Increasing Leadership Capacity in the Non-Profit Housing Sector

Transcription

1 Increasing Leadership Capacity in the Non-Profit Housing Sector CHRA Congress, Montreal April 13 th 2016 Steve Pomeroy Focus Consulting Inc. & Carleton University Centre for Urban Research and Education (CURE), Ottawa

2 Why we need to increase leadership Evolving context capacity in sector? Traditional social housing approach unsustainable and underperforming Sector needs to evolve/transform for new context 2

3 Research for Housing Partnerships Canada Business Transformation Best Practices for Social and Affordable Housing (2015) 3

4 Literature review Social Enterprise A social enterprise is an organization or venture that achieves its primary social or environmental mission using business methods.. Social enterprises build a more just, sustainable world by applying market-based strategies to today's social problems. Social Enterprise Alliance More commonly the term [social enterprise] refers to the use of revenue-generating business-like activities to accomplish, at least in part, a socially beneficial end. 4

5 International Literature review Concept of Hybrid organizations Rather than relying on state subsidies, these organizations use limited state support to lever private development capital and to pursue commercial profits for social ends (Blessing, 2012) Paul Tenant (CIH) concept of profit for purpose 5

6 HPC case studies Survey Identified 31 organizations Varying degrees of new activity from minor (1/3) to significant (over ½) 6

7 12 Case Studies: Findings Four types of strategies Cost efficiency and growth Levering core competencies (Commodification) Innovation and enterprise Enabling and facilitating 7

8 Conclusions HPC Study Some evidence of organization change, but most quite modest Broadening and augmenting traditional roles, rather than fundamental shift, Increasing efforts to become more self sufficient (limits of public funding) To date EOA not really a key driver Strong visionary leadership a factor Key role for funder/enablers to enable 8

9 Calgary Non-Market Housing Real Rationale: Estate Strategy (underway) Funding for social/affordable housing is minimal Sector needs to create new sources of funding/capital Potentially existing assets can be part of a more sustainable system Expiring federal operating agreements creates both some challenges but also some opportunities 9 Steve Pomeroy Focus Consulting Inc.

10 Examined international experience Netherlands Bruttering UK social/affordable rent and asset leverage San Diego Public Housing Leverage South Africa Creating sustainable sector Western Australia develop to reinvest And Some Canadian examples: New Brunswick Housing Alternatives co-op consolidation BC Housing transfer of provincial assets to community NPs 10 Steve Pomeroy Focus Consulting Inc.

11 Lessons from International examples What makes them different and inspiring? All separate asset from rental support Use their asset base and corporate balance sheet to lever financing for expansion Partner with gov t, but lever their accumulated assets (i.e. not wholly dependent on govt $) Entrepreneurial, creative, opportunistic and pro-active Concept of profit for purpose vs. Not for profit 11 Steve Pomeroy Focus Consulting Inc.

12 Insights and options Create capacity to build equity for reinvestment (long term sustainability and increased self reliance) With low rents, property valuations are low or negative (but can rectify) What s necessary to optimize potential financial leverage? Need scale to be professional and investible 12 Steve Pomeroy Focus Consulting Inc.

13 Calgary case studies Examined three portfolios Mix of federal. Provincial and post 2001 IAH (capital only) All viable, all have surpluses and sound reserves and potential leverage Critical constrain is staffing and expertise and to some degree Board culture 13

14 Leadership Required HPC showed that strong visionary leadership is important Fragmented Sector, many small providers = weak leadership (and weak governance) And inability to amass and lever small bits of potential asset value A real estate/asset based approach demands different expertise and skills than social service delivery A sustainable sector requires sustainable providers 14

15 Thank you! Additional background reports available at 15