Restrictions from Transfer Orders for Federal Housing Programs (H-03-09)

Projects formerly administered by the CMHC under Section 26 Limited Dividend or Section 26 Non-Profit program, Section 27 Non-Profit Program, and Section 95 of the National Housing Act

Date: March 26, 2003

The policies and procedures in this Directive are to be implemented by housing providers funded by the Municipality under the following programs:

• Federal Program

Background

Being issued under s. 39 of the Social Housing Act, a Transfer Order No.17-4/2001 2000 states that any right, interest, liabilities and obligations of the Transferor , the Crown, under Section 26 Limited Dividend Programme or Section 26 Non-Profit Programme Agreement, Section 27 Non-Profit Programme and Section 95 of the National Housing Act and Municipal Non-Profit Tri-Partite Agreement have been transferred to the Corporation of the City of Kingston as of October 1 , 2001.

The Schedules of the transfer orders impose a number of specific restrictions that require the consent from the Minister of Municipal Affair and Housing.

Action to be taken

A consent from the Ministry and the Service Manager is required if a Housing Provider intends to proceed with the following:

• transfer, lease or dispose or offer, list, advertise or hold out for transfer, lease or disposal of a housing project, or any part of it;
• alter of any condition or state of the property, excluding repairs and maintenance;
• amalgamate any projects, providers or properties;
• amend the existing mortgage terms and conditions;
• obtain new or replace existing mortgage financing.

In the event that the Housing Provider wishes to undertake changes as indicated above with respect to the transferred housing projects, the Housing Provider shall submit a request to the Service Manager for a consent. A separate submission from the Housing Provider is required for each consent requested.

Transfer, lease or disposition, and altering the project

Requests for the written consent of the Service Manager and the Minister under the Transfer Order schedules by Program type shall be submitted to the Service Manager in the format of business case attached to this Directive and approved by a Board.

Amalgamations

A Council resolution is required. Requests for the written consent of the Service Manager and the Minister under the Transfer Order schedules by Program type shall be submitted to the Service Manager in the format of business case approved by the Board and define the following:

• how controlling interest in the new amalgamated corporation is retained to meet obligations under the Social Housing Reform Act
• include draft by-laws of the amalgamated corporation
• confirmation of mandates and program standards
• tenant communication plan.

Reference

• Amended Schedule A, B, C transfer Orders made under Part IV of the SHRA, 2000
• MMAH, Release 20: Procedures on obtaining Ministerial Consent under the SHRA, 2000

Greg Grange
Manager, Social Housing Division

The following individuals have received a copy of this Directive:

• Lance Thurston, Commissioner, Department of Community Services
• Liz Fulton / Marian VanBruinessen, County of Frontenac
• Supervisors, Housing Division
• Hal Linscott, Legal Division

If you have any questions, please contact a Housing Programs Administrator, Housing and Social Services Department.