HSC Regeneration Forum - 2016

1. Context a) Background b) 10-Year Housing Plan

Change Drivers Service System Management

2. Partnerships and Projects

a) 3P b) Examples of Affordable Developments c) Service

3. Moving Forward

a) Long-Term Affordable Housing Strategy b) Entrepreneurship in Service Delivery c) Risk Management

1. Background Service Manager ◦ Administer funding for 1,000 non-profit and co-

operative units

Cochrane District Local Housing Corporation ◦ 1,292 units ◦ Affordable Housing Development Entity

Who do we house ◦ 70% of portfolio is geared to seniors ◦ large number of tenants require supports ◦ ~1,200 waiting to be housed

Process Consultations

Data

Analysis Market Conditions

Affordability

Stock

Conclusions Service System Mgmt

Recommendations Partnerships

Development

Service

Procrastination in the name of reducing risk actually increases risk. – Colin Powell

“You never want a serious crisis to go to waste. [It] provides the opportunity for us to do things you could not do before.

– Rahm Emmanuel

Source and rally partners ◦ 10-Year Plan

◦ Project specific – demand quantification

◦ Service accountability

Organizational transformation ◦ Operations

◦ Governance

◦ Marketing

System Transformation ◦ Non-traditional partners

Source - Fred R. David

Quantitative Strategic Planning Matrix (QSPM) Legend: AS – Attractiveness Score TAS – Total Attractiveness Score 1 = not acceptable, 2 = possibly acceptable, 3 = probably acceptable, 4 = most acceptable

Strategic Alternatives

3P Design / Bid / Build

Key Factors Weight AS TAS AS TAS

Strengths

Market knowledge .05 2 0.1 3 0.15

Connections – Industry and Municipal .10 4 0.4 2 0.2

Available Funding .10 3 0.3 1 0.1

Borrowing Power .15 4 0.6 3 0.45

Equity availability .10 3 0.3 3 0.3

Weaknesses

Internal capacity (planning, legal, etc.) .10 1 0.1 3 0.3

Development experience .10 2 0.2 2 0.2

Low risk tolerance .15 3 0.45 2 0.3

Ministry / legislative / Sector restrictions .10 1 0.1 2 0.2

Complexity .05 1 0.05 3 0.15

1.0

Opportunities

High demand .10 2 0.2 3 0.3

Stakeholder support .10 - - - -

Low interest rates .15 - - - -

Alternative construction options .05 - - - -

Inactive Development Market .05 3 0.15 2 0.1

Threats

Property Availability .10 3 0.3 4 0.4

Population outmigration .10 - - - -

Competition .05 4 0.2 3 0.15

Marketability – vac loss .10 3 0.3 2 0.2

Cost of Construction .20 3 0.6 2 0.4

Sum Total Attractiveness Score 1.0 4.25 3.75

Integrations Strategies ◦ Forward / Backward / Horizontal

Intensive Strategies ◦ Market Penetration / Market Development / Product

Development

Diversification Strategies ◦ Concentric / Horizontal / Conglomerate

Defensive Strategies ◦ Retrenchment / Divestiture / Liquidation

Generic Strategies ◦ Cost Leadership / Differentiation / Focus / Value Chain

Life is full of lousy options. – Gen. P.X. Kelley

Combination Strategies ◦ Joint Venture / Mergers

When a crisis forces choosing among alternatives, most people will choose the worse possible one. – Rudin’s Law

What did we do? ◦ Created the mechanism (entity) to develop affordable

units and / or generate revenue to be invested in developing affordable units.

Why did we do it? ◦ Declining federal and provincial funds ◦ Too much pressure on municipal funds ◦ Critical need in northern municipalities

Where are we now? ◦ Projects in progress ◦ Steep learning curve (financing, project mgmt., etc.) ◦ Sourcing partners to ensure tenancy security ◦ Charitable status

Service Managers – Housing, Employment, EMS

Health – Service Providers, Hospitals, Primary Care

Education – Secondary / Post-secondary

Municipalities – Planning / Economic Development

Private Sector – Developers / Service providers

Target Population Service Agencies – Aboriginal, Seniors, Victims of Domestic Violence, Youth

Homelessness Prevention Services

Property Acquisitions and redevelopment

Project Details

Cochrane Seniors • 32 units • Bedroom mix = bach to 2 • Kitchen services • Environmental services

286 Randall • Single-detached home • Renovated to 4 bedroom + 1

office • Market rent • Transitional living for targeted

population

Opasatika School Conversion • Partnership between municipality, CSCDGR, and CDSSAB

• Potential for 10 to 12 seniors units

Project Details

Kapuskasing • Seniors development – TBD

• School reno family development - TBD

Smooth Rock Falls • Seniors development – TBD

Hearst • Seniors development – TBD

Caring Community Housing Collaborative

• Coalition of health service providers and CDSSAB to create common service delivery space, transitional housing, and permanent housing

Project Details

Iroquois Falls Supported Seniors

• 10 units (single storey townhouse) • 2 bedrooms • Slab on grade • Capital partnership between

CDSSAB. NE LHIN, Town of I.F. • Remaining capital financed via I.O.

545 Couture (Timmins) • Semi-detached home • 3 bedrooms • Internally financed

45 Laurier (Timmins) • Single-detached home • 3 bedrooms • Internally financed

35 Dwyer (Schumacher) • 6-plex • 1, 2, and 3 bedroom mix • Market rent • Investment in affordable housing

program and internal finance combo

Long-Term Affordable Housing Strategy Renewal ◦ CHPI

Homelessness as loss-leader investment

ROI

◦ Poverty Reduction Strategy and Supportive Housing

◦ Investment in Affordable Housing Program ◦ HSA – enabling legislation

Then

Landlord

Funding administrator

Access administrator

Now • Service System Mgr. • Landlord • Funding Administrator • Access Administrator • Property Developer • Property Manager • Service Provider • Economic Development

Driver • Employment Developer

Reconcile need and demand - affordable unit development (space, single storey vs. multi level)

Financing – complexity and replicability

Entrepreneurial Culture

Governance

New enterprise:

•Development

corporations, property

management services

•Partnerships, alliances

Leveraging assets:

•Redevelopment, land

banks, market sales

•Northern Bond,

Canadian Housing Bank

Scale Up:

•Merge, acquire,

capitalize on scale

Run it like a

business

•Foster innovation

•Entrepreneurship: Can

YOU handle it?

Incremental: small improvements

over time; e.g., process

improvements, operational

efficiencies

• Encourage creativity • Rethinking rules • Failure is okay • Manage risk

Fostering Entrepreneurship

Disruptive: transformative, system

change, new business models, new

markets; e.g., Facebook, Amazon,

AirBnB, Uber

Less Risk

More Risk

Supported living vs. Assisted Living

Secure partnerships in advance

Clarify service definitions

Account for delivery capacity by municipality

Reconcile fee for service with cost inclusion – in affordable context

Balancing immediate need of affordability with long term capital requirements

Change with environment ◦ Flexibility (in-house skills

supported with labour service contracts)

◦ Meet current demand

◦ Save operational dollars

◦ Expand business lines and market services

Insulate against future risk

Alice said, “Would you please tell me which way to go from here?” The cat said, “That depends on where you want to get to.” – Lewis Carroll

1 DSSAB and 12 member municipalities are capable of some good things

10 DSSABs and 110 Cities, Towns, and municipalities are capable of great things

No problem can be solved from the same level of consciousness that created it. – Albert Einstein

$$$ Capacity and Infrastructure o Garage, storage, etc.

Risk o liability (slip and falls, property damage) o Costs – equipment depreciation and wear o Human resources

Service Labour relations o Union environment

Vendor relationships o Eliminating one line of service can threaten other lines

Sustainability / Scalability

Conditions (economic, operational, environmental, etc.) were right to make changes.

Brian Marks ◦ Director, Housing Services

◦ marksbri@cdssab.on.ca

There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction. - JFK

Downtown

Project (RENDERING)

The

Canadian

Museum for

Human

Rights

WINNIPEG,

MB

City of

Regina