Report To: Program Planning Committee
From: Lori Clark, Director of Integrated Human Services
Kristian Thorne, Integrated Human Services Manager
Date: March 19, 2025
Re: Non-Profit Housing - Issue Report
Purpose
To provide the Board with information regarding the updated agreement requirements between Non-Profit Housing providers and the Manitoulin-Sudbury DSB.
Background
In March of 2022 the Ministry of Municipal Affairs and Housing released a new regulatory framework under the Housing Services Act (HSA) O. Reg. 241/22 and O. Reg. 242/22.
This framework requires Service Managers and Non-Profit Housing providers covered under Part VII of the HSA to enter into either a service agreement or exit Agreement. This requirement took effect July 1, 2022. All service and exit agreements must be mutually agreed upon and signed by both the service manager and the housing provider. The Non-Profit Housing Providers in our district who are covered under Part VII of the HSA include: Espanola Non-Profit Housing Corporation, Gore Bay Non-Profit Housing and Little Current Non-Profit Housing.
The new agreement results from the original operating agreements that have or will be expiring within the next few years. Operating agreements were in place while there was a mortgage on the property. The transition from an operating agreement to service agreement will take place at the end of mortgage (EOM).
Service agreement requirements include;
• Minimum 10-year term
• Specific target number of units that will receive rent geared to income (RGI) or an alternate form of assistance
• A minimum 5-year financial plan that addresses how revenues will meet expenditure, including capital expenditures
• Market-rent amounts
• Verification of insurance
• Reporting requirements
• Dispute resolution process
• Funding calculations
Historically funding to non-profit housing providers included mortgage expenses, property tax, RGI and operating subsidies. Once the mortgage has ended, the subsidy will be based on the difference between operating expenses and rental revenue for non-profits who enter into a service agreement.
If a housing provider chooses to not enter into a service agreement, they must enter into an exit agreement.
Exit agreement requirements include;
• A plan to accommodate existing households, including continued delivery of RGI
• A plan for the continued operation or development of the building or reinvestment of the proceeds of sale into affordable housing
• The plan must be implemented by the housing provider
• Agreements must be signed by the service manager and housing provider and provided to the minister.
Staff will be working with the Non-Profit Housing Providers to negotiate their respective agreements.
Conclusion
Staff are recommending the Board approve this issue report and direct staff to negotiate agreements with the Non-Profit Housing Providers listed in this report.