The Prince George Metis Housing Society has once again sold some homes, and is having to raise rents on dozens more, The Citizen has learned.
The Citizen reported in 2010 that the society had sold two of its 167 housing units in the wake of significant changes at the society, which included the replacement of its board and long-time manager.
However, B.C. Land Title information shows that a total of eight houses have either been sold or are up for sale. The houses, according to realty postings and B.C. Assessment Authority data, had a sales value of about $1.4 million.
The society's management said the moves have been made to stabilize the society's financial position after it was faced with funding shortfalls when the government subsidy payments on nearly 40 homes ended in 2010 and early 2011.
The subsidies ended because the 25-year mortgages were paid off. That was always part of the housing agreement with the federal government - transferred to the province in 2006 - but it has created challenges, say the society's new management.
Because the subsidies provided a significant portion of the housing income - $1.74 million compared to $625,000 in rent in 2008-2009, for example, according to financial documents - the society was left with few alternatives.
They could raise rents or sell houses.
The society decided to do a bit of both, although there has been an effort to maintain low-rent units among the 31 remaining houses that no longer receive government subsidies.
"It created a huge funding gap," said recently-appointed Metis housing manager Leo Hiebert.
SELL OFF OPTION UNDESIRABLE
Both Hiebert and Metis housing board president Barb Ward-Burkitt said, during a recent interview, they hope they will not have to sell off any more homes.
Ward-Burkitt stressed that their intent is to maintain as many of the housing units as possible, which include some apartments.
"It's not going to go away," said Ward-Burkitt, who is also the executive director of the Prince George Native Friendship Centre.
"Who knows, it may get to the point where we're able to provide more," she added.
There continues to be a demand for this type of affordable housing. The waiting list stands at about 400, and the society gets inquiries daily.
The pair would provide few details on exactly how many houses have had rents raised, or what has been done with money raised from the sales. Some of the approximately $1.4 million in sales money has been put toward repairs, but neither Hiebert nor Ward-Burkitt would say how much.
The society acknowledges it faces a capital and maintenance deficit, for which a figure is being tabulated.
A CURIOUS VACANCY RATE
The new board and management inherited a society that had its board and former long-time manager removed after a B.C. Housing review uncovered nepotism, poor tenant relations practices, poor maintenance practices and lack of accountability to the community.
The review included a forensic audit.
The review also found that, despite a long waiting list, the society had a 11 per cent vacancy rate during a year-long period in 2007-2008, according to documents obtained by The Citizen through a Freedom of Information Act request.
The review had been launched as a result of complaints B.C. Housing received about the society.
Ward-Burkitt said they expect to release more fulsome information on the state of the houses, repairs and spending at a planned annual general meeting in the fall.
It's part of strategic planning that is underway now, which includes preparing for the subsidies to end on the next slate of houses. That will happen in 10 years.
"We're trying to utilize as many best practices, as many tools that have been used in other areas. So, no rock is unturned," observed Hiebert.
Some members of the Metis community remain skeptical.
Charlie Ghostkeeper, who once worked for the society and has raised concerns with its operations under the former management, said houses with paid-off mortgages should be able to generate some profit, even if you factor in overhead like property taxes, insurance, and maintenance and repairs. He wants a clearer picture of what is being done with the money from selling the houses.
"Why aren't they going to the membership to ratify these decisions?" he asks.
FUNDING PROBLEMS A NATIONAL ISSUE
The funding shortfall the Prince George Metis Housing Society found itself facing because it had paid off it mortgages, and the government subsidies ended, is not uncommon.
In fact, it's a national issue.
Aboriginal Housing Management Association CEO Andrew Leach said many aboriginal housing societies across Canada are dealing with the mortgage expiry issue, some with more success than others.
He said the key is to prepare and manage the issue, the track the Prince George Metis Housing Society appears to be taking.
"They've got all the foundations that I can see that are going to make this a much smoother transition than I've seen in other areas," he said.
Leach noted the options are limited: increase revenues by shifting the tenant mix so some people pay more rent; lower expenses by streamlining staff and administration; or sell off houses to generate revenue.
Leach said that other organizations have successfully dealt with the end of subsidies, citing as an example the Aquanttanam Housing Society in Cranbook.
He plans on using the example at a national housing conference later this year, where he is speaking on the mortgage expiry issue.
But for every success story, Leach said, there are examples of other organizations that have not prepared for the end of their subsidies, hoping the government will step in to provide additional assistance.
"To be successful, it requires a fundamental shift in mind set. You have to get out of this mindset: the government is going to come and save the day," stressed Leach.
AFFORDABLE HOUSING ACHIEVABLE THROUGH PROPER PLANNING: BC HOUSING
B.C. Housing says there is no funding to continue with the subsidies where the mortgages have been paid off at the Prince George Metis Housing Society.
Sam Rainboth, a communications manager at B.C. Housing, said that's because the funding came from the federal government, even after the province took over responsibility in 2006. There wasn't any additional funding from the federal government to extend beyond the established term of the agreement, he said.
That's generally how all agreements work with non-profit housing societies, noted Rainboth.
The subsidies are designed to cover the cost of paying the mortgages, and once they are paid off, theoretically, there shouldn't be any need for continued subsidies, he said.
Rainboth agreed that it's true that some of the housing units may not be as affordable as they were once the mortgage's are paid and the subsidies end.
"But hopefully, if the society is able to plan well into the future, they can maintain most of those units at an affordable level," he said.
B.C Housing is no abandoning the Metis housing group.
The Crown agency said the province will continue to work with the Prince George Metis Housing Society to ensure that aboriginal tenants have safe and secure housing.
B.C. Housing continues to have active operating agreements in place for the remaining 128 housing units, where the subsidies have not expired.
However, B.C. Housing cautioned that all the operating agreements will eventually expire.
B.C. Housing said it subsidizes approximately 1,700 affordable housing units in Prince George with a value of more than $7.8 million.
A 2004 report from the National Aboriginal Housing Association found there was a need for affordable rental housing for aboriginals, noting the 2001 census showed that 71 per cent of aboriginals live off reserve.
The report also concluded that existing native housing units must be protected for future generations.
