Building Investment, Finance and Audit Committee (BIFAC) Meeting - July 9, 2015

Agenda

Consent Public Agenda

The Consent Agenda items listed on the Consent Public Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting.  The Committee Chair will ask for approval of the following Consent Agenda items.  Committee members must indicate if they wish to request to discuss the Item, question the Item or register a vote against the Item.  If an Item is removed from the Consent Agenda, it will be discussed at the end of the meeting. 

1. Approval of Agenda

Action: Resolution to approve the agenda

Pre-read: Agenda

2. Confirmation of Public Meeting Minutes: May 28, 2015

Action: Resolution to confirm the public minutes

Pre-read: Minutes

3. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC)

Action: Resolution to receive for information 

Pre-read: Action Item List

Building State of Repair and Environmental Sustainability:

4. Stand-Alone Properties Sales and Relocation Update

Action: Resolution to receive for information

Pre-read: BIFAC:2015-70

Internal Audit, Accounting Systems and Internal Controls:

5. Review of Board, President and CEO and Senior Management Expenses – Q1 2015

Action: Resolution to receive for information    

Pre-read: BIFAC:2015-71

Public Meeting Agenda Items (7 p.m. – 7:30 p.m.)

Report from the BIFAC Chair:

6. Chair’s Report and Remarks    

Action: Information    

Pre-read: Verbal Report

Presenter: Chair

Commissioner of Housing Equity Report:

7. OCHE – Quarterly Performance Report 
(Q1 2015)

Action: Information

Pre-read: BIFAC:2015-72

Presenter: Commissioner of Housing Equity

8. OCHE Staffing Request

Action: Committee and Board Approval 

Pre-read: BIFAC:2015-73

Presenter: Commissioner of Housing Equity

Internal Audit, Accounting Systems and Internal Controls:

9. Chief Internal Auditor:  Semi-Annual Internal Audit 2015 Work Plan Status Update

Action: Information  

Pre-read: Verbal Report

Presenter: Chief Internal Auditor

Report from Management:

10. Report on Section 37 Funds

Action: Information  

Pre-read: BIFAC:2015-74

Presenter: Interim President and CEO/Chief Development Officer

TERMINATION

Consent Closed Agenda

The Consent Agenda items listed on the Consent Closed Agenda will require a resolution of the Committee but are not scheduled for a full discussion at the Committee meeting.  The Committee Chair will ask for approval of the following Consent Agenda items.  Committee members must indicate if they wish to request to discuss the Item, question the Item or register a vote against the Item.  If an Item is removed from the Consent Agenda, it will be discussed at the end of the meeting.

A. Approval of Agenda

Recommendation: Resolution to approve the agenda  

Pre-read: Agenda

B. Confirmation of Closed BIFAC Meeting Minutes:

• May 28, 2015    

Recommendation: Resolution to confirm the closed minutes 

Pre-read: Minutes

C. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC)

Recommendation: Resolution to receive for information    

Pre-read: Action Item List

Financial Compliance:

D. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Recommendation: Committee and Board approval

Pre-read: BIFAC:C2015-75

Capital Projects, Real Property and Building Revitalization:

E. Confidential report respecting matters involving the security of the property of the Corporation

Recommendation: Resolution to receive for information 

Pre-read: BIFAC:C2015-76

Closed Meeting Agenda Items (5:30 p.m. – 7:00 p.m.)

F. Chair’s Poll re:  Conflict of Interest    

Action: Declaration  

Pre-read: Agenda and Conflict of Interest Policy

Presenter: Chair

Report from the BIFAC Chair:

G. Chair’s Report and Remarks

Action: Information 

Pre-read: Verbal Report

Presenter: Chair

Capital Projects, Real Property and Building Revitalization:

H. Confidential item from the Chief Development Officer

Action: Information

Pre-read: Verbal Report

Presenter: Chief Development Officer

I. Confidential reports respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes. 

Action: Committee and Board Approval

Pre-read: BIFAC:C2015-77, BIFAC:C2015-78, BIFAC:C2015-79

Presenter: Vice President, Facilities Management

J. Confidential report respecting matters involving the security of the property of the corporation

Action: Committee and Board Approval    

Pre-read: BIFAC:C2015-80

Presenter: Vice President, Facilities Management

K. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Information 

Pre-read: BIFAC:C2015-81

Presenter: Chief Development Officer

L. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Information  

Pre-read: BIFAC:C2015-82

Presenter: Chief Development Officer

Budget, Financial Reporting and Financial Statements:

M. Confidential report respecting matters involving the security of the property of the Corporation

Action: Information  

Pre-read: BIFAC:C2015-83

Presenter: Chief Financial Officer and Treasurer

N. Confidential report respecting matters that are or may be the subject of litigation or potential litigation, and recommendations of proposed policy or process

Action: Information

Pre-read: BIFAC:C2015-84

Presenter: Chief Financial Officer and Treasurer

O. Confidential report respecting the financial status of the development projects, including projects with development partners, for the period ended March 31, 2015    

Action: Information

Pre-read: BIFAC:C2015-85

Presenter: Chief Financial Officer and Treasurer

P. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to recommendations of proposed policy or processes

Action: Information  

Pre-read: BIFAC:C2015-86

Presenter: Chief Financial Officer and Treasurer

Reports from Management 

Q. Confidential report respecting matters that are not required to be disclosed under the Municipal Freedom of Information and Protection of Privacy Act, including but not limited to personal matters about identifiable individuals, a proposed or pending transaction with a third party, and recommendations of proposed policy or processes

Action: Information  

Pre-read: BIFAC:C2015-87

Presenter: Director, Strategic Planning and Stakeholder Relations

TERMINATION

Public Minutes

The Building Investment, Finance and Audit Committee (“BIFAC”) of Toronto Community Housing Corporation (“TCHC”) held a public meeting on July 9, 2015, in the Main Floor Conference Room, 931 Yonge Street, Toronto, commencing at 7:18 p.m.

Committee Directors Present:

Councillor Frank Di Giorgio, Chair

Councillor Ana Bailão

Catherine Wilkinson

Committee Directors Absent:

Karen Newman, Vice Chair

Other Directors in Attendance:

Norman (Bud) Purves

Robert Carlo

Also Present:

Jason Gorel, Chief Financial Officer and Treasurer

Ismail Ibrahim, Director of Compliance and Legal Counsel 

Graham Leah, Vice President, Asset Management

Laurie Payne, Development Director

Greg Spearn, Interim President and Chief Executive Officer/ Chief Development Officer

Pamela Spencer, General Counsel and Corporate Secretary

Cynthia Summers, Commissioner of Housing Equity

Michael Vear, Chief Internal Auditor

A quorum being present, the Chair called the meeting to order and Ms. Mirela Bolentiru served as recording secretary.

Item 1 - Approval of the Consent Public Agenda Items and Public Agenda

The Consent Public Agenda is comprised of the following items:

1. Approval of Public Agenda;
2. Confirmation of the May 28, 2015 Public Meeting Minutes; 
3. Business Arising from the Minutes and Committee Action Items Update (Former BIC and CAAC);
4. Stand-Alone Properties Sales and Relocation Update; and
5. Review of Board, President and CEO and Senior Management Expenses – Q1 2015.

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously approved the Consent Public agenda Items 1, 2, 3 and 5. Public Agenda Items 4, 6, 7, 8, 9 and 10 were held for discussion. 

Declaration of Conflict of Interest

The Chair requested members of BIFAC to indicate any agenda item in which they had a conflict of interest, together with the nature of the interest. None were declared.

Item 2 - Confirmation of Public Meeting Minutes

The BIFAC had before it the draft minutes from the May 28, 2015 public meeting.

Motion carried 

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously confirmed the May 28, 2015 minutes. 

Item 3 - Business Arising from the Minutes and Committee Action Items Update

The BIFAC had before it the above captioned report. 

Motion carried 

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously received the report for information. 

Item 5 - Review of Board, President and CEO and Senior Management Expenses Q1 2015, BIFAC:2015-71

The BIFAC had before it the above-captioned report (BIFAC:2015-71) from the Chief Internal Auditor.

Motion carried

ON MOTION DULY MADE by Councillor Bailão, seconded by Ms. Wilkinson and carried, the BIFAC unanimously received the report for information.

Item 4 - Stand-alone Properties Sales and Relocation Update, BIFAC:2015-70

The BIFAC had before it the above-captioned report (BIFAC:2015-70) from the Interim President and Chief Executive Officer.

The BIFAC enquired with respect to a plan for the relocation of the residents with disabilities, the status of the additional 26 occupied properties targeted for sale in 2015, properties with regulatory restrictions that are not targeted for sale in 2015, and moving costs allocated to market residents to mitigate their relocation expenses.

Management addressed the queries from the BIFAC as follows:

• TCHC has developed a specific Tenant Relocation Assistance and Implementation Plan (“TRAIP”) to assist the needs of the residents during the relocation process. TRAIP has been approved by the Ministry of Municipal Affairs and Housing and the City of Toronto. Copies of the plan have been provided to the affected Ward City Councillors.
• There are 26 additional occupied properties targeted for sale in 2015, comprising 16 properties occupied by rent-geared-to-income (RGI) households and 10 properties occupied by market rent households. 
• There are 15 properties (multi-unit dwellings) under regulatory restrictions that are not targeted for sale in 2015, comprising 7 vacant and 8 occupied properties. As an interim measure, the 7 vacant houses will be repaired and rented at market rent rates, to prevent further deterioration of the properties and to improve community safety.
• While TCHC is not required by the legislation and regulations in effect to pay moving costs to the market residents to mitigate their relocation expenses, it does provide moving costs to the market residents as required by the City of Toronto, in accordance with the City Council’s approval obtained last year for the sale of the houses.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously received the report for information and recommended that the report be forwarded to the Board of Directors for information.

Item 6 - Chair's Report and Remarks (Verbal)

No comments or remarks from the Chair.

Item 8 - OCHE Staffing Request, BIFAC:2015-73

The BIFAC had before it the above-captioned report (BIFAC:2015-73) from the Commissioner of Housing Equity (COHE).

A discussion ensued, including the following salient points:

• COHE has identified a need for additional staff members due to an increase of the referral rate, as well as an increased and faster flow of files for review by the Office of the COHE. The funding for the two additional one-year contract positions is to be divided between the 2015 and 2016 OCHE Budgets.

Motion carried 

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Bailão and carried, the BIFAC unanimously adopted the report and recommended that the report be forwarded to the Board of Directors to approve:

1. The labour budget for the OCHE be increased by $72,778.20 in 2015, and for an advanced increase of $145,556.60 for 2016 (over 2015 budgeted levels before this adjustment);
2. The non-labour budget for the OCHE be increased by $1,600 in 2015, and for an advanced increase of $3,200 for 2016 (over 2015 budgeted levels before this adjustment); and
3. The TCHC Corporate Capital budget be increased by $12,300.

Councillor Bailão left the meeting at 7:30 p.m.

Item 7 - OCHE – Quarterly Performance Report (Q1 2015), BIFAC:2015-72

The BIFAC had before it the above-captioned report (BIFAC:2015-72) from the Commissioner of Housing Equity (COHE).  

The BIFAC discussed the report with respect to the timing for an L1 Eviction Application and referral of the file to OCHE (charts on page 11 of the Quarterly Report), loss of subsidy from contract managed buildings (page 3 of the Quarterly Report), milestones encountered by the OCHE during the file referral process, and senior residents paying market rent inadvertently. The BIFAC noted that 81% of the files reported on in Q1 2015 had issued N4s more than one month after the arrears began and the files were referred to the OCHE more than two months after their respective N4s were served.

The COHE reported that the Arrears Collection Process indicates that the decision to make an L1 Eviction Application should occur in the month subsequent to the N4 issuance, and referral to the file to the OCHE should occur within two months after the N4 issuance. Data included in the charts is related to older files. In the Q2 2015 Quarterly Report, an improvement will be noticeable; and in the Q3 2015 Quarterly Report, a steady improvement in managing the file reviews is expected. 

The COHE explained that currently, there is no process in place to identify and refer vulnerable residents facing loss of subsidy from the 58 contract managed properties. Management has been working with each property management provider and the IT department to identify a mutually agreed upon solution to this issue.

Action Item:

The BIFAC requested the COHE to bring back to the Committee and forward to the Board of Directors a collaborative report to reflect the efforts made by the OCHE and Management with respect to the identification of senior and vulnerable residents from the contract managed properties.

The COHE reported with respect to the following main points:

• 96% (45 files out of a total of 47 files) of senior and vulnerable residents were effectively engaged with the OCHE to find solutions to their arrears files reported in Q1 2015. 2% of those residents have not worked with the OCHE.
• 50% of the arrears files for vulnerable residents were more complex and required more time than expected and intensive effort, allocated by the OCHE to engagement and arrears resolutions.
• 5 breached OCHE brokered local repayment agreements were reported in Q1 2015. Only one repayment agreement has failed due to the OCHE’s inability to engage with the household and the OCHE recommended that the matter proceed to the LTB. The average length of the OCHE brokered local repayment agreements has been for a period of 42 months and covered over $133,000 in total arrears during Q1 2015.
• In 85% of its reports to TCHC during Q1 2015, the OCHE provided general recommendations, while in 55% of its reports the OCHE provided individual recommendations to TCHC. The Asset Management Division has been provided with a chart focusing on the issues identified related to the current processes for an easier follow up procedure by Management to addressing those issues.
• The COHE emphasized the importance of a collaborative planning between the OCHE and Management, together with providing guidance to Management with respect to the implementation of the OCHE’s recommendations. If Management encounters difficulty in implementing a recommendation, the COHE will revisit that specific recommendation and will amend it as necessary. The OCHE will provide training to Management in Q3 2015 with respect to managing the resident files.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Di Giorgio and carried, the BIFAC unanimously received the report for information and recommended that the report be forwarded to the Board of Directors for information.

Item 9 - Chief Internal Auditor: Semi-annual Internal Audit 2015 Work Plan Status Update (Verbal)

The Chief Internal Auditor is required to report quarterly with respect to the Internal Audit Work Plan. Q2 2015 reporting has been delayed due to prior staff engagements in other projects and the Mayor’s Task Force. The 2015 Internal Audit Work Plan will be updated and presented at the next BIFAC meeting.

Motion carried

ON MOTION DULY MADE by Ms. Wilkinson, seconded by Councillor Di Giorgio and carried, the BIFAC unanimously received the report for information.

Item 10 - Section 37 Program Progress Update, BIFAC:2015-74

The BIFAC had before it the above-captioned report (BIFAC:2015-74) from the Interim President and Chief Executive Officer.

The BIFAC raised queries with respect to the purpose and background information related to Section 37 funding. Management and the BIFAC Chair provided historical background information with respect to Section 37 funding, emphasizing its increased current role in accordance with the City’s direction to allocate Section 37 funds to certain projects approved by the City based on the municipality’s priorities.

Increased amounts of Section 37 funding in some wards is a result of local Councillors having adopted a policy of directing 10% of Section 37 funds in their wards to Affordable Housing, particularly in TCHC communities.

Section 37 funding program activity has intensified considerably over the past few months, from a historic rate of 4-5 projects a year to one new project commencing each month. 

Action Item:

The BIFAC recommended that Management provide a quarterly report on Section 37 Program Progress Update, including the amount allocated for each community project, a complete list of community projects that are recipients of Section 37 funding and completion date for each project. As per Management’s suggestion, it was agreed that Management will include the requested information on Section 37 funding in the Performance Report presented quarterly to the Board of Directors. The BIFAC also requested that the information related to Section 37 funding be posted on the TCHC’s website, for public access, including webcasts.

The BIFAC unanimously received the report for information and recommended that the report be forwarded to the Board of Directors for information.

TERMINATION

The BIFAC resolved to terminate the public meeting at 8:05 p.m.