HSC Update Presentation to Peel Region Housing Providers October 17, 2019
Housing Services Corporation • We serve: Business Model: • 1,400+ Ontario housing providers • 47 municipal service managers • Fee-for-service • Power of the Group revenue • Controls costs, maximizes dollars • Fee for service revenue • All providers → • Tailored to client needs equal, affordable • Not available elsewhere access to HSC Our Mission: services Sustain the physical asset & increase supply of affordable housing
Ottawa: Stéphane Giguère, CEO, Ottawa Community Housing Graeme Hussey, Development Manager, Kingston: Centretown Citizens Ottawa Corporation Sheldon Laidman, Director, Housing & Social Services Muskoka: Michael Duben, CAO Leeds/Grenville Toronto: Counties: Gord Perks, City Councillor Peel: Ron Holman, Janice Sheehy, Commissioner, Former Mayor, Zoran Churchin, Zoran Properties Human Services Rideau Lakes (Vice Chair) Chatham-Kent: Shelley Wilkins, Director of Housing Services Renée Kominek, Clairvue Co-Op Cochrane: Brian Marks, CAO, CDSSAB London: Debbie Zock, McCormick & Zock Property Management Thunder Bay: Bill Bradica, CAO TBDSSAB (HSC Chair) Windsor: Jim Steele, CEO, Windsor-Essex Community Housing
HSC Group Insurance: A Sector Safe Harbor In spite of challenging market conditions and claims performance: • Focused on safe and affordable housing, not profitability • Offers protection from market forces • Gives higher risk providers tools and time to improve risk practices • Requires a large and varied group to remain sustainable
Understanding Your 2020 Insurance Costs • Challenging market conditions → a “hard” market Your premium will reflect: • Several catastrophic claims, climate change-related claims • Claims activity • Changes in property values • Changes in revenue • Construction type corrections • Risk measures implemented (e.g. tenant insurance, smoke-free)
New Term Risk Management Resources: • Risk management outreach across the Province • Loss prevention inspections in high loss ratio locations • Bulk tenant insurance
Social Housing Investment Program: Encasa • Professional investment advice – now in-house to drive down costs, improve customer service • Investing in affordable housing • Top returns with lowest fees $260,000 $250,000 ✓ Pan-Canadian platform $200,000 ✓ 870 providers $148,000 $150,000 $123,000 $113,000 ✓ $215M earned on $100,000 provider contributions since inception $50,000 $0 GIC (3 Year) Short-Term Bond Bond Fund Equity Fund Fund 10 Year Performance vs. GIC: Growth of $100K 7
Housing Investment Corporation (HIC) An innovative way to financing new development • Dedicated lender for affordable housing • $3M: BC Housing, Manitoba Housing & HSC • $20M: CMHC Credit Enhancement • Fixed rate 30, 40 year loans • Funded by capital debt markets • S&P credit rating: “A - low” • Feb 2019: $33M first round for projects in BC & AB
Our Simple Business Model Add Up The Financing Needs Of The Sector Borrow From The Capital Markets Re-loan To The Sector
Mortgage Interest Rate: Last 50 Years
Next Steps • Round 2 take out (next 6 - 9 months) HIC Current Ontario Pipeline, 2019 - 2023 • 30, 40 year mortgages NEW ROUND TIMING PROJECTS AMOUNT UNITS Q4 2019 – Q3 2020 16 $104.8M 624 • New Program Development Q1 2020 – Q3 o Construction Loan Program 2020 9 $78.3M 647 2020-2023 14 $179.5M 2,145 o $400M New Loans by Q1 2021 ON TOTAL / CDN $362.6M / 3,416 / 39 / 108 TOTAL $1.9B 10,381 If you have development ambitions, we want to hear from you!
Howie Wong Chief Executive Officer P: 1.866.268.4451 ext. 252 E: hwong@hscorp.ca 30 Duncan Street, Ste. 500 | Toronto, ON | M5V 2C3 | hscorp.ca
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