Backgrounder – Toronto Community Housing’s 2023 Budget
Toronto Community Housing Corporation's (TCHC) 2023 budget will protect and maintain service delivery to tenants, focusing on building conditions, safety, accessibility and tenant quality of life.
Year-over-year comparison (2023 vs. 2022)
|Item||2023 Budget (projected)||2022 Budget|
|Operating (excluding COVID-19 impacts)||$696.1 million||$672.1 million|
|Building renewal capital||$350.0 million||$350.0 million|
|Development capital||$88.5 million||$98.0 million|
Priority Actions for 2023
TCHC is faced with continued impacts of COVID-19 on its operation and some challenging financial headwinds as a result of inflationary costs and operating pressures. Despite this, the organization remains committed to delivering the services that tenants expect and deserve:
- In 2023, TCHC will remain flexible and agile to ensure the Capital Plan is successfully delivered upon. The Plan has been adjusted to labour and supply impacts on the market, and the organization remains on track to bring the entire portfolio into a state of good repair by 2026.
- Refining the Tenant Service Hub service delivery model to ensure that tenants continue to enjoy quick and easy access to service. This work will also help to prepare TCHC and its communities for the upcoming ModernTO transition, where local offices will be even more important for service delivery.
- Completion of the scattered houses transition to new permanent management by non-profit housing providers.
- TCHC remains committed to modernizing technology and 2023 will enhance our Cyber Security posture and include the replacement of many of the organizations’ end of life IT systems.
Building renewal capital budget
For the fourth year in a row, TCHC will deliver a $350-million building renewal capital program in 2023 to make building repairs and upgrades that improve and enhance quality of life for tenants. These record-level investments will:
- Keep TCHC's portfolio of approximately 50,000 homes in good repair for today’s residents and for generations to come.
- Enable further improvement on TCHC’s capital projections, keeping us on track to reach a sustainable state of good repair by the end of 2026.
Development capital budget
TCHC’s development capital program funds the creation of new housing units, leveraging the value of existing properties. The 2023 budget for development is $88.5 million, enabling continued progress in TCHC’s eight revitalization communities. The City of Toronto is providing new funding of $30 million over two years towards TCHC’s development capital plan, which will ensure that work on in-flight development projects can continue.
Sustainable state of good repair
TCHC uses the Facility Condition Index (FCI), an industry standard measurement, to track state of good repair in our portfolio. The Index 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.
- 2023 projections show that despite the impacts of inflation and the pandemic, TCHC is on track to reach a 10-per-cent FCI by the end of 2026.
For 2023, the Organization has budgeted a net zero budget when COVID impacts are excluded, and net operating pressures of $10.8 million when including the impacts of COVID.
"This year’s budget is tight, requiring us to be responsible about spending, but it is a strong budget, which will help us to protect frontline services in the face of some challenging financial headwinds this year. I’m grateful for our team’s work on this year’s budget, and for the support of our partners at the City of Toronto, who played an important role in this achievement. "
- Jag Sharma, President and CEO, Toronto Community Housing
About Toronto Community Housing
Toronto Community Housing 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.