TORONTO, July 28 2014 /CNW/ - Four key housing organizations from across Canada have come together in an innovative partnership that will help non-profit and co-operative housing providers meet long-term financing needs. Housing Services Corporation (HSC), the Co-operative Housing Federation of Canada (CHF Canada), the Co-operative Housing Federation of BC (CHF BC) and the BC Non-Profit Housing Association (BCNPHA) have agreed on terms to expand the ownership of SHSC Financial Inc. (FI), which will offer non-profit and co-operative housing providers across the country new investment options for their capital reserves.
Under the new structure, HSC will retain 40% of FI's issued and outstanding shares and three new partners will each acquire 20% of the outstanding shares: CHF Canada, CHF BC and BCNPHA.
"In an industry where government funding is decreasing, and housing stock is aging, financial opportunity is increasingly important to housing providers," said Janice Tuffnail, Interim Chief Executive Officer of FI. "For the past 12 years we have successfully pioneered our investment model in Ontario. Now, this ownership expansion will increase the availability of our offerings and maximize financial opportunities to housing providers."
FI was created specifically to manage funds to be offered for the investment of pooled capital reserves of non-profit and co-operative housing providers, and is a registered investment fund manager with the Ontario Securities Commission. FI's Social Housing Investment Program enables housing providers to effectively invest capital reserves and operating dollars, as well as last-month's rents and member deposits. As of June 30, 2014, approximately 850 Ontario housing providers invested more than $473 million in the Social Housing Investment Funds.
"This new model will give co-operative and non-profit housing providers across Canada access to investment options that they previously did not have, and will enable FI to broaden investment options in the future," said Nicholas Gazzard, Executive Director of CHF Canada. "It is a win-win situation for housing providers and the affordable housing sector in Canada."
The expanded ownership of FI is expected to be finalized on September 30, 2014, subject to regulatory approvals and closing conditions. FI's dedication and commitment to customer service will remain a top priority and there are no anticipated immediate changes to the existing investment Funds, staffing or administrative processes.
About SHSC Financial Inc.
SHSC Financial Inc. is a registered investment fund manager with the Ontario Securities Commission, created specifically to manage the investment of pooled capital reserves of non-profit and co-operative housing providers in Ontario. For more information, visit www.shscfi.ca.
About Housing Services Corporation
Housing Services Corporation is a province-wide, non-profit organization that supports the sustainability and management of Ontario's affordable housing sector. For the past 12 years, HSC has worked hand-in-hand in partnership with landlords, housing providers and municipalities to help develop and maintain safe, affordable and vibrant neighbourhoods. For more information, visit www.hscorp.ca.
About the Co-operative Housing Federation of Canada
Co-operative Housing Federation of Canada is the national voice of the Canadian co‑operative housing movement. Its members include over 900 non-profit housing co‑operatives and other organizations across Canada. More than a quarter of a million Canadians live in housing co‑ops, in every province and territory. For more information, visit www.chfcanada.coop.
About the Co-operative Housing Federation of BC
Co-operative Housing Federation of BC is a co-operative association made up of member housing co-ops and related organizations in British Columbia. For more information, visit www.chf.bc.ca.
About BC Non-Profit Housing Association
BC Non-Profit Housing Association is a non-profit corporation and is the industry association for affordable housing in British Columbia. It represents, educates and provides service to over 700 affordable housing providers and stakeholders that operate over 60,000 units of long-term and short-term affordable housing across the province. For more information, visit www.bcnpha.ca.
SOURCE: Housing Services Corporation
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