QUEEN’S PARK – Today in the Ontario Legislature Oxford MPP Ernie Hardeman, PC Critic for Municipal Affairs and Housing, demanded the government stop tenants of social housing being overcharged for tenant insurance due to a 5% kickback paid to Housing Services Corporation.
“Housing Services Corporation is making money off the most vulnerable people in our society by marking up the cost of tenant insurance to cover their kickback,” said Hardeman. “The insurance company, the broker and the general managing agency who are doing the work are all getting paid – but tenants are also paying 5% more to go into HSC’s pocket.”
Housing Services Corporation (HSC) is pushing social housing providers to make tenant insurance mandatory. In most cases tenants are only given information for the tenant insurance offered by HSC. What they don’t know is that the cost of this insurance has been marked up to include a 5% kickback to HSC. Hardeman pointed out that a housing provider in his riding had found a better insurance rate for tenants by simply picking up the phone and calling a local insurance broker.
“Minister, this is taking advantage of people living in social housing. And it’s happening today. Under your watch,” said Hardeman during the question. “Minister, will you contact HSC today – ask them to stop the kickback, lower prices and refund the money taken from tenants in social housing?”
Recently it was discovered that Housing Services Corporation, a rogue agency funded with affordable housing dollars, is spending money on international travel, including 7 trips to England for the CEO over 16 months; setting up six for-profit subsidiaries; and investing in a shell company in Manchester, England. “There is a pattern here of money that was intended for affordable housing going into questionable deals that seems very similar to what happened at ORNGE air ambulance,” said Hardeman. “Under this government’s watch HSC is taking money from social housing tenants, and spending it on trips to Europe, bottles of wine, lobster and questionable investments in Manchester, England.”
Hardeman has introduced a private members bill which would:
- Allow the Provincial Auditor General to investigate Housing Services Corporation;
- Require Housing Services Corporation to report all salaries over $100,000 on the sunshine list; and
- Allow housing providers to purchase natural gas and insurance at the best price, rather than being
- forced to buy it from Housing Services Corporation.
“This government is ignoring the problems at Housing Services Corporation and the money being siphoned out of affordable housing,” said Hardeman. “This questionable spending is having a real impact not only on those waiting for social housing, but on tenants who are still struggling to make ends meet and put food on the table.”
Source: Erniehardemanmpp