Peel Living - Annual Report 2014 · 6 PEEL LIvInG AnnuAL REPORt 2014 2014 at a glance GOvERnAnCE...

PEELLIVING A N N U A L R E P O R T 2 0 1 4

MISSIONQuality Housing and Opportunities for Success

TABLE OFCONTENTS

Message from the President 2

Message from the General Manager 3

Peel Living: An Overview 4

2014 at a Glance 6

Investing In Our Youth 8

Property Locations 16

2014 Financial Report 22

Executive Officers, Board of Directors Back Cover

2 PEEL LIvInG AnnuAL REPORt 2014

Messagefrom the President

the theme of the 2014 Annual Report “Investing in Youth” demonstrates the continued work and commitment Peel Living has to providing quality housing and opportunities for tenant success and also to the well-being of youth in Peel Region.

Peel Living houses a large number of youth in its family housing. these youth are part of a large demographic group that will make up 40 per cent of the Canadian workforce by 2020. unfortunately, many of these young people face barriers and challenges to employment or limited opportunities to gain access to quality jobs.

In an effort to contribute to reducing the impact of unemployment and limited job opportunities for youth, Peel Living sponsored and worked with partners to develop strategies and projects to invest in the success of youth. this report highlights a few of the many youth focused initiatives that Peel Living was involved in throughout the year.

As always, I am impressed with the dedication and hard work of staff and community partners for their continued commitment in providing high quality supports to Peel Living tenants. Staff’s commitment to providing service and supports is a key anchor of the high standard of service that Peel Living is known for.

As President, I chaired the Financial viability and Governance Review task team that looked at ways to ensure the sustainability of Peel Living as a leading affordable and social housing provider. the purpose of this team was to map out how Peel Living should be governed in the future and to design a new business model to address the coming end of Federal and Provincial funding programs. As a result, a new Board of Directors has been put in place as recommended by the task team in summer 2014 that is made up of six Regional Councillors and five residents of the Region of Peel. It is my pleasure to introduce the new members of the Board throughout the report. I am pleased myself to be back as a resident member and President of the new Board of Directors.

I look forward to leading the transformation of Peel Living with the new Board, staff and partners, through work that will launch the organization into a stronger future of affordable housing services, financial sustainability, accountability and added community value in the Region of Peel.

Paul Palleschi President

PEEL LIvInG AnnuAL REPORt 2014 3

Messagefrom the general Manager

throughout 2014, staff continued to advance Peel Living’s mission of providing quality housing for the success of tenants and communities in Peel. As pointed out in the President’s opening statement, Peel Living completed a review of the governance model to create a new and diverse Board of Directors responsible for guiding the transformation of the organization to ensure its long-term viability. I would like to take this opportunity to welcome the new Board of Directors and look forward to working with them as we ensure Peel Living continues to provide impactful services well into the future.

this year we launched an asset and financial viability review with the goal of looking at ways to resolve the future funding gap resulting from the completion of Federal and Provincial grant programs beginning in 2016. the first phase of this asset and financial review was completed in late 2014 and presented to the former Board of Directors; it was their recommendation that the new Board work with staff to complete next steps. the new Board has embraced this challenge and will develop a long-term financial plan for Peel Living in 2015/16.

In the meantime, Peel Living continues to face escalating financial pressures due to its overall aging building structures and rising costs of building operations. this requires the corporation to allocate a significant portion of the annual budget to address substantial capital infrastructure work. Peel Living is currently exploring alternative ways of funding its capital needs and I look forward to supporting the new Board as they find innovative ways to implement sustainable asset and financial strategies.

throughout the year, Peel Living continued to focus on interventions and support services in order to place a greater emphasis on successful tenancy outcomes rather than evictions. Our focus on customer service excellence remains a priority for Peel Living and the restructuring of the Housing Operations & Management Division in 2013 continues to produce improved contact-time and service results for tenants.

I welcome you to review the full range of 2014 achievements in this report. Many efforts in 2014 focused on investing in Peel youth. throughout this report you will find details and highlights of the many youth focused initiatives that took place over the course of the year. I salute staff for their commitment and hard work to encourage and support youth advancement in our community.

Finally, all Peel Living staff look forward to working with the new Board of Directors as they develop a strategic plan that will provide a road map for Peel Living’s future.

Mwarigha M.S. General Manager

PEEL LIvInG AnnuAL REPORt 20144

Established in 1976, Peel Housing Corporation or Peel Living is a not-for-profit social housing provider owned by the Region of Peel. Peel Living focuses on providing community, property and tenancy management services that not only meet industry-wide standards of excellence but also foster empowered residents and thriving communities.

the Peel Living portfolio includes 68 buildings consisting of high and low-rise apartments, as well as townhouses. Peel Living also manages six Regionally-owned buildings, two transitional housing properties and three shelters. the demographic make-up of Peel Living communities, relative to the Region as a whole, is highly populated with children (45 per cent) and seniors (20 per cent).

7,657HOMES

3,412 SEnIORS

7,111

PeeL LIVINg Overview

CHILDREnand YOutH

3rd LARGESt SOCIAL HOuSInG

PROvIDER In OntARIO

16,232 tEnAntS

3 2

SHELtERS

tRAnSItIOnAL HOMES


2014 at a glance

GOvERnAnCEAfter carefully reviewing the governance model of Peel Living, Peel Regional Council approved a new structure for the Board of Directors in 2014. the Board is made up of a group of six councillors and five residents. the Region of Peel as owner of Peel Living selected these five residents in January 2015 through a public process.

COMMunItY EnGAGEMEntGarden Gate families participated in Earth Day activities helping cleanup and support planting initiatives at the property. tenants at Glenway, Gran Colombia and Colonial also received planting materials to support gardening initiatives in 2014. these and other initiatives showcase an enhanced level of tenant leadership in their communities.

tEnAnt EXPERIEnCEMeetings with individual tenants increased by 52 per cent in 2014 – totalling 1,123 meetings throughout the year. this helped increase the successful tenancy rate to 94 per cent in 2014 – an increase of 5 per cent from 2013. As a result, Peel Living has a very low eviction rate while ensuring tenants meet their rental payment responsibilities.

Maintenance request times for tenants improved from 2.5 days in 2013 to 1.4 days in 2014. 94%

SuCCESSFuLtEnAnCY

RAtE only 1.4 days

2015 Board of Directorsgael Miles, VICe-PResIDeNT “Nothing is more important than the safety and security of one’s family, home and community. It is our responsibility to provide youth with the right supports and connections to reach their potential. The well-being, health and prosperity of our residents are priorities and each of these is essential to empowering our community.”

2015 Board of DirectorsPaul Palleschi, PResIDeNT

“My goal has always centered around providing a safe and healthy environment for our tenants while continuing to provide service excellence by our employees. For us to fulfill our mandate of providing safe and affordable housing for those in need, we require the financial support of both the Provincial and Federal Government.”


2015 Board of DirectorsDianne austin “Having worked and volunteered with vulnerable people all my life, I know the true value that having a place to call home brings to one’s wellbeing. By sitting on the Peel Living Board of Directors, I have the opportunity to lend my skills towards building a stronger community that ensures all citizens have a safe and affordable place to live.”

2015 Board of DirectorsFrank Dale “Peel Living provides an important service within our community. Our Region is a better place as a result of the hard work and dedication of Peel Housing Corporation staff and the Board of Directors. I am pleased to be a part of this vital organization.”

Business efficiencyPeel Living piloted a lighting retrofit using LEDs at Wedgewood aimed at monitoring energy savings. Savings totaled approximately $18,000 by 2014 year-end.

Lighting audits were completed for all common areas in 49 Peel Living Buildings. the results of these audits were used to apply for available government rebates of up to 50 per cent of costs for energy reduction.

youth initiatives

Peel Living youth participated in the Peel

Excellence Conference, with mentors helping youth realize their academic and career goals

Peel Living youth were hired by agencies in Peel to gain employment experience and job skills

60

TweNTy

university and college students were hired to

enhance the curb appeal of buildings and communities over the summer

32

2014 at a glance


the focus for Peel Living throughout 2014 was to enhance our commitment and programs to invest in the future generation.

Often times Peel Living works closely with partners in the community to support youth. through these partnerships, we are able to find innovative solutions to creating employment opportunities for youth in need. A great example of this was the Gate Project at Middleton Way. With limited resources and gates in need of repair, Peel Living partnered with St. Leonard’s Place who worked with youth to finish the job. the participants learned valuable carpentry skills and gained four months of work experience. In addition to these benefits, the gates were completed at half the cost of the original vendor quote.

Project Youth-on-a-Roll is a program similar to the Gate Project but on a larger scale. With the help of the YMCA and the Boys and Girls Club of Peel, 23 youth were hired – 18 of whom belong to the Peel Living community. these youth were hired to paint seniors units in five Peel Living buildings throughout July and August. the 23 participants gained work experience and training but more importantly, they reconnected with their neighbourhood, other youth and the seniors they were helping.

the program also arranged four life skill sessions over the course of the summer, which covered topics such as money management and basic employment.

INVesTINg In Our youth

70unItS

6 LOunGES

8 HALLWAYS

10 ELEvAtOR DOORS

175 DOORS

Project youth-on-a-Roll Painted…

…over an 8 week period.

2015 Board of Directorssammy elias “I am honoured to join the Peel Living Board of Directors. Peel Living strives to develop the kind of innovation in social housing that other cities around the world will one day recognize as crucial for the long-term sustainability of social housing. I am very proud to be part of this effort.”



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Sometimes we respond to the unique needs of youth at a specific site. Children in the community surrounding 121 Acorn Place were restless and in need of positive engagement. Peel Living invited the Boys and Girls Club of Peel to run a drop-in program after school at the building to provide a safe and fun environment for these families. the program allows participants a place to complete homework, learn to cook and make crafts. For some of the older youth, job opportunities were available throughout the year and high school students were able to submit their participation as part of their 40 hours of required community service. Many of our participants aged 13-20 have been participating since they were just four years old, proving to us how valued this program is to our community.

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“I was surprised by how enlightening a mundane task such as painting could be, but that’s exactly what many of these conversations with seniors prove to be, enlightening. It’s surprising to see how similar they are to us, and how similar we are to each other.”

“Youth-on-a-Roll has allowed me to have employment for the summer, which I enjoyed because it has prepared me for the responsibility of a 9-5 job that I will have one day. I will forever remember this as a positive experience and I hope next year more youth have the same opportunity.”

2015 Board of DirectorsChris Fonseca “Approximately 28% or 10,000 of all homeless people in the GTA are youth. The overall quality of life for residents in Peel on a long-term basis is crucial. With a strategic plan, safe and affordable housing can be provided which targets the specific needs to house as many homeless people as possible.”

11PEEL LIvInG AnnuAL REPORt 2014


11

the Peel Excellence Conference is for students between the ages of 11-21 as well as their parents and features prominent members of the Caribbean community as they mentor youth and offer career advice and guidance. these mentors touch on topics such as career path, educational requirements and success factors for owning and operating your own business. the conference is free for participants and offers access to professionals across a variety of fields including doctors, engineers and graphic designers.

Peel Living became involved with the Peel Excellence Conference as a way to strengthen the community and enable our youth to advance their personal ambitions. We encouraged the youth in our buildings to participate and offered both transportation and meal tickets for those attending. Peel Living also arranged for a summer student to assist with logistics and coordination on the day of the event. In total, 60 Peel Living families attended the conference in 2014 – a number we hope will continue to grow.

2015 Board of DirectorsVeronica Hall “I believe safe, well-maintained and affordable housing plays an important role in an empowered and healthy community. I look forward to my ongoing engagement with Peel Living as we continue to move forward into a sustainable and strong future focused on serving and building our growing community.”



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In 2014, Peel Living hired the largest number of summer students to date, 32. Students were assigned to work at Peel Living sites, in the Peel Region head office helping with administrative duties or off-site offering technical support. We used feedback from previous students to enhance the program in 2014 and will continue to evolve based on the needs of students in the future.

this year, we also wanted to invest in opportunities that would provide a more meaningful experience for our students. We worked closely with students to strengthen resume development, life skills and increase knowledge of financial literacy. throughout the summer, we created short-term project opportunities that were in line with student career paths or areas of study to help enhance their resume. Students also had the opportunity to network with Region of Peel staff to receive career advice and guidance. We’re proud to say that student morale was higher in 2014 than ever before thanks to more frequent one-on-one meetings, a higher level of responsibility and the opportunity to provide feedback.

2015 Board of DirectorsRanil Mendis “As a passionate supporter of inspiring and motivating young people through sports, I am delighted to be joining the Peel Living Board in a year focused on youth. An active and engaged community is essential to finding solutions for the housing challenges we face and I am very much looking forward to guiding that process.”



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2015 Board of DirectorsCarolyn Parrish “Providing youth with a safe and comfortable home is essential to their success. How can anyone prosper in their education or job if they’re worried about where to sleep or bathe? Housing is one of our most basic needs – when we meet this need, we give our neighbours a much better chance to flourish.”

Our annual summer student program is not the only way we work directly with students. We wanted to be innovative about taking a fresh look at Peel Living operations and future opportunities. We knew immediately that students were the best fit for this type of project. We tasked MBA students in the Strategic Field Studies Program at Schulich School of Business with this special assignment. Students met with members of Peel Living and the Financial Support unit, they gathered data, conducted research and after six months compiled a financial analysis and report. the report included recommendations on the future for Peel Living, one of which has already come to life – the new governance model was a suggestion in the report.

“the highlight of my experience was the networking opportunity because Peel Living allowed us to actually look into stuff we want to do later in our careers. I really liked that because I got in touch with someone in the health field and that really helped me out.”

“My highlight would be getting to know the tenants because it made me feel like I was part of the community.”

“Peel Living was able to find things that suit my educational background and I’ve been able to use what I’ve learned to get some practical work experience.”


2015 Board of Directorselaine Moore “Housing should be a fundamental right for every Canadian and we areresponsible for putting our collective efforts, ideas and energy into exploringnew and better ways to put a roof over everyone’s head.”



this partnership is a great example of the mutual benefits of tapping into the minds of our youth. these students were able to complete research and field education requirements and we received analysis and commentary from an exciting new perspective.

Finally, we’re proud to announce that we have won the 2014 Innovation Award for Creative Solutions at the together We’re Better Awards for all of the youth initiatives highlighted above. Our community as a whole benefits from these solutions as we enable youth to prepare themselves for future opportunities.

In 2020, today’s youth will make up 40 per cent of the work force. Peel Living is investing in youth today, to benefit our community tomorrow.

2015 Board of DirectorsBarb shaughnessy “In my past career, I designed homes and institutions to meet changing lifestyle needs. I’m also a community champion at heart. I believe all people should live with dignity as well as a sense of community and belonging. I am looking forward to serving on the Peel Housing Corporation Board of Directors.”


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Peel Living Properties in Mississauga

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Peel Living Properties in Mississauga

Property Locations – Peel Housing Corporation


Peel Living Properties in MississaugaIndex Project Name Year Built Total Units

1 Angela’s Place 2005 20

2 Arcadia Glen 1981 81

3 Bella vista Place 1984 199

4 Britannia Place 1988 123

5 Caroline Street 1977 60

6 Castlebrooke (the) 1995 120

7 Cliff Road 1973 69

8 Colonial terrace 1991 96 Walk-ups, 30 townhouses

9 Confederation Place 1995 121

10 Creditbend terrace 1991 69

11 Creditvale Mills* 2013 250

12 Derrybrae Place 1993 129

13 East Avenue 1967 30

14 Erindale terrace 1984 144

15 Etude Drive 1974 50

16 Fairview Place 1984 96

17 Forster terrace 1989 152

18 Gardenview Court 1989 180

19 Glenway Court 1989 110

20 Gran Colombia 1992 77

21 Hammond Road 1988 8 beds

22 HIAPH 1992 7 beds

23 Hillside Place 1984 129

24 King Street 1974 121

25 Lakeside Court 1996 81 Apt., 10 townhouses

26 Lakeview Promenade 1991 112 Apt., 10 townhouses

27 Mason’s Landing 1982 120 Apt., 30 townhouses

28 Meadows (the) 1983 125

29 Millbrook Place* 2003 163

30 Peel Youth village 2005 61

31 Queen Frederica 1967 198 (Bng & tH), 1972 (Apt)

32 Redmond (the) 1992 125

33 Ridgewood Court 1986 144

34 Riley Court 1983 146

35 South Common Court 1981 140

36 Springfield Gardens 1990 238

37 Springmill terrace 1981 131

38 Stavebank Road 1970 97

39 Summerville Pines 2005 136

40 Surveyor’s Point 1992 158

41 Sydenham Place 1984 77 Apt., 30 Walk-ups

42 twin Pines 1958 217

43 Weaver’s Hill 1992 254

44 Westwood Place 1987 41

45 William Street 1971 22

*Region of Peel owned.


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Peel Living Properties in CaledonIndex Project Name Year Built Total Units

1 Jane Place 1970 & 1975 28

2 Maple Grove 1977 28

3 Pinnacle view 1992 29

4 Riverview terrace 1983 53

5 Stationview Place 1992 82

6 Walker Road 1977/2008 38



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Peel Living Properties in BramptonIndex Project Name Year Built Total Units

1 Central Park 1975 45

2 Chamney Court 1983 64

3 Chapelview* 2010 200

4 Chelsea Gardens 1992 250

5 Clipstone Court 1992 6

6 Conover (the) 1988 106

7 Drury Crescent 1990 8 beds

8 Fair Oaks Place 1994 126 Apt., 22 townhouses

9 Fletcher’s view 1988 101

10 Garden Gate Circle 1992 46 Walk-ups, 18 townhouses

11 Graham Court 1987 45

12 Knightsbridge 1979 90

13 Manorbridge 1986 98

14 Maple Avenue 1977 101

15 McHardy Court 1970 48 Apt., 98 townhouses

16 MIddleton Way 1981 153

17 nance Horwood Place* 2010 30

18 newhaven Manors 1984 143

19 Park Estates Court 1986 18

20 Parkholme Place 1986 31

21 Snelgrove Place* 2011 94

22 Wedgewood Court 1986 81

23 Whillans Gate 1991 122

*Region of Peel owned.


Deloitte LLP 5140 Yonge Street Suite 1700 Toronto ON M2N 6L7 Canada Tel: 416-601-6150 Fax: 416-601-6151 www.deloitte.ca

Independent Auditor’s Report To the Board of Directors of Peel Housing Corporation We have audited the accompanying financial statements of Peel Housing Corporation, which comprise the statement of financial position as at December 31, 2014, and the statements of operations, remeasurement gains and losses, change in net debt and cash flows for the year then ended, and a summary of significant accounting policies and other explanatory information. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Canadian public sector accounting standards, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.


Page 2

Opinion In our opinion, the financial statements present fairly, in all material respects, the financial position of Peel Housing Corporation as at December 31, 2014, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards.

Chartered Professional Accountants, Chartered Accountants Licensed Public Accountants May 7, 2015


Peel Housing CorporationStatement of Financial Position As at December 31

2014 2013(Restated - see

Note 3)

Financial assets Investments, unrestricted (Note 4) 9,749,710$ 16,253,390$ Accounts receivable (Note 5) 6,292,993 5,072,999 Investments, restricted (Note 4) 9,815,878 9,509,509

25,858,581 30,835,898

Liabilities Accounts payable and accrued liabilities (Note 7) 8,817,160 15,550,697 Rental deposits 4,240,074 4,153,245 Post-employment liabilities (Note 3 and 8) 107,814 106,033 Mortgages payable on income producing properties (Note 9) 241,403,420 262,863,458 Long term debt (Note 10) 30,800,183 24,050,175

285,368,651 306,723,608

Net debt (259,510,070) (275,887,710)

Non-financial assets Tangible capital assets (Note 6) 449,960,273 460,809,379 Prepaid expenses 1,206,907 1,029,814

451,167,180$ 461,839,193$

Accumulated surplus (Note 12) 191,657,110$ 185,951,483$

Accumulated surplus comprising: Accumulated operating surplus 191,242,598$ 185,590,447$ Accumulated remeasurement gains 414,512 361,036

191,657,110$ 185,951,483$

The accompanying notes are an integral part of these financial statements.

On behalf of the Board

_____________________ Paul Palleschi, President

_____________________ Gael Miles, vice President

_____________________ David Bingham, treasurer


Peel Housing CorporationStatement of Operations As at December 31

2014 2014 2013

Budget Actual Actual

(Restated - see Note 3)

Revenues Rental income 64,121,855$ 64,288,113$ 62,919,362$ Non-rental income 4,891,601 4,977,335 4,935,739 Interest income from operations 215,299 661,160 318,161 Government grants 34,172,675 32,417,833 33,124,782 Investment Income 208,560 605,861 1,139,044 Contributed capital (Note 11) 23,750 23,750 23,750 Contributed capital assets - - 633,039Total revenues 103,633,740 102,974,052 103,093,877

Expenses (Notes 3 and 14) Social housing 96,088,129 97,321,901 94,915,986Total expenses 96,088,129 97,321,901 94,915,986

Annual operating surplus 7,545,611 5,652,151 8,177,891

Accumulated operating surplus, beginning of year 185,590,447 185,590,447 177,412,556

Accumulated operating surplus, end of year 193,136,058$ 191,242,598$ 185,590,447$



Peel Housing CorporationStatement of Remeasurement Gains and Losses As at December 31

2014 2013(Restated - see

Note 3)

Accumulated remeasurement gain, beginning of year 361,036$ 763,048$

Unrealized gain attributable to:

Investments 450,777 403,391

Remeasurement gain for the year 450,777 403,391

Realized gain recorded in statement of operations (397,301) (805,403)

53,476 (402,012)

Accumulated remeasurement gain, end of year 414,512$ 361,036$



Peel Housing CorporationStatement of Change in Net Debt As at December 31

2014 2014 2013Budget Actual Actual

Annual operating surplus 7,545,611$ 5,652,151$ 8,177,891$

Acquisition of tangible capital assets - (78,596) (2,527,566)

Amortization of tangible capital assets 10,927,702 10,927,702 10,903,316

Contributed tangible capital assets - - (633,039)

18,473,313 16,501,257 15,920,602

Acquisition of prepaid expenses - (1,519,119) (1,373,887)

Use of prepaid expenses - 1,342,026 1,569,521

-$ (177,093)$ 195,634$

Net remeasurement gains (losses) - 53,476 (402,012)

18,473,313 16,377,640 15,714,224

Net debt, beginning of year (275,887,710) (275,887,710) (291,601,934)

Net debt, end of year (257,414,397)$ (259,510,070)$ (275,887,710)$



Peel Housing CorporationStatement of Cash Flows As at December 31

2014 2013

(Restated - see Note 3)

Operating activitiesAnnual operating surplus 5,652,151$ 8,177,891$

Items not involving cash

Amortization of tangible capital assets 10,927,702 10,903,316

Contributed tangible capital assets - (633,039)

Change in post-employment liabilities 1,781 1,441

Net remeasurement gains (losses) for the year 53,476 (402,012)

Change in non-cash assets and liabilities

Accounts receivable (1,219,994) (2,908,709)

Accounts payable and accrued liabilities (6,733,537) 10,989,815

Rental deposits 86,829 400,843

Prepaid expenses (177,093) 195,634

Net change in cash from operating activities 8,591,315 26,725,180

Capital activity Acquisition of tangible capital assets (78,596) (2,527,566)

Net change in cash from capital activity (78,596) (2,527,566)

Investing activities Decrease (increase) in unrestricted investments 6,503,680 (9,263,044)

(Increase) decrease in restricted investments (306,369) 3,021,127

Net change in cash from investing activities 6,197,311 (6,241,917)

Financing activities Proceeds from Peel Region loan 6,773,758 2,527,565

Repayment of long-term debt (23,750) (23,750)

Repayment of mortgages payable (21,460,038) (20,459,512)

Net change in cash from financing activities (14,710,030) (17,955,697)

Net change in cash - -

Cash, beginning of year - -

Cash, end of year -$ -$

Cash paid for interest 10,487,225$ 12,281,274$

Cash received from interest 736,733 582,026



PEEL HOUSING CORPORATION Notes to the Financial StatementsFor the year ended December 31, 2014

1. Introduction

Peel Housing Corporation (the "Corporation") was incorporated under the Ontario Business Corporations Act in 2003. The Corporation has issued 100 common shares which are owned entirely by The Regional Municipality of Peel. The Corporation was formed as a result of the amalgamation effective January 1, 2003 of Peel Non Profit Housing Corporation with Peel Regional Housing Corporation. The amalgamation was accounted for using the continuity of interest method. The Corporation is a not-for-profit organization that provides and operates housing accommodation for people with low and modest income in the Region of Peel.

Effective October 1, 2001, the Region of Peel assumed from the Province of Ontario responsibility as Service Manager for social housing located in the Region of Peel. Effective January 1, 2012, the Corporation manages and operates its social housing units under the provisions of Housing Services Act and related regulations.

The Region of Peel, sole shareholder of Peel Housing Corporation, approved a recommended change to the structure of the Board of Directors at a shareholder meeting on September 4, 2014. The Board of Directors will be composed of six Regional Councillors and five volunteers who are residents of Peel Region. All eleven will be named by Regional Council.

2. Accounting policies

The financial statements of the Corporation are the representation of management and are prepared in accordance with Canadian public sector accounting standards, as recommended by the Public Sector Accounting Board (“PSAB”) of the Chartered Professional Accountants of Canada (“CPA Canada”).

The focus of PSAB financial statements is on the financial position of the Corporation and the changes thereto. The statement of financial position reports the financial assets and liabilities, and the non-financial assets of the Corporation. Financial assets are those assets that could provide resources to discharge existing liabilities or finance future operations. Accumulated surplus represents the financial position and is the difference between assets and liabilities. This provides information about the Corporation’s overall future revenue requirements and its ability to finance activities and meet its obligations.

a) Basis of Accounting

i. Accrual method of accountingThe Corporation follows the accrual method of accounting. The accrual basis of accounting recognizes revenue in the period in which the transactions or events occurred that gave rise to the revenues. Expenses are the cost of goods or services acquired in the period, whether or not payment has been made or invoices received.

ii. Recognition of rental income


Rental income relates to rent revenue earned on the lease of the Corporation’s social housing units. Revenue is recognized as earned over the term of the lease.

iii. Recognition of government grantsGovernment grants are recognized in the financial statements in the period in which the events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met, reasonable estimates of the amounts can be made, and there are no stipulations which give rise to a liability.

iv. Recognition and measurement of financial instruments The Corporation accounts for its accounts receivable, investments, accounts payable and accrued liabilities, and long term debt according to the Public Sector Accounting Board’s standards for accounting and reporting financial instruments. Portfolio investments held in equity instruments that are quoted in an active market are reported at fair market value in the financial statements.

The fair value of investments is determined by the combination of the fair market value of $2.8 million (2013 - $2.5 million) of investments with Encasa Financial Inc.(“Encasa”) and a pro-rated portion of Region of Peel's investments to reflect the fact that the balance of Peel Housing Corporation's investments is pooled with Region of Peel. Only the Encasa investment is reported at market value in the financial statements. Transaction costs are expensed as incurred.

v. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate respective fair values due to their relatively short term maturity. The carrying value of the long term debt and vendor mortgage portfolio approximatesfair value due to the terms and conditions of the borrowing arrangements compared to current market conditions of similar items.

vi. Tangible capital assetsTangible capital assets are recorded at cost, which includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost, less residual value, of tangible capital assets, excluding land, are amortized on a straight-line basis over their estimated useful lives as follows:

Assets Useful life – yearsBuildings 20 – 100Building improvements 8 – 100Equipment and furnishings 3 – 80Vehicles 3

Annual amortization is charged in the year of acquisition and in the year of disposal. Assets under construction are not amortized until the asset is in service.

vii. Contributions of tangible capital assetsTangible capital assets received as contributions are recorded at their fair value at the date of receipt and are also recorded as revenue.


viii. Accounts receivableThe rent receivable portion of accounts receivable includes backdated rent receivables as determined in accordance with the Housing Services Act. These are established at the point of discovery.

ix. Capitalization of costsThe Corporation capitalizes all development or construction related direct costs to income-producing property under construction. These costs include realty tax, project management fees, interest on construction loans and/or the interest relating to short-term bridge financing.

x. ReservesThe reserve for the replacement of capital property is established for each operating project according to the terms of the agreements. The annual reserve contribution is not to exceed the amounts prescribed by the Agreements or such amount as amended by either Canada Mortgage and Housing Corporation or the Ontario Ministry of Municipal Affairs and Housing.

The energy conservation reserve was established by the Board of Directors with a view to reduce utility costs. Interest is to be paid calculated on 100 basis points above the Canada Bond Yield’s rate having a term to maturity equivalent to the term the reserve is being asked to invest.

The working fund reserve was established by the Board of Directors with a view to provide for unforeseen contingencies for which alternative financing cannot be arranged.

xi. Mortgages payable on income producing propertiesOn the interest adjustment date, construction loans payable are transferred to mortgages payable on income-producing property. The interest adjustment date represents the effective date for commencement of mortgage payments and receipt of government grants based on the original mortgage commitment obtained to finance the project. To the extent that final mortgage requirements may differ from the original mortgage commitment when final construction costs are known, mortgages payable on income-producing property are adjusted accordingly.

xii. Use of estimatesThe preparation of financial statements in conformity with the Canadian public sector accounting standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities and the reported amounts of revenue and expenses during the period. Significant estimates relate to accounts receivable, accrued liabilities, and amortization. Actual amounts could differ from those estimates.

3. Restatement of post-employment liabilities

In 2014, a full actuarial valuation was completed for the Region of Peel, including the Corporation, with respect to non-pension retirement liabilities for extended health care, dental, health care spending account and life insurance. As part of the process, it was noted, that the previous valuations treated enrolled members in receipt of long-term


disability and WSIB benefits as inactive. Based on a review of the benefits provisions for the Region and the Corporation, it was determined that treatment of such members as continuing to receive active services benefits was more appropriate. As a result, a revised valuation of the post-employment liabilities was completed, and has been reflected in the financial statements retroactively, as follows.

2013Previously

statedAdjustment Restated

Statement of Financial Position $ $ $Post-employment liabilities 68,081 37,952 106,033Accumulated surplus 185,989,435 (37,952) 185,951,483

Statement of OperationsSocial housing expense 94,920,055 (4,069) 94,915,986Accumulated surplus, beginning of year 177,454,577 (42,021) 177,412,556Accumulated surplus, end of year 185,628,399 (37,952) 185,590,447

4. Investments

The Corporation’s investments of $2,896,596 (2013 - $2,500,000) with Encasa Financial Inc.had a fair market value of $3,311,108 as at December 31, 2014 (2013 - $2,861,036). The net accumulated unrealized gain of $414,512 (2013 - $361,036) for restricted investments is reported in the statement of remeasurement gains and losses and in the statement of financial position as an increase to restricted investments.

The balance of Corporation funds are with the Region of Peel for investment purposes which earn interest based on the Region of Peel's investment yield.

As at December 31, 2014, the Corporation’s unrestricted investments had a fair market value of $10,110,258 (2013 - $16,552,848).

At December 31, 2014, the Corporation's restricted investments had a fair market value of $10,056,427 (2013 - $9,632,003). Rental deposits and reserve funds established by legislation or by the Board are disclosed as a restricted investment.

5. Accounts receivable

Accounts receivable consists of the following:2014 2013

Rents $ 781,660 $ 928,534HST receivable 445,632 927,009Other 710,105 3,217,456Region of Peel 4,355,596 - Total $ 6,292,993 $ 5,072,999


6. Tangible capital assets

December 31, 2014Cost

AccumulatedAmortization

Net Book Value

Land $ 141,860,082 $ - $ 141,860,082

Buildings 542,351,805 235,434,814 306,916,991

Building improvements 988,557 326,266 662,291

Equipment and furnishings 676,811 166,333 510,478Vehicles 21,961 11,530 10,431

Total $ 685,899,216 $ 235,938,943 $ 449,960,273

December 31, 2013Cost

AccumulatedAmortization

Net Book Value

Land $ 141,781,486 $ - $ 141,781,486

Buildings 542,351,805 224,587,699 317,764,106

Building improvements 988,557 288,734 699,823

Equipment and furnishings 676,811 125,255 551,556

Vehicles 21,961 9,553 12,408

Total $ 685,820,620 $ 225,011,241 $ 460,809,379

7. Accounts payable and accrued liabilities

The amount due to the Region of Peel at December 31, 2014 of $Nil (2013 – $3,999,829) is included in accounts payable and accrued liabilities, and does not bear interest and has no specific terms of payment.

Long term debt payable to the Region of Peel is disclosed in note 10.


8. Post-employment liabilities

The liability for retirement benefits on the statement of financial position is the result of a full actuarial valuation as at December 31, 2014 for the Corporation’s share of costs associated with extending the coverage for health, dental and life insurance benefits to qualifying employees. Benefit coverage, except for life insurance coverage, ceases at the age of 65.

The following significant actuarial assumptions adopted in the valuation were based on management’s best estimates.

• Future discount rate 4.75 per cent per year • Future inflation rate 2.0 per cent per year• Future salaries Escalate at 3.0 per cent per year • Future dental premium rates Escalate at 8.160 per cent from 3 year

average 2012-2014 to 2015 then 4.0 percent per year from 2015 to 2016 and eachsubsequent year

• Future health care premium rates Escalate at 9.092 per cent from 3 yearaverage 2012-2014 to 2015 then 4.0 per cent per year from 2015 to 2016 and each subsequent year

The following are the actuarial results for the accrued benefit liability reported on the statement of financial position:

9. Mortgages payable on income producing properties

Mortgages are secured by a first charge on specific assets of the Corporation with amortization periods that ranged from 5 to 50 years and interest ranging from 1.62% to 9.5%. Generally, interest rates are fixed for 10 years.

Retirement benefits liability 20142013

(Restated – see Note 3)

Accrued benefit obligation at January 1 $ 106,033 $ 104,592Add benefit service cost 4,161 3,857Add interest accrued 4,705 4,600Deduct benefit payments (7,085) (7,016)Accrued benefit obligation at December 31 107,814 106,033Liability at December 31 $ 107,814 $ 106,033

Retirement benefits expense 2014 2013Current period benefit cost $ 4,161 $ 3,857 Interest on accrued benefit obligation 4,705 4,600Total $ 8,866 $ 8,457


Estimated principal repayments in respect to these mortgages for the years 2014-2019 and thereafter are as follows:

Principal Reduction

2015 22,438,9152016 22,993,8632017 22,092,9292018 20,981,2312019 19,048,415Subsequent to 2019 133,848,067Total $ 241,403,420

10. Long term debt

Long term debt consists primarily of three loans from the Region of Peel and forgivable loans with the provincial government associated with some of the properties developed with the Region of Peel. The first Regional loan is for Summerville and the current term is 4.7% for ten years from March 6, 2006 to March 5, 2016, amortized over 35 years; payment made are based on the operating surplus of the project. The second Regional loan is payable over 15 years commencing with the various property locations’ respective Operating Agreement end dates. The third Regional loan is for the purchase of land adjacent to Twin Pines, with an interest rate of 3.2%, with an open term to repay. The provincial loans will be forgiven after 20 years once program requirements have been met. The majority will be forgiven in the year 2025.

The long term debt also includes an amount due to the tenants association of Twin Pines and was contributed by its members. A contribution is repayable to the members of the tenants association on termination of memberships with the association. Interest is payable at the lesser of $5,000 or 1% of the principal balance outstanding per annum.

Long term debt 2014 2013Region of Peel loan 2005 Summerville Pines $ 11,480,646 $ 11,480,646Region of Peel loan Service Manager capital reinvestment 13,699,123 7,003,964Region of Peel loan 2013 land acquisition 2,606,164 2,527,565Provincial loans (forgivable) 2,014,250 2,038,000Twin Pines Member Associations 1,000,000 1,000,000Total $ 30,800,183 $ 24,050,175

11. Contributed capital

The following summarizes changes to the balance for contributed capital.

Contributed capital 2014 2013Balance at the beginning of the year $ 18,760,004 $ 18,736,254Assisted Housing in Peel forgivable loan 23,750 23,750

Total contributed capital $ 18,783,754 $ 18,760,004


12. Accumulated surplus

The accumulated surplus consists of the following:

13. Surplus / (Deficit) from Housing Program AdministrationOverhead costs are related to administrative functions performed by the Region of Peel and are allocated based on the buildings’ weighted unit count.

Accumulated surplus 20142013

(Restated –see Note 3)

Accumulated operating surplus:Investment in tangible capital assets $ 175,738,586 $164,585,373Reserves 9,802,835 8,630,707 Contributed capital 18,783,754 18,760,004Capital fund (13,699,123) (7,003,964)Accumulated surplus from operations 724,260 724,260Unfunded liability – retiree benefits (107,814) (106,033)Common shares 100 100

191,242,598 185,590,447Unrealized gain on restricted investments 414,512 361,036Total accumulated surplus $ 191,657,110 $185,951,483

2014 2013Total revenue $ 963,449 $ 672,325Less: expenses 10,978,516 10,055,492 Deficit before the under noted items (10,015,067) (9,383,167)Transfer of investment income to reserve funds (208,560) (333,641)Transfer of investment revenue to last month’srent

(32,540) (97,650)

Transfer of investment income to operations (495,633) (150,734)Transfer of insurance saving to reserve (129,926) - Administrative expense recovered from operations 9,575,960 8,966,424Administrative allocation to Region of Peel buildings

1,305,766 998,768

Surplus/deficit from housing program administration

$ - $ -


14. Expenses by objectThe statement of operations reports expenses for the Corporation by function. The following is a summary of expenses by object.

15. Contingent Liabilities

As at December 31, 2014, the Corporation has certain legal disputes outstanding arising in the ordinary course of operations. No provision has been made in 2014 for costs or losses, as all claims are expected to be covered by insurance or the consequences are undeterminable at this time.

16. Risks

a) Credit riskThe Corporation is subject to credit risk from its tenants as a result of counterparty default. This risk is mitigated by prudent monitoring procedures.

b) Interest rate riskThe Corporation is subject to interest rate fluctuations on its mortgages and long term debt. The Corporation currently does not use any hedging strategies to mitigate this interest rate exposure.

c) Market riskMarket risk arises as a result of trading in fixed income securities. Fluctuations in the market expose the Corporation to a risk of loss. The Corporation mitigates this risk through its cash management process and compliance with the approved investment policy.

20142013

(Restated – see Note 3)

Salary and wages $ 5,144,483 $ 4,434,034Municipal taxes 12,413,662 11,824,464Amortization 10,927,702 10,903,316 Debt interest charges 10,487,225 11,699,248 Other operating expenses 58,348,829 56,054,924

Total $ 97,321,901 $ 94,915,986


17. Commitments

The Corporation has obligations under non-cancellable operating leases with the Region of Peel for various service agreements.

The payments to the expiry of the leases and agreements are as follows:

Principal Reduction

2015 $ 2,711,1322016 2,726,9992017 2,740,6182018 2,754,4372019 2,768,462Subsequent to 2019 80,833,586Total $ 94,535,234


NOTES:

Richard Whitehead

As one of the original founders of Peel Regional Housing Corporation (PRHC) in 1976, Richard Whitehead was an active Peel Living Board member for over 30 years. During his tenure on the Peel Living Board, Richard served with expertise, awareness and dignity contributing significantly to the growth and transformation of Peel Housing Corporation as we know it today.

The Peel Living Board of Directors, staff and tenants will miss Richard dearly and will always remember him for his countless contributions to the community.

In MEMORIaM

HUM-0074 15/06 (rev.)

2014 Peel Living Board Of DirectorsGeorge Carlson

Bonnie Crombie

Frank Dale

Susan Fennell

Patti Foley

Chris Fonseca

Sandra Hames

Nando Iannicca

Emil Kolb

Katie Mahoney

Sue McFadden

Gael Miles

Elaine Moore

Marolyn Morrison

Patricia Mullin

Paul Palleschi

Richard Paterak

Pat Saito

John Sanderson

John Sprovieri

Ron Starr

Allan Thompson

Jim Tovey

Richard Whitehead

2014 Peel Living Executive OfficersPaul Palleschi

President

Patricia MullinVice-President

David SzwarcChief Administrative Officer

Mwarigha M.S.General Manager

David BinghamTreasurer

Patrick O’ConnorCorporate Counsel

Ava MacintyreCorporate Secretary

Janet MenardCommissioner

Human Services

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