Board of Directors Meeting - September 14, 2016

Agenda

1. Consent agenda 

1. a) Approval of Public Meeting Agenda 

Action: Approval 

Pre-read: Agenda 

Presenter: Chair 

1. b) Chair’s Poll re: Conflict of Interest 

Action: Declaration 

Pre-read: Agenda and Conflict of Interest Policy 

Presenter: Chair 

1. c) Confirmation of Board of Directors’ Public Meeting Minutes of ​July 6, 2016​ 

Action: Approval 

Pre-read: Minutes 

Presenter: Chair 

1. d) Business Arising from the Public Meeting Minutes and Action Items Update 

Action: Information 

Pre-read: Action item list 

Presenter: Chair 

1. e) City and TCHC Staff – Strategic and Operational Meetings 

Action: Information 

Pre-read: TCHC:2016-39 

Presenter: Interim President and CEO 

1. f) Stand-Alone Properties – Sales and Relocation Update 

Action: Information 

Pre-read: TCHC:2016-32 

Presenter:Chair, BIFAC 

2. Chair’s remarks 

Action: Information 

Pre-read: Verbal report 

Presenter: Chair 

3. RSC Chair’s report 

• OCHE 
• Resident Charter 

Action: Information 

Pre-read: Verbal report 

Presenter: Chair, RSC 

4. GCHRCC Chair’s report 

Action: Information 

Pre-read: Verbal report 

Presenter: Chair, GCHRCC 

4. a) 2016 Policy Review Schedule 

Action: Information 

Pre-read: TCHC:2016-38 

Presenter: Chair, GCHRCC 

4. BIFAC Chair’s report 

Action: Information 

Pre-read: Verbal report 

Presenter: Chair, BIFAC 

6. Report on Vacancy Management 

Action: Information 

Pre-read: TCHC:2016-40 

Presenter: Vice President, Asset Management 

5. Interim President and Chief Executive Officer’s remarks 

Action: Information 

Pre-read: Verbal report 

Presenter: Interim President and CEO 

5. a) Monthly President’s report 

Action: Information 

Pre-read: TCHC:2016-41 

Presenter: Interim President and CEO 

Termination 

Minutes

The Board of Directors of the Toronto Community Housing Corporation held a public meeting on September 14, 2016 at 11:08 a.m. in in the Main Floor Conference Room at 931 Yonge Street, Toronto. 

Directors in Attendance: 

Bud Purves (Chair) 

Councillor Ana Bailão 

Robert Carlo (left at 12:20 p.m.) 

Councillor Joe Cressy (left at 12:28 p.m.) 

Councillor Frank Di Giorgio 

Vincent Gasparro 

Linda Jackson 

Joseph Kennedy 

Colin Lynch 

Kevin Marshman (Vice Chair) 

Pamela Taylor 

Catherine Wilkinson (left at 12:44 p.m.) 

Directors Absent: 

Councillor Raymond Cho 

Management present: 

Cathy Barker, Vice President, Human Resources 

Angela Cooke, Vice President, Resident and Community Services  

Leslie Gash, Chief Development Officer 

Rose-Ann Lee, Chief Financial Officer & Treasurer (Interim) 

Mark Johnson, General Counsel & Corporate Secretary 

Hugh Lawson, Director, Strategic Planning and Stakeholder  Relations 

Graham Leah, Vice President, Asset Management 

Bruce Malloch, Director, Strategic Communications 

Ted Millward, Legal Counsel, Corporate 

Lisa Murray, Manager, Media and Public Relations 

Sheila Penny, Vice President, Facilities Management 

Greg Spearn, President & Chief Executive Officer (CEO) (Interim)/ Chief Development Officer 

Wayne Tuck, Chief Operating Officer (Interim) 

A quorum being present, the Chair called the meeting to order and Ms. Charmaine Zina served as recording secretary.  

Consent Agenda Items

Item 1A - Approval of Agenda and Review of Agenda Order

The agenda was approved as circulated: 

Motion carried 

ON MOTION DULY MADE by Councillor Cressy, seconded by Ms. Wilkinson and carried, the Board of Directors approved the agenda. 

Item 1B - Chair's Poll re: Conflict of Interest

The Chair requested members of the Board of Directors to indicate any agenda item in which they have a conflict of interest, together with the nature of the interest. No conflicts were declared. 

Item 1C - Confirmation of Board of Directors' Public Meeting Minutes of July 6, 2016

The Board of Directors had before it the draft Board minutes for July 6, 2016. 

The Board discussed Item 2 in the minutes and the $635,000.000 rebate from Enbridge that was provided as result of TCHC’s energy savings. The Board discussed the purpose to which the money will be put, and requested that management provide information on the use of this money.  

Action Item: Management to report back on how the rebate money provided by Enbridge will be used.  

Motion carried 

ON MOTION DULY MADE by Mr. Gasparro, seconded by Mr. Marshman and carried, the Board of Directors confirmed the above-captioned minutes. 

Item 1D - Business Arising from the Public Meeting Minutes and Action Items Update

The Board discussed the timelines for providing reporting on potential unit swaps (Page 4 of 6 – February 6, 2013 -Unit Swaps), and asked that information be brought on the potential for units swaps before the report on the internal transfer policy is brought in 2017.  

Action Item: Management to bring a report to the next RSC meeting with information on the potential for unit swaps.  

Motion carried

ON MOTION DULY MADE by Mr. Purves, seconded by Mr. Lynch and carried, the Board of Directors received the report for information. 

Item 1E - City and TCHC Staff – Strategic and Operational Meetings, TCHC:2016-39

The Board of Directors had before it the above-captioned report (TCHC:2016-39) from the President and Chief Executive Officer (Interim).   

The Board requested that going forward Management limit the information on meetings between TCHC and City staff to the frequency and nature of meetings between TCHC senior management and the City Manager’s Office, City Councillors and Shelter, Support & Housing. 

Motion carried 

ON MOTION DULY MADE by Mr. Gasparro, seconded by Mr. Kennedy and carried, the Board of Directors received the report for information. 

Item 1F - Stand-alone Properties – Sales and Relocation Update, TCHC:2016-32

The Board of Directors had before it the above-captioned report (TCHC:2016-32) from the BIFAC Chair.   

The following were among the issues discussed by the Board and Management: 

• The difficulties with setting a public meeting for the homes in Group 3 and Group 4.  Management advised that the Local Councillor would like rent replacement units in the Beaches, which TCHC does not have available. The public meeting is required as a part of the planning approval process.  
• The amount budgeted for repairs for single family homes across TCHC’s portfolio.  Management advised that the single family homes are accounted for uniquely in the capital plan, and the budgeted amount was approximately $2M for the 800 some single family homes in the portfolio.  Management further advised that building condition assessments have been performed on all of the homes and repair work has been prioritized.   

Motion carried 

ON MOTION DULY MADE by Mr. Marshman, seconded by Mr. Gasparro and carried, the Board of Directors received the report for information. 

Item 2 - Chair's Remarks

The Chair welcomed everyone to today’s Board meeting and requested that everyone pause a moment in memory of Tony Araujo, TCHC Director of Payroll and Finance, who passed away suddenly this week. The Chair offered his condolences to the Araujo family on behalf of TCHC. 

The Chair welcomed Ms. Angela Cooke, TCHC’s new Vice President of Resident and Community Services.    

The Chair congratulated Councillor Raymond Cho on his election as Member of Provincial Parliament for Scarborough Rouge-River.  As a result, Councillor Cho has resigned as City Councillor for Ward 42 and also departs the TCHC Board, which he joined in December 2015.   

The Chair identified the following items that were addressed in the in-camera and closed sessions: 

In-Camera Session 

• President and Chief Executive Officer (CEO). The Board has officially launched a national and international search to hire a permanent President and Chief Executive Officer (CEO).  A global executive search firm has been retained to conduct a high-quality, transparent process and to work closely with the search committee, made up of Board members, in finding the right candidate with the best fit for TCHC. 
• Subcommittee Membership: President & Chief Executive Officer (CEO) & Tenants First Implementation Steering Committee.  The Board approved the appointment of Ms. Taylor and Ms. Jackson as members of the President & CEO Recruitment Subcommittee and Ms. Wilkinson and Mr. Marshman as members of the Tenants First Implementation Steering Committee. 

Closed Session: 

• Railway Lands Block 36N Transfer of Land to City. The Board approved the transfer of Block 36 North in the Railway Lands from TCHC back to the City of Toronto.  This transfer will support the City’s Open Door Program and expedite the development of new affordable housing.  In July 2016, City Council approved Dominus Capital Corporation as the successful proponent of an RFP to build and operate 80 affordable rental homes on this site. 
• Ten Year Capital Financing Plan and Capital Backlog Update. The Board considered a report from management on TCHC’s 2017 operating and capital budgets. When approved by City Council in 2013, the plan anticipated that provincial and federal dollars would start to flow in 2017. But both orders of government have yet to invest in the plan, despite the many social and economic benefits this investment will bring. Management presented options for how TCHC’s capital repair program might continue in 2017 with funding secured through the City. The level of that funding would be determined with the City through the 2017 budget process. 

The Chair identified the following items to be discussed in the public session: 

• President’s Monthly Report. The content and format of the report have been updated based on feedback and direction provided by the Board. The monthly reports are intended to help the board understand how the company is doing in meeting its public commitments and organizational priorities.  
• Chair’s Reports. The Chairs of the Board committees will each provide a verbal report of their committee’s activities. 
• Building Investment, Finance and Audit Committee. A report on vacancy management that will look at the types of units that are vacant, the issues and challenges faced by management in filling these vacancies, and action being taken or planned to address these issues and challenges.

Deputations

The Chair polled for any deputations to be heard at the meeting.  The following deputations were presented: 

Item 7A – Monthly’s President’s Report (Deputed by Elaine Topping, Elaine Lumley & Nancy Jarvis) 

Item 3 - Resident Services Committee (RSC) Chair's Report

The Chair of the RSC provided a verbal update to the Board on the activity at RSC, including the following: 

• Renewal of term of the OCHE for an additional 5 years. 
• Tenant Charter – Development of the Charter has been a collaborative process and it will be coming forward to RSC shortly.  

Lastly, Ms. Jackson advised that OCHE will begin reporting to RSC at the next meeting and that the Committee looked forward to working with Ms. Summers. Ms. Jackson welcomed Ms. Angela Cooke in her new role as VP, RSC and thanked Ms. Simone Atungo for her work in the interim role as VP, RSC. 

Item 4 - Governance, Communications, Human Resources and Compensation Committee (GCHRCC) Chair's Report

The Chair of the GCHRCC provided a verbal update to the Board on the activity at GCHRCC, including the following: 

• Review of the insurance program. 
• Review and update to the Conflict of Interest policy for the Board 
• Appointments to the IT Subcommittee and to the Building Award Subcommittee.  

Item 4A - 2016 Policy Review Schedule, TCHC:2016-38

The Board of Directors had before it the above-captioned report (TCHC:2016-38) from the GCHRCC Chair.   

Ms. Taylor presented the report to the Board and provided a brief overview of the policy review and approval process outlined in the report. 

Motion carried 

ON MOTION DULY MADE by Mr. Marshman, seconded by Ms. Wilkinson and carried, the Board of Directors received the report for information. 

Item 5 - Building Investment, Finance and Audit Committee (BIFAC) Chair's Report

The Chair of the BIFAC provided a verbal update to the Board on the activity at BIFAC, including the following: 

• Budget – The committee met on July 21st and August 17th to discuss the budget. The committee has focused on both the operating and capital budgets and the related factors affecting the corporation and the City. 
• BIFAC now has 4 subcommittees: 
  1. Investment Advisory Committee; 
  2. IT Subcommittee; 
  3. Bid Award Subcommittee; and  
  4. RPEI subcommittee. 
• Focusing BIFAC on Internal Audit over the fall. 

Lastly, Mr. Lynch congratulated Ms. Summers on the renewal of her contract and indicated it had been a pleasure to work with her and OCHE over the last 8 months. 

Item 6 - Report on Vacancy Management, TCHC:2016-40

The Board of Directors had before it the above-captioned report (TCHC:2016-40) from the Vice President, Asset Management.   

Mr. Leah made a presentation to the Board. The following topics were addressed by Mr. Leah: 

Centralized Waiting List 

The selection of applicants from the centralized waiting list is chronological.  When there’s a vacancy TCHC (the housing provider) contacts the next applicant on the waiting list.  Beyond the centralized waiting list the provincial legislation requires TCHC to lend first priority to internal transfer applications involving three tiers:  

• Tier 1 – residents who are victims of domestic abuse or who live in over-housed units. 
• Tier 2 – residents who are living with mental issues or living within a situation where safety is at risk or living in an under-housed situation. 
• Tier 3 – all other residents requesting a transfer who don’t fall under tier 1 or tier 2. 

Challenges

General Offer Process & Challenges 

• IT system limitations – manual administration. 
• High demand of larger units as many are not single dwellers and bachelor units will not suffice. 
• Multiple ‘priority’ waiting lists. 
• Applicant information accuracy is difficult to maintain. 
• Offer has life cycle of 5 business days. 
• Inquiries of status of internal transfers is a huge resident complaint. 

Over-Housed Offer Process & Challenges 

• TCHC is mandated to make 3 offers within 12 months to each resident living in an over-housed situation, after which the application is moved to the centralized waiting list and the subsidy is lost. 
• IT system limitations – manual administration. 
• Resident non-compliance with process requirements to apply for transfer:  
  1. Selecting less than the required number of building preferences; 
  2. Selecting buildings with low vacancy rates; or 
  3. Supplying preference and conditions that limit offers. 
• Loss of subsidy not consistently being processed when applicants are over 12 months. 
• Volume on over-housed waiting list limits offers to other priority waiting lists. 

Hard to Rent Units 

25% of vacancies are within the “Hard to Rent” portfolio.  Reasons for applicants declining these units are:  

• Safety concerns; 
• Bedroom numbers; 
• Size of units; 
• Unwillingness to pay own utilities; 
• Buildings with no elevators; and/or 
• Proximity to amenities. 

Mr. Leah answered questions raised by the Board.  Matters addressed included the following: 

• “TCHC Use” Units:  Board suggested that Management find other storage options (i.e. storage units). 
• Elevators in seniors buildings and how seniors buildings are designed.  This needs to be discussed in greater detail at RSC.  
• Uploading new responsibilities to Call Center staff may result in longer wait times for residents. 
• Policy Review.  Embedded in the report are many policies that may require review and amendments. 
• My Choice rental implementation. 
• The possibility of converting bachelor units to larger size units. 

A request was made that Management report back with an analysis of the types of rentable units, and the strategies being implemented to address vacant units.  

Motion carried 

ON MOTION DULY MADE by Mr.  Gasparro, seconded by Mr. Marshman and carried, the Board of Directors received the report for information. 

Action Items:   

Management to report back to the Board with the following: 

• an in-depth analysis of the types of rentable units 
• Strategies being implemented to address vacant units 

Quorum was lost at 12:44 pm.

Item 7 - Interim President and Chief Executive Officer's Remarks

No comments or remarks from the President and Chief Executive Officer (Interim) were received at this time due to loss of quorum. 

Item 7A - Monthly President's Report, TCHC:2016-41

The Board had before it the above-captioned report (TCHC:2016-41) from the President & Chief Executive Officer (Interim).   

Mr. Spearn presented the report and advised the Board that as per their suggestions at the last Board meeting, the below noted changes were implemented for the July report: 

• A written report of the key variances and trends—as well as explanations of the variances where known. 
• Additional financial metrics 
• Inclusion of the previous year’s cash and liquidity figures. 

Mr. Spearn addressed the following results/trends in the Monthly President’s Report: 

• Earnings: year-to-date net earnings are $31 million instead of the loss of $18 million that was projected. Mainly, this is as a result of non-recurring items such as gains on the sale of lands and on the sale of homes. This trend is expected to continue for the remainder of 2016, but is not expected to continue in future years. 
• Capital Repairs: capital repair program is accelerating. TCHC exceeded the Q2 target for $50 million of work completed and is on track to meet the Q3 target of $120 million. 
• Resident Engagement: resident engagement activities are progressing and the number of residents being connected to training opportunities (including in revitalization communities) continues to steadily increase throughout the year. 
• Service Levels: June and July were busy months for TCHC’s Client Care Centre due the warmer weather conditions. Although service level numbers generally declined in July due to an unanticipated shortage of call centre staff along with technical issues with two elevator phones, overall service levels have improved since the start of the year. 
• Vacancy Rate: The vacancy rate for rent geared-to-income (RGI) units improved in July, to 2.57 per cent. The RGI vacancy rate is lower than it was for the same period in 2015 and is at its lowest level to date this year. 
• Arrears: The rate of arrears that are “current” (i.e., owing only this month’s rent) continues to trend positively. They are relatively low when comparing TCHC’s prescribed process with that applied by private landlords. 

TERMINATION 

The public meeting terminated at 12:49 p.m.