strategic business plan 2017 2021 - leduc regional housing · leduc foundation strategic business...

STRATEGIC BUSINESS PLAN

2017 – 2021

November 24, 2016

www.leducfoundation.ca

Leduc Foundation

2017 – 2021 Strategic Business Plan

Table of Contents

Topic Page

Executive Summary ................................................................................................... 1

Accountability Statement ........................................................................................... 2

1. Housing Management Body Overview ................................................................. 2

1.1. Corporate Profile .......................................................................................... 3

1.2. Portfolio Profile ............................................................................................. 4

1.3. Client Profile ................................................................................................. 5

2. Plan Development ............................................................................................... 6

3. Environmental Scan ............................................................................................. 6

3.1. SWOT Analysis ........................................................................................... 8

4. Goals, Priority Initiatives, Expected Outcomes and Performance Measures ........ 9

4.1. Clients & Services ........................................................................................ 9

4.2. Human Resources ...................................................................................... 10

4.3. Governance, Risk & Financial Management .............................................. 11

4.4. Asset Management ..................................................................................... 12

5. Financial Budget and Forecasts ......................................................................... 13

6. Capital Development Plan .................................................................................. 13

7. Capital Improvement Plan ................................................................................... 15

Appendix A – Corporate Profile

Appendix B – Property Profile

Appendix C – Financial Plan

Appendix D – Capital Development Plan

Appendix E – Capital Improvement Plan

Appendix F – Rent Supplement Profile

Appendix G – Client Profile

Appendix H – Accomplishments

Leduc Foundation Strategic Business Plan – 2017 to 2021

November 24, 2016 Page 1 of 15

Executive Summary

Leduc Foundation was established by Foundation Charter on March 11, 1963 to own and operate a 32 room lodge in the Town of Leduc. Located within the Leduc Region, the area is now identified as a priority growth area of the Capital Region of Alberta with many opportunities and challenges. The past 53 years have seen significant growth within the Leduc Region. Coupled with supportive government policies, Leduc Foundation has taken advantage of many opportunities to respond to the housing needs of seniors, individuals and families of modest means. Leduc Foundation now offers housing and services through seven (7) programs in all seven (7) municipalities within the Leduc Region.

The aging of our population should show a meaningful increase in need for seniors housing, though this has not been the case. The Housing Needs Assessment completed with the support of the Housing Committee of the Capital Region Board (CRB), has provided more detailed information on current and future housing needs.

While housing is truly foundational to stabilizing a household, additional supports are frequently needed to ensure a successful tenancy. Partnerships are firmly established with community agencies though new resources are needed to solidify the supports the tenants require.

Leduc Foundation has worked closely with its seven member municipalities to bring new affordable housing to the Leduc Region. New units have been added to the communities of Leduc, Beaumont, Devon and Calmar over the past eight (8) years, with the most recent opening in September 2015. Affordable Home Ownership has been made possible through a partnership with Habitat for Humanity Edmonton and local home builders. Opportunities to leverage and seek new funding through private and provincial sources will be pursued over the next few years.

The majority of Leduc Foundation’s portfolio was built in the 1980s or earlier; and requires significant upgrading. The Government of Alberta (GoA) have initiated the addition of sprinkler systems to the seniors’ lodges with the commitment of $70 million in phase one. There is risk of loss for the assets and lives, in the Seniors’ Self-contained Apartments that are also lacking sprinkler systems. Updated Facility Condition Inspections are needed to confirm the value in maintaining versus replacing the aging housing stock. Significant funding is being requested in 2017 budget alone for operational (+$465,000) and non-recurring (+$295,000) maintenance. Replacement of the 1963 section of Planeview Place lodge and the ASHC owned Linsford Place Townhouses, are needed within the next few years.

Operation funding from the provincial government has been reduced over the past few years challenging the adequacy of maintenance for the buildings. Secure, multi-year funding is needed to permit adequate planning as well as efficient and effective execution. The provision of housing for seniors, individuals and families of modest means is a critical contribution to the health & sustainability of the communities within the Leduc Region. Federal leadership with Provincial Direction, that permits delivery at the Municipal level, is required to not only support Leduc Foundation’s Mission, but the ultimate achievement of Leduc Foundation’s Vision.



Accountability Statement

The business plan was prepared under the Board of Director’s direction in accordance with legislation and associated ministerial guidelines, and in consideration of all policy decisions and material, economic, or fiscal implications of which the Board is aware. Approved by the Board on November 24, 2016.

1. Housing Management Body Overview Leduc Foundation is a Housing Management Body (HMB) created by Ministerial Order H:009/95 under Section 5 of the Alberta Housing Act, and a corporation as outlined under Section 6 of the same Act. Leduc Foundation was initially established under a Foundation Charter on March 11, 1963.

The geographical area served by Leduc Foundation referred to as the “Leduc Region” encompasses the seven (7) municipalities between the City of Edmonton and the County of Wetaskiwin and includes Leduc County, City of Leduc, Town of Beaumont, Town of Devon, Town of Calmar, Village of Thorsby and Village of Warburg:

A Board of Directors comprised of municipal representatives, governs Leduc Foundation. Leduc County, which appoints 2 members to the Board and each of the remaining six municipalities in the Leduc Region, appoint one member. Each municipality has chosen to appoint an elected official to the Board of Directors. The “Member-at-Large” position on the Board is appointed by the Board of Directors, to represent the citizens in the service area.

The Executive Director is the Chief Administrative Officer (CAO) for Leduc Foundation, the sole employee of the Board of Directors.

Mission

Provide high quality, affordable housing and services to seniors, individuals and families of modest means.



Vision

Every senior, individual and family of modest means residing within the Leduc Region lives in comfortable, safe and affordable housing.

Values

To accomplish its mission and work towards the vision, Leduc Foundation will create and maintain a positive working environment in which Board members, management and all staff share a common set of values:

Professionalism Demonstrate respect and integrity at all times with clients, co-

workers, colleagues, and the public.

Team Work Working together safely, to achieve operational excellence.

Compassion Consider and support the individual circumstances of co-workers and the clients we serve.

Innovation Seek new and creative opportunities to develop efficient and effective programs.

Accountability Achieve and maintain high standards of service and fiscal responsibility.

1.1. Corporate Profile

Leduc Foundation was originally created by Foundation Charter on March 11, 1963, signed by Premier Ernest Manning. Reestablished as a HMB under the Alberta Housing Act, effective January 1st, 1996, Leduc Foundation provides non-market housing within the Leduc Region.

The Non-market Housing is provided through seven (7) programs - four (4) direct housing programs and three (3) rent supplement programs:

Seniors’ Lodge Program (Supportive Living)

Supportive Living Rent Supplement

Seniors’ Self-Contained Apartments

Community Housing

Private Landlord Rent Supplement (PLRS)

Direct to Tenant Rent Supplement (DTRS)

Affordable Housing

The Administration Office for Leduc Foundation is located at:

5118 – 50th Avenue, Leduc, Alberta, T9E 6V4

It is ideally located in close proximity to a number of the properties that are owned and managed by Leduc Foundation. Housing and administration services moved into the space in 1993 to accommodate the provision of services for the region’s non-market housing that was being consolidated under Leduc Foundation’s administration. The 4500 square foot office building was purchased in November



2006. The construction and subsequent delivery of Affordable Housing beginning in 2007, required expansion of the office space in late 2010.

The maintenance of Leduc Foundation’s assets is completed through a centralized operation out of the Ron Oleksiw Maintenance Shop (2011) located at Planeview Place, Leduc. The Maintenance Department, under the direction of the Asset Manager, is responsible for the preventative, demand and planned maintenance for all properties owned and managed by Leduc Foundation. A small fleet of maintenance vehicles is utilized to transport staff to the sites throughout the Region. Contracts and capital projects are completed by the Maintenance Department as time and skill sets permit.

Affiliations Leduc Foundation is a member of the following organizations:

Leduc Regional Chamber of Commerce

Leduc-Nisku Economic Development Association - Corporate Partner

Leduc Downtown Business Association (DBA)

Alberta Urban Municipalities Association (AUMA) - Associate Member

Alberta Association of Municipal Districts & Counties (AAMDC) - Associate

Alberta Network of Public Housing Agencies (ANPHA)

Canadian Housing & Renewal Association (CHRA)

The Executive Director is a member of the following organizations:

Alberta Public Housing Administrators’ Association (APHAA)

Chartered Institute of Housing (CIH), Canada

Corporate Profile details can be found in Appendix A.

1.2. Property Profile

Leduc Foundation currently provides housing for seniors, individuals and families of modest means in 19 buildings, through the following four (4) direct housing programs, in the Leduc Region:

Seniors’ Lodge Program (Supportive Living) accommodation with hospitality services targeted to 65+ year olds rent geared to 30% of income (RGI) + service package

Seniors’ Self-Contained Apartments One-bedroom apartments for independent, 65+ year olds; RGI

Community Housing 2, 3, & 4 bedroom townhouses for families; RGI

Affordable Housing 1, 2, 3, & 4 bedroom suites families; rent set at least 10% below market.

A limited number of housing support and hospitality services are also offered through our facilities. A list of the buildings owned and/or managed by Leduc Foundation can be found in Appendix B.



1.3. Client Profile

Application for housing, lodge accommodation and rent supplements are accepted from seniors, individuals and families of modest means. Priority is given to those households who meet Leduc Foundation’s residency requirement: that they have resided within the Leduc Region for the previous twelve (12) months or ten (10) years of their life. As of September 30th, 2016, Leduc Foundation houses or provides rent supplement to, 746 households serving 1061 people. Approximately half of those served (48%) have pension as their primary income source which is consistent with the fact that 50% of our portfolio is seniors’ housing. 17% of our households have employment income as their primary source (down from 23% in 2015) with Income Support and AISH pension identified for another 22% of the households (up from 20% in 2015). It is interesting to note that 28% of Leduc Foundation’s clients are children (<18 years of age) and only 33% are seniors when, as stated previously, 50% of the housing units are for seniors. The Seniors Self-Contained Apartment and Private Landlord Rent Supplement Programs have the longest length of stay of all the programs (~ 6 years) followed by the Community Housing program offered at Linsford Townhouses (~ 4.5 years). The average length of stay for the Seniors’ Lodge Program is significantly different between the two facilities. Planeview Place residents have a much longer length of stay (5 years) compared to Cloverleaf Manor (2 years). This is representative of the younger and more transient client being served at Cloverleaf Manor. 33% of the units (226) turnover on an annual basis creating a steady flow of move-out/move-in and suite preparation for Leduc Foundation staff. The Waiting List is dynamic currently showing 362 households waiting for housing or financial assistance with their rent. Single applicants form the largest portion (56%) of the waiting list; 64% of which are seniors. Single parents with children are the second largest (30%) group of applicants on the waiting list. An equal number are employed or on income support.

See Appendix G for additional information.



2. Strategic Business Plan Development Leduc Foundation has operated under Strategic Business Plans since the year 2000, when it developed its first three-year plan for the period 2000 – 2002. The Strategic Business Plan is reviewed annually and updated as necessary to reflect current circumstances and changing needs. The Alberta Government has requested that Strategic Business Plan developed for 2016+ be for a five (5) year time line. Leduc Foundation’s Board of Directors and Senior Management Team have historically met with community and government representatives to participate in a mini-retreat in the spring of each year. In 2016 the Board of Directors reviewed the Business Plan in including the Foundation’s Mission Statement, Vision, Values, and Strategic Statements to direct the development of the goals for 2017 – 2021. The Strategic Business Plan is implemented through the Foundation’s annual budgets and operating plans, which not only include provisions to maintain and enhance Leduc Foundation’s current facilities and services, but allocate the necessary resources to accomplish the established goals. Management is evaluated based on progress towards the stated goals as well as on-going operational efficiency. When necessary, the goals are adjusted based on emerging information, circumstances or unanticipated events. If for any reason the Board is unable to complete an annual review and update of this Strategic Business Plan, a new planning process will be initiated and completed no later than December 31, 2021, to thoroughly review the status of Leduc Foundation’s operation at that time, including external trends and influences. A subsequent Strategic Business Plan for the period 2022 – 2026 will be completed and approved. 3. Environmental Scan A comprehensive environment scan is conducted as part of the strategic planning process, to examine external factors and trends that influence Leduc Foundation’s development. The environment scan includes a review of existing research from other sources regarding population and demographic trends, as well as an examination of trends in seniors and other affordable housing. Highlights of the 2016 environment scan are:

Regulatory/Legal

The election of an NDP Provincial Government in the spring of 2015, supports policy trends that are favourable for non-market housing initiatives by organizations such as Leduc Foundation. The current economic conditions created financial challenges that have limited the ability of capital grant offerings.

The Provincial Government have initiated the creation of a Provincial Housing Strategy that will be a first for Alberta. This effort will align with the Federal Governments’ planning for the creation of a National Housing Strategy

The Supportive Living Rent Supplement Pilot Program (2010), which had been extended to 2015, will come to a conclusion with the utilization of the funding. The



3 households currently being supported in Discovery Place, Devon, may be able to be supported with a monthly supplement until 2018.

Economic

Although housing prices have moderated in Alberta in the past few years and apartment vacancy rates have improved slightly, affordable housing remains a major issue in the Capital Region. Continued economic growth will mean continued demand for affordable housing for individuals and families of modest means.

Changes to the global economy and the resulting impact on Alberta’s economy, has created more hiring opportunities for the Foundation in terms of attracting and retaining high quality, well trained staff members.

Rental apartment vacancy rate reported by CMHC for the Edmonton CMA, has risen from 4.2% in October 2015 to 7.1% in October 2016 due to softer economic conditions. CMHC expects the vacancy rate to increase in 2017 and 2018.

Rent for an average 2-bedroom apartment declined 2.3% (October 2015 – October 2016) to $1,229/month comprising 60% of the gross monthly income of a full-time (2000 hours), worker making minimum wage (October 2016 $12.20).

Single-detached housing starts will post a modest increase in 2017.

„„Multi-unit housing starts will move lower in 2016 and 2017.

„„MLS® sales will remain relatively low in 2017.

According to CMHC’s Housing Market Outlook Fall 2016, single-detached housing starts will post a modest increase in 2017; though multi-family housing starts are expected to move lower in 2016 and 2017.

CMHC continues to predict a slowdown in housing starts and resale transactions in Alberta due to the lower oil prices.

Social/Cultural

Significant population growth in the Leduc Region (26.6% as compared to 11.2% in Edmonton) from 2006 to 2011 has been tempered in the past few years. A growth rate similar to the 13.2% from 2001 to 2006 has been seen again with growth of 14.8% from 2011 to 2016. The Statistics Canada 2016 Census information will begin to be released in February 2017.

Evidence of an aging population in Canada, Alberta, Leduc and area continues to mount.

Front edge of the “baby boom” generation reaching age 65 in 2011. There may be a significant impact as early as 2020 for organizations such as Leduc Foundation, who have seniors moving into self-contained apartments with an average age of 72 years and seniors moving into supportive living with an average age of 84 years.

Waiting lists for the Foundation’s seniors housing programs have increased over the past year.

Demand for affordable housing for individuals in the Leduc Region is strong though the affordable housing rental rates are a barrier to accepting housing. Rent



supplements have been used to bridge the rental rate gap. The need for deep subsidy / social housing is increasing due to the Leduc Region’s, faltering economy.

There are 1,455 households who paid more than 30% of their income for housing and 605 households who paid more than 50% - lone-parent families had the highest incidence of need at 57% and non-family households were second highest at 53%.

77% of households in need are non-seniors and among them, single person households and lone-parent family households make up a significant portion.

Technology

Social media has the ability to impact an organization.

Paperless systems are considered to be the way of the future.

Government information requirements direct changes in gathering, processing and reporting expectations.

Competitors

Leduc Foundation provides subsidized and affordable housing for seniors, individuals and families of modest means and has been recognized by the Leduc Region municipalities as the Non-market Housing provider for the Leduc Region. There had not been direct competition from other housing suppliers in the region until an Affordable Housing Capital Grant was provided to a private sector developer/builder in 2011 to build 60 units of Affordable Housing in Beaumont. There are private corporations and other organizations that provide housing for seniors, individuals and families in Leduc and area, including:

Discovery Place, Supportive Living, Devon – 60 units, Private

Lifestyle Options, Assisted Living, Leduc – 160 units, Market/Non-profit

Montrose Place, Beaumont – 60 Affordable Housing, Private

3.1. Strengths, Weaknesses, Opportunities, and Threat (SWOT) Analysis

Internal ( Priorities)

Strengths

Solid financial practices

Well connected in community

Regional strength

Active voice in industry

Range of housing options available

Municipal support / owners

Holding Affordable Housing

Organization well managed / strong

Community based (committed)

Innovative / solid knowledge base

Good working relationship with GoA

Progressive thinking

Weaknesses

Long term sustainable funding

Insufficient supply of housing

Transportation for residents/tenants

Data that is outdated

Change in GoA (MLA) relationships

for networking (lost our champions)

Too dependent on GoA Funding

Aging workforce retirement loss of

knowledge

Succession planning

Change management needed for

cultural shift

Board continuity linked to elections



Resident/tenant satisfaction

Employee retention

Cohesive senior management team

Strong governance

Loss of operational knowledge

External

Opportunities

Mixed tenure – Near Market + Affordable

+ Social Housing

Alternate housing forms

o Under-utilized buildings

o Advocacy & public education

NDP / Liberal governments

New Funding Models - Private / corporate

funding / P3 / Service Clubs / Church Groups

Modular construction (e.g., panels)

Redevelopment of Linsford ( density)

Partner with schools/colleges/construction

associations for renovations

Explore supporting seniors to stay in their

own homes

Sell expertise – e.g., Service contracts

Community Education & collaboration

Habitat for Humanity

Societal response, i.e. minimum wage

increase for clients, etc.

Threats

Economic conditions – e.g., growth

Federal funding – address building

maintenance

Position of Housing Portfolio under

Seniors & Housing Ministry

Trying to be everything to everyone

Complex client needs

Not evolving – ethnic, culture

Lack of funding

Tolerance for debt

Government policy

Organization capacity

Economic conditions – economy is slow

4. Goals, Priority Initiatives, Expected Outcomes and Performance Measures

Based on the environment scan and the outcomes of this year’s planning retreat, the Board set out the following Goals for the period 2015 – 2017:

4.1. Clients & Services

Goal - Deliver a regionalized housing program that provides a range of options to support the housing and service requirements of modest income households.

Expected Outcome: house more individuals and families of modest income, reduce wait times, and the number on the wait list, while fostering independence.

Challenges: - In-adequate funding to provide supports to address tenant’s RTA non-

compliance and behavior issues - Older housing requires renovations between occupancies leading to rent loss. - Lack of medical and support services in the west end of Leduc County - Transportation challenging for supportive living and seniors apts residents - Programming for combined senior/non-senor client group Opportunities:



- Partnerships with community agencies - Education for tenants - Build strong relationships with private landlords - Provide supportive living services to non-seniors who would benefit from the

congregate living environment with hospitality services Priority Initiatives:

1. Increase supply of affordable housing in the Leduc Region.

2. Funded Community Resource Worker to prevent homelessness.

3. Formalizing partnerships to provide resources to tenants.

Priority Initiative Performance Measure

2015 Results

2016 Forecast

2017 Target

2018 Target

2019 Target

2020 Target

2021 Target

1. Increase supply of AH.

More units of housing and/or rent supplement

14 AH DTRS Linsford DTRS

DTRS Replace

Planeview DTRS

35 AH DTRS

DTRS

2. Community Resource Worker

Reduce eviction rate for RTA non-compliance

Agency Partners

Leduc Programs

Leduc Region

Program

Full Funding

Full Funding

Full Funding

Full Funding

3. Formalize Partnerships

Establish shared programs.

Mental Health

FCSS for DTRS

The Home Program

Electronic HUB

Norquest College

Seek opportu

nities

Investigate

options

4.2. Human Resources

Goal: Recruit, develop and retain a qualified workforce of client focused individuals who are inspired to a high standard of performance to create an outstanding workplace with Leduc Foundation recognized as an employer of choice.

Expected Outcome: consistently retain, adequately trained and satisfied staff

Challenges: - Aging workforce – average age of employees is 51.0 years (December 2015).

- High unemployment rate (8.5% - October 2016) up from 6.6% one year ago

- Competition from within industry and member municipalities.

Opportunities - Located within the Capital Region of Alberta, attract employees coming to

work within the region.

- Partnerships with high schools, colleges and universities to generate

awareness of career opportunities and work experience available in the

housing industry.

- Retirees return to fill casual/part-time positions within the organization.

- Employment for Leduc Foundation tenants.

Priority Initiatives:

1. Develop and document partnerships with academic institutions at secondary and post-secondary levels for professional development of staff

2. Create a comprehensive staff development program.

3. Increase staff retention rate.

4. Recruit 2-5 students per year for work experience programs



5. Develop and implement an HR Strategy that addresses: changing demographics, Gen X-Y-Z, cultural diversity in the workplace and corporate culture.

Priority Initiative Performance Measure

2015 Results

2016 Forecast

2017 Target

2018 Target

2019 Target

2020 Target

2021 Target

1. Partnerships - academia

# of contacts 1 1 1 1 1 1 1

2. Staff development program

Comprehensive staff training program in place

Lodge Staff

Housing Services

Central Admin.

Main. Update Update Audit

3. Core Value Alignment

Alignment of staff to Leduc Foundation Core Values

Introd

uction

90% of Staff @ L2

25% @ L3

30% @ L3

35% @ L3

40% @ L3

4. Recruit work experience students

Recruit 2-5 students per year

- - 1 2 2 2 2

5. Gen X-Y-Z HR Strategy

Diverse workplace - - research HR

Strategy Update Update Update

4.3. Governance, Risk & Financial Management

Goal - Within a strong governance framework, ensure that adequate resources are obtained, and efficiently and effectively utilized.

Expected Outcome: long term sustainability and growth of organization

Challenges: - Annual appointment of majority of Board Members - Changes to priorities from provincial government - Maintain Certificate of Recognition (COR) standards within current resources - provincial budget cycle

Opportunities: - Multi-year funding to permit longer term planning - Access private funding sources


1. Confirm legislative compliance and organizational effectiveness.

2. Develop a long term funding model; include Plan B that assesses building viability, leverage assets and source funds to increase supply of housing.

3. Implement comprehensive financial & client information system (YARDI)

4. Develop an advocacy strategy with partners, e.g. ANPHA & Stakeholders

5. Develop an Information Technology (IT) Strategy to protect the integrity of current data and capture and process future data requirements.



Priority Initiative Performance Measure 2015

Results 2016

Forecast 2017

Target 2018

Target 2019

Target 2020

Target 2021

Target

1. Legislative compliance

Board Governance Policies

Research Approved Policies

Operationalize

Evaluate Update

Evaluate Update

Evaluate Update

Evaluate Update

2. Long term funding model

Self-sustaining operation & expansion

Internal investing

in AH

Increase cash flow

Mixed model

Private sector

Leverage existing

Leverage existing

Leverage existing

3. Implement YARDI

Integrated financial & property management system in place

Contract signed

Stand up Enhance Streamline

process Enhance

Streamline process

Enhance

4. Secure funding

Multi-year operating & capital funding

1 year 1 year 2 years in place

3 years in place

3 years in place

5 years in place

5 years in place

5. IT Strategy Strategy developed Gather Data

Draft Finalized Update Integrate with HAL

Update Update

4.4. Asset Management

Goal - Build and acquire safe, modest, housing and workplaces that are maintained in good repair, clean, and compliant with all required legislation.

Expected Outcome: clean, safe and adequate housing and work places

Challenges: - Age of majority of buildings in portfolio - Lack of sprinkler systems in multi-unit buildings - Available provincial funding

Opportunities: - Multi-year funding to permit longer term planning and cost efficiencies - Holding maintenance reserves - Replace out dated buildings


1. Improve and maintain building security.

2. Develop an Asset Management Plan by program.

3. Sprinkler all buildings to meet current Safety Code regulations.

4. Habitat of Humanity – Affordable Home Ownership.

5. Develop a new Regional Affordable Housing Plan for the Leduc Region

Priority Initiative Performance Measure 2015

Results 2016

Forecast 2017

Target 2018

Target 2019

Target 2020

Target 2021

Target

1. Improve building security

Meet Crime Free Multi-Family criterion

Record Status

Review 1 site

Review 3 sites

Review 3 sites

Review 3 sites

Review 3 sites

Review 3 sites

2. Asset Plan Define, maintain, replace

2 sites accessed

Data Finalize Plan

Leduc lodge

replace

Fund Linsford replace

Open New

Lodge

Open Linsford Replace

3. Sprinkler buildings

Sprinkler systems installed

Buildings identified

Tender work

Warburg Lodge

Seniors Apts

Yule Meadows

Seniors Apts

Seniors Apts

4. Affordable home ownership

Fund New homes 1 home - 1 home

5. Regional AH Plan

5 year strategy to meet need in region

- CRB

Report Muni.

agencies Go Evaluate Update Evaluate



5. Financial Budget and Forecasts (Appendix C)

Financial management of Leduc Foundation’s operation is currently done to recognize housing owned by the Alberta Social Housing Corporation (ASHC) primarily the Seniors Self-Contained Apartments, Community Housing and rent supplement programs, separately from the municipally funded seniors lodge (supportive living) program. The affordable housing projects are segregated from though financially managed alongside the supportive living program due to Leduc Foundation ownership of the buildings. The portfolio is managed under three sectors - Supportive Living, Affordable Housing and Government Housing - with a Central Services cost centre providing administrative and maintenance services to each program area. Operating Budgets for the ASHC portion of the portfolio reflect the need to address the historically deferred maintenance. The 2017 budget requests are consistent in intent to 2016 with significant funding being requested for operating and non-recurring maintenance. A reduction in revenue reflects the vacancies required to refurbish the aging units. The Supportive Living facilities can be maintained within the funding envelope, however, a change to the Lodge Assistance Program that would see funding provided based on the number of units rather than low income seniors served, would support under sized and low occupancy facilities like Cloverleaf Manor more appropriately. Eight (8) of the nine (9) affordable housing buildings are no more than eight (8) years old and only beginning to require updating. Yule Meadows Manor is the only older building; constructed in 1978. Funding has already been provide to replace the roof and windows with the boiler system replace in 2016. Additional work is needed to update kitchen and bathroom cabinets and on-going painting and carpets. Budget and forecast information has been provided in Appendix C for each Leduc Foundation sector and government requested format using a 2.5% revenue / 3% expense increase in the forecasts. 6. Capital Development Plan – Appendix D

Replacement Linsford Townhouses, Leduc (42) – ASHC Owned. The townhouses were built in the early 1960s. A significant amount of money has been invested in the property to maintain the only Community Housing Program in the Leduc Region. Lack of barrier free access, bathrooms located on the second floor, and the aging infrastructure drawing significant maintenance funds each year are significant challenges. An increase in density and change to a mixed income - affordable housing model would benefit those currently being served as well as the surrounding community. Redevelopment of the site needs to be completed as soon as possible or at least in the next 1 – 3 years, to ensure that the limited public funds are put to better use through new construction. It is estimated that replacement of the 42 townhouses with 60 alternate units will cost $20M.



Planeview Manor, Leduc (81 suites) – owned by Leduc Foundation. The original 32 room U-Shaped lodge was built in 1963. Three (3) additions/expansions have been completed (1985, 1998, 2004), however, the original room sizes are inadequate (40% are 216 sq ft) and the building is not sprinklered. The building has been maintained to a very high standard, however, the size of rooms and safety issues require replacement within the next 3 - 5 years. It is estimated that replacement to the new standards will cost $20M. Reports of funding Government of Alberta limitations suggest that the replacement of the old section of Planeview Manor may not be eligible for grant or construction funding until at least 2019. The lack of sprinkers in this section places not only the section of the building but the residents at risk. The signed Grant Agreement for funding to install the sprinklers was returned to Government in November 2015 requesting consideration to have the $1.2M provided to Leduc Foundation for inclusion in a new construction project. The opportunity to move ahead with the replacement of the old section of Planeview Manor without Government funding is being explored along with the development of a 3-Phase Master Plan for the Planeview Place Site. New Construction Affordable Housing The purchase of land and original building design for Maddison Manor, Devon, Shkola Suites, Calmar, and Gaetz Landing, Leduc, were done to accommodate a second phase as the needs of each community grew. Funding through leveraging the existing assets as well as provincial capital grant programs is needed. In addition, the expansion to the west end of the City of Leduc through the annexation of Leduc County land, creates an opportunity for Leduc Foundation to bring additional affordable housing to this part of the Leduc Region. Discussions have been initiated with the City of Leduc’s Long Term Planning Department regarding availability of land in their West Area Structure Plan. Cost estimates for expansion in order of current perceived need are as follows:

Gaetz Landing, Leduc, Phase 2, 17 units - $4.5M

West Side, Leduc, Phase 1, 30 units - $9M

Maddison Manor, Devon, Phase 2, 28 units - $7M

Shkola Suites, Calmar, Phase 2, 8 units - $2.3M

Affordable Home Ownership Leduc Foundation has partnered with Habitat for Humanity Edmonton and home builders in the Leduc Region to bring affordable home ownership to the region over the next 3 years. Capital Development details have been provided in Appendix D for each of the projects identified.



7. Capital Improvement Plan – Appendix E

Leduc Foundation has developed a long term vision for the current portfolio to be adequately maintained, with the aged and/or inadequate buildings replaced, and additional affordable housing built within the Leduc Region over the next ten (10) years. Life expectancy of each building component is tracked and forecasted for replacement. The Capital Improvement Plan (Appendix E) includes cost estimates for all items with a value greater than $5000. The aging portfolio is exemplified by the following table of almost $800,000 of replacements needed in the Seniors Self-Contained Apartment Program, one of three of Leduc Foundation’s program areas:

Fridges Ranges Painting Flooring Kitchen

Cabinets Windows

Tree Removal

Elevator Repairs

Boiler Upgrade

46 83 30 55 61 37 5

$23,000 $53,950 $40,000 $220,000 $305,000 $76,500 $47,100 $24,000 $21,000

The installation of sprinkler systems into the seniors’ apartment buildings must be prioritized along with the investigation of moisture and asbestos in the old and aging buildings.

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