QUEEN’S PARK–PC Critic for Municipal Affairs and Housing, Ernie Hardeman, Oxford MPP, today announced he will be introducing a Private Members Bill to cut waste and misuse of affordable housing dollars at the controversial Housing Services Corporation and to ensure that social housing providers are no longer overcharged for natural gas and insurance.
“Unfortunately there are many similarities between Housing Services Corporation and ORNGE, such as creating for-profit subsidiaries, expensing international travel and salaries disappearing off the sunshine list,” said Hardeman. “With an affordable housing waiting list of 165,000 families, we simply can’t afford for housing providers to be taken advantage of, and that is why this Bill would give the Auditor General the authority to investigate.”
Provincial legislation requires affordable housing providers to purchase insurance and natural gas through the Housing Services Corporation (HSC). HSC funds its operations, including the cost of establishing six for-profit subsidiaries, by charging the providers a premium on these services. Hardeman’s Bill, the Housing Services Corporation Accountability Act, would:
- Save affordable housing providers money on natural gas and insurance by removing the mandatory requirement to purchase them through HSC;
- Restore accountability by requiring HSC to once again report salaries over $100,000 on the sunshine list; and
- Give the Provincial Auditor General the authority to audit HSC without requiring a Minister’s request.
“The goal of the organization was to save affordable housing providers money by negotiating bulk discounts, but it’s clear that over the last few years something has gone horribly wrong and housing providers are now paying millions more than if they purchased these services directly,” said Hardeman.
Hardeman pointed to the example of City Housing Hamilton which reported it paid $1.1 million more for natural gas because it had to purchase it through HSC. The savings from being allowed to opt out of HSC would have been enough to provide rent supplements to house more than 140 families. For insurance, housing providers are allowed to opt out only if they pay HSC a fee equivalent to 2.5% of premium for the right to purchase from another insurance provider offering a lower price.
“Taxpayers’ dollars intended for affordable housing are being wasted,” said Hardeman. “The Housing Services Corporation Accountability Act would stop misuse of this money and allow affordable housing providers to save millions on natural gas and insurance, which could be put towards providing housing for families in need.”
Source: Erniehardemanmpp