NIPISSING DISTRICT HOUSING CORPORATION . ORGANIZATIONAL ASSESSMENT
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Transcript of NIPISSING DISTRICT HOUSING CORPORATION . ORGANIZATIONAL ASSESSMENT
NIPISSING DISTRICT HOUSING CORPORATION
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ORGANIZATIONAL ASSESSMENT
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Joint DNSSAB/NDHC Board Session
Sept 19th 2013
AGENDA
IntroductionsPurpose of Joint Board MeetingOverview of Organizational Assessment Summary of Threshold Report and
RecommendationsDiscussion of RecommendationsNext Steps
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INTRODUCTIONS
DNSSAB Board MembersNDHC Board MembersDNSSAB StaffNDHC StaffConsulting Team
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PURPOSE OF JOINT BOARD MEETING
To give direction on threshold issues fundamental to the future roles, responsibilities and governance of NDHC
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OVERVIEW OF ORGANIZATIONAL ASSESSMENT
OVERALL GOAL
Provide an appraisal of, and recommendations for improving, NDHC’s performance, enabling environment, Board, staff and resident capacity and organizational purpose
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OVERVIEW OF ORGANIZATIONAL ASSESSMENT
OBJECTIVESTo ensure that:
effective investment choices are being made there is organizational capacity to meet changing
legislative and economic circumstances stronger relationships are established between NDHC
and DNSSAB there is solid alignment between NDHC’s
organizational and service delivery goals with those of the DNSSAB and its 2011-2014 Strategic Plan
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OVERVIEW OF ORGANIZATIONAL ASSESSMENT
PROCESS• Surveys of Board members and staff• Review of corporate policy documents, internal data, Board minutes,
financial statements, organizational studies, etc.• Environmental scan of relevant external data and literature• Interviews/focus groups with all staff of NDHC, senior staff of DNSSAB,
Tenant Advisory Committee• Tours of buildings• Interviews with NDHC and DNSSAB Board members• Review of Best Practices Elsewhere • Development of Thresholds Report• Preparation of Final Report and Recommendations• Ongoing meetings/discussion with Steering Committee
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THE OPPORTUNITY
Message from DNSSAB CAO Important crossroad for NDHCProperly designed and implemented, the next generation NDHC can
best: Meet changing housing needs Build capacity for developing business cases for renewal Build capacity to undertake capital works Anticipate and deal effectively with aging housing stock with replacement
value in excess of $100 million Consider entrepreneurial-based approaches that involve private sector
funding Achieve role clarity between DNSSAB and NDHC Boards Save money by sharing DNSSAB’s corporate and other resources Support the DNSSAB’s 10 Year Housing and Homelessness Plan
SUMMARY OF THRESHOLD REPORT AND RECOMMENDATIONS
Purpose of Report:
To give direction on threshold issues fundamental to the future roles, responsibilities and governance of NDHC
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THRESHOLD ISSUES
There are three issues fundamental to the future direction of NDHC:
1. Should the governance model remain as an autonomous, self-governed business entity, or should it be a service entity operating as part of Shareholder’s organization?
2. Should NDHC focus activities entirely on management of existing portfolio, or expand activities to include development of new housing supply, regeneration of existing properties, other potential businesses?
3. Should current composition of the NDHC Board remain or should it move towards a more “skills-based” Board
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PROCESS FOR PREPARATION OF THRESHOLD REPORT
Conducted interviews with Board members and senior staff of NDHC and DNSSAB
Reviewed Shareholder Declarations of similar Service Managers elsewhere in Ontario
Reviewed LHC organizational studies conducted by other similar Service Managers
Reviewed relevant background documentation provided by DNSSAB and NDHC
Discussed with Steering Committee
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1. CORPORATE STRUCTURE AND
GOVERNANCE
NDHC currently operates as autonomous business with independent Board of Directors appointed by DNSSAB, who is sole shareholder of NDHC
Board is responsible for supervising management of business affairs of NDHC and for establishing policies to develop and maintain a prudent financial operation
Board members and staff widely agreed that this model was preferred, as it was effective in enabling NDHC to operate the business in an efficient and responsive manner without undue restrictions from DNSSAB
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1. CORPORATE STRUCTURE AND
GOVERNANCE
As an independent business corporation, NDHC has greater flexibility than DNSSAB to undertake activities such as developing housing or accessing funds under government housing programs
Enables clear distinction between DNSSAB’s two roles as shareholder of NDHC and Service Manager
It was felt DNSSAB could protect its interest in NDHC through strong accountability framework and reporting protocol
Two organizations should work hand-in-hand to achieve strategic plans that support the 10 Year Housing and Homelessness Plan
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1. CORPORATE STRUCTURE AND
GOVERNANCE
Numerous other Service Managers maintain similar relationships with Local Housing Corporations (LHC’s)
They reported that maintaining a separate LHC: Encourages inclusion of resources Enhances risk management Supports service excellence Encourages flexibility and innovation Enhances stakeholder/partner relationships Improves efficiency Enhances accountability Clarifies strategic alignment of organizations
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1. CORPORATE STRUCTURE AND
GOVERNANCE
Recommendation One
It is recommended that the corporate structure of NDHC remain an autonomous Local Housing Corporation with an independent Board of Directors, with a clearly defined accountability relationship between NDHC and the DNSSAB.
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1. CORPORATE STRUCTURE AND
GOVERNANCE
Governance model is also a key threshold issueFour potential options: Working Board, Advisory Board,
Governance Board, Policy Governance BoardWorking Boards are most suited to volunteer organizations with
little or no staffAdvisory Boards have no independent decision-making
authorityGovernance Boards (as NDHC) provide oversight to organization
and have decision-making authorityPolicy Governance Boards direct an organization through policy
and delegate oversight to the CEO
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1. CORPORATE STRUCTURE AND GOVERNANCE
Governance model of oversight and policy direction best suits NDHC and mirrors model for most LHC’s in Ontario
Recommendation Two
It is recommended that the Governance Model remain a Governance Board which provides oversight and policy direction for NDHC.
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2. NATURE OF BUSINESS ACTIVITIES
Previous Local Housing Authorities strictly responsible for managing public housing portfolio of OHC
Since its inception, NDHC has continued along same pathShareholder Declaration defines Business of NDHC as:
Being local housing provider in accordance with Social Housing Reform Act
Using effectively the assets of the Corporation and renting, selling or maintaining housing and its premises, equipment and appliances
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2. NATURE OF BUSINESS ACTIVITIES
Interviews with Board, staff and tenants found that NDHC is highly experienced and comfortable as property managers
Buildings are well maintained, vacancies quickly filled, budgets met, future capital repair and replacement well planned, tenant requests quickly acted upon
Yet, most expressed the view that this role falls short of contribution NDHC should be making to meeting the housing needs of the community in view of its skills, experience and resources
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2. NATURE OF BUSINESS ACTIVITIES
Particularly keen interest in NDHC expanding/regenerating its portfolio to help meet housing needs of Nipissing District
Manitou Mulligan seen as a startMany see NDHC as vehicle with great potential for implementing
key elements of DNSSAB’s strategic plan in this regardShareholder Declarations of numerous Service Managers
support a role of this nature for LHC’s. Many LHC’s have been highly active in this regard, working hand-
in-hand with Service Managers to plan and develop housing
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2. NATURE OF BUSINESS ACTIVITIES
Other LHC’s also assisting Service Managers in delivering program-related services and in taking on revenue-generating activities for which they are qualified (as NDHC is already doing through property management contracts with outside Boards)
By working hand-in-hand with DNSSAB to identify community needs and develop strategies for meeting these needs, NDHC can become a much more valuable vehicle for positive change in Nipissing District
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2. NATURE OF BUSINESS ACTIVITIES
Recommendation Three
It is recommended that the nature of the Business in which NDHC is engaged be more broadly defined, as follows:
Own, operate or have ownership interest in affordable rental housing, social housing, affordable ownership housing, vacant land and commercial properties ancillary to the foregoing and provide related services
Develop new housing projectsRedevelop existing housing projects
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2. NATURE OF BUSINESS ACTIVITIES
Deliver program-related services on behalf of Service Manager, such as Rent Supplement programs
Deliver program-related services on behalf of other agencies, boards and commissions
Enter into partnership agreements or other agreements that promote or increase availability of affordable housing in the service area
Provide housing-related services to third parties
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3. BOARD COMPOSITION AND QUALIFICATIONS
Third key threshold issue is Board composition and qualificationsShareholder Declaration basically silent on this issueBackground documentation indicates that Board to be
comprised of maximum of 9 Directors, including 4 members of DNSSAB Board (a “fair distribution from North Bay, West Nipissing, Mattawa), 4 municipally-elected or citizen/consumer members, one member from one of remaining member municipalities within Service Area
Can be termed a “geographical representation” modelIn practice, Board has tended to include primarily elected
municipal officials, with small number of citizens at large
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3. BOARD COMPOSITION AND QUALIFICATIONS
Interviews with NDHC/DNSSAB Board members and senior staff found some preferred this model, as it ensures representation from all areas of Nipissing and gives Shareholder strong presence on Board to help protect its interests
Majority, however, expressed the view that, given that this is a major business entity with asset replacement value of $100 million, it was critical to ensure necessary skills were present on Board to offer effective guidance and oversight and that a geographical model did not guarantee the presence of such skills
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3. BOARD COMPOSITION AND QUALIFICATIONS
A further concern was potential short-term nature of some elected officials, which can negatively impact continuity on Board
Citizen members also felt they do not have equal access to information as elected officials on Board
Concerns expressed that some elected officials “wore several hats” and may have conflicts in decision making from time-to-time
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3. BOARD COMPOSITION AND QUALIFICATIONS
Shareholder Declarations of numerous other Service Managers all addressed qualifications of Board members.
Virtually all placed strong emphasis on skills, experience and qualifications as important criteria in composition of Board members
All were combinations of elected officials and citizens at large, with most requiring few (or some even none) elected officials, as interests of Shareholder well protected by accountability and reporting protocols
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3. BOARD COMPOSITION AND QUALIFICATIONS
In view of above, it is concluded that the effectiveness of the Board would be enhanced by amending Shareholder Declaration to move towards a more “skills based” Board that places a greater emphasis on skills, experience and qualifications of Board members, given the size and complexity of the NDHC operation and its growing range of responsibilities
The Tenant Advisory Committee provides an effective vehicle to represent tenant views, so it does not appear necessary to appoint a tenant representative to the Board
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3. BOARD COMPOSITION AND QUALIFICATIONS
Recommendation Four
It is recommended that Article 4 of the Shareholder Declaration (and any related DNSSAB and NDHC regulatory documentation) be revised to require that the Board collectively possess a range of relevant expertise in such areas as:
Social housing Community development Business and financial management Corporate governance Organizational development Labour relations
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3. BOARD COMPOSITION AND QUALIFICATIONS
Legal and/or legal aid experience Landlord and tenant matters Political experience
Further, consideration should be given to reducing the number of elected officials on the NDHC Board – perhaps a maximum of three elected officials representing communities where the NDHC portfolio has a presence (one each from North Bay, West Nipissing and Mattawa).
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DISCUSSION OF RECOMMENDATIONS
Boards to consider and discuss recommendations
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NEXT STEPS
Decision on Threshold Report recommendationsCompletion of Draft Final Report by Consultants
(October)Review by staffCompletion of any required revisionsDelivery of Final Report and Recommendations
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