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Selling Off Stock

20110525tchc.jpg
Photo of Regent Park by L. S. Edwards from the Torontoist Flickr Pool.


Just before the May 24 fireworks reignited the ongoing Pride/anti-QuAIA debate at yesterday’s Executive Committee meeting, the Toronto Community Housing Corporation’s (still) one-man board of Case Ootes was given the go ahead to sell off 22 properties. (City council will need to approve the recommendation at its next meeting, so further debate is certainly still possible.) While possessing moments of drama and emotion, the TCHC debate ultimately lacked the highly-charged personal edge that gripped the Pride v. anti-QuAIA deputations. Perhaps that’s what happens when only one side holds all the cards.
What Tuesday’s TCHC process was also lacking was concrete answers. And not just answers to pointed questions from visiting councillors looking to score political points. Honest-to-goodness answers to honest-to-goodness questions asked by the mayor’s allies on the Executive Committee.
Like much of the rush to foist the Ford Nation mandate onto Toronto, there’s a sense that the mayor and his team don’t have to explain themselves. They won the election, so they’re free to do as they want. All this back and forth is simply wasting time. Pitter patter, let’s get at her!


It was in evidence at last week’s council meeting and the debate over proposed garbage outsourcing west of Yonge—City staff and privatization advocates were all a little hazy when it came to the numbers and figures. Would it save $8 million? If not, how much? Any? What about diversion rates? Different? On par? Improved?
Stop with all the questions, already! We campaigned on privatizing garbage. We won. We’re going to privatize garbage.
Likewise, Ootes and TCHC CEO Len Koroneos didn’t seem particularly driven to talk turkey about their recommendation to unload the 22 housing units. How many tenants would be affected by the sell off? Ummm… let me check my notes. 32? Who would be in charge of relocating the tenants losing their homes? Ummm… not sure. “The Planning Department’s not here,” the mayor offered up by way of an answer. What would be the difference in cost to the City between putting in necessary repairs and renovations and continuing to rent out units and simply unloading them as is? Ummmm… we’ll have to get back to you on that, councillor.
“A huge absence of information,” Councillor Janet Davis (Ward 31, Beaches-East York) suggested.
The committee wasn’t even provided with definitive numbers when it came to such fundamental inquiries about how much the City could really expect to get for selling the houses. Ootes is thinking close to $16 million. Others like Michael Shapcott at the Wellesley Institute aren’t convinced the number will be that high. Whatever sum it ends up being, the money will be applied to the backlog of repairs on other TCHC properties, which is now in the neighbourhood of $650 million.
Another number that came as a surprise to some councillors at the meeting: that $650 million is triple the repair-backlog estimate from just two years ago. And if that’s true, it’s hard to imagine how $16 million is going to make a lick of difference in their bigger picture, especially if we’re ultimately reducing the amount of rental units available to a list that’s already 10 years long to do it.
That seemed to be one thing we could safely conclude would happen if the sale gets approved by City council: less TCHC housing to go around. “A reduction of capacity,” as Ootes admitted reluctantly. But, he was quick to add, we weren’t responsible. “We’re not reducing capacity,” Ootes spun. “Capacity’s being reduced because we don’t have the money.”
It is a new age, a new reality, according to Councillor Mammoliti (Ward 7, York West). “We’re on our own,” he informed the room. We should never expect to see money from senior levels of government ever again. That was that.
So, wave the white flag and agree to be the hatchet men, to do the bidding of the provincial and federal governments’ respective and collective negligence in the social housing portfolio. Instead of standing up and fighting to protect the most vulnerable in our city, members of the mayor’s Executive Committee voted to use them as fodder, sacrifices to the new order. Making tough choices, it seems, means making other people pay for your lack of imagination and willingness to go to bat for your constituents.
“This particular sale of 22 houses is a start,” the unelected, unaccountable Ootes told reporters, undoubtedly striking fear into the hearts of every TCHC tenant.
For all the talk of having to go it alone and make choices out of necessity, due to fiscal restraints and not personal preference (the mark of all small-minded municipal politicians who operate happily under the umbrella of not bearing ultimate responsibility), the irony of the decision to sell the houses is that, even if City council agrees, it is still pending provincial government approval. What the Executive Committee signaled, really, with its vote to sell off TCHC properties, was that it was willing to get its hands dirty and be the bad guy.

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Comments

  • http://paul.kishimoto.name Paul Kishimoto

    Agree entirely. I guess I could have skipped writing this comment.

  • tyrannosaurus_rek

    Am I hallucinating or didn't the province put the kibosh on selling those properties? I'd swear I'd read something to that effect a few weeks ago, but now I can't find a reference.

  • http://www.facebook.com/people/Mark-Costelo/1605453219 Mark Costelo

    How will changing this board help when most of the same
    corrupt head office staff are still working for TCHC making a quarter of a
    million a year plus what ever else they can scam. TCHC is Housing Hell for
    tenants but as an employer they are rated one of the best in Canada for wages,
    huge benefit packages, gifts, dinners, parties, cash and trips while some make
    more than any Canadian city mayor!

     

    Selling
    these million dollar homes is a good thing but the problems and problem over
    head is from their corrupt useless staff they purposely infest tenants with
    bedbugs then install laundry dryers that don’t heat up enough to kill bedbugs
    then get a grant from the government for the bedbug problem, then do nothing
    but apply for another grant because the problem is worse, they do the same with
    crack, crime, safety and repairs!

     

    This debit
    is of the corporation itself and only the corporation (tax-payers), the staff
    all have beautiful paid homes paid cars and live like kings and queens all on
    your money!

    For a look
    at how TCHC is for tenants and staff Youtube, Canada’s worst landlord, or go to
    200 Wellesley St E and see for yourself but be careful just a month ago the
    mailman got bedbugs from just delivering the mail!

     

    Google, 200 Wellesley bed bug report, the last post is by a
    tenant named Rose who posted a (click and paste in your browser) form she got
    from TCHC to make her pay TCHC for the bed bug problem that TCHC infested her
    with, you make a money order made out to TCHC Insurance & Risk Management
    or send it to the corrupt company that owns the laundry dryers this company is
    owned by TCHC and as far as I know none of the tenants have been sent anything
    nor will TCHC give a receipt for payment received! Clearly another
    well-organized scam to get more cash from tenants. The form clearly states your
    order will be transmitted to Caber Sure Fit but the money order must be made
    out to TCHC Insurance & Risk Management and sent to the head office of
    TCHC?

     

    JUST UNBELIEVEABLE!

  • http://twitter.com/EastEndToronto EastEndTorontoHomes

    You`re missing the point entirely. For the record, I`m neither a Ford nor political party supporter. I DO support integrated neighbourhood community housing and I`ve lived only a few doors from it for over 20 years. I see first hand, every day, how it doesn`t work. 

    I`ve read that there are hundreds of vacant properties requiring millions of dollars in repairs. The 3 Beaches TCHC properties nearest me are worth well over half a million each and 2 are vacant. Sell them! Use the money for repairs! Surely a million bucks can get 100 vacant properties fixed up and 100 families into decent housing!

  • http://twitter.com/derekpokora Derek Pokora

    Both City Council and the Province need to approve the sale of the 22 homes before it goes ahead. It hasn't been killed yet. Still two more steps to go. I have to say, I'd laugh so hard at Mammoliti if the province overruled this, thus negating his statement that “we're on our own.”

  • http://paul.kishimoto.name Paul Kishimoto

    Suppose there are two problems; call them repairs and maintenance. Disrepair prevents a property from being used at all. Maintenance is ongoing work necessary to keep properties habitable.

    Maybe TCHC has maintenance well-covered, and it just happens (how?) to have a lot of properties in disrepair. OR, maybe, maintenance is not covered; and cumulative lack of it has produced uninhabitable properties.

    The former is a problem that needs capital; the second points to chronic underfunding. Asset sales might help—by providing capital and offloading properties in bad disrepair. But they can never be a sustainable solution to chronic underfunding, because the TCHC has a finite number of assets to sell.

    This is all just an elaboration of basic accounting principles—i.e. good business practice.

    An intelligent plan would assess needed repairs and alternatives to pay for them, including asset sales and one-time expenditures by the City. It might say, “We are going to cover X% of the repair costs through selling $Y of assets according to such-and-such criteria over Z period of time.” It would also include action to prevent more properties from falling into disrepair.

    The point you're missing entirely is that such a plan does not exist. Just because a good plan might include asset sales in no way sanctions the blind, haphazard approach of the Executive Committee, which is apt to ignore any underfunding of maintenance and thus leave real problems unsolved.

  • http://twitter.com/EastEndToronto EastEndTorontoHomes

    I like your description of the problem. And I agree with it. In fact you had me right up until the end. I think our fundamental difference is this: I don`t believe that Case Ootes is `blind` or `haphazard` in his approach. And I don`t believe for a minute that he wants to leave the TCHC chronically underfunded. The fact is the TCHC only has so much funding to do their job. It`s broken and he`s confronted with making it work NOW. Remember, there are apparently thousands of families waiting for housing & hundreds (or more) vacant properties. That`s unconsionable. Yes, we need a plan for ongoing R & M that should stave off selling a large number of properties. But if you`ve ever lived in crisis circumstances you`d realize that housing 100 or more families NOW is a good reason to sell 22 properties today. Unless someone has a better idea. If you really want to make a long term difference go onto the city website Toronto Service Review and make your voice heard on where you think the tax dollars should come from and where they should be spent.

  • http://www.facebook.com/people/Joy-Connelly/588654306 Joy Connelly

    There's lots of sides to this issue. For another take on TCHC sale, see http://www.openingthewindow.com .

  • tomwest

    “We're not reducing capacity,” Ootes spun. “Capacity's being reduced because we don't have the money.”… so you ARE reducing capacity. Ootes admitted it, said they weren't and they admitted the were. Selling off 22 properties is obviously going to reduce capacity, especially if the proceeds go to towards repairs. He should have said that. Instead, I have nothing but contempt for this man.

  • http://piorkowski.ca qviri

    So what you're saying, as a commentator on real estate, is that it costs $10,000 to fix up one property?

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.

  • http://profiles.google.com/orwellsbastard orwell's bastard

    In what world is selling off capital properties in order to pay operating expenses considered sound fiscal management? What do you do when you run out? Build sand castles?

    How did these small, sad, soulless people ever acquire a reputation for leadership? Calling them talentless hacks would be an insult to talentless hacks everywhere.