Activities in 2020-2021
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 was responsible for the administration of public housing debt owed to CMHC and the Province. This function was a mandate responsibility listed in the MOU. The Ministry of Municipal Affairs and Housing provided the Corporation with subsidies to cover its debt servicing payments and other expenses.
The Corporation’s public housing debt appeared on the Statement of Financial Position as “Long-term debt” and consisted of debt owed to CMHC and the Province of Ontario. Debenture interest for “devolved properties” appears in the Statement of Operations.
There was 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 2008-2009. Twenty (20) debentures matured between 2003 and March 31, 2021. As of March 31, 2021, seven (7) remain outstanding.
Upon dissolution, the Public Housing debt was transferred to the Province. The Ministry retains the administrative and contractual obligations, including repayment of accrued interest on the liabilities to CMHC.
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, 2020, all loans have been retired.
Environmental liability for public housing properties
OMHC maintained certain liabilities related to its former ownership of public housing properties. This included 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 two remediation matters of concern to those charged with governance. 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.
On March 31, 2021, the Ministry assumed and will retain the existing liabilities and potential liabilities for environmental remediation related to formerly owned public housing.
Remnant parcels that remain on title to OMHC
OMHC had been conducting a detailed review of the remaining remnant properties registered in the name of OMHC or its previous name, Ontario Housing Corporation. The Corporation considered whether these remnant parcels could be transferred to Local Housing Corporations, the applicable Service Manager, other municipalities, or government ministries. The administration and control of the majority of the remaining remnant properties was transferred to Her Majesty the Queen in Right of Ontario as represented by the Minister of Municipal Affairs and Housing on March 31, 2021. The administration and control of four remnant properties adjacent to Highway 401 was transferred to the Ministry of Transportation.
Other activities in 2020-2021
During 2020-2021, the Corporation indemnified CMHC against defaults for certain non-profit social housing mortgages. No claims have been made to date under this obligation.
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).
By an Assignment Agreement effective immediately prior to the dissolution of OMHC, the Ministry assumed and agreed to comply with all the outstanding and future rights and obligations of OMHC under the Global Partnership Agreement and the Loan Insurance Agreements with CMHC.