LMHC the 'de facto' provider of support for tenants, despite lack of resources: audit report

The London and Middlesex Housing Corporation (LMHC) is being slammedby both a lack of funding and anincreasingdemandfor services fromhigh-need tenants, according to a report that goes before the city's audit committee Wednesday.

The report draws on an audit by the consulting firm PricewaterhouseCoopers(PwC), and includes six areas for improvement and suggested plans of action. It also includes commentary from LMHCabout what they're already doing to solve the problems.

The fullreport is available on the city's website.

Urgent need for capital funding

The amount of capital funding per unit that LMHC receives is low, even for municipal housing providers, according to PwC's report.

"The average capital funding per unit (of $583) is far below the average of Kingston, Hamilton and Windsor (average of $995 in 2015 and 2016). This has resulted in a substantive decline in the conditions of the housing units," PwC wrote.

LMHC saiditneeds an annual increase of $21.2 million above itsexisting budget allocation of $2.2 million to keep their facilities in "good condition" over the next 20 years. In contrast,maintaining thecurrent level of funding would result in 'deficient' facilities over that 20-year period, according to the housing corporation.

Another challengeis that, under LMHC's existing shareholder agreement, any additional revenue the housing corporationgenerates willultimately go back to the city, according to CEO Josh Browne.

Browne said he wants to change the corporation's shareholderagreement so that LMHCcan seek outadditional revenue sources, and retain and reinvest that revenue.

"We've shifted as an organization, we have a new mission and vision about healthy homes, and communities and using housing to really make a difference," said Browne.

"The next step in that is saying 'Well what is that really going to take financially to make it happen?' and that will come forward as part of the next multiyear budget cycle."

LMHCsaid it will continue to be transparent with funders about its urgent need for capital, and willworkwith city administration on asset management andhousing regeneration plans.

LMHC says it is also looking for 'innovative' ways to generate funding.

Tenant needs exacerbate funding problems

The city's tenant priority system gives special consideration to housing applicants who've experienced problems like homelessness and domestic violence.

Browne said that although these tenants 'absolutely need housing,' housing tenants with complex needs can have a significantimpact on the wear and tear of a building.

In its audit report, PwCsuggested that the corporation 'collaborate' with service partners by scheduling site visits from medical and mental health professionals.

In response, LMHC said it's tried to offer more servicesbut is hamstrung by a lack of support and flexibility in its shareholder agreement.

"LMHC has become the de facto provider of supports and is doing so without the required resources based on our previous mandate and funding by the city to act as a landlord," LMHCwrote in the report.

Making matters worse is thatBrowne said LMHCstaff don't always know about these complex needs, and wind up responding to crises rather than offering support up-front.

PwCsuggests that the city's tenant intake process should identify tenants' needsto match them with supportive housing,a suggestion thatLMHCsupports. The corporation said it is working with the city's civic administration to revise its housing intake process and to develop a system that aligns with the city's homelessness objectives.

LMHCalso cited the proposed supervised consumption site at 241SimcoeSt. and a new tenant education program as two examples of new support services for tenants.

Although the report offers up a number of suggestions for improvement, Browne said creating change will be a lengthy process.

"We're dealing with issues from before housing was even devolved to the city. But what we're saying as an organization is that in order for us to move forward, we need to change and then we need to start having that dialogue and figure out what that change looks like to better support our tenants."