Backgrounder: Toronto Community Housing 2022 budget
Toronto Community Housing Corporation's (TCHC) 2022 budget will continue the company's focus on improvements to service delivery, building conditions, safety, accessibility and tenant quality of life.
Year-over-year comparison (2022 vs. 2021)
| Item | 2022 Budget | 2021 Budget |
|---|---|---|
| Operating (excluding COVID-19 impacts) | $672.1 million | $633.9 million |
| Building renewal capital | $350.0 million | $350.0 million |
| Development capital | $98.0 million | $103.1 million |
Priority Actions for 2022
Despite the impacts of COVID, we remain focused on providing a positive tenant experience, quality homes and vibrant communities by delivering on priority actions.
The 2022 Budget will enable TCHC to continue to:
- Deliver its multi-year building capital renewal plan, having consistently surpassed repair projections. We are on-track to reach a sustainable state of good repair in 2026.
- Implement its restructured service delivery model by opening 88 Tenant Service Hubs across the city. The Hub model provides tenants with easier, quicker and more accessible service.
- Partner with the City of Toronto to improve outcomes for tenants in the Seniors Portfolio, supporting the launch of the Seniors Housing Corporation in June 2022.
- Work with City staff to continue the transition of TCHC scattered houses to new permanent management by non-profit housing providers.
Building renewal capital budget
For the third year in a row, TCHC will deliver a $350-million building renewal capital program in 2022 to make building repairs and upgrades that improve and enhance quality of life for tenants.
These record-level investments will:
- Enable the organization to keep TCHC's portfolio of nearly 60,000 homes in good repair and available for generations to come.
- Allow TCHC to reliably improve upon its capital projections, putting us on track to reach a sustainable state of good repair by the end of 2026.
Development capital budget
TCHC's development capital program supports its ongoing work to create new housing units by leveraging the value of existing properties. The $98.0-million development capital budget for 2022 will drive progress in TCHC's eight revitalization communities.
Highlights include:
- Community engagement and master planning for Phases 4 and 5 of the Regent Park revitalization.
- Continuing with design and construction on over 500 rental replacement units in revitalization communities.
- Mobilization for start of construction in the Don Summerville community.
Defining a sustainable state of good repair
We use an industry standard called the Facility Condition Index (FCI). It represents the cost of replacing building components that have reached the end of their useful life against the total value of the building. An FCI of 10 per cent or less is the industry standard for good repair.
In 2017, our combined FCI for all buildings was 16.2 per cent. At the time, it was projected to increase to 18.4 per cent by the end of 2020. In fact, we were able to surpass projections and by 2020 we had achieved an FCI of 15.7 per cent.
Current projections show that despite the pandemic, we will reach our goal of a 10-per-cent FCI by the end of 2026.
Taking action on climate change
We are committed to taking action on climate change by reducing our energy consumption by 25 per cent by December 31, 2028. We continue to implement our Action Plan with an array of energy conservation measures that specifically target TCHC related energy needs.
We have completed hundreds of individual retrofits, upgrades and replacements to equipment in our buildings to conserve energy and reduce greenhouse gas emissions. Through our efforts, as at the end of 2020, we reduced energy consumption by 8.4 per cent and greenhouse gas emissions by 8.7 per cent compared to an average baseline established in 2018.
TCHC's partnership with Enbridge Gas has provided more than $1 million in energy-efficiency rebates in 2020 and 2021. We used these rebates to install modern energy-efficient heating, hot water and cooling systems for our buildings. This improved living conditions, safety standards and comfort for thousands of tenants while cutting our energy costs and reducing our carbon footprint.
Operating budget
We've budgeted a net zero budget when COVID-19 impacts are excluded. When the impacts of COVID are included, like reduced tenant incomes and higher operational expenses, our net operating pressures are $26.8 million.
COVID-19 Impacts
Like the City as a whole, TCHC has been significantly impacted by COVID-19, through declining revenues and increasing costs. These pressures include:
- A $13.1-million shortfall in revenue, driven by reduced tenant incomes and COVID-related economic instability. This is predicted to cause a significant increase in arrears and unpaid fees.
- A $13.7-million increase in COVID expenses. We are having to spend more on operational requirements like PPE and enhanced cleaning in our buildings. Utilities costs and use have also increased because tenants are spending more time at home due to COVID restrictions.
Taking action on arrears
We are sensitive to how tenants have been deeply impacted by COVID-19. We are actively focused on supporting tenants who are facing financial hardships, so they can continue to have successful tenancies. On the other hand, a small number of tenants have used the pandemic as a pretext to stop paying rent. We are tracking these cases so that they do not affect overall levels of support to tenants in need.
Budget Presentation (December 2021)
For more detailed information, you can view this budget presentation (PDF), prepared for the TCHC Board of Directors.
About Toronto Community Housing
Toronto Community Housing (torontohousing.ca) is Canada's largest social housing provider. We provide homes for nearly 60,000 low- and moderate-income households in neighbourhoods across the city. We are wholly owned by the City of Toronto and our 2,100 buildings represent a $10-billion public asset.
Media contact: 416-737-1352 | media@torontohousing.ca
