AFFORDABLE HOUSING MONEY SIPHONED OFFDecember 11, 2014
QUEEN’S PARK –Today in the Ontario legislature, Ernie Hardeman, Oxford MPP and PC Critic for Municipal Affairs and Housing, asked the Minister of Municipal Affairs and Housing to request a value for money audit of the affordable housing dollars which are being diverted to the Housing Services Corporation.
“Minister, Housing Services Corporation makes their money by charging affordable housing providers a premium on gas and insurance,” said Hardeman during question period. “Will you ask the Auditor General to perform a value for money audit to find out where the money is going?”
Provincial legislation requires affordable housing providers to purchase insurance and natural gas through the Housing Services Corporation. The Housing Services Corporation funds their operation by charging the providers a premium on this service. Some providers are allowed to opt out and purchase insurance directly but they are still required to pay an additional fee equal to 2.5% of the premium to the Housing Services Corporation.
“In 2013, the CEO earned over $300,000, double what the CEO made four years ago. Plus expenses of $65,000,” said Hardeman. “That’s enough to reopen seven affordable housing units that are boarded up because of disrepair.”
Some of the other operating expenses for 2013, funded by charging affordable housing providers, include: $6.3 million in total salaries; $3.5 million in program consultants and $2 million in management fees.
In his response the Minister acknowledged that there have been abnormalities at Housings Services Corporation, but did not agree to have the Auditor General perform a value for money audit.
“The waiting list for affordable housing is 40,000 people longer than when this government came into office,” said Hardeman. “The people waiting for a home can’t afford for millions of dollars to be siphoned off to pay for this bureaucracy.”
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For more information, contact:
Ernie Hardeman, MPP Oxford