Forecasting the Future. Addressing efficiencies in the future

Transcription

1 Forecasting the Future Addressing efficiencies in the future

2 Forecasting the Future: Addressing efficiencies in the future Chair: Ingrid Fife, Member of CIH Influence Board Will Perry, Director of Strategy, HouseMark Neil Hadden, Chief Executive, Genesis HA Howie Wong, Chief Executive Officer, Housing Services Corporation, Canada

3 Will Perry Director of Strategy, HouseMark

4 Efficiency step 1 Wdyjsoytsagadslbi?

5 Efficiency (Warning: may contain mild egg-sucking) Act here Inputs Process Outputs

6 So far, so simple, but

7 Why bother? Non bullet pointed text (Arial 24). Sentence case is used Text is allowed to wrap automatically A carriage return provide you with a new paragraph. Italics can be used for emphasis.

8 Think investment?

9 Think commercial? Non bullet pointed text (Arial 24). Sentence case is used Text is allowed to wrap automatically A carriage return provide you with a new paragraph. Italics can be used for emphasis.

10 Think collaborative?

11 Conclusion Nothing is less productive than to make more efficient what should not be done at all. Peter Drucker The worst enemy of life, freedom and the common decencies is total anarchy; their second worst enemy is total efficiency. Aldous Huxley

12 Will Perry Director of Strategy HouseMark

13 Forecasting the Future Addressing efficiencies in the future

14 Addressing efficiencies in the future Neil Hadden, CEO Genesis Housing Association

15 Contents Genesis who are we? Our transformation programme Our vision Socially hearted, commercially minded Our approach to asset management Concluding thoughts

16 Stock location 18

17 Tenure split Tenure General needs Care and support 2861 Temporary housing 3518 Leasehold and shared ownership 5640 Key worker accommodation 1211 Non-social housing 3016 Under management Pipeline 2013/

18 Genesis Way targets Recurring savings Staffing structure Reduce duplication of function and identify gaps Allows Genesis to operate more efficiently in a lower cost environment Procurement More robust contract management, improving value for money for Genesis and residents 4m 4m Better ways of working Leaner, more efficient processes focused on customers New, more effective systems eg customer relationship management tool 2m TOTAL SAVINGS 10m One off savings Office accommodation 2.5m

19 Our vision To be a leading property based service provider

20 Our corporate strategy Provide consistent and reliable services Maintain a healthy financial position Develop an effective and efficient organisation Invest in our workforce Optimise the value of our portfolio

21 Socially hearted, commercially minded Sector debating its purpose and objectives Welcomes new freedoms but wary of risks For some, moving away from our roots For others, liberating, more autonomy Concerns around welfare reform and affordable rent Mergers more likely to be about increasing capacity Does the sector have the right skills Focus on value for money and better asset management New partnerships emerging eg health Need to measure social value

22 Key elements of IPD performance measurement standard Performance measurement and reporting on a continuous and regular basis Primary focus on activities related to investing in developing and managing property Adoption of generally accepted definitions underlying these activities Measurement on activity based costing basis Measurement of cash flows on accrual basis Comprehensive measurement all property related activities Measurement on basis of external value gross OMV External valuation of cash flows and values

23 Total return per segment %per segment all schemes 10% Income Return Capital Growth Total Return 5% 0% 8.5% 7.8% 3.9% 0.4% -5% -10% -15% -12.4% -20% Source: IPD Social Housing Index Pilot Phase 2 March 2012

24 Social dividend Standing investments 350 Net Income (n.i) Source: IPD Social Housing Index Pilot Phase 2 March 2012

25 Total return per segment All property - segments Source: IPD Social Housing Index Pilot Phase 2 March 2012

26 Income return All property Source: IPD Social Housing Index Pilot Phase 2 March 2012

27 Social dividend Standing investments estimated market comparable income return Genesis Benchmark Source: IPD Social Housing Index Pilot Phase 2 March 2012

28 Concluding thoughts Greater autonomy and independence We face market pressures, requiring discipline Focus on efficiency We create our own futures

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30 Forecasting the Future Addressing efficiencies in the future

31 Howie Wong Chief Executive Officer, Housing Services Corporation, Canada

32 Background on the Canadian Social Housing Sector Rental housing only Offered to tenants for 30% of gross income (historically was 25%) Governed by federal, provincial and municipal regulations Built with government capital subsidies, financial guarantees Received time-limited operating subsidies In Ontario, administration and funding of social housing downloaded to local governments with a fixed tax base Housing downloaded along with social services High percentage of vulnerable tenants, but limited supports Growing waiting lists, aging stock, rising capital costs

33 Social Housing: Canada & Ontario Social Housing in Canada = 630,000 units 3% 3% 2% 3% Non-Profit Canada s Housing Market 10% 46% Public Co-Op Private Rent Supplement 68% home ownership 26% private sector rentals 33% Non-Profit Rent Supplement Urban Native Affordable Rental (new) 6% social housing sector

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35 Ontario Sector Overview Top 10 providers by number of units 1 Toronto Community Housing Corporation (TCHC) 58,326 2 Ottawa Community Housing Corporation (OCHC) 14,829 3 Peel Living 8,000 4 CityHousing Hamilton (Hamilton Housing Corp.) 7,034 5 Windsor-Essex Community Housing Corporation (WECHC) 4,708 6 London & Middlesex Housing Corporation 3,772 7 Ontario Aboriginal Housing Support Services Corporation 3,000 8 Regional Municipality of Waterloo 2,689 9 Niagara Regional Housing Inc. 2, Victoria Park Community Homes Inc. (ALL) 2, providers have less than 50 units 556 providers have units Only 24 providers have more than 1000 units

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37 Sector Challenges Fragmentation of Administration = Loss of Sector Mindset: Declining budgets, competing social services and infrastructure priorities have prompted local authorities to focus on local bottom line Lack of consistent data and processes Housing run by property managers vs. housing professionals Vast geography, miniscule size and scale of providers Small, disparate collection of providers cottage industry Historical schisms Rules impede mergers, entry into non-rental marketplace Download took housing off of the political map: Dwarfed by bigger priorities (e.g. healthcare) Housing is a voter issue; focus on people, not buildings

38 Overcoming the Challenges HSC is working with a coalition of the willing on moving the yardstick: Collaboration, partnerships, and joint ventures on back office services Improving data management and the case data makes Exploring alternate financing for development and redevelopment Professionalize housing by establishing educational path and standards for practitioners

39 Building Asset Social Impacts Funding Opportunities Data Management The download impacted data sharing and data consistency. Moreover, it has necessitated the strategic use of data. Quantify the financial state and building needs: Asset planning software Capital reserves Expiring subsidies Rent arrears database Province-wide housing management system Measure the impacts of policy decisions on residents: Correlation between building risk and vulnerable tenants Resident satisfaction surveys Evidence-based research on the social determinants of health, social return on investment, human services integration Open access to nontraditional pools of gov t funding: - Health budgets - Homelessness eradication - Social finance Mobilize collective scale to access financial markets for: - Refinancing - Development and redevelopment

40 Alternate Financing Worldwide demand for metals and minerals resources has impacted housing supply in northern Ontario, created housing shortage Local governments engaging industry to co-fund housing strategy Local governments working together to examine alternative financing opportunities for development and redevelopment (e.g. community bonds) Opportunity to create a model with transferable potential for other parts of Ontario, manage issues of size and scale

41 Professionalization Rebuild sector consciousness, manage the demographic shift and evolve cottage industry business approach by professionalizing the sector Partnering with Chartered Institute of Housing to create CIH Canada Enable people to deliberately choose housing as a profession Create advocates through education and thinking beyond the property management lens Support rebuilding of professional and sector standards

42 Howie Wong CEO, Housing Services Corporation 30 Duncan St., Suite 500 Toronto, ON Canada M5V 2C3 P: Toll Free: F: E: hwong@hscorp.ca

43 Forecasting the Future Addressing efficiencies in the future

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45 IMPORTANT INFORMATION Please note the following changes in session timings: The Housing Minister s session will now take place at 12:45 pm to 1:30 pm on Thursday 27 June Other changes to session timings: Spotlight session Delivering more for and with local rural communities 11:30 am to 12:15 pm on Thursday 27 June Think Tank Best Practice Welfare reform: the impact on customers 11:30 am to 12:15 pm on Thursday 27 June

46 Savills is delighted to be a sponsor at the CIH Conference & Exhibition 2013 Visit us at Stand D14

47 Be proud to be professional Join our new campaign at CIH stand E32

48 Fast track your housing career with our new online learning experience

49 Five great reasons to be a CIH member

50 Delivering housing with care and support for older people September 2013, Solihull Book your place:

51 If you found this session useful, other sessions you might like.. Ministerial Session Thursday Exchange Auditorium Conference summary where next for housing? Thursday 2.15 The Hub