Halton Community Housing Corporation

Transcription

1 Halton Community Housing Corporation Report To: From: President and Members of the Board of Directors Rob Cressman, General Manager Janice Sheehy, Treasurer Date: December 22, 2006 Report No. - Re: HC Operating and Capital Budget RECOMMENDATION 1. THAT the 2007 Operating Budget for the Halton Community Housing Corporation, as attached in Attachment #1 to HC Operating and Capital Budget, be approved. 2. THAT the 2007 Capital Budget and the Proposed 5-Year Capital Plan, as attached in Attachment #2 to HC-08-07, be approved. 3. THAT the 2007 Operating Budget and 2007 Capital Budget be forwarded to the Region of Halton for its consideration in its role as Municipal Service Manager. REPORT The objective of this report is to present the 2007 operating and capital budgets for the Halton Community Housing Corporation (HCHC). For the purposes of this report and the attached budget documents, the properties of the former Halton Non-Profit Housing Corporation are referred to as the Non-Profit (NP) portfolio and the properties of the former Halton Housing Corporation are referred to as the Public Housing (PH) portfolio. These portfolios are presented separately due to different funding formulas. The budget document presented as Attachment #1 includes the following information: Consolidated summary of the HCHC 2006 forecast and 2007 budget Summary of the NP Portfolio 2006 forecast and 2007 budget Summary of the PH Portfolio 2006 forecast and 2007 budget Attachment #2 contains the capital budget and includes the following information: Summary of the capital budget Detailed 2007 capital budgets by housing community 1

2 OUTLINE OF FUNDING FORMULA In 2005 the Province approved the benchmarking funding formula for the non-profit housing sector, and as such the 2006 and 2007 budgets for the Non-Profit portfolio were prepared using this method. For the NP portfolio, property taxes, mortgage payments and rent geared to income subsidies to tenants are subsidized by the Service Manager (Halton Region) at actual cost. Any variances for these expenditures would have no impact on the Housing Corporation s bottom line. The new formula relies on benchmarked rents, administration, maintenance costs, utilities, insurance and capital transfers. As these items are benchmarked, actual costs over the cap are not subsidized. To supplement the spending cap, the NP program can obtain additional revenues by charging more than the indexed market rent established by the Province. If higher rents can be charged in the market place (which the NP has been able to do), the Corporation keeps 50% of any year-end surplus. The subsidies received for the Public Housing portfolio from the Service Manager are based on the funding model inherited from the former Ontario Housing Corporation. Therefore, the Public Housing portfolio budget has been developed with the formula used in previous years. The PH portfolio s subsidy was set by the Province in 2001 (with an annual cost escalation factor applied each year) and was based on the PH portfolio s capital and operating expenses net of RGI rent and the net revenue from the Oakville Senior Citizens Residence (OSCR). Should there be a surplus in this program, staff will make a request to the Service Manager to have the surplus transferred to the Capital Reserve fund. FORECAST OF 2006 FINANCIAL RESULTS The forecast of 2006 financial results (unaudited) is as follows: (in 000 s) 2006 Budget 2006 Projected Variance Revenues $ 21,691 $ 21,519 ($ 172) Expenses 19,168 18, Excess Revenues over Expenses 2,523 3, Transfers to Capital Reserves 2,523 2,523 0 Net Position $ 0 $ 497** $ 497 **Forecast as of November 30, 2006 The unfavourable variance in net revenues results from a decrease in government subsidies, which will be $370,000 lower than budgeted, reflecting a combination of higher rent-geared-to-income (RGI) rental revenue, lower property taxes, and savings from mortgage renewals. However this is offset to some degree by higher rental revenues. 2

3 On the expenditure side there were savings related to utilities, snow clearing and municipal taxes on the PH portfolio. Due to the mild winter in 2006, the savings realized from the snow removal and utilities accounts were used to complete minor unit upgrades that were deferred in 2005, landscaping and updated lighting, common area carpet replacement and apartment door painting. Further details of the 2006 forecast can be found in Attachment #1. A breakdown has been provided for the Corporation and each of the portfolios. As the Corporation is actually run on an integrated basis, it is the consolidated budget that should be given consideration by the Board OPERATING BUDGET The 2007 operating budget is summarized as follows: (in 000 s) 2006 Budget 2007 Budget Change Revenues $ 21,691 $ 22,136 $ 445 Expenses 19,168 19, Excess Revenues over Expenses 2,523 2, Transfers to Capital Reserves 2,523 2, Net Position As previously outlined, staff have prepared the Non-Profit portfolio budget on the basis of the benchmarked formula, as well as past experience and current property conditions. The budget for the Public Housing portfolio is based on the subsidy level carried forward from previous years, adjusted for cost escalation. Implications of the Benchmarking Funding Formula Effective 2007, based on the funding formula, housing providers must absorb inflation in expenditures through market rent increases, as the subsidy is fixed. HCHC collects approximately $2,289,000 in annual market rent. A 2.5% increase in market rent will add $57,200 to the annual revenue but considering the constraints of the funding formula, a portion of this increase would need to be paid to the Service Manager. The funding formula assumes a fixed relationship between costs and revenues. For example, it is anticipated that utilities costs will increase at a higher rate than revenue (7.6% vs. 2.5%) thereby resulting in the need to offset this spending in other areas. The Province is aware of the concerns raised by housing providers related to this potential outcome and is looking at amending this formula. Based on the benchmarked formula, HCHC will have to return a mandatory payment of $140,375 to the Service Manager. Government subsidy revenues have been adjusted accordingly. Background information related to the development of the 2007 budget is provided for each major line item as follows: 3

4 Rental Income Market rents are derived from the NP Portfolio. Consistent with the 2006 budget and with provincial targets, the 2007 budget is based on 25% of the NP units being rented to market tenants. HCHC is currently two units over its target of 200 market rent units within the portfolio to partially compensate for being under target earlier in the year. In order to bring our proportion of market rent units closer to target and avoid losses in market rent revenue, market rents will be increased in 2007, ranging from 0% to 2.6% based on marketability of particular buildings within the portfolio. The remainder of units are rent-geared-to-income and rents from these units have been estimated on past experience. Any shortfall in rent from these units due to declining income levels of the tenants is fully recovered through subsidies from the Service Manager. Subsidy Revenue The 2007 subsidy for the Public Housing and Non Profit portfolios is based on the same method used in Halton Community Housing Corporation administers three rent supplement programs on behalf of the Service Manager the Commercial Rent Supplement Program, the Strong Communities Rent Supplement program and the new Affordable Housing Allowance program. The Commercial Rent Supplement program is fully subsidized by the Service Manager while the Strong Communities Rent Supplement program and the Affordable Housing Allowance program are fully funded by the Province. The funding for the Strong Communities Rent Supplement program is fixed to Mortgages and Municipal Taxes In 2006, municipal taxes will be 5.76% lower than budgeted, as a result of successful appeals to lower the assessment value of the properties. For 2007, property taxes have been estimated to increase by 4% compared to 2006 actual levels. Mortgages are in place for the NP portfolio. During 2006, there was one mortgage renewal (1150 Dorval Drive), resulting in an annual savings of $77,000. In 2007, the mortgage for the properties located at 2301 Sheridan Garden Drive (March 1, 2007) and 1300 Maple Crossing (September 1, 2007) will be renewed. The PH properties are not mortgaged. These properties were financed from general provincial debt and the Province has clarified that HCHC is not responsible for this debt. The Province uses its share of the federal social housing funds to pay the annual debenture payment. 4

5 Rent Supplement The rent supplement budget is a rent-geared-to-income program for approved tenants housed in private rental accommodation. The cost of this program is the difference between the agreed rent (usually market rent) with private landlords and the RGI rent paid by rent supplement tenants (based on the income levels of the tenants). As mentioned above, the Commercial Rent Supplement Program (202 units) is funded by the Service Manager, the Strong Communities Rent Supplement program (188 units) and the new Affordable Housing Allowance program (28 units) are funded by the Province. HCHC operates the programs as an agent of the Service Manager. These programs are processed on a cost flow thru basis plus a fee paid to HCHC for administration. In 2007, there will be an increase in the number of rent supplement units being administered by HCHC. The number of rent supplement units has increased from 390 to 410 due to the new Affordable Housing Allowance program. On-site Labour These are the costs projected for the maintenance operations staff and security tenants. These services are provided by Regional employees and charged back to HCHC. The budget is based on the staffing plan approved in the Social Housing Business Transfer Plan and by Regional Council. The 2007 budget includes a reduction related to the transfer of a position to corporate administration, offset by a 2.82% increase to salaries and benefits. Materials and Services The various costs of maintaining and servicing the properties on an ongoing basis are included under this category and have been broken down into four components: Contracted Services includes landscaping, snow removal, waste removal, security, janitorial, elevators, electrical, heating and plumbing inspections and life safety systems. These budgets have been based on contracted pricing in place or forecasted pricing if the service is to be tendered in the year. Unit Turnover Costs is the average cost of preparing a unit each time a new tenant takes occupancy. The cost includes painting, pest control (if necessary), waste removal, flooring and minor repairs. Staff has estimated the turnover rate for each project based on past experience. For the last two years the unit turnover rate has been relatively stable at approximately 300 households annually. Site Repairs includes minor repairs to the exterior and interior of the units that are generated by tenant requests and site inspections by the property managers. They may also reflect health and safety issues identified in the course of regular inspections. These budgets have been developed by the Property Managers, the Manager, Housing Operations, and the Building Sciences Coordinator, and are based on the condition of the properties and their experience with them. Since these costs are driven mainly by the need for repair, they are very susceptible to fluctuation from year to year. Unit turnovers can significantly influence these costs. 5

6 Appliance Rentals are the rental costs for water heaters in some of the properties. Due to the benchmarking constraints the material and services expenditures for 2007 have been flat lined for the NP portfolio to offset anticipated utility increases. It is forecasted that this will be an area of cost pressure in 2007 and subsequent years. The PH budget reflects a 2.7% increase. Utilities Utilities include electricity, gas and water. Generally, these are the costs of the high-rise buildings within the portfolio, and lighting at the townhouse complexes. Staff has based the budget on 2006 projections with rate changes expected for 2007 as follows: Electricity + 16 % Water + 5% Gas +1.0 % Due to the constraints of the benchmarking formula, the utilities budget has been conservatively estimated resulting in a need for the Corporation to find energy efficiencies if it is to meet the 2007 budget. It is anticipated that this line item will be a budgetary pressure moving forward. Overall, utility costs have been budgeted to increase 7.6% over the 2006 budget. Other Other expenses include insurance, bad debts and the rent supplement program administered by HCHC. Insurance will decrease by approximately 1% over 2006 levels based on the recent renewal of the HCHC General Insurance Policy (see report HC Renewal of General Insurance Policies November 1, 2006 to November 1, 2007). Bad Debts HCHC s level of bad debts is expected to decrease by 7 % in Staff is making a series of process changes to reduce the potential for bad debts to occur. A key change is an increase in early contact with the residents to reinforce the need for timely rent payment. The rental policies of the Corporation provide for a course of action if a resident goes into rent arrears. The Operations Manager and Property Managers review monthly arrears reports and action is taken as appropriate, including the issuance of eviction notices. In , staff made concerted efforts to achieve phone contact with tenants who were in arrears to determine if this approach would increase collections when compared to standard written communication. This additional effort produced positive results, and staff has continued to incorporate direct contact as a routine element of the collections process. HCHC s policy, as approved in Report HC-29-02, calls for retroactive rent adjustments as a result of unreported changes in income to be considered RGI Assistance overpayments and the adjustments will not be booked to rent revenue (but will still be tracked for recovery). Regular rent arrears for current tenants are within an acceptable benchmarked level (0.53% of total potential rent revenue as of October, 2006). 6

7 Corporate Administration The management fee represents the total costs charged by Halton Region for all of the administrative staff within the Housing Division that are dedicated to operating HCHC, and for recoveries for accounting, purchasing, technology, human resources, legal and other administrative services provided by Halton Region. Increases relate to a transfer in a position from on site labour, corporate administration recoveries, and general salaries and benefits. Ontario Senior Citizens Residence (OSCR) As the owner of the OSCR buildings, the Corporation is required to fund the capital replacement needs of OSCR. To assist in funding their capital requirements, OSCR remits to the Corporation its net revenue for the year. The projected remittance for 2007 is $376,700. Capital Reserve Transfer The amount provided in the operating budget for capital reserve financing includes the 2006 financing plus 2.5%. The total amount of funding is near the target that was used for the PH portfolio in the 2001 Social Housing Business Transfer Plan. Expenditures are forecasted at $1,143 per unit for 2006 and have been budgeted at $1,226 per unit in 2007 (a 7.2% increase). Reserve Management The Social Housing Reform Act, 2000 makes the Social Housing Services Corporation responsible for managing a pool of capital reserve funds for prescribed housing providers (including HCHC). Each housing provider has its own account with the firm responsible for managing these funds (Philips, Hager and North), and can access their funds within three business days of requesting them. There are several mutual funds available to housing providers under this arrangement (money market funds, bond funds and equity funds). Consistent with report HC-03-03, HCHC may invest in any of these funds with the exception of the equity fund. HCHC s decisions about which vehicle to select for its capital reserve funds are based on the advice of Halton Region s Portfolio Manager. The objective is to achieve a reasonable rate of return while ensuring the preservation of invested capital. Staff believes this is a responsible approach toward managing these scarce resources, however, this investment strategy will be re-examined in CAPITAL BUDGET 2007 For each housing community, a minor capital budget and a major capital budget have been prepared. The minor capital budget is to fund individual replacement of components such as doors, windows, carpet, etc. The amount of funds provided to each project will remain relatively constant from year to year. This budget will be used for any replacement that is considered capital and will be used by the Building Sciences Co-ordinator in consultation with the Manager, Housing 7

8 Operations and the Property Managers. The majority of the funds will be expended at the time of a unit turnover. Only the amount of actual spending will be drawn from the capital reserve. The major capital budget items are for large-scale projects, such as roof and boiler replacements. These projects may take more than a year to fully complete. As a result funding at the budgeted level will be in place until the project closes. The following table summarizes the funding required and the capital reserve levels over the next five years. Capital Reserve Forecast Opening Balance $7,952,311 $8,308,365 $8,519,327 $8,992,300 $9,550,747 $10,414,555 Contributions from Operations $2,522,560 $2,542,078 $2,605,630 $2,670,771 $2,737,540 $2,805,978 Forecast/Actual Spending ($2,444,837) ($2,621,908) ($2,430,834) ($2,427,054) ($2,208,008) ($1,966,127) Estimated interest Earned $278,331 $290,793 $298,176 $314,730 $334,276 $364,509 Transfer Surplus to Reserves Net Ending Balance $8,308,365 $8,519,327 $8,992,300 $9,550,747 $10,414,555 $11,618,916 In these plans, major components were identified as being replaced en masse for a particular project. Through gradual replacement, the spending pattern is smoothed out over the forecast period. This has resulted in some expenditures being brought forward in the forecast, while others were moved out to later periods. As well, the capital plan calls for replacing some of the building components with better quality replacements. For example, wooden garage doors, which are subject to rotting, are being replaced with longer lasting metal insulated doors. Single pane, wooden sash windows are being replaced with thermal pane, vinyl or aluminums windows. This approach, while creating incremental increases over the forecast period, will minimize maintenance costs in the longer term and increase the life cycle of the components. The capital replacement plan looks at major repairs and replacements that may be completed in the present year or may need to be completed over a number of years in phases. These are items that will increase the capacity, quality or efficiency (i.e. a betterment), or extend the useful life of a capital asset beyond that expected when originally purchased; or is a refit/replacement of an entire item (with a useful life exceeding five years); or is a new item/structure. Capital expenses would include all costs (materials, supplies, services and sub-contracts) associated with the replacement or betterment. 8

9 In 2007, the capital plan will include an Asbestos audit for each HCHC building. The audit will include a physical inspection of all accessible areas to identify the locations of friable and nonfriable asbestos containing material (all in compliance of Ontario Regulation 278/05 Designated Substance Asbestos). Also included in 2007 is the complete window replacement of Brant Street. All the existing windows in this 65-year old building are to be replaced with new energy efficient windows. There will also be a replacement of a number of furnaces within the HCHC townhouse communities with new energy efficient units. Technical Standards and Safety Act (TSSA) has issued a Directors Safety Order for the replacement of a specified braking system. Three elevators have been identified in the HCHC portfolio to be equipped with this braking system and in STATUS OF OPERATIONS AND OUTLOOK 2007 To date, HCHC has been successful in ensuring a high level of service to tenants and applicants. The results from the HCHC s 2006 Tenant survey showed a 93% satisfaction rate. The 2007 budget reflects the continued commitment by staff to increase the efficiency and effectiveness of the services clients receive, while ensuring fiscal responsibility. Initiatives for 2007 include: Finalizing the strategic plan for HCHC in early 2007, building on the Region s Comprehensive Housing Strategy; Following-up on outstanding issues from the tenant survey; Continuing to enhance tenant participation through the Tenant Representative Council; Developing a community development approach for HCHC sites to better meet the needs of tenants, coordinate social service responses, and build capacity with the community; Completing the review of the site staffing model for HCHC properties to ensure that best practices are utilized to meet HCHC s operating principles; Continuing to optimize HCHC s use of technology in its administrative activities by reviewing integration options for work order processes and financial information; Working with the Region to create a strategy to meet future capital requirements of the social housing portfolio; Pursuing alternative sources of funding to meet energy efficiency objectives, including the Social Housing Services Corporation energy management program; and, Working with the Service Manager to continue to advocate to the Province for a fair and adequate funding model for the NP portfolio. 9

10 CONCLUSION Staff views the 2007 budget as a responsible plan to operate and maintain the Corporation s properties in line with the principles established by the Board. Continued focus is required on establishing and growing capital reserves to meet the Corporation s long-term capital replacement needs. Respectfully submitted, Respectfully submitted, Janice Sheehy, Treasurer Halton Community Housing Corporation Rob Cressman, General Manager Halton Community Housing Corporation Approved by Adelina Urbanski Designate Chief Administrative Officer Halton Community Housing Corporation If you have any questions on the content of this report, please contact: Janice Sheehy Tel. # 7041 Kesh Gobardhan Tel. # 4400 Rob Cressman Tel. #

11 Halton Community Housing Corporation Consolidated 2006 Forecast and 2007 Budget Attachment #1 to HC Budget Forecast Budget Revenue Rental Revenue 10,443,488 10,656,315 10,601,466 Government subsidies - operations 8,209,724 7,839,657 8,145,398 Subsidies- RS Commercial 1,015,788 1,015,788 1,048,139 Subsidies- RS Strong Communities 1,383,105 1,320,848 1,486,391 Subsidies RS - Shelter Allowance - 17, ,948 Subsidies RS - Admin Fees 75,097 95, ,242 OSCR net revenue 410, , ,700 Non-rental revenue: Interest earned on working capital 74,685 91,560 91,560 Laundry and parking 48,608 46,038 46,038 Other 29,954 25,595 29,957 Total Revenue 21,690,449 21,518,965 22,135,839 Expenses Non-controllable Mortgage 5,583,506 5,371,342 5,377,476 Municipal taxes 3,037,230 2,860,406 2,978,512 Rent supplement - Commercial 1,047,300 1,015,788 1,048,139 - Strong Communities 1,426,690 1,320,848 1,486,391 - Shelter Allowance - 17, ,948 11,094,726 10,585,630 11,096,466 Controllable On-site labour 925, , ,204 Materials and services 2,507,215 2,605,156 2,559,563 Utilities 2,299,983 2, ,474,576 Insurance 220, , ,382 Bad debts 107, , ,000 Corporate administration 1,982,047 2,077,767 2,216,260 Other 31,306 31,310 31,310 8,073,163 7,912,915 8,497,295 Total expenses 19,167,889 18,498,545 19,593,761 Excess revenues over expenses 2,522,560 3,020,420 2,542,078 Transfer to capital reserves HHC 1,722,460 1,722,460 1,765,523 OSCR 410, , ,700 HNPHC 390, , ,855 2,522,560 2,522,560 2,542,078 Surplus for the year - 497,860-11

12 Halton Community Housing Corporation Non Profit Portfolio 2006 Forecast and 2007 Budget Budget Forecast Budget Revenue Rental Revenue 4,525,316 4,632,639 4,643,790 Government subsidies 5,429,542 5,059,475 5,187,378 Non-rental revenue: Interest earned on working capital 74,685 91,560 91,560 Laundry and parking 48,608 46,038 46,038 Other 18,618 18,595 18,595 Total Revenue 10,096,769 9,848,307 9,987,361 Expenses Non-controllable Mortgage 5,583,506 5,371,342 5,377,476 Municipal taxes 1,517,168 1,432,695 1,490,863 7,100,674 6,804,037 6,868,339 Controllable On-site labour 366, , ,630 Materials and services 773, , ,125 Utilities 518, , ,858 Insurance 89,290 84,566 88,791 Bad debts 80,508 74,000 74,000 Corporate administration 757, , ,649 Other 20,113 20,114 20,114 2,605,995 2,561,487 2,719,167 Total expenses 9,706,669 9,365,524 9,587,506 Excess revenues over expenses 390, , ,855 Transfer to capital reserves 390, , , , , ,855 Surplus (deficit) for the year - 92,683-12

13 Halton Community Housing Corporation Public Housing Portfolio 2006 Forecast and 2007 Budget Budget Forecast BUDGET Revenue Rental Revenue 5,918,172 6,023,676 5,957,676 Government subsidies 2,780,182 2,780,182 2,958,020 Government subsidies - debentures Subsidies- RS Commercial 1,015,788 1,015,788 1,048,139 Subsidies-RS Strong Communities 1,383,105 1,320,848 1,486,391 Subsidies RS - Shelter Allowance - 17, ,948 Subsidies RS - Admin Fees 75,097 95, ,242 OSCR net revenue 410, , ,700 Non-rental revenue: Other 11,336 7,000 11,362 Total Revenue 11,593,680 11,670,658 12,148,478 Expenses Non-controllable Debentures Municipal taxes 1,520,062 1,427,711 1,487,649 Rent supplement - Commercial 1,047,300 1,015,788 1,048,139 - Strong Communities 1,426,690 1,320,848 1,486,391 - Shelter Allowance - 17, ,948 3,994,052 3,781,593 4,228,127 Controllable On-site labour 558, , ,574 Materials and services 1,733,348 1,779,429 1,780,438 Utilities 1,781,909 1,642,741 1,941,718 Insurance 130, , ,591 Bad debts 26,571 26,000 26,000 Corporate administration 1,224,524 1,284,023 1,369,611 Other 11,193 11,196 11,196 5,467,168 5,351,428 5,778,128 Total expenses 9,461,220 9,133,021 10,006,255 Excess revenues over expenses 2,132,460 2,537,637 2,142,223 Transfer to capital reserves HHC 1,722,460 1,722,460 1,765,523 OSCR 410, , ,700 2,132,460 2,132,460 2,142,223 Surplus for the year - 405,177-13

14 Attachment #2 to HC Capital Budget 2007 Proposed 2007 Halton Community Housing Corporation Capital Budget and Proposed 5-Year Capital Plan Public Housing $1,316,204 $1,397,717 $1,461,969 $1,373,520 $1,257,308 $1,286,344 Per Unit Cost PH $1,236 $1,312 $1,373 $1,290 $1,181 $1,208 HNPHC $1,050,422 $885,345 $770,498 $697,601 $588,738 $619,866 Per Unit Cost HNPHC $1,429 $1,205 $1,048 $949 $801 $843 Total Capital HCHC (PH & (HNPHC) $2,366,626 $2,283,062 $2,232,467 $2,071,121 $1,846,046 $1,906,210 Per Unit Cost HCHC $1,315 $1,268 $1,240 $1,151 $1,026 $1,059 OSCR $165,486 $108,356 $161,649 $106,913 $102,281 $122,370 Per Unit Cost OSCR $488 $320 $477 $315 $302 $361 Brant Court $89,796 $39,416 $32,938 $29,974 $17,800 $20,501 Per Unit Cost Brant - 16 $5,612 $2,464 $2,059 $1,873 $1,113 $1,281 Total HCHC Including OSCR & Brant Court HCHC per Unit Cost including OSCR & Brant Court (2155) $2,621,908 $2,430,834 $2,427,054 $2,208,008 $1,966,127 $2,049,081 $1,226 $1,128 $1,126 $1,025 $912 $951 Total Capital HCHC $2,621,908 $2,430,834 $2,427,054 $2,208,008 $1,966,127 $2,049,081 $1,004,165 $682,742 $699,503 $711,046 $752,373 $784,355 $1,617,743 $1,748,092 $1,727,551 $1,496,962 $1,213,754 $1,264,726 Total Capital HCHC $2,621,908 $2,430,834 $2,427,054 $2,208,008 $1,966,127 $2,049,081 14

15 708 & 710 Brant Street, Brant Court - Apt - 16 units 2007 SAP LOCATION: 0034 & ) Unit Reparatons include asbestos audit, wall & ceiling repairs, painting, 18,544 exterior upgrades 2) Flooring 4,588 3) Bathroom / laundry upgrades toilets, tubs, sinks, plumbing 7,512 Total 30,644 1) Grounds upgrade including tree removal/drainage 10,025 2) Laundry and Venting stack upgrades 8,554 3) Building intercom system 8,789 4) Masonry and flashing 8,669 5) Windows 23,115 Total 59,152 Total Capital Budget $89, Burloak - TH - 54 units 2007 SAP LOCATION: ) Interior/exterior reparations include asbestos audit 15,663 2) Tub surround/bathroom reparations 12,662 3) Flooring replacement 11,470 Total 39,795 1) Exterior wall reparations including closet doors 14,589 2) Grounds upgrades fencing & hard/soft surfaces 14,997 3) Drainage, foundations and walkway reparations 14,554 4) Furnace replacements 5,736 Total 49,876 Total Capital Budget $89,671 15

16 8 Durham Street - John Armstrong Terrace - APT - 89 units SAP LOCATION: ) Interior/exterior reparations (painting)/flooring/doors/asbestos audit 24,145 2) Tub surround/interior reparation 8,996 3) Appliances 4,858 4) Floor replacements 8,996 Total 46,995 1) Exterior reparations -walls/balcony 6,585 2) Roof reparations 10,554 3) Site upgrades curbs, concrete sod/asphalt 6,441 4) Plumbing & heating upgrade system 4,677 5) Non slip ceramic tile installation in hallways and common room on first 25,441 floor. Total Total 53,698 Total Capital Budget $100, Elizabeth Drive, Lakeview Villa - Apt - 52 units 2007 SAP LOCATION: ) Flooring replacements 7,584 2) Tub surround & bathroom reparations 5,889 3) Appliances 3,275 4) Interior reparations including asbestos audit 13,665 Total 30,413 1) Exterior deck reparations 4,991 2) Stucco/repairs & paint of mechanical equipment 8,554 3) Roof reparations of steel roof 5,875 4) Storm door replacements 4,552 5) Grounds/front steps upgrade/replacement 5,366 6) Insulated glass replacement 2,122 7) Foundation reparations- grade concerns 5,382 8) Caulking & eaves 6,554 9) Flashing reparations 2,544 Total 45,940 Total Capital Budget $76,353 16

17 Elm Road - TH - 54 units 2007 SAP LOCATION: ) Interior/exterior reparations including asbestos audit 13,225 2) Tub surround & sinks/toilets 8,658 3) Flooring replacements 10,428 Total 32,311 1) Grounds upgrade - additional parking spaces, resurfacing of lots and 62,445 roadway & fencing 2) Foundation/exterior building envelope reparations 18,995 3) Furnaces replacements 9,655 4) Replace paver walkways with concrete & front step adjustments 17,554 Total 108,649 Total Capital Budget $140, Holmesway Place - TH - 18 units 2007 SAP LOCATION: ) Flooring replacements 7,959 2) Bathroom reparations 3,547 3) Kitchen cabinets & counters 8,203 4) Interior/exterior reparations-basement fresh air vents, asbestos audit 7,655 Total 27,364 1) Grounds upgrade/foundations/retaining walls 8,111 2) Retaining wall/ground reparations 3,637 3) Sump pump replacements 2,451 Total 14,199 Total Capital Budget $41,563 17

18 46 Holmesway Place, Braeside - Apt - 12 units 2007 SAP LOCATION: ) Interior/exterior reparations include asbestos audit 8,654 2) Appliances 1,700 3) Flooring 5,654 Total 16,008 1) Plumbing replacements (hard water) 5,122 2) Service doors 3,184 3) Exterior reparations & sewage and site drainage 9,548 4) Emergency lighting 4,775 Total 22,629 Total Capital Budget $38,637 3 Hyde Park Drive, Kin Court - Apt - 24 units 2007 SAP LOCATION: ) Interior/exterior reparations include asbestos audit 12,854 2) Tub surround & bathroom reparations 4,658 3) Appliances & water heaters 1,700 4) Flooring replacements 5,421 Total 24,633 1) Reparations to grounds and trees 4,574 2) Fence board replacement and repairs 4,857 3) Electrical panel replacement 17,114 Total 26,545 Total Capital Budget $51,178 18

19 271 Kerr Street, John R. Rhodes Residence - Apt units SAP LOCATION: ) Appliances 3,275 2) Tub surround & bathroom reparations 12,445 3) Painting 12,568 4) Unit upgrading including painting, flooring replacement tiles, carpet, 18,557 furniture and asbestos audit Total 46,845 1) Exterior reparations & balcony and masonry reparations 20,014 2) Recirculating pumps & Hot water piping 3,991 3) Windows & flashing water tight reparations and painting 5,245 4) Grounds upgrade parking lot/concrete/tree removal 15,442 5) Flooring/expansion joints reparations 5,226 6) Roof reparations 5,757 7) Interior reparations-4th painting, carpet, ceiling tiles in common areas 71,002 Total 126,677 Total Capital Budget $173, Longmoor Drive - Apt units 2007 SAP LOCATION: ) Interior/exterior reparations include furniture & asbestos audit 19,889 2) Flooring replacements 13,254 3) Toilets/tubs/sinks 4,357 4) Appliances 3,275 Total 40,775 1) Drainage upgrade 9,545 2) Exterior wall reparations, windows & doors 24,578 3) Exterior lighting ground floor 3,599 4) Corridor air make up unit reparations 10,023 Total 47,745 Total Capital Budget $88,520 19

20 Margaret Drive - TH - 48 units 2007 SAP LOCATION: ) Interior/exterior reparations include asbestos audit 13,225 2) Tub surround & interior reparations 10,096 3) Flooring replacements 11,054 Total 34,375 1) Foundations 10,358 2) Window & door replacement 9,458 3) Unit hot water boiler replacement/upgrades 9,645 4) Roof reparations 12,554 5) Caulking & painting/exterior wall finishes 8,717 6) Fence reparations 5,844 Total 56,576 Total Capital Budget $90, Maurice Drive, TH/APT - 60 units 2007 SAP LOCATION: ) Flooring replacements 11,537 2) Appliances 1,700 3) Replace int. closet doors & medicine cabinets 4,555 4) Tub surround & interior reparations 5,864 5) Interior/exterior reparations include asbestos audit 20,114 Total 43,770 1) Furnace Replacement 4,891 2) Grounds upgrade/cracked patio & foundations 18,895 3) Kitchen cabinets & countertops 13,672 4) Roof replacements 18,445 Total 55,903 Total Capital Budget $99,673 20

21 40 Ontario Street South, Bruce Apartments - Apt - 88 units SAP LOCATION: ) Flooring 6,738 2) Interior/exterior reparations include asbestos audit 11,256 3) Tub surround & interior reparations 9,443 4) Appliances 3,275 Total 30,712 1) Asphalt/concrete/curbs/walks/interlock/drainage 5,610 2) Exterior wall/balcony reparations 6,684 3) Building service piping and Air Make up replacement 35,114 4) Upgrade bushes and fencing in corner unit 8,996 Total Major Budget 56,404 Total Capital Budget $87, Ontario Street North, Harmony Court - Apt SAP LOCATION: ) Flooring replacements 4,295 2) Appliances 3,275 3) Painting 6,376 4) Tub surround & bathroom reparations 4,775 5) Interior/exterior reparations incldue asbestos audit 9,554 Total 28,275 1) Grounds upgrade incl. Parking lines 5,327 2) Window replacement 5,064 3) Upgrade to signage 4,558 4) Plumbing & heating upgrade including service piping replacement & #2 8,422 boiler 5) Exterior reparations including bushes and fence 7,445 6) Interlock replacement 7,984 7) Caulking and cap beading 7,841 Total 46,641 Total Capital Budget $74,916 21

22 Lakeshore Road West, Oakville Senior Citizens Residence (OSCR) - 2 Apts units SAP LOCATION: 0029 & ) Appliance upgrade 4,655 2) Flooring including carpet replacement in common areas 45,785 3) Common space & unit reparations 24,558 4) Interior/exterior reparations include asbestos audit 7,500 Total 82,498 1) Interior upgrade to lobby including accessible front entrance doors 40,221 2) Hot water heating valves/stats/pipe replacement (apts) 7,545 3) Air make up unit and exhaust fan replacement 35,222 Total 82,988 Total Capital Budget $165, Pinedale Avenue - Apt units 2007 SAP LOCATION: ) Flooring 11,322 2) Tubs/toilets/sinks/tub surround 10,041 3) Interior/exterior reparations including ceiling tiles/grids, furniture & asbestos 13,558 audit 4) Appliances 3,275 Total 38,196 1) Replace interior fire doors & service doors 6,224 2) Building service piping 3,075 3) Exterior reparations to building elements 8,954 4) Distribution equipment 5,698 5) Corridor air make up units 15,019 6) Caulking & cap beading 7,899 Total 46,869 Total Capital Budget $85,065 22

23 11 Sargent Drive, Sargent Court - Apt - 38 units 2007 SAP LOCATION: ) Interior/exterior reparations include asbestos audit 10,995 2) Flooring replacements 7,428 3) Bathroom reparations 4,775 4) Appliances 2,111 Total 25,309 1) Sidewalks, patios & grounds grading upgrades 10,254 2) Drainage upgrade to downspouts at patios 9,457 3) Exterior building component upgrade including roof/downspouts/wall 32,366 upgrades Total 52,077 Total Capital Budget $77, Brays Lane - TH - 56 units 2007 SAP LOCATION: ) Flooring 10,084 2) Appliances 3,275 3) Interior/exterior reparations incldue asbestos audit 11,252 Total 24,611 1) Exterior caulking,railing,paint,walls 8,154 2) Garage doors 12,554 3) Grounds - concrete/interlock/stairs/playgrounds/uneven surfaces 17,548 4) Eave/downspouts & roofs 10,224 5) Furnace and water heater replacement 46,221 Total 94,701 Total Capital Budget $119,312 23

24 1150 Dorval, Abbeyview - Apt - 50 units 2007 SAP LOCATION: ) Interior/exterior reparations including common space painting & asbestos 23,551 audit 2) Appliances 3,275 3) Carpet Replacement 9,889 4) Tub Surround Replacement 5,492 5) Common space painting and flooring upgrade 9,588 Total 51,795 1) Stucco & Exterior wall reparations 11,254 2) Reparations to ceiling of drivethru at front parking garage & exterior 20,114 reparations 3) Boiler #2 replacement & A/C cooling unit 11,444 4) Installation of Sheave Jammers/Hollister Whitney Rope Brakes 9,500 5) Exterior landscape & garbage containment area upgrades 10,002 Total 62,314 Total Capital Budget $114, Glen Valley Road, Glen Valley Place, TH - 55 units SAP LOCATION: ) Interior/exterior Reparations including asbestos audit 11,283 2) Appliances 3,275 3) Carpet & linolium flooring to tile conversion 22,212 4) Tubs & bathroom reparations 15,778 Total 52,548 1) Foundation & ext. reparation & sinking basements 10,999 parking lot lines & speed bump & playgrounds 2) Exterior reparations 14,884 3) Furnace replacement 19,114 4) Roadway and parking lot upgrades 6,354 Total 51,351 Total Capital Budget $103,899 24

25 2250 Golden Briar Trail, Golden Briar Heights - TH - 88 units SAP LOCATION: ) Interior/exterior reparations incl. plumbing & asbestos audit 10,996 2) Appliances 3,275 3) Carpet/tile replacement 9,588 Total 23,859 1) Grounds reparations:concrete, garden beds/walls, 19,554 regrade,drainage,interlock, foundation, steps (66-76) 2) Water heaters 3,215 3) Furnace replace/upgrades 9,621 4) Interlock reset 7,001 5) Exterior & roadway/parking upgrades including lighting and bushes 14,335 removal 6) Front posts reconstruction 6,101 7) Roof replacements 12,212 Total 72,039 Total Capital Budget $95, John Street, Wellington Terrace - Apt units SAP LOCATION: ) Interior/Exterior reparations including windows & asbestos audit 11,225 2) Insuite carpet 11,891 3) Appliances 3,275 Total 26,391 1) Exterior reparations 6,981 2) Installation of Sheave Jammers/Hollister Whitney Rope Brakes for 18,900 elevators 3) Heater/cooling unit common room 15,233 Total 41,114 Total Capital Budget $67,505 25

26 1300 Maple Crossing - TH - 91 units 2007 SAP LOCATION: ) Carpet to tile conversion 18,554 2) Interior/exterior reparations & asbestos audit 20,998 Total 39,552 1) Grounds upgrade-speed bumps, 11,025 concrete, plant life, walkway pavers front, playgrounds 2) Furnace Replacement & cooling unit installation 25,114 3) Garage overhead doors 3,899 4) Exterior and roof replacement 21,001 5) Interlock replacement with concrete 10,245 Total 71,284 Total Capital Budget $110, Sheridan Garden Drive, Sheridan Woods - TH - 52 units SAP LOCATION: ) Water heater/furnace replacement ( no blue flame) 9,738 2) Appliances 3,275 3) Flooring 9,658 4)Tubsurround replacements 6,995 5) Mailbox replacement 5,991 6) Interior/exterior reparations including shower valves & asbestos audit 10,002 Total 45,659 1) Roof replacement 23,451 2) Exterior reparation to front steps/siding/brick due to failing 8,114 3) Landscape rehabilitation hard and soft surfaces 12,554 4) Garage door replacement 7,600 Total 51,719 Total Capital Budget $97,378 26

27 1531 Sixth Line, Donaghey Square - TH - 32 units 2007 SAP LOCATION: ) Appliances 3,275 2) Interior/exterior reparations including asbestos audit 11,365 3) Replacement of interior closet doors 4,965 4) Vinyl flooring 8,627 Total 28,232 1) Playground retrofit 3,910 2) Roof & siding replacements 7,233 3) Exterior Wall Reparations - painting, caulking and brick work 13,668 4) Grounds upgrade including perimeter fencing upgrades 5,211 5) Heating & A/C units & Domestic Hot water system-replace 3,972 Total 33,994 Total Capital Budget $62, /515 Walkers Line & 4105 Longmoor Drive, Walkers Landing - TH/Apt units SAP LOCATION: 0008, 0010 & ) Carpet/tile replacement(units & common space) 23,558 2) Interior/exterior reparations includes furniture & asbestos audit 23,252 3) Appliances -friges 15,225 4) Furniture 4,968 Total 67,003 1) Garage door replacements (54-63 & 68-72) 25,500 2) Roof & eaves replacement Townhouses and Apt. 62,585 3) Interlock reparations - safety 5,227 4) Heating system replacement 10,225 5) Exterior repairs-grounds/foundations/playgrounds 12,554 Total 116,091 Total Capital Budget $183,094 27

28 2300 Walkers Line, Walkers Fields - TH - 57 units 2007 SAP LOCATION: ) Interior/exterior reparations include asbestos audit 11,999 2) Vinyl Flooring 10,323 3) Appliances 3,275 Total 25,597 1) Landscape replace/upgrades -asphalt, steps, foundations grading/prune, speedbumps, front steps 13,224 2) Roof replacements 29,545 3) Heating system replacements 11,251 4) Water tank replacements 4,774 5) Window replacement 3,220 6) Mailbox replacement include ground reparations with concrete pads for 8,554 mailboxes and garbage area Total 70,568 Total Capital Budget $96,165 28