1,990,500 1,966,750 Cedar Grove Members Association (Twin Pines) 1,000,000 - Total $ 36,439,725 $41,794, Financial Control By-Law Report Requirements a) Authorization to Increase Project Commitments beyond Originally Approved Budget For the 2016 budget year PHC has requested no authorizations for budget increases and does not anticipate needing to seek Board Approval for any increases for the remainder of b) Closed Capital Projects For the six months ended June 30, 2016, no capital projects have been closed. Capital projects , , and are anticipated to be closed by December c) Redeployments Redeployments are processed to facilitate effective management of various programs and projects. All redeployments are processed in accordance with the Financial Control By-law. As of June 30, 2016, there was no redeployment activity. 4. Mortgage Discharges & Renewals In 2016, PHC s first mortgage discharge took place at Arcadia Glen. Arcadia Glen will see a $225 thousand mortgage expense reduction, as shown in Appendix V. Additionally, three mortgage renewals took place during the first six months of Decreased mortgage interest rates have resulted in 2016 mortgage payments being $22 thousand lower than budgeted. For the duration of the renewed mortgage terms, payments will be $30 thousand lower on an annualized basis. The average interest rate of the three mortgages was decreased from 4.22 per cent to 1.63 per cent. The lower mortgage costs - 6 -

34 6.3-7 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) will result in lower amounts of subsidy payments being received from the Service Manager (Region of Peel). For the remainder of 2016, PHC will see Springmill Terrace s mortgage discharged along with its expiry of operating agreement and no further properties will have a mortgage renewal taking place. 5. Write Offs Former Tenant Accounts There are $340,042 of uncollected arrears that are to be written off this year; a total of $49,723 lower than the original provision recorded in 2014 as a result of higher collections and the collection of previously written off amounts. Writing off unpaid balances and open credits of former tenant accounts does not affect the subsequent collection of these balances. All outstanding debts remain on the records of both the collection agency (for those arrears greater than $100) and Peel Living (all balances), while collection efforts continue. 6. Business Transformation Project Work continues on the Business Transformation Project including asset sustainability and financial viability. Ernst & Young (E&Y) are leading the work and will be presenting their findings to the Board before year-end. In 2017 their report will be used to develop a long-term financial sustainability plan for the corporation. These findings will also contribute by providing quantifiable financial metrics to further inform each building s viability in the present and at the end of its operating agreement

35 SEMI-ANNUAL FINANCIAL REPORT - JUNE 30, 2016 (UNAUDITED) CONCLUSION The 2016 forecast indicates that PHC s operations will be in a net favourable position resulting in an increase of $120 thousand available to be transferred to the discretionary reserves. Despite the operational improvements and increased reserve contributions, the capital needs requirement continue to outpace funding, particularly reserve contribution levels. These pressures will be mitigated through the Business Transformation Project and the development of a long-term financial sustainability plan to be completed in Until then, PHC has taken efforts to limit capital expenditures to high priority items. Mwarigha M.S., General Manager, Peel Living Dave Bingham Treasurer, Peel Living APPENDICES 1. Appendix I Management Statement of Operations 2. Appendix II Status of Capital Projects 3. Appendix III Current State of Reserves 4. Appendix IV Year-End Reserve Forecast 5. Appendix V Statement of Mortgage Discharges and Renewals For further information regarding this report, please contact Mwarigha, Extension 3549, Muliwa.Mwarigha@PeelRegion.ca. Authored By: John Arcella, Deputy Treasurer Financial Support Unit - 8 -

36 APPENDIX I FINANCIAL REPORT - JUNE 2016 (UNAUDITED) Peel Housing Corporation Management Statement of Operations (in thousands) As At June 30, 2016 Figures do not include current year unrealized gains or losses on investment held for trading. Peel Housing Corporation Sites Region-Owned Sites Total Peel Living Managed Sites 2016 Budget 2016 June YTD Projected 2016 Year End Balance Projection vs Budget Variance 2016 Budget 2016 June YTD Projected 2016 Year End Balance Projection vs Budget Variance 2016 Budget 2016 June YTD Projected 2016 Year End Balance Projection vs Budget Variance Revenue: Rental Revenue $ 58,402 $ 29,556 $ 59,010 $ 608 $ 5,452 $ 2,753 $ 5,490 $ 38 $ 63,854 $ 32,309 $ 64,500 $ 646 Other Revenue 5,671 2,620 5,604 (67) ,908 2,697 5,860 (48) ROP Revenue Transfer (5,878) (2,829) (5,930) (52) (5,878) (2,829) (5,930) (52) Municipal Subsidy 33,965 16,926 33,247 (718) (5) 34,153 16,926 33,430 (723) Total Revenue 98,037 49,102 97,860 (177) (0) ,037 49,103 97,860 (177) Expenditures: Salaries & Benefits 5,283 2,444 4, ,283 2,444 4, Building Systems & Services 13,403 5,317 13, (22) 14,367 5,780 14, Utilities 14,664 8,157 15,954 (1,290) (79) 15,405 8,561 16,774 (1,369) Administration 9,266 4,209 9, ,010 (40) 10,237 4,664 10, Mortgage, Loans & Depreciation 32,494 15,839 32, ,018 1,004 2,092 (73) 34,513 16,842 34, Municipal Taxes 11,919 5,719 11, ,640 6,070 12, Insurance 1, , , , Bad Debt 408 (41) (1) 21 (0) 429 (42) ROP Expense Transfer (5,541) (2,749) (5,711) 170 (5,541) (2,749) (5,711) 170 Total Expenditures 89,138 42,307 88, (32) ,138 42,275 88, Operating Surplus Before Reserve Transfers 8,899 6,796 9, (0) ,899 6,827 9, Minor Capital Minor Capital Expense (1,334) (551) (1,065) (1,334) (551) (1,065) 268 Transfer from Replacement Reserve for Minor Capital 1, ,065 (268) , ,065 (268) Legislated Replacement Reserve Contribution (5,251) (2,625) (5,251) (5,251) (2,625) (5,251) - Operating Surplus 3,648 4,170 3, (0) ,648 4,202 3, Reserve Allocation Based on Program Rules: Discretionary Transfer of Surplus to Replacement (2,577) - (2,494) (2,577) - (2,494) 83 Reserve* Transfer (to)/from Working Fund Reserves (1,071) 33 (1,274) (203) (1,071) 33 (1,274) (203) Net Surplus/(Deficit) $ - $ 4,203 $ - $ - $ - $ 32 $ - $ - $ - $ 4,235 $ - $ - * Permitted by the Service Manager or Board Directed (includes FP/Uni service manager surplus retention)

37 APPENDIX II - CAPITAL PROJECT STATUS FINANCIAL REPORT - JUNE 2016 (UNAUDITED) Peel Housing Corporation Status of Capital Projects (in thousands) As At June 30, 2016 Active Capital Projects: Capital Project Description Number of Projects Approved Project Budget Spent prior to 2016 Available Capital Work as of January 1, 2016 Total Spent YTD as of June 30, 2016 Available Capital Work as of June 30, 2016 % Spent as of June 30, Major Capital Project 1 11,817 11,821 (4) - (4) 100.0% 2012 Major Capital Project* 1 14,337 14, (460) 103.2% 2013 Major Capital Project 1 11,959 10,541 1,418 (4) 1, % These 3 Projects will net against each other 2014 Major Capital Project** 1 6,206 5,068 1, , % 2015 Major Capital Projects** 4 6,765 2,667 4, , % 2016 Major Capital Projects 5 14,500-14,500 1,487 13, % TOTAL 13 $ 65,584 $ 44,434 $ 21,149 $ 2,456 $ 18, % * 2012 Project is overspent, but remains open in order to track all applicable charges there first before being re-allocated into 2013 capital surpluses ** Does not include CCC Ridgeway & CCC Cooksville projects in 2014 and 2015 Capital Project Description Number of Projects Available Capital Work as of June 30, 2016 Forecast Spending July to December 2016 Carry Forward to Major Capital Project 1 (4) 19 (23) 2012 Major Capital Project 1 (460) 135 (595) 2013 Major Capital Project 1 1, ,282 (PHC and ROP Owned) 2014 Major Capital Project 1 1, Major Capital Project 4 3,655 1,463 2, Major Capital Project 5 13,013 5,137 7,876 TOTAL 13 $ 18,694 7,135 $ 11,559

38 APPENDIX III - CURRENT STATUS OF RESERVES FINANCIAL REPORT - JUNE 2016 (UNAUDITED) Peel Housing Corporation Reserve Balances by Program (in thousands) As At June 30, 2016 Figures do not include cumulative unrealized gains or losses on investment held for trading. Balance as of June 30, 2016 Committed & Encumbered Reserve Description Replacement Reserve Working Fund Reserve Energy Conservation Reserve Total Reserves Capital Reserve Transfers In Capital Reserve Transfers Out Working Fund Transfers In/(Out) Net Activity Available Balance 15.1 $3,167 $0 $0 $3,167 $220 ($329) $0 ($109) $3, (3,418) 2,245 0 (1,173) 2,285 (2,447) (1,030) FP/Uni (2,246) 6, ,858 1,792 (8,107) (778) (7,093) (3,235) PRHC 5, , (1,013) 0 (288) 4,951 Other - PHC 209 (138) (216) (28) (63) 8 Other - ROP 3, ,562 0 (100) 0 (100) 3,462 Corporate 0 0 1,068 1, ,068 Total $6,431 $8,293 $1,068 $15,792 $5,203 ($12,212) ($501) ($7,510) $8,282 Peel Housing Corporation Continuity Schedule of Reserves (in thousands) As At June 30, 2016 Figures do not include cumulative unrealized gains or losses on investment held for trading. Balances Replacement of Capital Property Working Fund Energy Conservation Total Balance January 1, 2016 $ 6,160 $ 8,362 $ 1,053 $ 15,575 Allowable Contributions 2, ,788 Transfer to current operations Capital Expenditures (2,452) (290) 0 (2,742) Interest Earned Balance June 30, ,431 8,293 1,068 15,792 Less: Committed Balances (7,009) (501) 0 (7,510) Balance Available June 30, 2016 ($578) $7,792 $1,068 $8,282