The expiry of social housing operating agreements presents both opportunities and challenges. Join us for an update on the “big picture” analysis of the issue in New Brunswick along with practical advice and resources on planning for expiry to help ensure viability of your organization.

1. Expiry of Operating Agreements
May 2014

2. Outline for the day
Expiry of Operating Agreement
- Overview of Federal and Provincial Statistics
- Operating differences before and after Expiry
- Role of NBNPHA
- Quick Reminder about the EOA Tool
- Financial and Technical Preparation to Expiry
- Importance of the Replacement Reserve
- Open discussion on best practices
- Access to Other Housing Programs after Expiry

3. As cited by Steve Pomeroy, Is Emperor Nero Fiddling as Rome Burns? Assessing
Risk when Federal Subsidies End (2011)
On the National Level

4. On the Provincial Level
19
10
32
23
60
36
63
74
57
21
2000-2012 2013-2014 2015-2016 2017-2018 2019-2020 2021-2022 2023-2024 2025-2026 2027-2028 2029-2030
Number of Expired Agreements
130 110
428
547
971
726
663
1140
461
158
2000-2012 2013-2014 2015-2016 2017-2018 2019-2020 2021-2022 2023-2024 2025-2026 2027-2028 2029-2030
Number of units involved
* Includes Non-profits, Co-ops and Skigin-Elnoog Projects only

5. What Does EXPIRY Mean?
– After Expiry, Projects no longer have:
- Federal & Provincial Agreements (Sections 26, 27, 95)
- Subsidies
- Mortgage Payments
– After Expiry, Projects continue to be governed by:
- Rules of Operations
- Letter Patents
- By Laws, Policies
- Other Agreements, Obligations

6. Provincial Property Tax Exemption
Our proposal…
The exemption will remain available after Expiry
conditional upon projects providing the following…
- Confirmation of non-profit status
- Annual Financial Statements
- Attestation of rents being charged
- SD will advise at Expiry (particulars / deadlines)

7. Things to Consider
Continue to:
- Operate as a Non Profit – Provincial Property Tax Exemption
- Be Affordable - Targeting low to moderate income clients
- Be Viable - Ensuring sufficient revenues for maintenance & repairs
(Replacement Reserve)
- Be Accountable – Tenants, communities, lenders

8. Challenges after Expiry
- Limited ability to house Low Income Seniors / Families
- Financial Expertise
- Technical Support
- Access to programs such as Projects in Difficulty

9. About NBNPHA
The New Brunswick Non Profit Housing
Association offers individualized support to help
our housing groups plan for the expiry of their
operating agreements.

10. Program Activities
• Obtain financial statement worksheet from
your PMO at the Department of Social
Development.
• Complete a copy of the planning for Expiry of
Agreements (EOA) Tool.
• Complete a copy of the Replacement Reserve
Assessment Tool.

11. EOA Tool Results

12. Program Activities cont…
• Ensure that the Housing Group has applied for
and is in receipt of both the Municipal
Designation GST/HST rebate and the Provincial
Property tax rebate.
• Work with Housing Groups to create an Action
Plan based on the results from their EOA tool.
• Explore multiple possible RGI rent solutions.

13. Result Indicators
• Non-Profit and Co-operative Housing units
remain affordable and the units are sustained in
good condition.
• The NBNPHA gathers data and evidence required
to develop a strong advocacy plan and policy in
support of our members’ interests.
• Develop case studies to be used as templates for
future groups approaching expiry of their
operating agreements.

14. Information Collection
• Individual member information will be stored
securely and remain confidential and will only be
used with permission.
• As the groups work through the expiry of their
agreements, data will be aggregated to
summarize the overall health of the non profit
housing and co-operative housing sectors in New
Brunswick.
• This data will aid in the development of the
Association’s advocacy plan.

15. Resources available to groups
• Staff at the New Brunswick Non Profit Housing
Association (NBNPHA)
– Dave Shalala dshalala@nbnpha-alsblnb.ca
• (506) 206-3795
• Social Development
• NBNPHA guide sheets (How to sheets)

16. Where to find the Tools…
Replacement Reserve Planning and Expiry of Operating
Agreements Assessment Tools…
http://www.nbnpha-alsblnb.ca/en/index.php/member-
resources

17. Suggestions to Remain Viable
• Increase rent
• Less Income testing
• Rent spaces – Commercial
• Rethink Clients’ needs (looking at aging in place)
• Amalgamate several small projects (cut operating costs)
• Engage municipalities – possibility of lowering taxes or
service costs
• Engage Local MPs and MLAs
• Evaluate the Replacement Reserve
• Engage Staff and Tenants
• Engage Youth
• Open Houses

18. Financial & Technical Preparation
Checklist:
- Financial capacities
* Heat & Lights
* Maintenance/Repairs
* Vacant units/Bad debts
- Physical condition of the building and the units
* Replacement Reserve Planning
- Review the needs of the project on a regular basis
- Management capabilities
- Allocation to Replacement Reserve (Post-85 projects)

19. Replacement Reserve
Before Expiry After Expiry
Current Process
Capital Item Fails:
 Determine Need for Replacement
(Inspection)
 Obtain 3 Quotes
 Submit Request to PM Officer
 Receive Written Approval
 Purchase Item
Recommended Practice
Adopt Policy to maintain RR that
includes:
• List of items
• # of quotes to obtain
• Board approval / discussion
Develop Replacement Reserve Plan

20. Tips about Maintenance

21. Rental RRAP
Residential Rehabilitation Assistance
Program
May 10, 2014 Leanne Smith
Housing & Homelessness / Logement et itinérance
Social Development / Dévelopement sociale
Leanne.smith@gnb.ca

22. Rental RRAP
• Rental Residential Rehabilitation Assistance
Program
• Provides financial assistance to
owners/landlords for mandatory repairs to self-
contained units that are substandard and
rented to low-income households.
• Assistance is in the form of a forgivable loan &
the maximum assistance is $24,000 per
eligible unit.

23. Rental RRAP Eligibility
• Property must be owned by a non-profit
corporation, or a housing cooperative that
is not receiving any government housing
assistance.
• Must contain 1 or more self-contained
units, rented or intended to be rented to
low income households.
• Post RRAP rents will be at or below levels
established by SD & CMHC

24. Eligibility - Continued
 Property must lack basic facilities or require
major repairs in one of the following areas:
 Structural
 Heating
 Electric
 Plumbing
 Fire Safety
 Health Safety

25. HOW DOES IT WORK?
• The amount you may recieve is based on the
cost of madatory repairs and the number of
self-contained units within the project.
• The forgivable loan is earned over a period of
years ranging from 7 to 12, depending on the
number of units and the cost of eligible
mandatory repairs

26. For Program Information:
• http://www2.gnb.ca/content/gnb/en/servic
es/services_renderer.8795.html