Canada Housing and Renewal Association 2015
Description: Canada Housing and Renewal Association 2015 Aboriginal Caucus Expiration Of Operating Agreements Strategies and Outcomes Kevin A. Albers, CPA, CGA, CAFM Chief Executive Officer Outline About Makola EOA Scenario Challenges Strategy
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slide1. Canada Housing and Renewal Association
2015 Aboriginal Caucus
Expiration Of Operating Agreements – Strategies and Outcomes
Kevin A. Albers, CPA, CGA, CAFM – Chief Executive Officer<br>
slide2. Outline About M’akola
EOA Scenario
Challenges
Strategy
Tenant Education
Tenant Options M’akola Programs
Lessons Learned
Successes and Outcomes
What should YOU Do?<br>
slide3. About M’akola Established in 1984
NFP/Charity
1588 homes/4500 tenants
Multi/Single/Rural
RGI, LEM, Assisted Living
100 FTE’s
M’akola Development Services<br>
slide4. MHS EOA Scenario “Quantify” 10% of portfolio already expired
300+ RNH Properties expire by 2019
Entire (UNH) portfolio set to expire by 2030
Projected accumulated operating deficit $15 million by 2030 (total portfolio)<br>
slide5. MHS UN Expirations 372 properties<br>
slide6. EOA Scenario 10% of portfolio already expired
All 300+ RNH Properties set to expire by 2019
Entire portfolio set to expire by 2030
Projected accumulated operating deficit $15 million by 2030 without restructuring<br>
slide7. Financial Impact - MHS Annual unfunded deficit 2017 = $47k* Sherman Road
Annual unfunded deficit 2030 = $1.6M* all projects
Accumulated deficit by 2030 = $10M*
B/E rent increases required: 30% - 256%
Average required rent increase: 99%
*Assumes 0% inflation (rents and costs) Based on current costs<br>
slide8. Challenges/Barriers Providing attainable rents for tenants previously on RGI
Providing affordable housing options while maintaining organizational sustainability
Adequately maintaining properties in the face of increasing operating shortfalls
Lessening the impact on the tenant base<br>
slide9. Strategies/Techniques Operational efficiencies – new framework
Analyze where we should be
Strategic dispositions
M&I Investment
Organizational vs Inventory Sustainability
Partnerships and Amalgamations
Community asset transfers<br>
slide10. Strategies/Techniques Standardize RGI rent calculation
New Business/Project Development
Business Diversification
PM contracts
Development Consulting/Project Management<br>
slide11. Tenant Education Communicate, Communicate, Communicate – “early and often”
Website indicates expiration dates of all O/A’s by city and address
Annual Rent Reviews - expiration info
Make tenants aware why things are changing<br>
slide12. Tenant Options Relocation to RGI units – M’akola Rent-Geared to Income (MRGI)
Rental assistance – M’akola Rental Assistance Program (MRAP)
Fixed affordable rent – M’akola Affordable Rent (MAR)
Home ownership assistance – M’akola Home Ownership Program (MAHOP)<br>
slide13. Lessons Learned Communication is KEY - “Early and Often”
Internal change management
Tenant EOA awareness/education
Tough decisions must be made
Attention from interesting places<br>
slide14. Successes and Outcomes Early signs the strategy is working
Rent consistency project complete
Tenants adapting to the change
Projections indicate we will be financially sustainable
Political pressure from tenants<br>
slide15. What Should You Do? Quantify expiration profile
Quantify exposure
Look for organizational opportunities
Advocate everywhere
Educate tenants and staff
Don’t PANIC!!!<br>
slide16. Contact Us! Web: makola.bc.ca
makoladevelopment.com
Twitter: @makolahousing
@makoladevelops
@kevinalbersBC
Email: kalbers@makola.bc.ca
Phone: 1-855-897-6922<br>
2015 Aboriginal Caucus
Expiration Of Operating Agreements – Strategies and Outcomes
Kevin A. Albers, CPA, CGA, CAFM – Chief Executive Officer<br>
slide2. Outline About M’akola
EOA Scenario
Challenges
Strategy
Tenant Education
Tenant Options M’akola Programs
Lessons Learned
Successes and Outcomes
What should YOU Do?<br>
slide3. About M’akola Established in 1984
NFP/Charity
1588 homes/4500 tenants
Multi/Single/Rural
RGI, LEM, Assisted Living
100 FTE’s
M’akola Development Services<br>
slide4. MHS EOA Scenario “Quantify” 10% of portfolio already expired
300+ RNH Properties expire by 2019
Entire (UNH) portfolio set to expire by 2030
Projected accumulated operating deficit $15 million by 2030 (total portfolio)<br>
slide5. MHS UN Expirations 372 properties<br>
slide6. EOA Scenario 10% of portfolio already expired
All 300+ RNH Properties set to expire by 2019
Entire portfolio set to expire by 2030
Projected accumulated operating deficit $15 million by 2030 without restructuring<br>
slide7. Financial Impact - MHS Annual unfunded deficit 2017 = $47k* Sherman Road
Annual unfunded deficit 2030 = $1.6M* all projects
Accumulated deficit by 2030 = $10M*
B/E rent increases required: 30% - 256%
Average required rent increase: 99%
*Assumes 0% inflation (rents and costs) Based on current costs<br>
slide8. Challenges/Barriers Providing attainable rents for tenants previously on RGI
Providing affordable housing options while maintaining organizational sustainability
Adequately maintaining properties in the face of increasing operating shortfalls
Lessening the impact on the tenant base<br>
slide9. Strategies/Techniques Operational efficiencies – new framework
Analyze where we should be
Strategic dispositions
M&I Investment
Organizational vs Inventory Sustainability
Partnerships and Amalgamations
Community asset transfers<br>
slide10. Strategies/Techniques Standardize RGI rent calculation
New Business/Project Development
Business Diversification
PM contracts
Development Consulting/Project Management<br>
slide11. Tenant Education Communicate, Communicate, Communicate – “early and often”
Website indicates expiration dates of all O/A’s by city and address
Annual Rent Reviews - expiration info
Make tenants aware why things are changing<br>
slide12. Tenant Options Relocation to RGI units – M’akola Rent-Geared to Income (MRGI)
Rental assistance – M’akola Rental Assistance Program (MRAP)
Fixed affordable rent – M’akola Affordable Rent (MAR)
Home ownership assistance – M’akola Home Ownership Program (MAHOP)<br>
slide13. Lessons Learned Communication is KEY - “Early and Often”
Internal change management
Tenant EOA awareness/education
Tough decisions must be made
Attention from interesting places<br>
slide14. Successes and Outcomes Early signs the strategy is working
Rent consistency project complete
Tenants adapting to the change
Projections indicate we will be financially sustainable
Political pressure from tenants<br>
slide15. What Should You Do? Quantify expiration profile
Quantify exposure
Look for organizational opportunities
Advocate everywhere
Educate tenants and staff
Don’t PANIC!!!<br>
slide16. Contact Us! Web: makola.bc.ca
makoladevelopment.com
Twitter: @makolahousing
@makoladevelops
@kevinalbersBC
Email: kalbers@makola.bc.ca
Phone: 1-855-897-6922<br>