4.          FEDERAL/PROVINCIAL SOCIAL HOUSING REPAIR AND RETROFIT FUNDING

 

FINANCEMENT DU PROGRAMME DE RÉNOVATION ET D’AMÉNAGEMENT DE LOGEMENTS SOCIAUX PAR LES GOUVERNEMENTS FÉDÉRAL ET PROVINCIAL

 

 

 

Committee RecommendationS

 

That Council approve:

 

1.                  Authorize the Manager of Housing Services to enter into a Contribution Agreement with the Ministry of Municipal Affairs and Housing (MMAH) regarding the Social Housing Renovation and Retrofit Program (SSRRP) funding totalling $46,847,212 for Ottawa over the 2-year MMAH fiscal years of 2009 and 2010.

 

2.                  Authorize the Manager of Housing Services to allocate the $46,847,212 ($20,990,135 in 2009/2010 and $25,857,077 2010/2011) of the Social Housing Renovation and Retrofit  Program (SSRRP) funding for Social Housing Renovation and Retrofit to the City of Ottawa to projects in accordance with the following:

a)                  $36,547,212 be allocated to the renovation and retrofit of Ottawa Community Housing Corporation,

b)                  $10,300,000 be allocated by the Service Manager on a priority basis for capital renovation and retrofit for projects of other Social Housing Providers and for which provincial guidelines and time line expectations of the funding can be met with $2,000,000 (of the $10,000,000) allocated for the retrofit of the Chinese Community Building,

c)                  The Service Manager retains the authority to re-allocate funds if a housing provider is unable to meet the repair or retrofit time frames as set out by the Province.

 

3.                  Authorize the Manager of Housing Services to pursue MMAH additional funding opportunities under the SSRRP energy renewal initiative ($70,000,000 Province wide – program guidelines and application process under development) for projects that would benefit social housing providers in Ottawa.

 

 

RECOMMANDATIONS DU COMITÉ

 

Que le Conseil approuve :

 

 

1.         autorise le gestionnaire des Services de logement à conclure un accord de contribution avec le ministère des Affaires municipales et du Logement (MAML) concernant le financement du Programme de rénovation et d’aménagement de logements sociaux (PRALS), qui se chiffre à 46 847 212 $ sur deux ans pour Ottawa, au cours des exercices 2009 et 2010 du MAML;

 

2.         autorise le gestionnaire des Services de logement à répartir les fonds de 46 847 212 $ (20 990 134 $ en 2009-2010 et 25 857 077 $ en 2010-2011) du Programme de rénovation et d’aménagement de logements sociaux (PRALS) entre les projets de rénovation et d’aménagement de logements sociaux de la Ville d’Ottawa suivants :

a)         36 547 212 $ seront alloués à la rénovation et au réaménagement de la Société de logement communautaire d’Ottawa;

b)         10 300 000 $ seront versés par le gestionnaire des Services de logement aux projets de rénovation et d’aménagement d’immobilisations d’autres fournisseurs de logements sociaux, selon un ordre de priorité, projets qui suivent les lignes directices provinciales et dont les délais de financement prévus pourront être respectés grâce aux 2 000 000 $ (tirés des 10 000 000 $) affectés au réaménagement du Chinese Community Building;

c)         le gestionnaire des Services de logement conserve le pouvoir de réaffecter les fonds si un fournisseur de logements ne peut respecter les délais d’exécution des travaux de rénovation et d’aménagement établis par le gouvernement de l’Ontario.

 

3.         autorise le gestionnaire des Services de logement à continuer de chercher de nouvelles possibilités de financement du MAML dans le cadre de l’initiative de renouvellement énergétique du PRALS (70 000 000 $ dans l’ensemble de l’Ontario – lignes directrices du programme et processus de demande en cours d’élaboration) pour les projets qui profiteraient aux fournisseurs de logements sociaux d’Ottawa.

 

 

 

Documentation

 

1.      Deputy City Manager's report, City Operations dated 29 June 2009 (ACS2009-COS-SOC-0013).


Report to/Rapport au:

 

Community and Protective Services Committee

Comité des services communautaires et de protection

 

and Council / et au Conseil

 

29 June 2009 / le 29 juin 2009

 

Submitted by/Soumis par: Steve Kanellakos, Deputy City Manager/

Directeur municipal adjoint,

City Operations/Opérations municipales 

 

Contact Person/Personne ressource :

Stephen Arbuckle, Acting Manager of Housing,Community and Social Services Department/Gest.Logement,  Services sociaux et communautaires

(613) 580-2424 x44117, Stephen.Arbuckle@ottawa.ca

 

City Wide/à l'échelle de la Ville

Ref N°: ACS2009-COS-SOC-0013

 

 

SUBJECT:

Federal/Provincial Social Housing Repair and Retrofit funding

 

 

OBJET :

financement du programme de rÉnovation et d’amÉnagement de logements sociaux PAR LES GOUVERNEMENTS FÉDÉRAL ET PROVINCIAL

 

REPORT RECOMMENDATIONS

 

That the Community and Protective Services Committee recommend that Council:

 

1.         Authorize the Manager of Housing Services to enter into a Contribution Agreement with the Ministry of Municipal Affairs and Housing (MMAH) regarding the Social Housing Renovation and Retrofit Program (SSRRP) funding totalling $46,847,212 for Ottawa over the 2-year MMAH fiscal years of 2009 and 2010.

 

2.         Authorize the Manager of Housing Services to allocate the $46,847,212 ($20,990,135 in 2009/2010 and $25,857,077 2010/2011) of the Social Housing Renovation and Retrofit  Program (SSRRP) funding for Social Housing Renovation and Retrofit to the City of Ottawa to projects in accordance with the following:

a)         $36,547,212 be allocated to the renovation and retrofit of Ottawa Community Housing Corporation,

b)         $10,300,000 be allocated by the Service Manager on a priority basis for capital renovation and retrofit for projects of other Social Housing Providers and for which provincial guidelines and time line expectations of the funding can be met with $2,000,000 (of the $10,000,000) allocated for the retrofit of the Chinese Community Building,

c)         The Service Manager retains the authority to re-allocate funds if a housing provider is unable to meet the repair or retrofit time frames as set out by the Province.

 

3.         Authorize the Manager of Housing Services to pursue MMAH additional funding opportunities under the SSRRP energy renewal initiative ($70,000,000 Province wide – program guidelines and application process under development) for projects that would benefit social housing providers in Ottawa.

 

 

RECOMMANDATIONS DU RAPPORT

 

Que le Comité des services communautaires et de protection recommande au Conseil :

 

1.                  d’autoriser le gestionnaire des Services de logement à conclure un accord de contribution avec le ministère des Affaires municipales et du Logement (MAML) concernant le financement du Programme de rénovation et d’aménagement de logements sociaux (PRALS), qui se chiffre à 46 847 212 $ sur deux ans pour Ottawa, au cours des exercices 2009 et 2010 du MAML;

 

2.                  d’autoriser le gestionnaire des Services de logement à répartir les fonds de 46 847 212 $ (20 990 134 $ en 2009-2010 et 25 857 077 $ en 2010-2011) du Programme de rénovation et d’aménagement de logements sociaux (PRALS) entre les projets de rénovation et d’aménagement de logements sociaux de la Ville d’Ottawa suivants :

a)                  36 547 212 $ seront alloués à la rénovation et au réaménagement de la Société de logement communautaire d’Ottawa;

b)                  10 300 000 $ seront versés par le gestionnaire des Services de logement aux projets de rénovation et d’aménagement d’immobilisations d’autres fournisseurs de logements sociaux, selon un ordre de priorité, projets qui suivent les lignes directices provinciales et dont les délais de financement prévus pourront être respectés grâce aux 2 000 000 $ (tirés des 10 000 000 $) affectés au réaménagement du Chinese Community Building;

c)                  le gestionnaire des Services de logement conserve le pouvoir de réaffecter les fonds si un fournisseur de logements ne peut respecter les délais d’exécution des travaux de rénovation et d’aménagement établis par le gouvernement de l’Ontario.

 

3.      d’autoriser le gestionnaire des Services de logement à continuer de chercher de nouvelles possibilités de financement du MAML dans le cadre de l’initiative de renouvellement énergétique du PRALS (70 000 000 $ dans l’ensemble de l’Ontario – lignes directrices du programme et processus de demande en cours d’élaboration) pour les projets qui profiteraient aux fournisseurs de logements sociaux d’Ottawa.

 

 

EXECUTIVE SUMMARY

 

On June 16, 2009, the City of Ottawa received notice from the Ministry of Municipal Affairs and Housing (MMAH) that the City has been awarded a total of $46,847,212 ($20,990,135 in 2009/10 and $25,857,077 for 2010/11) under the Social Housing Renovation and Retrofit Program.

The focus of this funding is to create an economic stimulus and the Ministry has been clear that if the City of Ottawa is not able to fully utilize its allocation, it may be redirected to another jurisdiction. 

 

The need for social housing repairs were highlighted in the Housing Needs in Ottawa Report (ACS2007-CPS-HOU-0009), and have been reaffirmed through housing provider Building Condition Assessment (BCA) reports.

 

Ottawa Community Housing Corporation (OCHC), the largest provider in Ottawa has recently completed a comprehensive BCA report and Capital Repair plan that delineates over $300M in capital projects that should be completed over the next several years. At the request of the MMAH , the City of Ottawa submitted on behalf of the 56 non profit social housing providers over $84M in “quick start” capital repair projects that could be started or have started this year.

 

It is recognized that Ottawa Community Housing owns and operates over two thirds of the Social Housing stock in Ottawa and that the Public Housing portion of their stock is the oldest social housing stock in the City.  The BCA completed in 2008 confirmed the need for major renovation and recognized that need capital repairs had been deferred due to historic lack of capital funding and an inability to create a capital reserve.

 

The condition of the Chinese Community Building (Ottawa) Corporation located on Kent Street has been the subject of extensive engineering and Service Manager involvement over the past 2 years. It is a high-rise apartment building that was built in the early 1980’s that has experienced significant building issues that have become a safety issue for both the residents and the public. The recommended retrofit funding provides an opportunity for the City to assist the Chinese Community Building Corporation to address the building issues and return it to structurally sound state where tenants can be comfortable and proud to live.

 

Minister Watson’s June 9 letter also announced the creation of a $70 Million energy conservation initiative that will focus on renovation and retrofit projects, which take advantage of renewable energy opportunities. The program remains under development and it is to be released toward the end of July. It will be to the City’s advantage to be prepared to apply for appropriate projects under this funding.

 

RÉSUMÉ

 

Le 16 juin 2009, la Ville d’Ottawa a reçu un avis du ministère des Affaires municipales et du Logement (MAML) l’informant qu’on lui avait accordé un montant total de 46 847 212 $ (20 990 135 $ en 2009‑2010 et 25 857 077 $ en 2010‑2011) dans le cadre du Programme de rénovation et d’aménagement de logements sociaux (PRALS).

L’objectif de ce financement est de stimuler l’économie, et le Ministère a clairement indiqué que si la Ville n’utilisait pas la totalité des fonds, ceux-ci pourraient être versés à une autre communauté.

 

Le rapport sur les besoins en matière de logement à Ottawa (ACS2007‑CPS‑HOU‑0009) fait état de la nécessité d’effectuer des réparations dans les logements sociaux, ce que les rapports de vérification technique des bâtiments préparés par les fournisseurs de logements viennent confirmer.

 

La Société de logement communautaire d’Ottawa, le plus grand fournisseur de logements à Ottawa, a récemment produit un rapport de vérification technique des bâtiments détaillé et un plan de réparation des immobilisations qui prévoit des investissements de plus de 300 millions de dollars dans les projets d’immobilisations devant être réalisés dans les années à venir. À la demande du MAML, la Ville d'Ottawa a présenté pour le compte des 56 fournisseurs de logements sociaux à but non lucratif des projets d’immobilisations à court terme d’une valeur totale de plus de 84 millions de dollars qui pourraient être amorcés ou qui ont été amorcés cette année.

 

La Société de logement communautaire d’Ottawa possède et exploite plus des deux tiers du parc de logements sociaux à Ottawa, et son parc de logements sociaux est le plus vieux de la ville. Le rapport de vérification technique des bâtiments rédigé en 2008 est venu confirmer la nécessité d’effectuer des travaux de rénovation importants et indique que les réparations d’immobilisations requises avaient été reportées par le passé en raison de l’absence de financement pour les immobilisations et de l’incapacité à créer un fonds de réserve à cet effet.

 

L’état de l’immeuble de la Chinese Community Building Corporation d’Ottawa, situé sur la rue Kent, a nécessité de nombreuses interventions sur le plan de l’ingénierie ainsi que l’attention soutenue du gestionnaire de services au cours des deux dernières années. Cette tour d’habitation construite au début des années 1980 a connu des problèmes importants qui menacent désormais la sécurité de ses occupants et du public. Les fonds alloués pour les travaux de modernisation permettront à la Ville de venir en aide à la Chinese Community Building Corporation afin de régler les problèmes de cet immeuble et de rectifier sa structure, pour que les locataires soient confortables et fiers d’y vivre.

 

Dans sa lettre du 9 juin, le ministre Watson a également annoncé la création d’une initiative d’économie d’énergie de 70 millions de dollars centrée sur des projets de rénovation et de modernisation, qui utilisent avantageusement les possibilités en matière d’énergie renouvelable. Ce programme est toujours en cours d’élaboration, mais devrait être lancé vers la fin de juillet. La Ville devra alors être prête à soumettre des projets pertinents si elle compte profiter de ce financement.

 


 

BACKGROUND

 

On June 9, 2009 the Federal and Provincial Governments signed agreements resulting in a joint investment of more than $1.2 billion over the next two years in new social and affordable housing programs.  The total of the two-year investment of $1.2 Billion would see 4,500 new affordable rental units built and 50,000 social housing units renovated across Ontario.

 

On June 16, 2009, the City of Ottawa received notice from the Ministry of Municipal Affairs and Housing that under the Social Housing Renovation and Retrofit Program a notional allocation has been awarded to Ottawa for a total of $46,847,212 over the MMAH fiscal years of 2009 and 2010. The focus of this funding is to create an economic stimulus and therefore the Ministry has been clear that if the City of Ottawa is not able to fully utilize its notional allocation, it may be redirected to another jurisdiction. The notional allocation for each fiscal year must be used. In 2009/10 the allocation is $20,990,135 and for 2010/11 the allocation is $25,857,077.

The need for social housing repair was addressed in the Housing Needs Report (2007), it has also been a subject that has been well researched throughout the province by the MMAH. In Ottawa, the Building Condition Assessments (BCA) and Capital Replacement Reserve Fund Studies from the 56 social housing providers have clearly demonstrated need for capital funding to support capital repairs across the entire portfolio. Ottawa Community Housing Corporation, the largest social housing provider in Ottawa, has recently completed a comprehensive BCA and Capital Replacement Reserve Fund Study that delineates over $350M in capital projects that should be completed over the next five years. At the request of the MMAH, the City of Ottawa submitted on behalf of the 56 non-profit social housing providers over $84M in “quick start” capital repair projects that could be started or have started this year. The City’s submission for “quick start” projects included almost $20M from other social housing providers representing approximately 22% of the $84M request.

 

The province has set a maximum renovation amount per unit at $28,000 with anticipated average of $14,000 per unit. For retrofit projects, which must be pre-approved by the Province, the maximum amount per unit is set at $150,000 per unit.

 

It is recognized that Ottawa Community Housing owns and operates over two thirds of the Social Housing stock in Ottawa and that the Public Housing program portion of their stock which represents over sixty percent of their total stock is the oldest social housing stock in Ottawa. The OCHC Building Condition Assessment completed in 2008 confirms that this housing requires major renovation. It is further recognized through the BCA that there is over $211M in deferred capital repairs, which is mainly due to historic lack of capital funding and historic inability to create a capital reserve.  Recent increases to funding for the Public Housing program along with a new operating agreement for Public Housing in 2009 has corrected this situation going forward but it does not address the past capital repair problems. This funding will therefore target the most needed repairs to ensure the housing meets the needs of the residents. OCHC has currently over $56 M in capital projects either completed on underway this year.


 

The condition of the Chinese Community Building (Ottawa) Corporation located at the corner of Florence and Kent Streets has been the subject of extensive engineering and Service Manager involvement over the past 2 years. It is a high-rise apartment building that was built in the early 1980’s. It has however experienced major building envelope failure, which has become a safety issue for both the residents and the public. The retrofit funding provides an opportunity for the City to assist the Chinese Community Building (Ottawa) Corporation to address the building issues and return it to structurally sound state where tenants can be comfortable and proud of where they live. In addition, staff will be entering into a long- term agreement with the Chinese Community Building (Ottawa) Corporation that will extend their current operating agreement to ensure their long-term commitment with the City to provide affordable housing for the community.

 

Minister Watson’s letter to the City on June 9, 2009 also announced the creation of a $70M energy conservation initiative that will focus on renovation and retrofit projects, which take advantage of renewable energy opportunities. The program remains under development and it is to be released toward the end of July. It will be to the City’s advantage to be prepared to apply for appropriate projects under this funding.

 

LEGAL/RISK MANAGEMENT IMPLICATIONS:

 

There are no legal/risk management impediments to implementing any of the Recommendations arising from this Report.

 

FINANCIAL IMPLICATIONS

 

There are no financial implications to the City of Ottawa associated with the recommendations of this report.

 

SUPPORTING DOCUMENTATION

 

N/A

 

DISPOSITION

 

Housing Services will action any direction received as part of consideration of this report.