HSC Update Presentation to Peel Region Housing Providers October - - PowerPoint PPT Presentation

Presentation to Peel Region Housing Providers

October 17, 2019

HSC Update

Housing Services Corporation

• We serve:
• 1,400+ Ontario housing providers
• 47 municipal service managers
• Power of the Group
• Controls costs, maximizes dollars
• Fee for service revenue
• Tailored to client needs
• Not available elsewhere

Our Mission: Sustain the physical asset & increase supply of affordable housing Business Model:

• Fee-for-service

revenue

• All providers →

equal, affordable access to HSC services

Ottawa: Stéphane Giguère, CEO, Ottawa Community Housing Graeme Hussey, Development Manager, Centretown Citizens Ottawa Corporation Leeds/Grenville Counties: Ron Holman, Former Mayor, Rideau Lakes (Vice Chair) Windsor: Jim Steele, CEO, Windsor-Essex Community Housing Cochrane: Brian Marks, CAO, CDSSAB Chatham-Kent: Shelley Wilkins, Director of Housing Services Renée Kominek, Clairvue Co-Op Thunder Bay: Bill Bradica, CAO TBDSSAB (HSC Chair) Peel: Janice Sheehy, Commissioner, Human Services Muskoka: Michael Duben, CAO Kingston: Sheldon Laidman, Director, Housing & Social Services London: Debbie Zock, McCormick & Zock Property Management Toronto: Gord Perks, City Councillor Zoran Churchin, Zoran Properties

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
• Several catastrophic claims, climate change-related claims

Your premium will reflect:

• 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

• Risk management outreach across the Province
• Loss prevention inspections in high loss ratio

locations

• Bulk tenant insurance

Resources:

$113,000 $123,000 $148,000 $260,000 $0 $50,000 $100,000 $150,000 $200,000 $250,000

GIC (3 Year) Short-Term Bond Fund Bond Fund Equity Fund

Social Housing Investment Program: Encasa

7

• Professional investment advice – now in-house to drive down

costs, improve customer service

• Investing in affordable housing
• Top returns with lowest fees

10 Year Performance vs. GIC: Growth of $100K

✓ Pan-Canadian platform ✓ 870 providers ✓ $215M earned on provider contributions since inception

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)
• 30, 40 year mortgages
• New Program Development
• Construction Loan Program
• $400M New Loans by Q1 2021

ROUND TIMING PROJECTS AMOUNT NEW UNITS Q4 2019 – Q3 2020 16 $104.8M 624 Q1 2020 – Q3 2020 9 $78.3M 647 2020-2023 14 $179.5M 2,145 ON TOTAL / CDN TOTAL 39 / 108 $362.6M / $1.9B 3,416 / 10,381

HIC Current Ontario Pipeline, 2019 - 2023

If you have development ambitions, we want to hear from you!

30 Duncan Street, Ste. 500 | Toronto, ON | M5V 2C3 | hscorp.ca

Howie Wong

Chief Executive Officer P: 1.866.268.4451 ext. 252 E: hwong@hscorp.ca