Saskatchewan Housing Corporation. Annual Report for saskatchewan.ca

Transcription

1 Saskatchewan Housing Corporation Annual Report for 2017 saskatchewan.ca

2 Table of Contents Letter of Transmittal...1 Message from the Minister...2 Message from the Assistant Deputy Minister, President and CEO...3 Message from the Board Chair...4 Introduction...5 Alignment with Government s Direction...5 Corporation Overview...6 Progress in Management Discussion and Analysis...19 Corporate Governance...45 For More Information...47

3 Letter of Transmittal His Honour, the Honourable W. Thomas Molloy, Lieutenant Governor of Saskatchewan May it Please your Honour: I respectfully submit the Annual Report of the for the fiscal year ended December 31, This report includes the financial statements in accordance with The Act. Respectfully Submitted, Paul Merriman Minister Responsible for 1

4 Message from the Minister As the Minister responsible for (SHC), I am honoured to play a role in ensuring that Saskatchewan people have access to safe, quality housing that meets their needs and that they can afford. This Annual Report for SHC outlines the activities and achievements for the fiscal year ending December 31, It reports on the progress made in regards to Government s vision, public commitments and other key accomplishments of the Corporation. One of SHC s main goals is making sure people in need have a home. Through SHC, we provide access to affordable, suitable and adequate housing to people in need in partnership with federal and municipal governments, builders, lenders, non-profit organizations and housing authorities. Since November 2007, our Government has invested more than $781 million to develop more than 11,700 units and repair 4,395 homes around the province. Now that the Government of Canada has released its National Housing Strategy, Saskatchewan is committed to continuing to work with both the Federal Government and our municipal partners to address the housing needs of Saskatchewan citizens. We look forward to receiving more details about what the Strategy will mean for Saskatchewan so we can capture every opportunity to develop new affordable housing, reduce homelessness, and ensure there is adequate Social Housing stock for future generations. I would like to take this opportunity to commend our partners, the SHC Board of Directors, senior management and staff for their vision and sheer hard work to meet the needs of Saskatchewan citizens who require our programs and services. While there is still more work to be done for people in need across Saskatchewan, I am proud of the work that has been done to support the citizens we serve. Paul Merriman Minister Responsible for 2

5 Message from the Assistant Deputy Minister, President and CEO I am pleased to present the 2017 Annual Report for the (SHC). Through the SHC, we provide affordable, accessible housing to people in need and give them the foundation they need to improve their quality of life. We seek to find ways to best use our existing housing programs and services, and to ensure that they remain sustainable for the future. We strive to better meet the housing needs of low-income people and families, those who are hard-to-house and those with complex needs. Partnerships are key to this important work. We continue to collaborate with housing stakeholders across the province to create efficiencies and opportunities, exchange information, and find ways to best use our existing housing assets. I am proud of the excellent work that has been done over the past year to support the clients we serve each and every day, and to ensure that SHC continues to respond to current and future realities in the housing system. I am confident that we will continue to meet the opportunities and challenges that lie ahead as we work together to ensure that all Saskatchewan people have access to adequate, safe and secure shelter to ensure a chance at a brighter future in this province. Raynelle Wilson Acting Assistant Deputy Minister, President and CEO 3

6 Message from the Board Chair On behalf of the Board of Directors, I am pleased to present this report on Saskatchewan Housing Corporation s accomplishments for As someone who is involved in the housing industry and as Chairman of the Board, I have been privileged to see how the Corporation affects the lives of Saskatchewan people in need of housing. We work at multiple levels with multiple partners to help provide affordable housing options, and ensure good stewardship of the resources entrusted to us. This annual report showcases SHC s accomplishments in this regard over the past year. I am proud of SHC s achievements in Much work has been done to respond to people in greatest housing need. In speaking of our accomplishments, we readily acknowledge that we did not do this important work alone. We extend our thanks and appreciation to all of our partners who made these results possible. We, as the Board, are dedicated to serving as stewards of SHC and will continue to bring together the necessary elements to enable the Corporation to further contribute to the overall quality of life of Saskatchewan people, particularly in the area of safe, quality and affordable housing. I believe that the achievements outlined in this report, along with our solid partnerships and the commitment and dedication of our Board, management and staff, will ensure the success of our Corporation now and in the years to come. Keith Hanson, P.Eng. Chair, Board of Directors 4

7 Introduction This Annual Report for the (SHC) presents the results and outcomes of the Corporation s activities for the fiscal year ending December 31, It reports to the public and elected officials on the progress made in regards to Government s public commitments and other key accomplishments of the Corporation. The 2017 Annual Report is presented in relation to Government s vision and four goals as well as the Saskatchewan Plan for Growth Vision 2020 and Beyond. The 2017 Annual Report also sets the stage for future planning by providing an opportunity to assess the accomplishments, results, and lessons learned, and identify how to build on past successes for the benefit of Saskatchewan people. It demonstrates SHC s commitment to effective public performance reporting, transparency, and accountability. Alignment with Government s Direction s activities in 2017 align with Saskatchewan s vision and four goals: Saskatchewan s Vision to be the best place in Canada to live, to work, to start a business, to get an education, to raise a family and to build a life. Sustaining growth and opportunities for Saskatchewan people Meeting the challenges of growth Securing a better quality of life for all Saskatchewan people Delivering responsive and responsible government SHC, together with all ministries and agencies, supports the achievement of the Government s four goals and works with its partners towards a growing and prosperous Saskatchewan. SHC is helping to sustain growth and opportunities, and secure a better quality of life for all Saskatchewan people, by partnering with the private sector, not-for-profit organizations, municipalities, the Federal Government, Crown corporations, and other ministries in implementing A Strong Foundation The Housing Strategy for Saskatchewan. SHC aligns with Government s direction by providing a range of housing programs and services for households that could not otherwise access or afford adequate, safe, and stable shelter. SHC also supports the repair and improvement of existing housing and the development of new housing for low- to moderate-income households to meet the demands of those in greatest need. In addition to providing a range of programs and initiatives to meet the housing needs of Saskatchewan s low- to moderateincome households, the provision of affordable housing is also a cornerstone in many of Government s major strategic policy initiatives The Saskatchewan Plan for Growth: 2020 and Beyond (the Growth Plan), People Before Systems: Transforming the Experience of Disability in Saskatchewan (the Saskatchewan Disability Strategy), the Mental Health and Addictions Action Plan, and the Saskatchewan Poverty Reduction Strategy. 5

8 Corporation Overview Mandate While recognizing the marketplace as the primary vehicle for the provision of housing, SHC promotes independence and selfsufficiency by providing housing and housing services to people who could not otherwise afford or access adequate, safe, and secure shelter. SHC manages financial contributions from the provincial, federal and municipal levels of government, and plays a lead role in the development of housing policies on behalf of the Government of Saskatchewan. Programs and Services SHC provides a range of housing programs and services, including: Social and affordable rental housing; Development of new housing; Home repair, renovation and adaptation programs; Supply-focused programs; targeted to those in greatest housing need; Homeownership options; and Support for housing planning. Responsibilities of SHC include: Managing operating agreements with more than 480 organizations; Program and operational policy development; Program-related research and reviews; Accounting and other financial services for the Corporation; Business planning and financial policy development; and The delivery of housing programs and services. The SHC-owned rental housing portfolio consists of 18,268 units located in communities throughout the province. SHCowned units are managed by local housing authorities and are targeted to low- and moderate-income families, seniors and persons with disabilities. In addition, 8,673 units, including 5,707 rental units and 2,966 special purpose housing units (i.e. special care and group home beds) are owned and operated by nearly 250 different non-profit groups and co-operatives. In total, SHC provided support for households living in 26,941 housing units in Distribution of the portfolio is as follows: 45 per cent seniors; 34 per cent families; 12 per cent special needs; and 9 per cent singles. 6

9 Organizational Structure SHC is a Crown corporation and is accountable to Cabinet through the Minister of Social Services. SHC operates under the authority of The Act which establishes a Board of Directors (the Board) to govern the affairs and business of the Corporation. The Board provides oversight in accordance with the legislated objectives and powers vested in SHC. The Board is responsible for establishing a strategic direction for SHC within the framework of Government priorities and directions, and monitoring results towards those ends. The Board also oversees the financial affairs of SHC, approving business and budget plans and monitoring financial results; ensures that significant risks to the business of SHC are identified and that internal controls and plans are in place to mitigate identified risks; oversees housing program design within the parameters set by the Government of Saskatchewan and/or the Government of Canada cost-sharing requirements; ensures SHC s assets, including information, are safeguarded; and appoints SHC s external auditors subject to the Government of Saskatchewan guidelines, which respect the role of the Provincial Auditor. Management services are provided to SHC by the Ministry of Social Services (MSS). SHC pays an annual fee to MSS for these services. SHC s Accountability Structure Legal and Financial Government SHC Board SHC Management Housing Authority Boards The Minister establishes local housing authorities and appoints the volunteer board members who oversee operations of the housing authority. Housing Partners The success of SHC s programs and services relies on partnerships. In addition to housing authorities and non-profit organizations, SHC partners with housing co-operatives, Métis and First Nation housing providers, and private landlords who own and manage housing for low- and moderate-income tenants. SHC also works in partnership with municipalities, MSS, other government ministries and service providers, and the Federal Government to integrate housing programs and services with other services. The importance of these partnerships is evident in the following comments made by one of SHC s partners, Silver Sage Holdings Ltd., at the official opening of 14 new rental units with support services for families with complex needs: Volunteers Of the many important projects Silver Sage has been a part of, this project has perhaps the greatest and most immediate impact on people s lives and families. we truly appreciate the co-operation of all levels of government on this project which will assist in keeping families together. Dedicated volunteers are essential to the ongoing success of SHC s activities. Communitybased management enables local people to respond to local situations, bringing enhanced knowledge and responsiveness to the housing system. Saskatchewan s network of local housing authorities is composed of more than 1,300 volunteers. Other housing agencies are served by around 1,200 volunteers across the province. Support to Housing Authorities and Other Housing Agencies SHC supports the general operation and services of local housing authorities and other housing agencies that are responsible for delivering housing programs and maintaining the operation of housing units. This includes broad management support of general operations, property, technical services, tenant and financial stewardship, as well as responding to the diverse needs of each housing group in their delivery of tenant services and programs. 7

10 Progress in 2017 Significant Achievements in 2017 Together with its partners in the private, public and non-governmental sectors, SHC continues to work towards the realization of the four Government-wide goals. The following is a summary of the key achievements under each goal: Government Goals Sustaining growth and opportunities for Saskatchewan people Meeting the challenges of growth Securing a better quality of life for all Saskatchewan people Delivering responsive and responsible government SHC is creating stronger partnerships and collaboration across the housing sector, improving access to new and existing housing for vulnerable populations in need throughout the province. In 2017, more than $54 million was invested to develop 428 units and repair 322 homes across the province. In La Loche, SHC is part of a multi-agency group that worked with the community to develop a housing action plan. With housing identified as a key priority by community leaders, SHC and its partners are working to address housing need in the community. In 2017, construction was completed on a new 14-unit affordable housing project, with 10 units for families and four units for singles. SHC announced the development of an additional 12-unit affordable rental project for lone-parent families in 2017, and construction is underway on six new affordable units for seniors. Across the North, SHC works with a committee of stakeholders to address housing needs. SHC has committed to selling up to 50 Social Housing units at fair market value to Social Housing tenants, providing an opportunity for current program clients to transition to homeownership. The proceeds of these sales will be re-invested in new housing for northern communities. Through the sale of SHC s older stock of single-family Social Housing units in Regina, Moose Jaw and Prince Albert, SHC continues to build more modern and energy-efficient multi-unit housing in these communities. Government Goals Sustaining growth and opportunities for Saskatchewan people Meeting the challenges of growth Securing a better quality of life for all Saskatchewan people Delivering responsive and responsible government SHC is addressing the challenges of growth by consulting and collaborating with the housing sector and municipalities across the province. The goal is to provide a range of programs and initiatives to address the need for and access to affordable rental housing for those who need it most. In 2017, SHC continued to transition the Affordable Housing Rental Program to the Social Housing Rental Program in 26 communities to ensure households in the greatest housing need pay rents that are affordable to them. Once completed, approximately 2,700 units will have transitioned from a fixed rent to a rent based on 30 per cent of the household s income, which is considered the standard of affordability. SHC will continue to work with third-party housing providers and other partners through programs such as the Rental Development Program to create more affordable rental housing for vulnerable people. 8

11 Government Goals Sustaining growth and opportunities for Saskatchewan people Meeting the challenges of growth Securing a better quality of life for all Saskatchewan people Delivering responsive and responsible government SHC is following through on Government s commitment to a better quality of life for all Saskatchewan people by improving access to safe, affordable homes. Through SHC s partnerships with municipalities, builders, lenders and non-profit groups, new rental housing is now available in many communities, providing more choice for the people of Saskatchewan. To support Saskatchewan s most vulnerable citizens, SHC assists in the delivery of housing to serve families and individuals identified in Government strategies including the Mental Health and Addictions Action Plan, the Saskatchewan Disability Strategy, and the Saskatchewan Poverty Reduction Strategy. Government Goals Sustaining growth and opportunities for Saskatchewan people Meeting the challenges of growth Securing a better quality of life for all Saskatchewan people Delivering responsive and responsible government SHC is committed to working with community leaders and local housing authority boards to ensure that current and future housing needs are met. SHC conducts periodic reviews of its programs and housing services to ensure that they are serving the intended clients, addressing community and client needs, and reflecting housing trends in the province. SHC is also collaborating with communities and municipalities to develop and implement strategies aimed at making the public housing rental system more effective, cost-effective, efficient, and sustainable. Summary of Financial Results Reported figures reflect results for SHC s fiscal year ending December 31, Expenditures SHC expenditures for 2017 were $215 million. This was $2.1 million below budget due to reduced expenditures for grants and subsidies resulting from the suspension of one of our provincial programs. The under-expenditure was also caused by timing delays on projects anticipated to receive advances under programs funded through joint federal and provincial agreements. Revenues SHC revenues for 2017 were $216.5 million. In some SHC programs, revenues are only recognized when the expense occurs: for example, in the provincially and federally funded Rental Development Program. In 2017, revenues were $10.3 million below budget primarily due to the reductions in expenditures and the corresponding decrease to revenue recognition and the lower than anticipated gains on disposal of properties in the year. 9

12 Progress by Key Program Areas In 2017, SHC made significant progress in achieving a number of strategic goals. The following section highlights the achievements under each of SHC s strategic directions. A Strong Foundation: The Housing Strategy for Saskatchewan One of the key principles of A Strong Foundation: The Housing Strategy for Saskatchewan (Strategy) is that housing is a shared responsibility. A co-ordinated effort from the entire housing sector is critical to keeping Saskatchewan strong and responsive to the needs of all citizens. To set the Strategy into action and establish annual priorities, SHC works with other Crown corporations and ministries to create provincial action plans. Some actions are designed to have immediate results. Many have become part of regular business practices and have been carried forward into future years and action plans. The Strategy includes five strategic directions: Support individuals and families in greatest housing need; Improve housing affordability; Increase the housing supply; Enhance strategic planning for housing; and Collaborate, communicate and educate. Since the introduction of the Strategy, continuous progress has been made on Government-wide actions in support of the strategic directions. SHC s continued focus on supporting those in greatest housing need and low-income households facing affordability challenges has led to improved access to affordable housing for these vulnerable citizens. It has also expanded partnerships across the entire housing sector and created new and innovative partnerships with service providers. Measuring Performance SHC gathers feedback from clients and also tracks and reports on a number of measures to provide insight into the changing marketplace and measure the quality of SHC housing and services. This information assists Government, SHC and other stakeholders to plan future investments in housing to meet the needs of all citizens. Tenant Satisfaction measures the percentage of tenants living in SHC s housing portfolio that are either satisfied or very satisfied with their housing and the services received from the housing authorities. In addition to gauging tenant satisfaction, these surveys also give tenants an opportunity to provide feedback regarding their housing and the services provided. Client Feedback Tools are used to gather clients feedback on their experiences with SHC programs on an ongoing basis, rather than just a point-in-time. They allow SHC to be responsive to client concerns and implement program or service changes in a timely manner. Tenant Satisfaction SHC works hard to provide good, safe homes for the families, individuals, seniors and persons with disabilities who are SHC s tenants, and the Corporation values their feedback. SHC regularly conducts tenant surveys to help identify areas for improvement as well as what is working well. In 2017, 83 per cent of tenants surveyed reported being satisfied with their housing. As well, many tenants took the time to express their satisfaction with the services they received. Here are a few comments tenants provided over the last year about their service: The lower rent (due to my low income) allows me to live on my own and pay my bills. I m glad I can be independent. 10

13 It saved me and my son from living in condemned conditions and we are very appreciative of that. A great place... for a disabled person in a wheelchair to live independently. I was provided with a great unit that met all of my needs at a rental rate I could afford. Because of this, I was able to focus on my education while working part-time and take risks that led me to a higher wage. Client Feedback Tools SHC works to achieve high quality client service and positive client outcomes with all of its programs. The feedback received through ongoing client feedback tools allows SHC to monitor and adjust program delivery. Comment cards allow clients to rate the service they receive while participating in the program. Surveys filled out at the conclusion of a service allow clients to provide feedback on their overall experience and identify areas for improvement. In 2017, these tools were distributed to participants in the Graduate Retention Program First Home Plan and SHC s repair programs. Investment in Affordable Housing SHC works in partnership with the Canada Mortgage and Housing Corporation (CMHC) to invest in affordable housing. Through programs that either maintain or increase the supply of housing targeted to low- and moderate-income households, SHC and CMHC are providing opportunities for people who might not otherwise be able to afford safe and adequate housing. The past year marked the fourth year of the five-year extension to the Investment in Affordable Housing Agreement (IAH) with CMHC. Under the federal/provincial IAH Agreement, SHC continues to deliver a number of programs to support new affordable housing for targeted groups and repairs to existing housing. This agreement will invest up to $92 million in Saskatchewan over five years to ensure that people in greatest housing need have better access to affordable housing that is sound, suitable, and sustainable. SHC reports on the outcomes achieved through IAH investments at the end of the fiscal year in the Ministry of Social Services Annual Report and throughout the year in news releases. Social Infrastructure Fund This past year also marked the second year of the two-year Social Infrastructure Fund (SIF) Agreement under the existing IAH Agreement with the Federal Government. Signed in 2016, the SIF Agreement provides an increase of over $19.3 million in matching federal funding ( SIF Allocation Increase), as well as an additional federal investment of $35.5 million with no cost-matching requirements ( Special SIF Funding). The non-cost-matched Special SIF Funding is targeted at increasing and renovating affordable housing for seniors, supporting retrofits and renovations to existing Social Housing units owned by SHC and non-profit housing corporations, and constructing and renovating shelters for victims of family violence. National Housing Strategy In 2017, the Government of Canada released its National Housing Strategy. Currently, SHC is awaiting further details about the National Housing Strategy and what it will mean for the people of Saskatchewan. More work is needed to capture every opportunity to develop new affordable housing, prevent homelessness, and preserve our existing Social Housing stock for future generations. SHC is committed to continuing to work with the Federal Government to address the housing needs of Saskatchewan citizens, and looks forward to working with our federal partners on the further development of the National Housing Strategy in

14 Supporting Individuals and Families in Greatest Housing Need SHC collaborates with housing partners to deliver programs that address local housing needs and priorities. This close working relationship also allows SHC and its partners to deliver housing that supports emerging Government direction focusing on vulnerable populations. Supporting Government of Saskatchewan Strategies SHC s leadership in the development of affordable rental housing for persons who are considered harder to house addresses recommendations from the Mental Health and Addictions Action Plan, the Saskatchewan Disability Strategy and the Saskatchewan Poverty Reduction Strategy. The development of these strategies builds on Government s goal to ensure that Saskatchewan s growth benefits everyone. SHC is a partner in these strategies, as increasing the availability of affordable housing and/or accommodation is identified as a key action in each of the strategies. SHC continues to assist in the development of projects designed to meet the needs of those hard to house. In 2017, eight SHC funded projects (128 units) were completed that target households having difficulty in accessing or maintaining secure housing due to disabilities, mental health or addictions issues. Another 121 units are currently under construction. SHC will provide a total of $340,000 towards the first six units of a 12-unit Habitat for Humanity project in Saskatoon. Three of the six homes are universally designed for all individuals to access, regardless of their age, ability, or status in life. These three units were completed in the fall of 2017 and are now home to families that include someone experiencing a disability. A Request For Proposals (RFP) for the Rental Development Program closed in January The RFP targeted projects for persons who are considered harder to house, including persons experiencing a disability. Of the 102 units in 13 projects prioritized for funding, 12 units are expected to be fully barrier-free to persons and families experiencing disabilities, and 24 more units are expected to be capable of accommodating persons and families experiencing disabilities. SHC owns about 640 accessible units (built or modified to accommodate wheelchairs) and 68 mobility units (adjustments made in bathrooms and kitchens for easier access) and has made changes to increase the availability of these units to persons with a disability. For persons with a disability who need a fully accessible housing unit, the income and asset limits are waived in the Social Housing program. In addition, SHC has implemented a policy for shared accommodation, which creates the option of supportive housing arrangements for people with disabilities. SHC has also made a number of changes to increase access to Government-owned housing for those with the greatest need, and is monitoring the impact of those changes. For example, changes were made to increase access for lone-parent families, a group that experiences higher rates of poverty. Between 2015 and 2017, the proportion of lone-parent families in SHC s family housing portfolio has increased from 44 per cent to 62 per cent. Changes were also made to improve access for people who are considered harder to house, due to one or more household characteristics that pose unusual barriers to housing. By the end of 2017, persons considered harder to house made up 7.6 per cent of tenants in SHC s total portfolio, up from 5.3 per cent in The increased representation of these two groups in Government-owned housing shows that the changes are working. Keeping Families Together Supported Reunification in Social Housing Pilot Project SHC and the Ministry of Social Services are working on innovative solutions to improve outcomes for clients, while improving efficiencies by using existing resources. SHC is working with other divisions of the Ministry on a pilot project that will provide integrated services to families who have children in care and who also face a housing-related barrier to reunifying. The Keeping Families Together: Supported Reunification in Social Housing Units pilot will use Social Housing units as an opportunity to reunify families in affordable, safe and adequate housing. The pilot project will run in Regina for one year, serving 10 families. 12

15 Rental Development SHC uses a variety of programs to deliver affordable rental housing. One of the key programs for developing housing for those in greatest need is the Rental Development Program (RDP). It provides funding to non-profit corporations, cooperative groups, and the private sector to respond to community needs by developing affordable rental housing projects for vulnerable and low-income people. SHC recognizes the need to provide additional support to people and households not traditionally served by the private housing market. In 2017, SHC s Request for Proposals continued to focus on soliciting projects that support Government s direction by targeting specific vulnerable and low-income populations, including persons considered harder to house. SHC s continued focus on people who experience uncommon barriers to housing has allowed SHC and its partners to expand and create new partnerships with the non-profits and organizations that provide support services to vulnerable individuals and families. One example of the variety of projects and the type of partnerships that the RDP supports is the now officially opened Wakamow Place II in Moose Jaw. Developed in collaboration with the Moose Jaw Non-Profit Housing Corporation and the Thunder Creek Rehabilitation Association Inc., this new 12-unit project will provide safe, stable and affordable homes for people actively recovering from mental illness and/or addictions. Support services provided to tenants will assist them on their path to recovery. In another example, SHC, along with the City of Saskatoon and Quint Development Corporation, officially broke ground in July 2017 on a new 26-unit rental housing project for individuals and families with complex needs who require support in order to secure and maintain housing. The new townhouse complex, with a mix of one-, three- and four-bedroom units, will help meet the growing need for larger family sized affordable rental housing. In 2017, over $12.6 million was provided through SHC s affordable rental programs for the completion of 196 housing units for those in greatest need in various communities across the province. This included the development of housing for 128 individuals and families who are considered harder to house, 21 for low- to moderate-income families, and 47 for seniors. Housing Support for the North In collaboration with its northern partners and community leaders, SHC continues to deliver programs and initiatives to address the housing needs of northern residents. In 2017, SHC invested over $4.1 million to complete the construction of 33 new rental units and $295,000 to repair 21 homeowner units to ensure that northern families have a safe home to live in. Through the Northern Homeowner Initiative (NHI), SHC is selling up to 50 northern Social Housing units to current tenants who have the necessary financial resources to purchase them. Northern leaders have expressed strong support for this sales initiative, as it responds to homeownership needs that are not being met by the market and stimulates development in the North. In 2017, one former tenant became a homeowner through the NHI. SHC also plays an important role in the northern rental housing market. SHC owns approximately 1,350 Social and Affordable Housing rental units across the North that serve households who might not otherwise have access to safe and secure housing. This support includes La Loche, where SHC owns 234 Social Housing units and 36 Affordable Housing units. Through a local non-profit housing agency, Methy Housing Corporation, SHC also supports an additional 56 housing units for people in need of housing. In La Loche, SHC is also part of the multi-agency group that developed a housing action plan for the community. With housing identified as one of the key priorities for the community, SHC and its partners are working to build new affordable units to address housing need in La Loche. For example, construction was completed this year on 14 new affordable rental units for families and singles. In addition, SHC is constructing six new affordable rental housing units for seniors in La Loche. In October 2017, SHC announced the development of a 12-unit affordable rental housing project for lone-parent families under the Rental Development Program, with the first six units to be complete by spring Through the Trades Training Program, high school students in La Loche participate in the construction of housing units for school credits. Eight Social Housing units have been built in La Loche through this program, and in 2017, SHC completed a ninth and approved $225,000 in funding for a tenth. The tenth unit is currently under construction by high school students. 13

16 Rental Housing Program Changes SHC has converted about 2,700 Affordable Housing Program units to the Social Housing Program in 26 urban communities. Under the Social Housing Program, rents are based on 30 per cent of household income, while the Affordable Housing Program has a set lower market rent. This had resulted in some low-income clients in the Affordable Housing Program paying more than 30 per cent of their incomes towards rent. Tenants who remain in the Affordable Housing Program will still pay a lower market rent, but these rents will increase over time. As the rents increase for tenants who remain in the Affordable Housing Program, there will be an incentive for households with higher incomes to transition into the private market. This will provide households with low incomes better access to a Social Housing unit. Tenants with lower incomes who remain in the Affordable Housing Program may transition to the Social Housing Program when it benefits them most. By the end of 2017, 23 per cent of Affordable Housing Program tenants had transitioned to the Social Housing Program. With this change, around 480 seniors, families and individuals have seen reductions in their monthly rent. During the same period, nearly 52 per cent of Affordable Housing Program tenants who no longer required subsidized housing have moved into market housing, making these subsidized units available for households in housing need. In November 2017, SHC expanded the Social Housing Program s eligibility criteria to better serve Saskatchewan people in need of housing. These changes were implemented in order to ensure that all of SHC s housing units are being used effectively and that they are serving people in greatest housing need. With these changes, all households with a family member in need of a fully accessible unit will be eligible to access the fully accessible Social Housing units owned by SHC or third-party groups, regardless of their income or assets. This change expands access to Social Housing to households that are unable to find suitable and accessible housing in the private market. For seniors, the asset eligibility limit has been increased, and the age eligibility limit has been decreased from 60 to 55. This expands the number of senior households that can be served by Social Housing. Further, the definition of household has been changed to make it easier for two or more eligible applicants to share a unit, giving SHC more flexibility to serve different household types and to respond to unique circumstances. Portfolio Sustainability Federal funding for the Social Housing Rental Program is declining, and the funding received will eventually be less than the subsidy needed to offset operating costs. This could jeopardize SHC s ability to both provide the same level of benefit to Social Housing clients and maintain the assets. To prepare for this possibility, SHC has been identifying best practices and efficiencies, and has implemented the Capital Asset Plan. The Plan will improve portfolio monitoring and decisions regarding capital improvements, and help make portfolio investment decisions so that SHC can respond appropriately to current and future housing needs. Portfolio Renewal The SHC-owned housing portfolio is aging and some older units are becoming more costly to maintain. In order to continue providing Saskatchewan people with homes that meet their needs, SHC is selling up to 300 of its older single-family homes in Regina, Moose Jaw and Prince Albert. The proceeds from the sale of these homes will be re-invested to help offset the cost of building more modern and energy efficient multi-unit housing in these communities. These new units will reduce maintenance and improvement costs for SHC and lessen the impact of increasing utility costs for tenants. Portfolio Renewal will also create more affordable housing opportunities through the sale of the single-family units to first-time homebuyers. Building new units will ensure that there is a good supply of quality Social Housing units, both now and into the future. In 2017, there were 22 sales of single-family dwellings. Since 2013, there have been a total of 178 sales including 12 that were purchased by the former tenants. Two new Social Housing projects were completed in Regina in 2017, providing 76 families with an opportunity to live in a modern, safe and affordable home. Since the beginning of this initiative, 197 new affordable housing units have been completed in Regina, Moose Jaw and Prince Albert. 14

17 Shelter Enhancement Program Designed to assist victims of family violence, the Shelter Enhancement Program (SEP) provides financial assistance to nonprofits to build new or renovate existing emergency shelters and second-stage housing units. A portion of the funding received under the federal/provincial SIF agreement is earmarked for SEP. With the signing of the agreement in 2016, SHC began a process of prioritization via a province-wide assessment of shelters. In 2017, $323,000 was provided for the renovation of 34 shelter bedrooms for victims of family violence. Seven projects (29 second-stage rental units and 41 shelter bedrooms) are currently under renovation throughout the province. Housing Development for Valley View Residents SHC is working in co-operation with other divisions in the Ministry of Social Services to transition residents with cognitive disabilities from Valley View Centre in Moose Jaw to new homes in communities across the province. Drawing on its experience in the development and acquisition of new housing, SHC has been working with the Valley View Transition Team to identify, acquire and renovate, or build appropriate housing. In 2017, SHC completed the renovation and new construction of 11 group homes (45 beds). This brings the total number of group homes completed to date to 20 homes (78 beds), with another seven homes (29 beds) currently under construction. When complete, these projects will accommodate up to 107 former residents of Valley View. Supporting and Partnering in Homelessness Initiatives SHC participates on and works with the Homelessness Partnership Strategy Community Advisory Boards and partners with community-based organizations to create shelter or short-stay beds for children, youth, and families. SHC s Social Housing Program ensures those in the greatest need, including families and individuals who are homeless or at risk of becoming homeless, are prioritized for placement in SHC-owned housing. Through the Rental Development Program, SHC works with project partners to develop housing for people who are considered harder to house due to one or more household characteristics that pose unusual barriers to housing. SHC is reviewing proposals received from the Request for Proposals for the Rental Development Program that closed in January Improving Housing Affordability SHC is committed to improving housing conditions for all citizens and has a number of programs that address housing affordability issues and ensure that existing housing remains in good condition. These programs support and complement other Government responses to housing supply and affordability challenges, such as HeadStart on a Home and the First Time Homebuyer s Tax Credit. Graduate Retention Program First Home Plan Launched in May 2016, the Graduate Retention Program First Home Plan (First Home Plan) has been successful in helping young people buy their first homes and stay in Saskatchewan. The First Home Plan helped recent post-secondary graduates who had the income to qualify for a mortgage, but may have been unable to save for a down payment. Eligible graduates could borrow up to $10,000 of their unused Graduate Retention Program tax credits as an interest-free loan to put toward the down payment on their first home. Although the First Home Plan was suspended in March 2017, SHC helped hundreds of new graduates make the down payment on their first home in Saskatchewan. In total, SHC approved 827 applicants. Of those, 824 have received loans, enabling these recent graduates to purchase 661 homes. 15

18 Saskatchewan Home Repair Programs SHC s Repair Programs reflect Saskatchewan s current housing environment and unique housing needs. These programs assist low-income homeowners to repair or modify their dwellings. Funded in partnership with the Federal Government, these programs help to ensure that units meet minimum health and safety standards, building codes, and accessibility requirements for persons with disabilities. In 2017, $3.6 million was invested to repair 322 homes across the province, ensuring that these households have safe and healthy accommodation. The impacts of the programs are illustrated by the following comments from clients who received needed repairs or adaptations: These essential upgrades have extended the life of my home, in turn, extending my independent lifestyle in this home. Without the Gov t Grant these upgrades were not affordable and my house became run down. I would be looking at moving into a long-term care facility. Repairs done by this program allow my spouse safety because he no longer has to climb stairs after your program helped us install a disability bathroom on main floor. Habitat for Humanity Partnership Many families dream of owning a home. However, some are faced with limited resources and other challenges that can make that dream seem very far away. SHC continues to work side by side with Habitat for Humanity partners across Saskatchewan to help make the dream of homeownership a reality for many families. In 2017, following the completion of their new homes, 27 families in eight communities became homeowners. In April 2017, SHC and Habitat signed an agreement that provides funding for the delivery of a total of 20 units in the communities of Duck Lake, Estevan, Moose Jaw, Prince Albert, Regina, Saskatoon, and Yorkton. The $1.0 million agreement provides funding to Habitat through the federal/provincial IAH Agreement and SIF Agreement. One project currently under construction is Haultain Crossing, Habitat s multi-unit family housing development in Regina. In October 2017, Habitat broke ground on 10 new units. The following month, 10 Habitat partner families took possession of recently completed homes. When the development is complete, Haultain Crossing will be home to 62 Habitat families. Life Lease The Life Lease Program was designed to create alternative housing arrangements and provide additional housing support for seniors. In 2014, SHC adapted the Life Lease Program to ensure the program responds to changing market conditions. The changes included revising the eligibility and prioritization criteria for greater consistency with the Social Housing Program and increasing the deposit amounts to reflect current market conditions, unit size, and location. SHC has targeted up to 50 Social Housing units for conversion to the Life Lease Program in up to 10 communities. To date, 28 units have been designated for conversion to Life Lease. With existing units in Regina, Saskatoon and Yorkton, SHC now has 228 Life Lease units. With the recent changes in the housing market, the current supply of Life Lease units is sufficient. SHC will continue to monitor the housing market in Saskatchewan to continue to meet the needs of seniors in the province. 16

19 Seniors Education Property Tax Deferral Program In 2017, the Government of Saskatchewan announced the introduction of the Seniors Education Property Tax Deferral Program. Through the program, seniors with household incomes under $70,000 will have the ability to defer the education portion of the property taxes on their principal residence through a repayable loan. The program will give seniors greater financial flexibility and help them stay in their homes longer. SHC has been preparing for the launch of the program in early Increasing the Housing Supply Continued high vacancy rates in Saskatchewan indicate there is sufficient housing stock available to meet current demand. Almost all communities with populations over 10,000 have vacancy rates above the range considered optimal for the market (2.5 to 3.5 per cent). As a result, SHC will continue to encourage innovation in the delivery of new housing, and focus on housing for the most vulnerable. Enhancing Strategic Planning for Housing SHC continues to support housing planning in communities across the province. This includes initiatives to help create housing plans; community planning support, including provision of information and expertise about housing to communities and local organizations; and increased partnerships and forums for housing. Small Communities Rental Market Survey SHC conducts the Small Communities Rental Market Survey on an annual basis. This survey complements CMHC s annual Rental Market Survey, which analyzes the rental market in all urban areas with populations of 10,000 or more. The Small Communities Rental Market Survey fills an important data gap for the Province, as it is the only source of annual data on primary rental markets in communities with populations between 500 and 10,000 people. The survey supports Government decision-making by: Ö Ö Helping assess need and demand, and plan for future housing; Ö Ö Providing rental market data for the adjustment of shelter allowance and rental supplement rates; and Ö Ö Identifying the level of need for development of subsidized housing in emerging housing markets and non-market communities. Program and Operational Reviews SHC conducts periodic reviews of its programs and housing services to ensure that they continue to serve the intended clients and reflect community and client needs, as well as housing trends in the province. In 2017, reviews were conducted on the Life Lease Program, Encouraging Community Housing Options Program, Rent Supplement Program and the Portfolio Renewal Initiative. The reviews determined that intended outcomes were being achieved. Recommendations from these reviews resulted in adjustments to programs to improve service to clients and increase alignment with other programs. SHC also conducted four Operational Reviews of housing authorities throughout the province. The purpose is to review internal business processes and outcomes in order to continually improve performance and results, facilitate dialogue and share best practices. An important component of these reviews is the tenant survey which allows tenants to provide feedback on where they live and the services they receive. These surveys reveal that 83 per cent of tenants are satisfied or very satisfied with their individual units and the service they receive from SHC and their local housing authorities. 17

20 Collaborating, Communicating and Educating SHC continues to work with stakeholders across the province to support A Strong Foundation The Housing Strategy for Saskatchewan. Communication across geographic areas and between members of the housing sector is important to create efficiencies and opportunities. The housing sector needs to work together, share information effectively, and communicate well with the public. The Importance of Partnerships Meeting the challenge of growth requires the full participation of all parties involved in housing delivery and those that provide tenant support programs. SHC has been consulting with community stakeholders across Saskatchewan and providing opportunities for communication, collaboration and education on housing. Working with Northern Communities and Stakeholders SHC, along with its northern partners and the housing sector, are working together to find creative solutions to reduce housing pressures in the North. A Northern Working Group consisting of stakeholders from northern Saskatchewan, representatives from New North (northern mayors and councilors) and SHC was established in November The Northern Working Group s goal is to have a range of housing options for northern residents and to work towards establishing a resale housing market. Recommendations from the Working Group have centred on promoting housing planning, increasing community capacity, and creating home ownership opportunities. These goals have been the basis for new northern housing initiatives developed by SHC. In 2017, SHC in partnership with the federal government, invested close to $4.1 million in the North to develop 33 new rental units. In addition, more than $295,000 has been invested to repair 21 homeowner units to ensure that northern families have a safe home to live in. Also, one northern applicant was approved under the Graduate Retention Program - First Home Plan for $10,000 to put towards the down payment on their first home. 18

21 Management s Discussion and Analysis (SHC) continues to focus on supporting government strategies related to housing and serving those most in need in the province. To that end, SHC is addressing ongoing challenges with the sustainability of the social housing portfolio, the changing client needs necessitating increasing support requirements for social housing tenants, and the differences in location between the supply and demand for social housing Major Developments SHC and provincial government representatives participated in regular discussions with federal, provincial and territorial counterparts throughout 2017 related to the National Housing Strategy (NHS) framework. The federal government announced the NHS framework at the end of the year, however significant effort remains to fully define the impact on housing in the province. A bilateral agreement between the federal government and the province will be negotiated in 2018 that will provide these details. During the year there were continued investments in housing related to the 2014 extension of the Investment in Affordable Housing ( IAH ) Agreement and the 2016 Social Infrastructure Fund ( SIF ) Agreement signed with Canada Mortgage Housing Corporation. These investments were highlighted by significant reinvestments in SHC s existing social housing stock, enhancements to shelters for victims of family violence and new housing projects across several communities, particularly in the north. By the end of 2017, SHC essentially completed the conversion of Affordable Housing Program units into the Social Housing Program. This conversion began in 2015, and has resulted in over 2,000 units being transitioned in larger communities saw the introduction of a couple of innovative approaches to housing to achieve better outcomes for Saskatchewan citizens. These focused on coordinating additional supporting activities to enable citizens to access a SHC housing unit. The supporting activities were specific to the needs of the clients and were provided by service groups organized through government ministries. This resulted in the reunification of several families where children had been taken into care by Social Services and in the housing of several seniors from a facility that had discontinued operations. These types of opportunities will continue to be explored and expanded on in Consultations were held in approximately 30 rural communities in 2017 regarding the potential divestment of social housing units due to high vacancy rates. These consultations will continue over the next few years to allow SHC to target its investments in communities where there is a demonstrated long term demand for social housing. Work was completed in 2017 on the construction of 76 units of new multi-unit housing as a part of SHC s portfolio renewal program. The sale of single family units will be used to finance the construction of 197 more modern and energy efficient units. SHC has been supporting the Ministry of Social Services in the transition of residents from the Valley View Centre in Moose Jaw, which is targeted to be closed at the end of By the end of 2017, SHC has completed construction of 20 new residential properties. Another 11 properties are currently at various stages of construction. A total of 35 new properties are anticipated to be completed by the end of During 2017, SHC made policy changes to deliver more housing solutions to a greater number of targeted client groups, including individuals with disabilities. Delivery of the First Home Plan Loan Program was suspended by the provincial government part way through Administration of this program will continue over the next several years as the loans are repaid. Design was completed for a new program that will allow low income senior homeowners to access a loan to offset the education portion of their property taxes. The seniors will use the equity they hold in their home as security and will repay the loan balance when they no longer live in the home. This new program is available to the public in

22 2017 Results of Operations Expenditures expenditures for 2017 were $215.0 million, an increase of $36.9 million or 20.7 per cent ( $178.1 million). Grants & Subsidies 18% 2017 Expenditures - $215.0 million Amortization, Interest & Other 10% Decreases to grants under other provincial programs (RCI, Summit and AHOP) of $2.1 million to $2.1 million ( $4.2 million); and Decreases to grants for improvements to facilities on behalf of government Ministries of $1.0 million to $0.3 million ( $1.3 million). Revenues Revenues for SHC were $216.5 million for 2017, an increase of $32.6 million or 17.7 per cent ( $183.9 million) Revenues million Municipal & Other 5% Operating 72% Costs of operating the rental housing portfolio (excluding amortization) were $155.6 million, an increase of $34.9 million over prior year ( $120.7 million). Major elements of operating costs for 2017 included: Maintenance and renovation expenditures were $74.9 million in 2017, ( $42.6 million); Utilities expenditures were $21.5 million ( $20.3 million); Grants in lieu of property taxes were $18.2 million ( $15.4 million); and Other operating expenditures were $41.0 million (2016 -$42.4 million). Grants and subsidies expenditures increased by $0.5 million to $39.2 million (2016 $38.7 million). The difference was primarily the result of: Grants under affordable housing programs increased by $4.5 million to $19.7 million ( $15.2 million); Subsidy assistance to non-profit housing sponsors increased by $1.8 million to $12.6 million ( $10.8 million); Expenditure increases were partially offset by decreases in grants of $2.9 million under the First Home Plan loan program to $1.7 million ( $4.6 million); Federal 42% Provincial 3% Client 50% Rents and other income from clients decreased by $2.5 million in 2017 to $108.4 million ( $110.9 million). This is a 2.2% decrease and client revenue represents approximately 50.1% of SHC s total revenue. Other revenue items of note include: Federal contributions of $91.5 million ( $50.1 million). The increase was primarily due to activities related to the SIF agreement along with an increase in revenue required for the operation of the social housing portfolio; and Provincial contributions of $6.2 million ( $12.3 million). The decrease was primarily due to lower revenue recognized for the First Home Loan, RCI, Summit and AHOP programs as well as reduced capital improvements to facilities completed on behalf of government Ministries; and Gains on disposals of properties, interest income, and other contributions, including municipal contributions, decreased to $10.4 million ( $10.6 million). 20