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Item 2F –Q2 2016 OCHE Performance Report TCHC Board Meeting – October 14, 2016 TCHC: 2016-43 Attachment 1
INTEGRITY. IMPARTIALITY. INDEPENDENCE
Quarterly Performance Report
Q2 2016 (April 1, 2016 – June 30, 2016)
The OCHE oversees compliance with TCHC policies, procedures, applicable legislation
and guidelines relating to evictions for arrears and loss of subsidy for seniors and other
vulnerable residents to ensure fair and equitable treatment.
2
OVERVIEW
3
This report covers the 2nd Quarter of 2016 (April 1, 2016 to June 30, 2016).
Quarterly Highlights
1. Development of a Recommendations Feedback Process with TCHC
The OCHE and Asset Management are working collaboratively on developing a system for
tracking TCHC’s implementation of the recommendations flowing from the OCHE’s Arrears
Reports. Through this process the OCHE will also be evaluating its internal processes with
an aim to simplifying the Arrears Reports and ensuring consistency in the OCHE’s audit
findings and the corresponding recommendations. These process enhancements will assist
TCHC in its recommendation tracking and implementation efforts. The OCHE expects to
report back further to the Board on the results of this process in its Q3 Quarterly Report.
2. Development of an Action Register
The OCHE has recently met with the Vice President of Asset Management and both offices
have agreed to develop an Action Register to assist in the identification of areas where
improvements to the Arrears Collection and Loss of Subsidy Processes can be explored.
This process will allow for greater collaboration between the OCHE and Asset Management
to ensure that opportunities for system-wide improvement are examined from both the
perspective of the OCHE and of Asset Management. The OCHE expects to provide further
details on the development of this Register in its next Quarterly Report.
3. Review of the Vulnerability Identification Process
TCHC has advised the OCHE it is reviewing the File Management System, the process
through which Vulnerable Residents are identified for referral to the OCHE. A preliminary
meeting was held with the OCHE, Resident and Community Services and Asset
Management, where the main points of review were identified and discussed. The OCHE
has been advised that it will be consulted further at the appropriate time during the review
process, and that TCHC expects this review to be completed within Q3. The OCHE expects
to report back to the Board on the results of this review in its Q3 Quarterly Report.
4. OCHE Resident Outreach Meetings
During the months of April-June 2016, the OCHE held a total of 23 Resident Outreach
meetings across all Operating Units in TCHC’s portfolio. The purpose of the meetings were
to inform TCHC Residents on the existence of the OCHE, the OCHE’s role within TCHC,
and provide an explanation of the work the OCHE does with Residents and TCHC.
Through these meetings, the OCHE was also able to provide information, resources, and
link Residents with appropriate TCHC staff to deal with issues raised that fall outside the
OCHE’s jurisdiction.
4
In total, the OCHE met with almost 450 Residents during these Resident Outreach
meetings. The OCHE also received support for these meetings through many elected
Tenant Representatives, as well as various TCHC staff, including site-staff, members of
Resident and Community Services and TCHC Communications.
The response the OCHE received from these communities was very positive, and reflects
the commitment of the OCHE, the Board and TCHC on putting Residents at the heart of
everything we do.
5
Referrals to OCHE in Q2 20161
Arrears Referrals
The OCHE observed a 13.5% decrease in average monthly Arrears referrals compared to Q1
2016 (23.6 from 27).
Loss of Subsidy Referrals
The OCHE observed a 37.5% increase in average monthly Loss of Subsidy referrals compared
to Q1 2016 (47.6 from 34.6).
Breached OCHE Brokered Local Repayment Agreements
The OCHE observed a 37.5% decrease in average monthly Breached Local Repayment
Agreement referrals compared to Q1 2016 (5 from 8).
1 Pie Chart represents % for each category during this quarter. Legend indicates total quarterly number and monthly average during this quarter.
34
91
55 4482 71
233
181
107
145
104
143
7 7 13 324 15
0
50
100
150
200
250
Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Referral Trends - Q1 2015 to Present
Arrears Referrals Loss of Subsidy Referrals Breached Agreement Referrals
31%
62%
7%
OCHE by the Numbers April to June, 2016
Arrears Referrals: 71 =23.6/month
Loss of Subsidy Referrals: 143 =47.6/month
Breached Agreement Referrals:15 = 5/month
6
PART 1: ARREARS FILE REFERRALS
7
Arrears File Referrals to the OCHE
The OCHE was referred a total of 712 Arrears files between April and June, 2016.
The breakdown of the referrals by month was as follows:
28% (20/71) of the files referred were from Contract Managed buildings, which is higher than
the 24% received in Q1 2016.
70% (50/71) of the files referred were for senior residents, and 30% (21/71) were for
vulnerable residents. These numbers are similar to those of Q1 2016 (66% & 34%).
Referral Source Referral Type
Quarter Direct Managed Contract Managed Senior Residents Vulnerable Residents
Q2 2016 (71) 51 20 50 21
Q1 2016 (82) 62 20 54 28
Q4 2015 (44) 34 10 39 5
Q3 2015 (55) 40 15 39 16
Q2 2015 (91) 83 8 40 51
2 Files referred to the OCHE may be returned to TCHC without completing a Report and Recommendations in cases where the arrears are paid in full before the OCHE commences its review, or where the resident is deceased.
22
13
16
2
108
02468
1012141618202224262830323436
APR, 2016 MAY, 2016 JUN, 2016
File Referrals - Q2 2016
Total: 71
Contract Managed Direct Managed
62
51
20
20
0
10
20
30
40
50
60
70
80
90
Q1 2016 Q2 2016 Q3 2016 Q4 2016
File Referrals - 2016 to dateTotal: 153
(2015 Total = 224)
Direct Managed Contract Managed
8
PART 2: ARREARS FILE REPORTS AND
RECOMMENDATIONS
9
OCHE Issued Arrears Reports and Recommendations
The OCHE completed its review and resolution efforts on 74 arrears files during the reporting
period, and delivered the resulting Reports and Recommendations back to TCHC and the
involved residents. The monthly breakdown for delivery of these Reports and
Recommendations is as follows:
24.5% (18/74) of the OCHE’s arrears file Reports and Recommendations were for residents
living in Contract Managed buildings, which is an increase from 16.5% last quarter, but similar
to the 23% observed in Q4 2015.3
Quarter DM Reports CM Reports
Q2 2016 (74) 56 18
Q1 2016 (42) 35 7
Q4 2015 (90) 69 21
Q3 2015 (42) 38 4
Q2 2015 (46) 39 7
3 Approximately 16% of TCHC Residents live in Contract Managed properties. As a result, residents living in Contract Managed properties were over-represented in Q2 2016.
14
2319
7
8
3
0
5
10
15
20
25
30
35
APR, 2016 MAY, 2016 JUN, 2016
OCHE Reports - Q2 2016
Total: 74
Contract ManagedDirect Managed
36
56
6
18
0
10
20
30
40
50
60
70
80
Q1 2016 Q2 2016 Q3 2016 Q4 2016
OCHE Reports - 2016 to dateTotal: 116
(2015 Total = 225)
Direct Managed Contract Managed
10
Demographics of Residents whose Housing was at Risk
The OCHE works with senior residents and vulnerable residents whose housing is at risk.
These residents experience a variety of underlying issues which the OCHE works to identify
and address in order to achieve housing stability and maintain healthy tenancies. Some of the
underlying issues residents deal with include: poverty, poor mental and physical health,
capacity issues, death of spouse, social isolation, difficulties in transitioning between provincial
social benefits and federal pensions, poor financial literacy and budgeting skills, high hydro
costs, other debts to creditors (including short-term loan companies), etc.
Rent-Geared-to-Income
85% (63/74) of the Households receive Rent-Geared-To-Income subsidies, which is an
increase from 71.5% last quarter.4
Reports Issued for Senior vs. Vulnerable Residents
66% (49/74) of the Households included senior residents, and 34% (25/74) of Households
included vulnerable residents.
Vulnerable Referral Source Number of Referrals
RCS File Management System 10/25 (40%)
TCHC Interim Criteria for Identifying Vulnerable Residents 11/25 (44%)
External Agencies or TCHC Staff outside above processes 4/25 (16%)
Age Demographics
17.5% of the Households had senior residents 70 years or older, which is higher than the
12% in Q1 2016.
The most senior resident the OCHE worked with was 86 years old.
4 Approximately 93% of TCHC’s residents pay RGI rent, with 7% paying market rent. The OCHE observes that Market Rent Tenants are continually over-represented in arrears files referred to the OCHE.
27
34
121
0%
20%
40%
60%
80%
100%
Age of OCHE clients
80 +
70 - 79
59 - 69
Below 59
11
Location within TCHC’s Portfolio
The Households came from 13/13 of the Direct Managed Operating Units and 3/3 of the
Contract Managed Operating Units.
Length of Tenancy
The OCHE observed that most arrears files are for long-term tenants. At the time the files were
referred to the OCHE, the average length of tenancy was 15 years and 7 months.
The shortest tenancy observed during this reporting period was 11 months, and the longest
was 50 years. Ultimately, both had their arrears resolved and did not require an Eviction
Application to the LTB.
The OCHE observed no correlation between the length of tenancy and the ability of the OCHE to resolve the need for an Eviction Application.
11yrs 1mo12yrs 10mos 11yrs 10mos 11yrs 10mos
15yrs 7mos
0
2
4
6
8
10
12
14
16
18
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Average Length of Tenancies
12
Household Composition:
OU A
OU B
OU C
OU D
OU E
OU F
OU G
OUHOUIOU J
OU K
OU L
OU M
OU W
OUX
OU Y
Number of Files From Each OUOU A (DM)7
OU B (DM) 2
OU C (DM) 6
OU D (DM) 5
OU E (DM) 3
OU F (DM) 1
OU G (DM) 6
OU H (DM) 2
OU I (DM) 6
OU J (DM) 6
OU K (DM) 4
OU L (DM) 5
OU M (DM) 3
OU W (CM) 4
OU X (CM) 3
OU Y (CM) 11
Operating
Unit “A” is
for Senior
Residents
and Single
Family
Homes East.
Operating
Unit “B” is
for Senior
Residents
and Single
Family
Homes West.
Households of 1 = 31
27
11
5Household Composition
Households of 1 = 31
Households of 2 = 27
Households of 3 = 11
Households of 4+ = 5
42% of Households
had only one resident,
a decrease from 57%
in Q1 2016.
Operating
Units “W, X
and Y” are
for Contract
Managed
Properties,
divided by
region (East,
Central,
West).
13
Level of Arrears at Referral to OCHE
Average arrears at the time files were referred to the OCHE were $3,089.77.
Arrears Collection Process: N45 and OCHE Referral Timelines The OCHE has divided the application of TCHC’s current Arrears Collection Process into two
main trigger points. The first measurement is for the timing of the service of the N4 in relation
to when the arrears began6. The second measurement is for the timing of the referral to the
OCHE after the N4 was served.
5 N4 = “Notice to End a Tenancy Early for Non-payment of Rent” – this is the initial legal document required by the Landlord and Tenant Board to give notice to a Resident that the Landlord may make an application to the Landlord Tenant Board for an eviction due to unpaid rent (arrears). The N4 provides timelines for the Resident to repay the arrears, failing which the Landlord is entitled to make an eviction application to the Landlord and Tenant Board. 6 The Arrears Collection Process allows for a Local Repayment Agreement to be entered into before an N4 is served. Where a LRA is entered before an N4 is served, the OCHE has used the entering of the LRA as the trigger for this measurement.
$4,373.61 $4,407.17
$3,370.66
$3,194.47 $3,089.77
$2,000.00
$2,500.00
$3,000.00
$3,500.00
$4,000.00
$4,500.00
$5,000.00
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Average Arrears $ Level at OCHE Referral
14
N4 Timelines
The current Arrears Collection Process indicates that N4s should be served in the 1st month of
arrears.
Quarter 1st Month 2nd-3rd Months 4th-6th Months 7th-11th Months
12th Month & Longer
Q2 2016 14 (19%) 26 (35%) 11 (15%) 11 (15%) 12 (16%)
Q1 2016 8 (19%) 11 (26%) 8 (19%) 8 (19%) 7 (17%)
Q4 2015 18 (20%) 22 (24.5%) 12 (13.5%) 10 (11%) 28 (31%)
Q3 2015 4 (9.75%) 18 (44%) 8 (19.5%) 7 (17%) 4 (9.75%)
Q2 2015 11 (24%) 11 (24%) 9 (19.5%) 7 (15%) 8 (17.5%)
In 19% (14/74) of files the N4 was served (or LRA entered) in the first month of arrears as
required in the current Arrears Collection Process, consistent with the 19% observed in Q1
2016. The OCHE also notes that those served within 2-3 months of the arrears accruing
increased to 36.5% from 26% in Q1 2016.
In 23% (17/74) of the arrears files, TCHC had entered into Local Repayment Agreements with
the Resident for the arrears. The breach of these underlying Local Repayment Agreements
resulted in the referral to the OCHE. This is a decrease from 40.5% in Q1 2016. Of these 12%
(2/17) were verbal agreements that should have been formalized in writing in accordance with
the Arrears Collection Process, an increase from the 6% observed in Q1 2016.
The OCHE notes in this quarter 29.5% (5/17) of files had multiple LRAs, an increase from
23.5% in Q1 2016. The Arrears Collection Process provides for one LRA to be offered to a
resident in arrears, and unrepaired breaches are to be referred to the OCHE. The
14
26
11 11 12
0
5
10
15
20
25
30
1st Month= 19%
2nd-3rd Months= 35%
4th-6th Months= 15%
7th-11th Months= 15%
12th Month &longer = 16%
Nu
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Green = complied with ACP timelines; Yellow = close to compliance with ACP timelines; Red = clear non-compliance with ACP timelines
Number of Months Between Arrears Accruing & N4 Service
15
consequence of multiple LRAs is a further delay in the referral to the OCHE, with the potential
of increased arrears and residents being taught to not take these repayment obligations
seriously.
23% (17/74) of the files had multiple N4s7 served to the Resident with respect to the arrears,
slightly lower than the 24% observed in Q1 2016. TCHC is only required to serve 1 valid N4 on
a Resident before proceeding with an eviction application to the Landlord and Tenant Board.
Serving multiple N4s where there are no issues of validity is not a best practice and can lead to
confusion on the part of the Resident. The OCHE expects TCHC will continue to work at
reducing the instances of multiple N4s going forward.
Where there are errors in the N4, these must be corrected before proceeding to an eviction
application at the LTB. TCHC’s RTA Unit identifies these errors and refers them back to the
Operating Units prior to referral to the OCHE. In this quarter, 35% (6/17) of the files with
multiple N4s were due to errors. Errors in N4s can contribute to delays in the referral to the
OCHE.
OCHE Referral Timelines
The Arrears Collection Process indicates that decisions to proceed to an Eviction Application
should be made by the end of the month after the N4 was issued (approximately 60 days after
the arrears began). The OCHE should receive the referral within the following month (2nd
month after N48). In cases where TCHC enters into a Local Repayment Agreement after the
service of an N4, an unrepaired breach triggers the referral to the OCHE.
7 Where multiple N4s were served on a resident, the earliest N4 was used in calculating the time between arrears commencing and service of N4, and the later was used in calculating the time between N4 service and referral to the OCHE. 8 Where a vulnerable Resident is referred to Resident and Community Services, an additional 40 business days are provided before the referral to the OCHE. This is accounted for in the calculation of these statistics.
16
Quarter 2nd Month 3rd Month 4th-6th Months 7th-11th Months
12th Month & Longer
Q2 2016 36 (48.5%) 9 (12%) 18 (24.5%) 8 (11%) 3 (4%)
Q1 2016 5 (12%) 5 (12%) 19 (45.25%) 9 (21.5%) 4 (9.75%)
Q4 2015 37 (41%) 18 (20%) 21 (23.25%) 12 (13.5%) 2 (2.25%)
Q3 2015 18 (44%) 6 (14.5%) 9 (22%) 6 (14.5%) 2 (5%)
Q2 2015 16 (34.5%) 9 (19.5%) 8 (17.5%) 11 (24%) 2 (4.5%)
In 48.5% (36/74) of the files the OCHE correctly received the referral within the 2nd month after
the N4 was served or the underlying Local Repayment Agreement was breached. This is an
increase from 9.5% observed in Q1 2016, and the 41% observed in Q4 2015.
Overall ACP Timeline Compliance
The OCHE observed 8% (6/74) of files this quarter to have met both the N4 service timeline (1st
month of arrears) and the OCHE referral timeline (2nd month after N4 or breached Local
Repayment Agreement) as required by the Arrears Collection Process. This is an increase
from 0% in Q1 2016, and similar to the 9% observed in Q4 2015.
A focus on meeting all the timelines of the ACP helps to achieve the goal of early intervention
and resolution, which is in the best interests of TCHC and its residents.
36
918
83
05
10152025303540
2nd Month= 48.5%
3rd Month= 12%
4th-6th Months= 24.5%
7th-11th Months= 11 %
12th month &longer= 4%
Nu
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Green = complied with ACP timelines; Yellow = close to compliance with ACP timelines; Red= clear non-compliance with ACP timelines
Number of Months After N4 Service/Breached LRA & OCHE Referral
17
OCHE Engagement Levels The OCHE makes every reasonable effort to engage with residents whose arrears files have
been referred by TCHC. The goal is to work with residents to come up with solutions to their
arrears, and empower them through the process of stabilizing their housing.
The OCHE has embraced a purposeful engagement model that has resulted in the OCHE
being able to successfully engage with residents 90.5% (67/74) of the time in Q2 2016. This
engagement level is lower than the 97.5% from Q1 2016 and the 96.5% from Q4 2015.
The OCHE’s engagement model, titled “the OCHE Approach”, focuses on the following key
components:
1. Using Positive Messaging
2. Engaging & Empowering Residents
3. Employing Intensive & Focused Attention within 45 Business Days
4. Addressing Underlying Issues
5. Accessing External Funds
6. Using Creative & Flexible Plans
7. Educating Residents
8. Involving Families for Assistance
9. Assisting with Budgeting
10. Selecting Reasonable Repayment Amounts
The OCHE’s successful engagement rate is of particular note, as these are residents where
TCHC staff have confirmed that have done everything possible to avoid the need for an eviction
application. These residents are also often described as difficult to engage or non-compliant.
The OCHE’s experience has been that through employing the OCHE Approach, we are able to
effectively engage with these residents, while also providing TCHC with the opportunity to
begin rebuilding trust with the resident that may have been previously lost.
OCHE Outcomes for Arrears Files
The OCHE’s core mandate is eviction prevention. In executing this mandate the OCHE
enhances the services TCHC provides residents, by supporting healthy and successful
tenancies, increasing levels of resident satisfaction at TCHC, and reducing the need for seniors
and vulnerable residents to face eviction when the tenancies are salvageable. The costs of
failed tenancies go beyond monetary measures, resulting in negative outcomes for the
residents, TCHC, and the City. However, the OCHE also has a positive financial impact on
TCHC. In many cases, the OCHE stabilizes housing by facilitating arrears payments directly to
TCHC, or by brokering reasonable repayment agreements for residents to repay the arrears
over time. By stabilizing housing, the OCHE also assists TCHC in avoiding costs related to
evictions.
18
The OCHE was able to stabilize housing and avoid evictions in 74% (54/73)9 of files completed
during the reporting period. This resolution level is lower than the 85% (34/40) in Q1, but similar
to the 78% (67/86) achieved in Q4 2015
9 The OCHE removed the 1 file where the Res provided a Notice to Vacate.
14
41
1
5
13
0
10
20
30
40
50
60
YES (25.5%) NO (73%) NR (1.5%)
Q2 2016 Recommendations - 74
Direct Managed Contract Managed
6
28
2
6
0
10
20
30
40
50
60
YES (14%) NO (81%) NR (5%)
Q1 2016 Recommendations - 42
Direct Managed Contract Managed
25
137
19
7
36
1
0
50
100
150
200
YES (14%) NO (77%) NR (9%)
Total 2015 Recommendations - 225
Direct Managed Contract Managed
The OCHE’s Recommendations to TCHC Re: Proceeding with
Eviction Applications to the Landlord and Tenant Board
YES: The OCHE recommended TCHC
proceed with an L1 Eviction for Arrears
Application at the LTB
NO: The OCHE addressed the arrears,
resolving the need to proceed with
eviction at the LTB, or the OCHE
identified reasons for the file not to
proceed to the LTB
NR: Not Required. The OCHE
identified reasons why an L1 Eviction
for Arrears Application was no longer
required (i.e. resident abandoned unit,
deceased, provided Notice to Vacate,
etc.).
19
Of the 19 arrears files the OCHE recommended TCHC proceed with an
Eviction Application: The goal of the OCHE’s process in reviewing arrears files is to strengthening eviction
prevention by ensuring procedural fairness is observed and that evictions for arrears are
pursued as a last resort.
In circumstances where the OCHE’s review does not identify any procedural deficiencies, and
where the OCHE is unable to resolve the issues with the Resident, the OCHE recommends
TCHC proceed with an Eviction Application to the Landlord and Tenant Board.
Below are the outcomes for the 19 arrears files in Q2 2016 where the Commissioner
recommended to TCHC that they proceed to the Landlord and Tenant Board:
Proceeded to the LTB Numbers
YES 15/19
NO10 4/19
Where files proceed to the Landlord and Tenant Board on the recommendation of the
Commissioner, TCHC updates the OCHE on the status and outcomes of the Eviction
Applications.
Outcome at the LTB Numbers
Upcoming Hearing Dates 5/15
LTB Mediated Repayment Agreements 5/15
Eviction Orders (not yet enforced) 2/15
Paid Arrears after Eviction Order 1/15
Vacated Unit after Eviction Order 1/15
Eviction Order with Sheriff for Enforcement 1/15
10 3 households paid their arrears off in full; 1 household the N4 needed to be re-served due to the death of the Head of Household and an Eviction Application will be made if the arrears are not paid by the end of the notice period provided in the newly served N4.
20
OCHE Resolution Types The OCHE works with TCHC staff and residents to come up with solutions for the arrears and
resolve the need for an Eviction Application. In many cases, more than one type of resolution
is required to stabilize housing and avoid evictions for arrears.
The instances of the OCHE’s various resolution methods are described in the following pages.
Arrears with Underlying Loss of Subsidy:
The OCHE resolved the underlying Loss of Subsidy in 83.5% (5/6) of arrears files during the
reporting period.
The resolution of underlying subsidies assists Residents by ensuring that only true arrears
owing for non-payment of rent are being sought. It also benefits TCHC, as in some cases it
resolves the arrears completely, thus alleviating the need to proceed with an Eviction
Application, along with accompanying staff time and costs. Lastly, this benefits the City, as it
avoids the potential for Requests for Review to the City of Toronto RGI Review Body.
35
158
8
7
7
53
2 1111
Types of Arrears File Resolutions in Q2 2016Repayment Agreement (35)
Housing Stabilization Fund (15)
Arrears Paid byOW/ODSP/Resident (8)Social Assistance/PensionApplications (8)Rent and/or ArrearsRecalculation/Adjustment (7)Voluntary Trustee (7)
LoS Reversed or Resolved (5)
InSitu Application (3)
ODSP Retro Payment (2)
Error with Voluntary TrusteePayments (1)Debt Counsellor (1)
Unit Relocation (1)
New Mediated Agreement at theLTB (1)
21
Local Repayment Agreements, Direct Payments and Cost Avoidance
Local Repayment Agreements:
The OCHE brokered 35 Local Repayment Agreements this quarter.
The details of the OCHE brokered Local Repayment Agreements are as follows:
The OCHE brokered Local Repayment Agreements covering $103,995 in total arrears.
Average length of the OCHE brokered Local Repayment Agreements = 29 months, a
decrease from the average of 46 months in Q1 2016.
High Average Low
$4,647
$4,099
$3,285
$4,455
$2,971
$2,000
$2,500
$3,000
$3,500
$4,000
$4,500
$5,000
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Local Repayment Agreements - Average $ Values
$10,045
over
51 Months
$126
over
2 Months
$2,971
over
29 Months
22
Average repayment amount for the OCHE brokered Local Repayment Agreements =
$123.14 per month, an increase from the average of $91.50 per month in Q1 2016.
The % of resolved arrears files where OCHE brokered a Local Repayment Agreement during
this reporting period was 65% (35/54).
Direct Payments to TCHC:
The OCHE was able to secure direct payment to TCHC for arrears (lump sums paid directly
by the household or via the City’s Housing Stabilization Fund, OW Shelter Fund, etc.) in 48%
(26/54) of resolved arrears files this quarter.
These direct arrears payments to TCHC totalled $45,560.50 this quarter, an increase
from $15,567 in Q1 2016.
Direct Payment Source Payment Amounts
Resident/Family
$6841
OW/ODSP
$7530
Housing Stabilization Fund
$21,089.50
$161 $155
$104
$91.50
$123.14
$50
$70
$90
$110
$130
$150
$170
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
OCHE Brokered LRA - Average Monthly Repayment Amount
23
Cost Avoidance and Total Value:
The OCHE assisted TCHC in avoiding $240,192 in eviction related costs11 this quarter.
The total value of direct arrears recovery, arrears repayment agreements brokered and
eviction cost avoidance was $379,647.50 in Q2 2016.12
OCHE Report and Recommendations Timing The OCHE completes its review, resolution efforts, and resulting report and recommendations,
within 45 Business Days of receiving a referral from TCHC, unless the OCHE identifies
exceptional circumstances or a level of complexity warranting additional time. The OCHE has
determined that it takes an average of approximately 1.5 times longer to resolve the arrears
files for vulnerable residents.
11 The average cost of eviction was estimated by TCHC in 2013 to be $4,448. This amount comprises filing fees, unit turnover, vacancy loss and staff costs. 12 This amount works from the assumption that the terms of the Local Repayment Agreements brokered will be met, and that these stabilized tenancies will continue to be successful.
60 37 107
14
5
118
020406080
100120140160180200220240
Q2 2016 (81%) Q1 2016 (88%) 2015 Totals (47.5%)
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OCHE Report Timing
Within Timeline Past Timeline
24
Main Audit Findings - Arrears Collection Process In total, the OCHE found issues with the application of TCHC’s Arrears Collection Process
(“ACP”) in 69/71 of the arrears files completed during this quarter13, and made Compliance
Recommendations in response. The OCHE also provides TCHC with Process Improvement
Recommendations and Resident Specific Recommendations that flow from the OCHE’s review
and resolution efforts.14
Aside from the N4 timing and the OCHE referral timelines detailed earlier in this report, a
selection of the most frequent ACP issues identified by the OCHE during this quarter included:
Errors or Delay in direct contact attempts
o Direct contact with residents is the most effective way to resolve arrears and
identify potential underlying issues that may have led to the arrears. Errors or
delays in making direct contact attempts contributes to the increase of arrears
with the resulting consequences for TCHC and our residents.
Errors with Letters Sent to Residents as part of the Arrears Collection Process
o The Arrears Collection process requires specific letters be sent to specific groups
of Residents at defined points in the process. When letters are sent too late, too
early, too many times, or simply to the wrong household, this can cause confusion
to the residents and impact the effectiveness of the Arrears Collection Process
and staffs ability to resolve the underlying arrears.
Non-adherence with TCHC’s Documentation Standards/Errors with Local
Repayment Agreements
o TCHC has developed Documentation Standards that staff are expected to comply
with. When these standards are not met, it impacts the organizations record of
what has occurred with a specific resident, along with staff’s ability to respond.
Non adherence to the Documentation Standards also acts as a barrier in the
OCHE’s effective review of files.
Multiple N4s (Notice to End a Tenancy Early for Non-Payment of Rent)
o TCHC is only required to serve 1 valid N4 on a Resident before proceeding with
an eviction application to the Landlord and Tenant Board. Serving multiple N4s
where there are no issues with validity is not a best practice and can lead to
confusion on the part of the resident.
13 3 files reported on in this quarter did not receive a full ACP audit due to their specific circumstances. 14 At present, the OCHE is working collaboratively with Asset Management to better streamline this process, and assist TCHC in developing a system for tracking and reporting back to the OCHE on the implementation of these recommendations. The OCHE expects to report back on this new system to the Board in the OCHE’s Q3 2016 Quarterly Report, along with the results achieved under this new system.
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PART 3: BREACHED REPAYMENT
AGREEMENTS
26
Q2 2016 Breached OCHE Brokered Agreements: A total of 12 Breached OCHE Brokered Agreement referrals were reported on during this
quarter.
The OCHE reviews all Breached OCHE Brokered Agreement referrals to determine if a breach
has occurred, and if so, whether there are exceptional circumstances15 warranting additional
resolution efforts. If exceptional circumstances are not found, the file is returned to TCHC with
recommendations. All other files are examined by the OCHE and attempts to resolve the
breach are made.
Of the 12 Breached OCHE Brokered Agreement
referrals reported on:
2 files – caught up with the terms of their Local
Repayment Agreement
5 files - exceptional circumstances were found
and the OCHE brokered revised Local
Repayment Agreements, and made referrals to
address the exceptional circumstances where
feasible
1 file – the Residents paid off all the
outstanding arrears
1 file – the Resident did not engage with the
OCHE and it was recommended TCHC proceed
to the LTB
2 files – the Resident did not follow-through with a promise to pay, and the files are
proceeding to the LTB
1 file – no exceptional circumstances were found to justify the breach and it was
recommended TCHC proceed to the LTB
For the 4 Breached OCHE Brokered Local Repayment Agreement households that the
Commissioner recommended proceeding to the LTB:
Outcome Number
Eviction Order (not yet enforced) 1
LTB Mediated Agreement 1
L1 Application/Hearing Pending 2
15 The OCHE considers whether something unforeseen has occurred which materially affected the Residents ability to comply with the original Local Repayment Agreement
4
8
0
2
4
6
8
10
YES LTB NO LTB
Outcomes for Breached LRAs Reviewed by the OCHE
YES LTB NO LTB
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PART 4: LOSS OF SUBSIDY
28
Loss of Subsidy Reviews The OCHE audits all instances where seniors or vulnerable residents living in TCHC have had
their Rent-Geared-to-Income (“RGI”) subsidy revoked. Each month TCHC provides a list of all
such residents to the OCHE. The OCHE conducts an audit on TCHC’s computer systems to
review compliance with the applicable Legislation16, City Guidelines17 and applicable TCHC
Policies.
Within 30 calendar days of referral, the OCHE completes its audit and delivers to TCHC the
resulting audit data, a report outlining TCHC’s performance for the month and statistical
comparison to past results, and specific and general recommendations to address any
deficiencies or errors uncovered during the audit. TCHC uses the information from the OCHE
to provide direction to its front-line staff on the necessary actions to be taken, and reports back
to the OCHE approximately 1-month later with a status update on the audited files.
Direct Managed Loss of Subsidy Referrals
16 The Residential Tenancies Act, 2006; and the Housing Services Act, 2011 17 The City of Toronto’s Rent-Geared-to-Income (RGI) Administration Manual
29
The OCHE received an average of 42.6 Loss of Subsidy referrals per month from Direct
Managed properties during this reporting period, an increase from 32.6 last quarter.
Contract Managed Loss of Subsidy Referrals
TCHC began referring the OCHE Loss of Subsidy files from Contract Managed properties for
senior residents in October 2014. The OCHE began receiving Loss of Subsidy files from
Contract Managed properties for vulnerable residents in August 2015. Please note that only 1
vulnerable file was referred to the OCHE from Contract Managed properties in Q2 2016.
The monthly referral rates are identified below.
The OCHE saw an increase in the number of Contract Managed Loss of Subsidy referrals, with
an average of 5.3 files per month in Q2 2016, compared to 2 per month in Q1 2016.
MAY, 16
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Major Audit Findings:
Delivery of Loss of Subsidy Notice of Decision
The overall monthly average for legislative compliance with the delivery of a Notice of Decision
and resulting Rent Increase18 was 90%. This is higher than the 82.5% observed in Q1 2016
and the 83% observed in Q4 2015.
Property Type and Resident Group
Q2 2016 Overall Monthly Compliance Rate
Q1 2016 Q4 2015 Q3 2015 Q2 2015
Direct Managed – Seniors
92% 81%
89% 94% 80.5%
Direct Managed – Vulnerable
100% 100% 77% 83% 71.5%
Contract Managed – Seniors
61.5% 67% 50% 100% 100%
Contract Managed – Vulnerable
100% N/A 100% 100% N/A
18 The Residential Tenancies Act, 2006, requires Landlords to give 90 days-notice of any rent increase, plus an additional 5 days for receipt by mail. The OCHE confirms when these Notices of Decision would need to be delivered, along with the corresponding Notice of Rent Increase, to be legally valid and audits compliance by TCHC.
80.50%
94%
83% 82.50%
90%
70.00%
75.00%
80.00%
85.00%
90.00%
95.00%
100.00%
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Overall "NoD" Service Compliance Rates
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Direct Contact Attempts Required before Loss of Subsidy Notice is Delivered19
TCHC recorded reasonable efforts20 or successful direct contact with the resident before
sending a Loss of Subsidy Notice of Decision in 49% of cases, higher than the 38% observed
in Q1 2016 or the 36.5% observed in Q4 2015.
Delivery of Reminder Letters in Accordance with TCHC Policy
TCHC requires that Residents facing certain types of Loss of Subsidy be sent a reminder letter
30 days in advance of the Loss of Susbidy taking effect, after which the household is charged
19 When an RGI subsidy is being revoked for failure to submit the annual rent review package, the RGI Administration Manual requires that housing providers try to contact the household in person to see if they can provide the documents before issuing a Notice of Decision – Loss of Eligibility for RGI Assistance form. The current local rules became effective in August 2014 - City of Toronto, RGI Administration Manual, Chapter 7 (August 2014), p. 9 20 The City of Toronto’s RGI Administration Manual directs that RGI Administrators should exercise the utmost care in making a decision to revoke an RGI subsidy for not providing documents. The guide states that an RGI Administrator is to “Make sure that you have met face to face with members of a household, or have discussed getting the documents with family members or support agency staff (with the household’s consent). If all efforts to get the documents fail, then proceed to issue a notice that the household is losing eligibility for RGI assistance.” For the purpose of the OCHE’s audit, in addition to the Annual Review package, the OCHE looks for 2 or more attempts at direct contact made by at least 2 different methods. This is in addition to TCHC’s policy that requires a reminder letter be sent 30 days prior to the Effective Date for most Loss of Subsidies.
23.50%
36% 36.50% 38%
49%
0.00%
10.00%
20.00%
30.00%
40.00%
50.00%
60.00%
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
Direct Contact Attempts before "NoD" Delivery
% with Reasonable Attempts or Successful Direct Contact
32
Market Rent. These reminder letters serve to assist Residents and TCHC in potentially
resolving these Loss of Subsidies before they take effect.
For those files where TCHC requires that a reminder letter be sent 30 days before the Loss of
Subsidy becomes effective, the OCHE observed letters having been sent on time in 28% of
files this quarter, compared with 10% in Q1 2016.
Timing of Loss of Subsidy Reports
100% of the OCHE’s Reports on Loss of Subsidy have been delivered to TCHC Asset
Management within 30 calendar days of receipt of referrals.
6.50%
15.50%
7% 7%
28%
0.00%
5.00%
10.00%
15.00%
20.00%
25.00%
30.00%
Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016
30-Day Reminder Letters Sent on Time
33
Part 5: Selected Case Studies
34
Case Study 1
A senior Rent-Geared-to-Income (“RGI”) Resident living in a Direct Managed property was
referred to the OCHE facing the risk of eviction for arrears of rent totaling $1300 at the time of
referral. The Resident receives monthly federal pensions, and lives with her adult daughter
who receives benefits through Ontario Works (collectively, the “Residents”).
The Residents’ arrears began accumulating in September 2015, when they failed to pay the full
monthly rent. In the months that followed, the Residents made inconsistent rent payments
which led to the arrears increasing further.
When the Residents were referred to the OCHE in February 2016, the ERO met with the
Residents at their home to discuss the arrears. The Daughter reported that the Mother was
experiencing early stage Dementia, which had resulted in her sometimes forgetting to pay her
portion of the rent. The ERO suggested the services of a Voluntary Trustee to assist the
Mother with her payments, to which the Mother and Daughter agreed and an intake
appointment was arranged.
The Mother experienced some difficulties in collecting the information necessary for the
Voluntary Trustee, and the ERO provided the Mother with additional support. In doing so, the
ERO identified that the Mother had stopped receiving her Guaranteed Income Supplement
(“GIS”) in June 2015, as the result of the Mother failing to file her taxes. The Voluntary Trustee
agreed to assist the Mother in filing her taxes and work to have the GIS payments reinstated.
The ERO also worked with the Residents to collect their current family income information in
order to re-calculate their RGI rent. When the Daughter provided her income information from
OW, the ERO identified that the shelter portion being paid by OW appeared incorrect. The
ERO obtained the Daughter’s signed consent to review this with her OW caseworker and
ensure she was receiving her full benefit entitlement.
Once TCHC had received the updated income information, the RGI rent was adjusted, resulting
in the arrears being reduced from $1899.00 to $345.00. When the ERO discussed the
Daughter’s OW benefits with her worker, it was determined that the amount being paid to
TCHC for the Daughter’s rent was incorrect and a payment of $345.00 was immediately issued
to TCHC. This payment completely resolved the remaining arrears, resulting in a $0 balance
and thereby stabilizing the Residents’ tenancy.
During the course of the ERO’s interactions with the Mother, the ERO recognized that the
Mother may likely require additional supports as her Dementia progresses. The ERO spoke to
the Mother about having a worker provide ongoing supports, which the Mother agreed. The
ERO worked with an Intake Worker with Woodgreen Community Services to have the Mother
added to the wait-list for such supports.
35
Through a combination of the services of the Voluntary Trustee, re-calculating the Residents’
RGI rent based on the current household income, and correcting an error with the OW shelter
payments, the arrears were completely resolved, and as a result, the Commissioner did not
recommend proceeding with an Eviction Application to the Landlord and Tenant Board. In
addition, with the support of the VT and the potential for additional supports Woodgreen
Community Services, the Residents should be well positioned to have a healthy and successful
tenancy moving forward.
Case Study 2
A Market Rent Resident living in a Contract Managed property was identified as Vulnerable and
referred to the OCHE facing the risk of eviction for arrears of rent. The Resident receives
monthly benefits through the Ontario Disability Support Program (“ODSP”), and lives with her
adult son (collectively “the Residents”).
The Residents’ arrears began accumulating in May 2012 when ODSP failed to pay their Market
Rent of $994 over a 3-month period. ODSP made some additional payments thereafter, but a
small balance remained on file. Since that time, although ODSP continued to make the same
monthly rental payments, the Market Rent charge increased on a yearly basis. Unfortunately,
this information was not communicated to ODSP and no adjustments in the rent payments
were made. As a result, by March 2016 these short payments had resulted in the Residents
accumulating $1,868 in arrears of rent.
When the Residents were referred to the OCHE in March 2016, the ERO met with them at their
home to discuss the arrears. The Mother was surprised at the existence of rent arrears since
ODSP paid their monthly rent to TCHC. The Mother also expressed concern about her ability
to re-pay these arrears, as the Market Rent charge consumed all but a limited amount of her
monthly ODSP benefits and her Son had no income.
In speaking with the Residents, the ERO identified that the family might qualify for an RGI
Subsidy through the InSitu RGI program.21 The ERO assisted the Residents in obtaining the
necessary documents, completing the InSitu application, and submitted it on their behalf. In
addition, the ERO explained that the Son may also qualify for assistance from Ontario Works,
and helped him complete the online application. The ERO further helped the Son in both
scheduling and attending his OW intake appointment, and in providing the required documents
to OW. The Son’s OW application was successful, and once approved, the ERO made an
application on behalf of both Residents to OW’s Housing Stabilization Fund (“HSF”) requesting
assistance with the rental arrears.
21 The Service Manager (City of Toronto) created a Local Rule (“InSitu”) for providing RGI assistance to market rent households living in social housing, as required by the Housing Services Act, Reg. 367/11 s.48.1. This Local Rule was first adopted by TCHC in May 2012.
36
Both the HSF and the InSitu Applications were approved. As a result, the Residents’ full
outstanding rental arrears were paid through the HSF, resulting in a $0 balance and thereby
stabilizing their tenancy. In addition, with the approval of the InSitu Application, the Residents
were provided with an RGI Subsidy which reduced their monthly rental charge from $979 to
$237. This RGI subsidy, coupled with the increased family income through the son’s OW
benefits, will help to ensure the Residents have a healthy and successful tenancy moving
forward.
As the rental arrears were completely resolved, the Commissioner did not recommend
proceeding with an Eviction Application to the Landlord and Tenant Board. The Commissioner
did however make several other recommendations to TCHC, including: reminding staff on
which letters should be sent to Vulnerable Residents, reminding TCHC of the timelines for
serving the Notice to End a Tenancy for Non-Payment of Rent and that an attempt at direct
contact should be made before that Notice is delivered, and lastly, that interactions with
Residents should be documented on TCHC’s systems as they occur, in accordance with
TCHC’s Documentation Standards.
Case Study 3
A Rent-Geared-to-Income (“RGI”) Resident living with her 5 children (collectively, the
“Residents”) in a Direct Managed property was identified as Vulnerable and referred to the
OCHE in April 2015 facing the risk of eviction for arrears of rent. The OCHE successful
brokered a Local Repayment Agreement (“LRA”) at the conclusion of the first referral, but the
Residents were re-referred to the OCHE again in March 2016 when the OCHE brokered LRA
was breached and TCHC was unable to repair the breach. At the end of the OCHE’s
involvement, the Residents’ rental arrears, which totalled $25,585.00 in April 2015, were
completely resolved by May 2016.
When the Residents were first referred to the OCHE in April 2015, TCHC had already obtained
an Eviction Order from the Landlord and Tenant Board (“LTB”) which was set to expire in May
2015. The Residents were referred to the OCHE as part of a retroactive review of TCHC’s
Interim Criteria for Identifying Vulnerable Tenants which identified a number of files that should
have previously been referred to the OCHE. At the time the file was referred, TCHC’s Eviction
Order from the LTB was close to expiry and the OCHE was asked to prioritize this review. The
Resident is battling a terminal medical condition which requires daily treatments, frequent
hospitalization, and ultimately resulted in the Mother being unable to maintain her previous
employment. Due to the Resident’s health problems, she was often not at home when TCHC
tried to reach her, and often too sick to make efforts to reach TCHC on her own.
When the OCHE first assisted the Residents in April 2015, the rental arrears were due in part to
a loss of their RGI subsidy. The ERO worked closely with a Legal Worker to help obtain the
necessary documents to reinstate the RGI Subsidy and connected the Resident with a Health
37
Services Worker to apply for Trillium Health Benefits to assist with the cost of her medications.
After the Residents’ RGI subsidy was reinstated, the rental arrears reduced from $25,585.00 to
$10,300.00. The Resident also advised the ERO that she was in the process of filing taxes for
the past several years, and expected to receive a refund which she intended to apply towards
the arrears. The ERO connected the Resident to a free Income Tax Clinic to assist with the
completion of her taxes. The ERO then brokered a Local Repayment Agreement for the
remaining arrears, which the Resident agreed to repay at $200 per month. The ERO also
assisted the Resident to set up Pre-Authorized-Payments for the monthly rent. The arrears
repayments were to be paid separately.
When the Residents were re-referred to the OCHE in March 2016, the ERO met with the
Resident to discuss the breached LRA. The Resident confirmed she was only then finalizing
her back taxes to submit to the CRA. The Resident also reported recently providing
documentation to Service Canada in an effort to have her Child Tax Benefit reinstated, and that
without that income source she had been unable to make her monthly arrears repayment
obligations. After filing her taxes with the CRA in April 2016, the ERO and the Resident
contacted Service Canada to inquire on the status of her Child Tax Benefits. Service Canada
confirmed that the benefits had been successfully reinstated, but the retro payment would not
be issued until late May 2016. Once the Resident received these funds, she made an
immediate payment to TCHC for $10,100.00, resulting in a $50.00 credit on her account.
As the rental arrears were completely resolved by the Residents payment, the tenancy was
thereby stabilized and the Commissioner did not recommend proceeding with an Eviction
Application to the Landlord and Tenant Board. The Commissioner did recommend that the
Mother continue to report any changes in her income to TCHC as soon as they occur to avoid
any retroactive rent charges in the future.