Administration of the public housing debt

In the past, the Corporation borrowed funds from CMHC and the Province to finance investments in real property. Under the Social Housing Reform Act, 2000, the Lieutenant Governor in Council transferred, by Transfer Order for no consideration, ownership of public housing land from the Corporation to Local Housing Corporations (LHCs) controlled by Service Managers.

OMHC is responsible for the administration of public housing debt owed to CHMC and the Province. This function is a mandate responsibility listed in the MOU. The Ministry of Municipal Affairs and Housing provides the Corporation with subsidies to cover its debt servicing payments and other expenses.

The Corporation’s public housing debt appears on the Statement of Financial Position as “Long-term debt” and consists of debt to CMHC and “to the Province”. Debenture interest for “devolved properties” appears in the Statement of Operations.

There were a total of twenty-nine (29) consolidated debentures that were extended past their initial maturation date (in 2003). Two projects were transferred to the City of Sarnia and completed in 2008-09. Sixteen (16) debentures matured between 2003 and March 31, 2018. As of March 31, 2018, eleven (11) remained outstanding.

Administration of loans to colleges and universities

Between 1969 and 1972, OMHC, formerly named the Ontario Housing Corporation, advanced loans to twelve (12) colleges and universities for a total of twenty-two (22) loans for the development of on-campus student housing. Funding for these loans was obtained from CMHC and the Province.

Although these loans are scheduled to reach maturity over the 2019 to 2023 period, the institutions are entitled to make early repayment at any time, without penalty or bonus. As of March 31, 2018, eighteen (18) loans have been retired and four (4) are outstanding.

Potential environmental liability for public housing properties

OMHC maintains certain liabilities related to its former ownership of public housing properties. This includes potential environmental liability relating to environmental contamination under the EPA.

OMHC may be required to undertake actions deemed necessary by the Ministry of the Environment, Conservation and Parks to rectify any environmental contamination that may have existed at the time OMHC transferred the public housing portfolio to Local Housing Corporations. The Corporation, being a previous owner, may also be held responsible to clean up environmental contamination which it did not cause on these properties.

Currently, there are three remediation matters of concern to the Board. These include potential remediation at Alexandra Park in Toronto and ongoing claims from the Toronto Community Housing Corporation for the Regent Park redevelopment in Toronto. The County of Lanark has advised OMHC that a further claim may be made by the Lanark County Housing Corporation (LCHC) with respect to a property in Carleton Place owned by LCHC.

Remnant parcels that remain on title to OMHC

OMHC has been conducting a detailed review of the few remaining properties registered in the name of OMHC or its previous name, Ontario Housing Corporation. The objective is to transfer these remnant parcels to Local Housing Corporations or the applicable Service Manager, if the parcels were missed in Transfer Orders previously issued.

Based on the best available information, as of March 31, 2018, three locations with one or more properties were identified where the ownership status was uncertain and additional work is required.

Other activities in 2017-2018

During 2017-2018, the Corporation indemnified the Canada Mortgage and Housing Corporation against defaults for certain non-profit social housing mortgages. No claims have been made to date under this obligation.

OMHC continued to administer the Affordable Home Ownership Program and the AHP Revolving Loan Fund. OMHC also administered loans to colleges and universities under the Ontario Student Housing Program.

The OMHC administered a small, declining portfolio of mortgages under various programs including the Home Ownership Made Easy Program (HOME), Low-Rise Rehabilitation Program (LRR), Low-Rise Jobs Ontario Program (LR3), Low-Rise Rupert House Program (LRT), Low-Rise Anti-Recession Program (LRX), Permanent Homes for the Homeless Program (PHH) and Project 3600 Ontario Non-Profit Housing Program (P3600).