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Posted by on Jun 2017 in Member Support, Slider | 0 comments

Member Support Question: Making sense of EOA

Woman with question markQuestion: I’ve been hearing a lot about End-of-Operating Agreements (EOA) and I’m not sure how I will be affected or what I need to do. Please help!

Answer: How you will be affected by EOA and what steps you need to take depend on if you are under the Housing Services Act (HSA), or if you are a Section 26/27 or Section 95 provider.

If you are a housing provider under the Housing Services Act (HSA):

You no longer technically have an “Operating Agreement”. Instead, you are subject to the operating framework under the HSA. “End of Mortgage” is the term that applies to you. Even if you have multiple buildings or other funding tied to agreements with expiry dates, buildings under the HSA are facing the End of Mortgage, not End of Operating Agreements (EOA).

If you are unsure whether or not you fall under the HSA, a good place to start is to do a search for your organization in the Ontario Regulation 367/11, which lists private non-profits who are subject to the Act. Because providers under the HSA are tied to the legislation, unless the legislation changes, the law still applies after your mortgage ends. Will the law change? It could. At this time, the Province is  consulting with stakeholders on what a modernized housing framework looks like. ONPHA is at the table for these discussions, representing our members’ best interests.

The resources that will be relevant to you are the ones that help you get your organization in the best possible shape and prepare you for uncertainty. The end of anything is a time of change and a time to reflect on the state of your organization.

Start by engaging in a conversation with your board, staff and tenants. Gather their input regarding what’s working and what isn’t. Consider the mission, vision and values of your organization. You need to know where you stand before you know where you are going.

Next, create a strategic plan and figure out where you want your organization to be in five years, 10 years and beyond. Identify both your challenges and opportunities, and assess your possible options. Build scenarios and test your assumptions to determine what is possible. It’s also important to engage with your Service Manager, partners and others in your community. Be willing to remain flexible. Remember that change is not always linear. Consider what adjustments you need to make over time.

If you are a Section 26/27 provider or Section 95 provider:

The term “End of Operating Agreement” (EOA) refers to the end of the agreement that you originally had with the Canada Mortgage and Housing Corporation (CMHC) and was transferred to the Service Manager or Province.

Resources that refer to EOA will generally be applicable to you if your agreement has not already come to an end. There are helpful resources for ONPHA housing members available on our website.

Keep in mind that your organization could be limited in what you can do after EOA if you have signed other agreements with conditions and restrictions that extend beyond your EOA. Examples of these other agreements may include:

  • the Social Housing Renovation and Retrofit Program (SHRRP),
  • Social Housing Improvement Program (SHIP),
  • Social Housing Electricity Efficiency Program (SHEEP)
  • or the Social Housing Apartment Retrofit Program (SHARP)
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