MAH - Review of Benchmark Request Submissions

5 pages

English

MAH - Review of Benchmark Request Submissions

Assa

Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres

5 pages

English

Le téléchargement nécessite un accès à la bibliothèque YouScribe
Tout savoir sur nos offres

A propos
Informations
Extrait

Description

llMAH - Review of Benchmark Request Submissions Home / Resources for Municipalities / Affordable / Social / Rental... / Social Housing Business / Review of Benchmark Request... Review of Benchmark Request SubmissionsUnder the Social Housing Reform Act, 2000, (SHRA) the Minister has the authority to establish the cost and revenue project benchmarks used to set minimum funding levels paid by municipalities to social housing providers.In 2005, the ministry worked with an advisory group to develop a methodology to establish benchmarks.The benchmarks for over 800 social housing developments were released to housing providers and municipal service managers in mid-2005.The SHRA also allows for the benchmarks to be changed if the housing provider and the ministry agree. The ministry was required to respond to housing providers who submitted requests, based on the specific circumstances of their housing operation, to make adjustments to the recently released benchmarks. This process was called the benchmark change request process.This webpage provides information about this process and summaries of ministry decisions by benchmark categories. Background Decisions | central site | feedback | search | site map | français | Home | Front and Centre | Resources for Municipalities | About the Ministry | Related Links | Reference Centre | Newsroom | Site Updates | Privacy | External Links Disclaimer Copyright information:© Queen's Printer for ...

Sujets

managers

Informations

Publié par	Assa
Nombre de lectures	39
Langue	English

Extrait

MAH  Review of Benchmark Request Submissions

Home/Resources for Municipalities/Affordable / Social / Rental.../Social Housing Business/ Review of Benchmark Request...

Review of Benchmark Request Submissions

Under the Social Housing Reform Act, 2000, (SHRA) the Minister has the authority to establish the cost and revenue project benchmarks used to set minimum funding levels paid by municipalities to social housing providers.

In 2005, the ministry worked with an advisory group to develop a methodology to establish benchmarks.

The benchmarks for over 800 social housing developments were released to housing providers and municipal service managers in mid2005.

The SHRA also allows for the benchmarks to be changed if the housing provider and the ministry agree. The ministry was required to respond to housing providers who submitted requests, based on the specific circumstances of their housing operation, to make adjustments to the recently released benchmarks. This process was called the benchmark change request process.

This webpage provides information about this process and summaries of ministry decisions by benchmark categories.

lBackground

lDecisions

Privacy|External Links DisclaimerCopyright information:© Queen's Printer for Ontario, 2002Last Modified: September 20, 2006

http://www.mah.gov.on.ca/userfiles/HTML/nts_1_27035_1.html21/09/2006 4:45:57 PM

MAH  Background

Home/Resources for Municipalities/Affordable / Social / Rental.../Social Housing Business/Review of Benchmark Request.../ Background

Background

The ministry established a stakeholder working group to develop an appropriate process for reviewing provider requests to change benchmarks. The group included representatives from the Ontario NonProfit Housing Association (ONPHA) the Cooperative Housing Federation – Ontario (CHFOntario), the Social Housing Services Corporation (SHSC) and the Service Manager Network (SMN).

The ministry and the stakeholder group developed a process requiring the review of written submissions.

The stakeholder working group proposed that a panel of experts, external to the ministry, review and make recommendations to the Minister. Each panel would be comprised of experts who had experience as a municipal service manager, a housing consultant, or a social housing provider.

lEstablishment of Panels The stakeholder working group canvassed potential candidates to determine interest and forwarded the names to the ministry. The ministry chose 9 members to take part in 3 panels. Candidates were selected based on their knowledge of social housing operations and funding. Panel members were matched to ensure a mix of service manager, housing consultant and housing provider representatives. Panel members were not allowed to review requests from their service areas. A ministry support team provided administrative support to the panels, prescreened submissions for completeness and organized requests prior to review by the panels. The support team also conducted technical analysis and supporting documentation for each request. Panel members were given training on the development of the benchmarks and the review process. The ministry support team was available to obtain and provide additional information if the panels requested it. Also, panels were informed of the recommendations of other panels for similar benchmark change requests. Panel members are required to keep the details of any change request submission confidential. The ministry will not identify which panel member reviewed which change request. The panels reviewed the first wave of submissions in early December 2005.The decisions were issued in early February 2006. In midFebruary 2006, the panels began their review of the next wave of submissions. The decisions were issued before March 31, 2006. lPanel MembersMembers of the review panel were (in alphabetical order): mCatherine Boucher – Housing Provider mMichele Campbell – Service Manager mColin Gage – Housing Provider mHope Lee – Service Manager mTrevor Lestor – Housing Consultant mDan Malette – Service Manager mJoanne McNamara – Housing Consultant mJanet Melnyk – Housing Consultant mLaurene Wagner  Housing Provider lChange Request Process When the ministry received a written submission, the details of the request were entered into a database and the request was assigned to a reviewer on the ministry support team.

http://www.mah.gov.on.ca/userfiles/HTML/nts_1_27735_1.html (1 of 2)21/09/2006 4:46:32 PM

MAH  Background

The ministry informed each service manager of change request submissions in their service area and confirmed that the service manager received a copy of the submission. The service manager was invited to provide written comments on the submission. The reviewer checked the submission for completeness, and contacted the housing provider and service manager if clarification or additional information was required.A written analysis and technical advice about the request was also provided by the reviewer. Ministry staff, who acted as verifiers, reviewed all files. Verifiers confirmed that analysis was consistent across all files and provided additional comments and analysis as needed. The panels reviewed the written request submission and all supporting documentation including the reviewer and verifier comments and any written service manager comments. On a majority rule basis, panels developed a written recommendation for each benchmark request. Ministry decisions for each submission were based on reviewer/verifier comments, service manager comments, and panels’ recommendations. lMethodology The ministry recognizes that the methodology used to develop the benchmarks could not consider unique circumstances surrounding specific housing projects. The benchmark change request process was developed to allow housing providers the opportunity to identify circumstances that are unique to their housing operation. In general, request submissions should provide evidence of the projectspecific circumstances that affected their minimum costs or revenues. The submission should also suggest how to measure the financial impacts.

Privacy|External Links DisclaimerCopyright information:© Queen's Printer for Ontario, 2002Last Modified: September 20, 2006

http://www.mah.gov.on.ca/userfiles/HTML/nts_1_27735_1.html (2 of 2)21/09/2006 4:46:32 PM

MAH  Decisions

Home/Resources for Municipalities/Affordable / Social / Rental.../Social Housing Business/Review of Benchmark Request.../ Decisions

Decisions

Summary of Decisions

The ministry approved 87 of the 121 change requests made but not necessarily at the amount requested.

There were 20 change requests submitted to correct errors in previous data used to develop the original benchmarks.

For example, actual market rents included utilities whereas the original market rent benchmarks did not. Data error request submissions were reviewed for accuracy by ministry staff and all were approved. The panels did not review data error submissions. The panels reviewed and the ministry approved request submissions where the housing provider and the service manager mutually agreed to the change.

Requests based on anticipated or forecasted cost increases were not approved.

Decisions by Benchmark Category

The following results are summaries of the decisions and are not intended to provide specific details of any single change request.

Housing providers or service managers who wish to obtain more information about a benchmark change request decision for their housing project should contact Erich Freiler, Manager, Facilitation Branch at (416) 5856193 orerich. freiler@ontario.ca.

lMarket RentApprovals were given to 30 of 43 requests to change the Market Rent Benchmarks. The ministry approved Market Rent Benchmarks at the level of the actual market rents adjusted to 2006. This approach was taken to ensure that a housing provider was not placed into an immediate operating deficit. Requests to decrease Market Rent Benchmarks in specific units to offset vacancy losses were not approved if there was insufficient evidence showing high vacancies in those units in the past. lNonRental RevenueThe ministry approved 8 out of 10 requests to change the Non Rental Revenue Benchmarks. Approvals were given to requests that provided evidence showing that sources of nonrental revenue were permanent or at least long term. This approach was used to reflect that the benchmark provides a permanent baseline for funding. lVacancy LossThe ministry approved 3 out of 11 requests to change the Vacancy Loss Benchmark. All approved requests provided sufficient reasons why existing and previous vacancy losses would continue for the longterm. lAdministration and Maintenance The ministry approved 13 out of 70 requests to change the Administration and Maintenance Benchmarks. The approved requests had to meet one of the following criteria:

http://www.mah.gov.on.ca/userfiles/HTML/nts_1_27725_1.html (1 of 2)21/09/2006 4:46:41 PM

MAH  Decisions

mDemonstrate that there had been changes to the operating environment that resulted in increased long term costs not encountered in the 1997 –1999 base years mDemonstrate that their base year costs were not typical mProvide new information not considered when the ministry approved a municipal service manager’s business case. Submissions were not approved: mIf they did not include sufficient proof of unique circumstances, or if they did not include financial evidence of how these circumstances impacted operating costs; and mIf they did not include evidence of what a revised benchmark should be based on. lUtilities The ministry approved 15 out of 31 requests to increase the Utilities Benchmarks. Requests were approved where a submission included the most recent utility invoices. The revised utilities benchmark was based on the average of the most recent three years. Requests to increase utilities based on future costs were not approved. lInsurance The ministry approved 15 out of 23 requests to change the Insurance Benchmarks. Submissions were approved if they included recent invoices indicating a permanent increase in insurance premiums. For all providers who are insured by AON, the ministry obtained the most recent invoices directly from the Social Housing Services Corporation, as providers did not receive these invoices prior to the benchmark submission deadline. Please note that the invoices from AON were based on a 14month period. The ministryapproved insurance benchmark was adjusted to reflect a 12month period. If a housing provider, who was approved ,was not insured by AON, the ministry based the approval amount that was the lesser of an AON insurance quote or the actual invoice provided by the housing provider’s insurance company. lBad Debt The ministry approved 3 out of 6 requests. Requests to change bad debt benchmarks were approved if they included written support from their service managers, or their debt resulted from a data correction to market rents. (Bad debt benchmark is based on a percentage of rents.) lCapital ReservesThe benchmark change request process was not intended to consider changes to the capital reserves other than to note data correction errors. There were 8 change requests that were not data error correction requests and none were approved.