The corporation is pleased to be in a position to make a reduced subsidy request to the City. The decrease to operating and capital budgets is significant, at over $620,000 less than last year.
Since 2015, the total number of affordable housing units across the region has increased by 4% while the total subsidy requested from the City has decreased by 48%.
The KLH Housing Corp board of directors has committed to contribute $150,000 of the 2016 operating surplus toward 2018 and 2019 budgets in order to reduce the operating subsidy request to the City.
“KLH Housing Corp consistently aims to do better, and has taken a leadership role in addressing the affordable housing needs of the community, today and into the future,” commented Hope Lee, CEO, KLH Housing Corp.
The reduction in the subsidy request to Council is a result of two major factors: real estate sales and operational efficiencies. In 2014, KLH Housing Corp began selling 64 single and semi-detached units throughout the region. To date, net sale proceeds of over $5.9 million, from 36 completed sales, are being applied toward new communities in Lindsay.
New communities, in both Minden and the Village of Haliburton, have also been possible through affordable housing program funding. By early 2019, 129 new housing units will be available across these communities, with 72% of the units being additional. In total, KLH Housing Corp owns and operates over 700 units of affordable housing.
The Corporation has created a number of operating efficiencies, including: the blending of positions, to reduce overall head count; restructuring overtime protocol; using technology to find savings; and participation in various energy savings programs, such as hydro, gas and lighting, which have also reduced operating costs. In total, efficiencies of over $217,000 have contributed to the decreased requirement for funding from the tax levy.
Looking ahead, KLH Housing Corp anticipates increases in rental revenue, through 40 additional units to be occupied in 2018. Lower expenses are forecast across these units, due to increased energy efficiencies in new buildings.
“This year’s results are extremely positive. The work of the KLH Housing Corp provides direct impacts on the many households they serve, by providing more efficient service, more housing options and communities that tenants can be proud to call home,” said Mayor Andy Letham.