EXPIRING OPERATING AGREEMENTS CHRA 2013 By: Darlene Lennie, RPA

Urban Aboriginal Housing Program - CMHC Urban Aboriginal Housing Program delivered by CMHC. A look back and we can see that the first operating agreements to expire started in 2006. There are 10,062 units across Canada under this program. MUHC started the maturity process in 2008 when the first 10 units came out of the Pre 86 agreements. A word of caution …read your agreements to see that the maturity of mortgages is the same as the operating subsidy period.

Metis Urban Aboriginal Housing Program - CMHC Strategic Plan Developed Shareholder Approval New Company No funds - $1200 Equity of 10 mortgage free units New Business Model – must be able to compete What we experienced in our organization with respect to the end of operating agreements in terms of choices we made: Strategic Plan Developed – 2008 there was no plan in place just a lot of discussion on what could happen or what was possible; MUHC developed a strategic plan that included a risk analysis of what could go wrong and what were the potential threats we would face internally and externally once we started the process; Step One - Shareholder Approval – not an easy task as 14 elected officials are not necessarily on same page – but we got approval to set up a new company MCHC; Step Two – Start New Company – why was a new company necessary – basically because of all the restriction of existing agreements – we did not want to deal with the long history of bad or no credit from MUHC; we did not want interference on the decision that needed to be made; simplified process to keep the companies joined but operating as separate entities; and we want to provide additional protection around the structure to ensure the company mandate was honored; No funds - $1200 – we had no funds to start with but we managed to buy a seniors lodge for $1.5 million. This was possible through our newly developed relationship with First Nation’s Bank – main stream banking did not want to do business with a not for profit, Aboriginal Corporation who just might end up kicking seniors out into the street….quote. First Nation’s Bank saw the potential and invested; Equity of 10 mortgage free units – seven were used to secure the loan for the lodge and the other three were sold. Business Model was designed for MCHC so we could compete and be viable; this included analysis of rental needs, material discounts, new software for reporting, tracking and monitoring (designed our own property management database); new programs, and new partnerships

Metis Urban Aboriginal Housing Program - CMHC Recognize need to retrain Board of Directors/Management & Staff Recognize need to educate the tenants Recognize need for partnerships Recognize need for new programs/services Recognize need for financial independence Our choices and business model had to include future five year plans which included the financial pressures that go with such dramatic change and growth: The need to retrain how BOD, management and staff view business was critical; the social safety net was gone; it was do a good job or do not do it at all; The need to educate our tenants was also critical; we developed a video on the roles and responsibilities of the tenant and us as the landlord; we made it mandatory for all to view during the tenant workshops for new and or transfer tenants; The need to connect with new partners was also key to new programs; funding and opportunity (Holmes Group; Habitat for Humanity, the City of Edmonton, the Province and many of our suppliers and contractors; The need to be viable was to pursue growth in the types of programs and services provided. Our Housing is more than just being a landlord we are also an educator; (Family Reunification, Homeownership, tenant roles and responsibilities) We recognized that to be financially dependent on any one funder or source of funds was or could be detrimental to any organization; that if funds were cancelled the organization and clients were in harms way; and it is a means to control not for profits organizations; we had to find a balance that was beneficial to us and the stakeholders who wanted to do business with us in the future. We feel very strongly we have done an admirable job of that.

Metis Urban Aboriginal Housing Program - CMHC Effect on tenants – income Effect on tenants – new homes Effect on tenants - need for rent supplement Effect on tenants - future What all this has meant or might mean in the future for tenants: The effect on tenants has been two fold. They have to pay more for rent and utilities. Hard to do on a fixed income. Mainly difficult on seniors and persons on AISH. They cannot work to get a few additional dollars. The effect on tenants has also a positive outcome from the change; at least for MCHC; tenants move into basically a new home complete with high efficient furnaces, HWT, appliances, cabinets, windows and flooring; yes there is a trade off; The reality of these programs is that too many people learned to depend on them and how to abuse them; we are trying to encourage our communities to be more independent, healthier and self sufficient. Rather than see more programs that do not encourage personal growth, the funds should be more specific to the individual needs so more rent supplement not a broad base program but more options for housing providers to offer; (homeownership, rent supplement, affordable, market, and services combined with housing to encourage growth and independence for community) The greatest effect on tenants is the changing attitude of who’s responsible; responsible for their own lives; not something you can expect a company or a government to do for you – what I see for the tenants in the future is our community taking back ownership of their lives and families None of this is easy; nothing in life is easy but to encourage ownership over one’s self by holding ourselves responsible for the decisions and choices we make on our journey through this life is the difference between suffering and suffering less…..

Metis Urban/Capital Aboriginal Housing Program  OUR FUTURE IS IN OUR CONTROL TAKE RESPONSIBILITY FOR IT! THANK YOU