Thank you very much for the opportunity to be here this morning.
I would like to say—because my cheque did arrive—a special thank you to MP Long for all of the work that he and his staff do here in Saint John. We do appreciate it.
I'm Kit Hickey, the executive director of Housing Alternatives. Housing Alternatives is a nationally accredited non-profit resource group providing development and management services to non-profit and co-operative housing projects here in Saint John and the surrounding area. Additionally, we also offer housing and other related services to our homeless population through a provincially funded organized departure project, as well as the federally funded housing first project.
We were becoming increasingly concerned with the long-term viability of the co-operative housing sector in Saint John. A major preoccupation was the expiry of operating agreements and how we could ensure the long-term affordability of housing for low- to moderate-income families and single adults.
In October 2012, the Co-operative Housing Federation of Canada and Housing Alternatives organized a meeting and invited members of the nine Saint John housing co-operatives to attend. Members found that each co-op was facing similar issues, such as financial difficulties, lack of funds for major repairs, ensuring security of tenure for low- and modest-income members, and low member involvement.
It was decided that working together would be essential for our co-operatives to remain strong and healthy. Our group embraced the international co-operative principle of “Co-operation among co-operatives”, and began our journey. A steering committee was formed, with representatives from each of the nine housing co-ops. Each steering committee member was tasked with getting approval from their own co-operative to participate on the committee, and agreed to regularly report back to their co-operatives.
At a goal-setting meeting in April 2014, the group agreed that the purpose of the committee would be to explore opportunities for housing co-ops in Saint John to work together by considering the impact of consolidation. The goals of the committee included a financial analysis of all participating co-ops, developing and maintaining a communication plan, discussing the advantages and disadvantages of a possible merger, reviewing and discussing other best practices and other successful mergers, and meeting with stakeholders to develop a merger process.
Once the analysis was complete, it became clear that by merging, the co-operatives would see the following benefits. First would be financial savings, including decreased audit fees; decreased insurance premiums; bulk purchasing options; group tendering of contracts for snow removal and lawn care; and decreased risk in the cost of vacancies and arrears. There would also be increased interest in leadership roles; prevention of board member burnout; increased involvement; more access to time and/or funding for education; and an increase in new ideas and direction for the co-operative. Other benefits include a larger and stronger voice to government, the ability to refinance for capital repairs, a larger pool of units, and the ability to explore new possibilities.
Co-op failures are more likely where size threatens the ability to have good governance and management. By merging and creating a strong and viable co-op, the Unified Saint John Housing Co-operative is decreasing the threat of lost units to the Canadian housing co-operative sector. We are also protecting affordable housing in Saint John and providing a positive model for other co-operatives across the country, to ensure that affordable homes are not lost.
On January 1, 2016, eight of our co-operatives merged into one new 252-unit co-operative, now called the Unified Saint John Housing Co-operative Ltd. Each of the neighbourhoods of the previous housing co-ops is represented on the board of directors. The housing co-op received the Co-operative Housing Federation of Canada's award for co-operative achievement at the annual meeting in Hamilton, Ontario, in May 2016.
In conclusion, the members of the newly formed housing co-op report a high level of satisfaction. We feel confident that with this pre-emptive action taken by the sector, the long-term viability and sustainability of these affordable housing units is secure. We proudly see this as an example of how our community takes a leadership role to be innovative to solve issues.
Thank you very much.