Leaky Co-ops

 

Good news for BC's leaky co-ops

We are very pleased to report the results of discussions between CHF BC, CHF Canada and Canada Mortgage and Housing Corporation (CMHC) on how best to help federally assisted co-ops suffering from premature building envelope failure (leaky co-ops).

CMHC has enhanced its workout framework for federally assisted CMHC-insured co-operatives committed under the Pre-86 Program with confirmed premature building envelope failure. A more flexible workout framework will help more co-ops return to financial viability over the long term.

"Helping co-ops with serious building envelope problems has been CHF BC's top priority for many years. These enhancements are a significant step forward in that effort." said Thom Armstrong, Executive Director, CHF BC.

A number of these enhancements will also be applied where helpful and appropriate to other federally administered CMHC-insured projects in difficulty across Canada.

"This new workout framework is very good news, not only for the leaky co-ops in BC that will now be able use it to finance their building repairs, but also for federally administered CMHC-insured co-ops elsewhere in Canada," said Nicholas Gazzard, Executive Director, CHF Canada.

The enhancements are to be implemented immediately, where more flexibility can lead to a viable long-term workout arrangement.

"For eligible co-ops, the enhanced framework will increase the amount of borrowing permitted in a workout and offer more flexible repayment terms for those loans," said Sharon Matthews, Vice-President of Assisted Housing for CMHC. "We are grateful to CHF Canada and CHF BC for co-operating with us on this initiative."

Where redevelopment of existing co-ops is a more cost effective solution, Enhanced Assistance will still be available, along with Seed Funding to help cover the costs associated with the early stages of redevelopment.

These enhancements build on work already undertaken by CMHC and the co-operative housing sector to find workable, affordable solutions to help members of housing co-operatives continue to live in safe, affordable co-op homes.

For details, you can visit the CMHC website

Posted on: Mar 7, 2007

 

 

CHF BC posts leaky co-op repair resources online

CHF BC's leaky co-op liaison officer, Mandy Yeomans, has put together an assortment of guides, checklists, forms and contract templates to assist leaky co-ops with their building envelope repair process.  These tools can be downloaded from the Member Resources area in the Members' Section of this website.

Posted on January 20, 2007

 

Leaky co-op update

CHF BC and CHF Canada have been working hard over the past few months to develop a new lending framework that will allow the repair of these co-ops.  The new framework is more affordable for co-ops and for CMHC.  

CHF BC and CHF Canada have presented the new framework to senior CMHC officials in Ottawa.  Stay tuned for further developments.

Posted on January 18, 2006

 

Construction costs stall leaky co-op repairs

Rapidly increasing costs in the Lower Mainland are causing more headaches for leaky co-ops. The problem is so severe that some co-ops are finding that previously signed loan agreements are no longer viable.

BC Housing estimates that construction costs are rising at between 1.5 and 2 percent per month. The reasons are varied, but include the residential construction boom in the Lower Mainland, which is leading to a shortage of labour and escalating demand for materials.

These cost increases, plus the lengthy and complex workout process, are forcing repeated re-evaluations of workout loans and further delaying an already slow process.

Not all the news is bad. Five co-ops are repaired, four more are under construction and two will soon have work crews buzzing around their homes. But the situation is grim for many more who can't see the light at the end of the spreadsheet.

CHF BC and CHF Canada are working hard to come up with solutions to the most difficult challenges, making proposals to CMHC in order to break the log jam for the co-ops most seriously affected.

Posted on September 22, 2005

Andy Scott to work with Anderson on CMHC portfolio

The Honourable Andy Scott has been named Minister of State (Infrastructure) responsible for CMHC. Scott, the MP for Fredericton, New Brunswick, will be working with David Anderson, the senior minister.

First elected to the House of Commons in 1993, Andy Scott has served as Chair of the Standing Committee on Justice and Human Rights as a member of the Standing Committee on Government Operations and Estimates. In 1996, he headed the federal Task Force on Disability Issues. Mr. Scott served as Solicitor General of Canada from June 1997 to November 1998.

Posted on: Jan 8, 2004

 

Co-op representatives asked tough but fair questions at a special meeting outlining the new process to repair BC's leaky co-ops.

Full House for Leaky Co-op Meeting

A special information meeting to announce plans for repairing BC's leaky co-ops attracted more than 120 people from 50 co-ops and a dozen other organizations on Thursday evening, October 30.

Every seat in the downtown Vancouver conference room was filled by people eager to learn how CMHC, BC Housing, CHF BC and CHF Canada will be working together to ensure that the new process succeeds.

CHF BC's executive director, Thom Armstrong, opened the session by describing the process leading up to the meeting and commenting on the spirit of teamwork that the key players are bringing to the table. "I think we've turned a page," said Armstrong. "My expectation is that we'll accomplish our goals and get leaky co-ops fixed."

Fleuri Perron, CMHC's national team leader, offered an overview of the process and explained CMHC's role in approving financial assistance for leaky co-ops. Perron emphasized that his mandate is to repair leaky co-ops
and that's what he intends to do, with the co-operation of everyone who has a role to play.

Justin Dinsdale, BC Housing's building envelope coordinator, gave everyone a detailed explanation of BC Housing's building remediation services. CMHC has contracted with BC Housing to provide technical services and advice to
co-ops. Dinsdale spoke about BC Housing's track record of success in this field and how his department's expertise would be available to help leaky co-ops.

And CHF Canada's leaky co-op specialist, Roland Nogue, assured co-op members that he will still be involved to help co-ops navigate their way through the new process.

Co-op members responded with a number of tough but fair questions, focusing on how they will be affected by the new arrangement and what they can expect in the short term.

In his closing remarks, CHF BC president, Savo Djuretic, described the mood as one of "healthy scepticism ". Djuretic reminded everyone that the campaign to save leaky co-ops had been long and hard fought. "But I hope that what I'm hearing from you now is cautious optimism that we will succeed if we all work together."

Stay tuned to this website for more info and regular updates.

Posted on: Nov 1, 2003

 

 

Celebrating the announcement of increased assistance for leaky co-ops (from left) CHF BC president, Savo Djuretic; secretary of state responsible for CMHC, the Honourable Steven Mahoney; and CHF Canada president, René Daoust .

Good news for leaky co-ops!

Roll out the tarps. It's time to get busy and fix BC's leaky housing co-ops.

The Honourable Steven Mahoney, Secretary of State responsible for Canada Mortgage and Housing Corporation, offered new hope for leaky co-ops in his recent visit to BC. Calling the leaky co-op crisis "a national disgrace," he came to BC with an action plan to address our concerns.

Mahoney met with the CHF BC board of directors and CHF Canada representatives on July 7 to announce his plan. The next day he visited two leaky co-ops and spoke with co op members in a meeting organized by MP Hedy Fry.

The solution presented by Mahoney addresses the three major demands of the co-op housing sector:

- speed up the process

- stop using money meant for income-tested subsidies to pay for repairs, and

- make the cost of borrowing money more affordable for the affected co-ops

Here is a summary of Mahoney's announcement.

To speed up the process, CMHC will:

- create a new team of CMHC specialists in BC with full decision-making authority to work out financial solutions for leaky co-ops

- use the building envelope experts at BC Housing to handle the building assessment and repair process.

No co-op subsidies will be redirected to pay for repairs. Co-ops will be able to use all of their income-tested assistance to help low-income members.

Co-ops may also receive additional help if the money they have available for subsidies is reduced when their mortgages roll over at lower interest rates.

To make the cost of borrowing money more affordable for co-ops, CMHC will:

- write off half of the interest payments on third mortgages right up front, and

- write off the other half after ten years if a co-op is in financial trouble.

Mahoney also confirmed that these new measures are available to all leaky co-ops, even those that have already signed loan agreements with CMHC.

The CHF BC board responded positively to Mahoney's announcement, as did CHF Canada's president René Daoust, who made a special trip from Quebec to attend the meeting.

This is a major step forward in the fight to save leaky co-ops. Thanks are due to BC MPs who pressed the new Minister to pay special attention to the problem. In particular, Hedy Fry, Stephen Owen and Libby Davies have each played a key role in taking our message to Ottawa.

Leaky co-ops also received support from Hon. George Abbott, Minister responsible for BC Housing, Vancouver Mayor Larry Campbell, the Greater Vancouver Regional District, the Canadian Housing and Renewal Association and the Lower Mainland Network for Affordable Housing.

Leaky co-ops relied on the constant support of hundreds of co-ops and co-op members in BC and across Canada to reach this point in the campaign. Your phone calls, postcards, letters, donations, meetings with MPs and other contributions made this happen. Thank you, everyone.

Special thanks to the members, board and staff of CHF Canada, who have made the leaky co-op campaign a top priority. We could not have achieved this without your support at every step of the way.

To the members of leaky co-ops, your dedication and commitment has been the inspiration of the campaign.

Once more details are worked out, we will hold an information meeting for leaky co-ops to explain how the measures announced by Mahoney will take effect. In the meantime, please contact CHF BC or CHF Canada for more information. 

"Government Announces Additional Assistance for Housing Co-operatives with Moisture Damage" 
- CMHC press release, July 8, 2003

Posted on: Jul 10, 2003

 

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