Report to/Rapport au :

 

Community and Protective Services Committee

Comité des services communautaires et de protection

 

and Council / et au Conseil

 

May 17, 2012

17 mai 2012

 

Submitted by/Soumis par : Steve Kanellakos, Deputy City Manager/Directeur municipal adjoint, City Operations/Opérations municipales

 

Contact Person / Personne ressource:  Janice Burelle, Administrator Housing Services Community and Social Services/Services sociaux et aux communautés  

(613) 580-2424 44239, janice.burelle@ottawa.ca

 

 

CITY WIDE / À L’ÉCHELLE DE LA VILLE

Ref N°: ACS2012-COS-CSS-0007

 

SUBJECT:

 

Capital allocation for SOCIAL HOUSING REPAIR

 

OBJET :

 

ATTRIBUTION DE CAPITAUX POUR LA RÉPARATION DE LOGEMENTS SOCIAUX

 

 

 

REPORT RECOMMENDATIONS

 

That the Community and Protective Services Committee recommend that Council approve the following:

 

1)    For the 2012 fiscal year, authorize the Administrator of Housing Services to allocate the funding envelope for Social Housing Repair as outlined in the Housing and Poverty Reduction Investment Plan (ACS20011-COS-CSS-0005) approved by Council May 11, 2011, on a per unit basis to all eligible social housing providers with projects currently under the administration of the City of Ottawa as the Service Manager; and

2)    For 2013 and beyond, an amendment to the Delegation of Authority By-law, By-law Number 2012-109, to delegate authority to the Administrator of Housing Services to allocate the funding envelope for Social Housing Repair as referenced in report ACS20011-COS-Css-0005 to prescribed Housing Providers currently in receipt of annualized capital subsidy contributions as outlined in legislation and operating agreements, in a manner supported by data indentified in the 2012 Capital Building Program as outlined in this report and the current level of capital subsidy contributions received from the Service Manager.

 

 

RecommandationS du rapport

 

Que le Comité des services communautaires et de protection recommande au Conseil d’approuver ce qui suit :

 

1) Pour l’année financière 2012, autoriser l’administrateur des Services de logement à attribuer l’enveloppe budgétaire affectée à la réparation des logements sociaux de la manière décrite dans le Plan d’investissement dans le logement et la réduction de la pauvreté (ACS20011-COS-CSS-0005), adopté par le Conseil le 11 mai 2011, les fonds étant répartis sur une base unitaire entre les fournisseurs de logements sociaux admissibles ayant des ensembles de logements que la Ville d’Ottawa administre en tant que gestionnaire des services.

 

2)   Pour l’année financière 2013 et au-delà, une modification au Règlement sur la délégation de pouvoirs, Règlement 2012-109, afin de déléguer à l’administrateur des Services de logement le pouvoir de réparrtir l’enveloppe budgétaire affectée à la réparation des logements sociaux visée au rapport ACS20011-COS-CSS-0005 entre les fournisseurs de logements prescrits qui reçoivent actuellement des subventions de capital calculées sur une année, comme le prévoient la loi et les ententes d’exploitation, d’une manière qui s’appuie sur les données contenues dans le programme d’immobilisations pour 2012 décrit dans le présent rapport et sur le niveau actuel des subventions de capital reçues du gestionnaire des services.

 

 

Executive Summary

The Housing and Poverty Reduction Investment Plan (ACS20011-COS-CSS-0005) that was approved by Council on May 11, 2011, allocated annualized funding for social housing repair.   In 2011, the funds supported 38 capital projects in over 50 social housing communities. For 2012, it is proposed that the funding available for social housing repairs from the Housing and Poverty Reduction Investment Plan approved by Council on May 11, 2011  be allocated on a per unit basis across the eligible social housing portfollio administered by the City as Service Manager.

 

Staff are currently engaged with housing providers in the process of finalizing the update of the housing providers' Capital Planning Program (Building Condition Assessments and Capital Planning Forcasts). These reports along with  a review of the current level of capital subsidy contribution the Service Manager to each prescribed housing provider will provide the foundation upon which to base the annualized allocation of the social housing repair fund on an ongoing basis starting in 2013.

 

RÉSUMÉ

Le Plan d’investissement dans le logement et la réduction de la pauvreté (ACS20011-COS-CSS-0005), que le Conseil a adopté le 11 mai 2011, prévoyait l’attribution de crédits annuels à la réparation des logements sociaux. En 2011, ces fonds ont permis de soutenir 38 projets d’immobilisation dans plus de 50 ensembles de logements sociaux. Pour 2012, il est proposé que le financement disponible pour la réparation des logements sociaux en vertu du Plan d’investissement dans le logement et la réduction de la pauvreté que le Conseil a adopté le 11 mai 2011 soit réparti sur une base unitaire pour l’ensemble du portefeuille de logements sociaux admissibles que la Ville administre en tant que gestionnaire des services.

 

Le personnel finalise en ce moment, de concert avec les fournisseurs de logements, la mise à jour du programme de planification des immobilisations (évaluation de l’état des immeubles et établissement des prévisions concernant la planification des immobilisations). Ces rapports, ainsi que l’examen du niveau actuel des subventions d’immobilisation que le gestionnaire des services verse à chaque fournisseur de logements prescrit, serviront à déterminer la répartition des fonds qui seront affectés chaque année à la réparation des logements sociaux à compter de 2013.

 

Background

In 2011 Council approved the Housing and Poverty Reduction Investment Plan (ACS20011-COS-CSS-0005).  As part of that investment,  annual funding was identified for social housing repair (Envelope #6).

 

It was recognized that the long term sustainability of the current social housing stock is critical for the overall well-being of communities in Ottawa for a number of reasons, some of which have far-reaching implications. Poor housing conditions and homelessness leads to increased illness and early death resulting in increased use of health care system services and loss of human capital. Poor housing conditions  also leads to stress which impacts individuals' and families' physicial and mental health.

 

In 2011 an RFP was conducted which resulted in 38 approved captial projects which affected over 50 social housing communities.

 

 The Housing Needs in Ottawa report (July 2007) concluded that social housing providers in Ottawa needed an annual increase in capital subisidy of over $14M. From 2009 - 2011, the Federal/Provincial Stimulus Program provided over $54M in one-time funds towards the repair of social housing stock and renewable energy projects.

 

Over the past 5 years, the City has invested over $87 million (City, Province and Federal funds) to improve the physical condition of the existing social housing stock.  The Housing Services Branch, as part of its planning process over the past 2 years has recognized that there is a need to have ready access to verifiable building condition information regarding the state of social housing assets under the City’s administration (estimated value of $2.5 Billion), in a format that will be consistent and relevant for both short and long term planning purposes. This information is vital to understand the current situation of the housing assets and to determine what the ongoing capital needs will be in the future. We are currently relying on Building Condition Assessments (BCA’s) and Capital Financial Forecasts that were completed over seven (7) years ago for the existing social housing stock and as such we cannot with full confidence know the current state of the housing assets or accurately project the current and future capital requirements. We currently estimate that there is approximately a $17M annual shortfall of capital subsidy to adequately maintain and preserve the housing assets. We anticipate being in a position by the end of this fiscal year to base this projection on solid evidence.

 

In 2011 The Housing Services Branch  began a Captial Planning Program to update social housing providers’ Building Condition Assessments  (BCA's) and Capital Planning Forcasts (CPF’s). This data and any subsequent updates will be managed by a new web-based  software system known as Asset Planner. This system will provide both the individual housing providers and the City as Service Manager, with up-to-date information that will be reflective of  the current state of the assets and in addition it will project ongoing capital requirements.  The update of the BCA's has been completed and verified (Q1 2012). The information is being loaded into the software system. It is expected that the Housing Services Branch will have access to this information by 4th quarter of 2012. This has been a major undertaking and has required a very collaborative effort between all social and affordable housing providers, the City and the Housing Services Corporation, who acted as the project manager for this project. This information is critical for the City as Service Manager, to understand the current state of repair of both existing social housing and affordable housing in Ottawa and to plan for the future.  It will provide a basis upon which the annualized social housing repair funding stemming from Council's investment may be allocated on a long term basis going forward.

 

DISCUSSION

As indicated above, through a Capital Planning Program, the social housing providers' BCA’s were last updated seven years ago. Up to date BCA’s are a critical element of the capital planning process. Part of Housing Services work plan for 2011/12 has been to update social housing and affordable housing providers' BCA's.  It is important to ensure that the information gained from this process is accurate, consistent and usable by the housing provider as well as the Service Manager. The City has therefore selected a web-based Asset Planner software system to manage this information in a real time database that will reflect any capital investments made to a particular housing asset. This means that on a go-forward basis, the BCA's and the Financial Planning Forcast will be updated as changes are made.

 

As part of the Housing and Poverty investment plan approved by Council, and as part of affordable housing development, the investments made in the repair of social housing needs be directed to where it is most needed.  The web-based asset planning software will greatly assist in this regard. As part of the outputs from Asset Planner, staff will have access to a current Facility Condition Index (FCI) on each social housing building under our administration. FCI helps identify the current state of a building; whether it is in good repair, acute need of repair or even if it is beyond repair and needs to be replaced. As the stock ages, this information is critical to ensure city funds are spent strategically and appropriately.

 

As this level of information will not be available in time to use for the investment of the social housing repair funding in 2012, staff recommend on a one-time basis in 2012 to allocate funding on a per unit basis to all eligible social housing providers with projects currently under the administration of the Service Manager.  In 2013 and beyond staff will allocate this funding based on the information obtained from the updated Capital Planning Program, the financial forecasting software modelling and on the current level of capital subsidy the Service Manger contributes to each prescribed social housing provider as outlined in legislation and operating agreements. 

 

RURAL IMPLICATIONS

There are no rural implications associated with this report.

 

CONSULTATION

Consultation was not required as part of this report.

 

Comments by the Ward Councillor(s)

N/A

 

LEGAL IMPLICATIONS

There are no legal impediments to the implementation of the report recommendations.

 

RISK MANAGEMENT IMPLICATIONS

There are no risk management implications associated with this report.

 

FINANCIAL IMPLICATIONS

There are no additional financial implications with the report recommendations. The 2012 capital budget authority for Social Housing Repairs & Renewals is $3.105M which will be allocated on a per unit basis to all eligible social housing providers with projects currently under the administration of the City of Ottawa as the Service Manager.

 

ACCESSIBILITY IMPACTS

There are no accessibility impacts associated with this report.

 

Technology Implications

There are no technology implications associated with this report.

 

TERm of council priorities

This report supports Council’s Healthy and Caring Community Strategic Direction: Improve social and affordable housing.

 

DISPOSITION

 

The Administrator of Housing Services will allocate to each Housing Provider that is currently in receipt of annualized capital subsidy contributions pursuant to legislation and current operating agreement, funding described Investment Envelope 6 in Document 1 of the Housing and Poverty Reduction Investment Plan Report (ACS200011-COS-CSS-0005, Planning Committee Report 8A, Item 2, at Council on May 11, 2011) to fund capital repair projects in a manner that is supported by the data collected from the updated 2012 social housing Capital Planning Program and the current level of capital subsidy contributions received from the Service Manger.

 

Staff of the Corporate Development and Environmental Law Branch, City Clerk and Solicitor Department will submit directly to Council the revision to the Delegation of Authority By-law, By-law Number 2012-109, delegating authority to the Administrator of Housing Services to allocate the funding described in Investment Envelope 6 in Document 1 of the Housing and Poverty Reduction Investment Plan Report in manner outlined in the above paragraph.