To: Board of Directors,

Halton Community Housing Corporation

Presented by:

Rob Cressman, General Manager

Janice Sheehy, Treasurer

Halton Community Housing Corporation2007 Budget

January 9, 2007

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Today’s Presentation

Budget Context (Rob Cressman)– Accomplishments for 2006

– Outlook for 2007

•Operating and Capital Budget (Janice Sheehy)

– Consolidated Budget Summary

– 2006 Forecast Results

– 2007 Operating & Capital Budgets

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Our Portfolio

Non-Profit Housing 735 units

Public Housing* 1,081 units

Halton Community Housing 1,816 units

(27 properties across Halton Region)

plus: over 400 rent supplement units under agreement with landlords, and 339 units at Oakville Senior Citizens Residence

*includes Brant Court

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2006 Accomplishments

• 1st year of benchmarked funding model for non-profit housing

• Strategic planning process for HCHC

• Survey of tenant satisfaction

• Participation in Service Coordination Strategy

• Tenant Representative Council

• 5th Anniversary for HCHC

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Outlook for 2007

• Approval of HCHC Strategic Plan

– “Community development” approach for HCHC

– Harmonize operational policies

– Promote a positive image for HCHC communities

– Explore opportunities to create new assisted housing

• Pursue energy audit/improvement funding

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HCHC’s 2006 Performance

• Arrears = 0.53% of rental revenue

• Eviction rate = 0.55% (10 evictions for the year)

• Bad debts = 0.94% of rental revenue

• Vacancy rate = 1.37%

• Market unit vacancy loss = $32,000

• Maintenance & Administration cost per unit = $2,630

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Consolidated Budget Summary

(000’s of $)

Change2006 2006 2007 (in budget)

Budget Forecast Budget $ % Total Revenue 21,691 21,519 22,136 445 2.1Total Expenses 19,168 18,499 19,594 426 2.2Revenues over Expenses 2,523 3,020 2,542 19 0.7Transfer to Capital Reserves 2,523 2,523 2,542 19 0.7Surplus (Deficit) 0 497* 0 0 0

*Forecast as of November 30, 20062007 FTE’s: 32.5 (no change from 2006)

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2006 Forecast Results

• Non-Profit portfolio:– Projected surplus of $92,000 due to increase in RGI revenue

and savings related to mortgage payments and utilities, offset by higher materials and services and corporate administration expenses.

• Public Housing portfolio:– Projected surplus of $405,000 due to savings from snow

removal contract, utilities and increase in RGI revenue.

• Capital Budget:– $50,000 under budget due to bulk pricing.

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2007 Operating Budget

• Public Housing portfolio’s budget based on the subsidy formula used in prior years (adjusted annually)

• Non Profit portfolio’s budget reflects application of benchmarking funding model

• Benchmarks offer predictable subsidy levels, but are fixed – the only costs that are fully subsidized at actual expenditure levels are:

– RGI rents

– Mortgages

– Property taxes

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2007 Operating Budget

• Non Profit Housing Providers must manage other operating cost pressures through:

– Market rent or other revenue increases e.g. parking fees

– Cost reductions in other parts of the operation

• Impact of the Benchmarking formula can be seen in the proposed budget

• HCHC (through the Service Manager) continues to advocate to the Province for a more equitable model

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2007 Operating Budget

• Revenues increase by $445,000 (+2.1%) over 2006 budget

• Expenses $426,000 (+2.2%) higher than 2006 budget

– Material & Services – up $52,000 (+2%)

– Utilities – up $175,000 (+8%)

– Corporate Administration – up $234,000 (+12%)

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2007 Operating Budget

•Corporate administration $234k (12%)– Salaries & Benefits $46k (2.4%)

– Financial Assistant $58k (3.0%)

– Demand Charges $13k (0.6%)

– Transferred to HCHC $117k (6.0%)

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2007 Operating Budget

• Market rent increases in 2007 to vary from 0% to 2.6% across the portfolio, based on marketability

• “Ceiling rent”* increase for RGI units of 2.6% (affects about 2% of RGI tenants)

*Ceiling rent is the maximum rent charged to tenants living in RGI units in public housing

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Capital Budget 2007

• Forecasted spending for 2006 is

approx. $50,000 (2.0%) less than approved budget of $2,444,837

• Increase in 2007 capital program of $177,071 compared to approved 2006 levels

• Capital spending per unit:– 2006: $1,143

– 2007: $1,226

• Surrounding regions (municipal housing companies): $1,236 for 2006, $1,340 for 2007 on average

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Capital Budget 2007

• 708-710 Brant Court:

– Interior Unit upgrades: $62,313

Before

After

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Capital Budget 2007

• 2300 Walkers Line: – roof replacement

$29,545

• 513-515 Walkers Line & 4100 Longmoor:

– roof replacement $62,585

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Capital Budget 2007

• Asbestos - Ontario Regulation 278/05

– Inventory & removal of asbestos in all HCHC communities $78,000

Before

After

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Outlook for 2007

• 2007 Budget reflects a responsible plan to operate and maintain the Corporation’s properties

• Materials and Services and Utility costs will be a financial pressure as we move forward

• Continued focus required on planning for the Corporation’s long-term capital needs