SUSTAINABLE HOUSING ASSET RESOURCE EXCHANGE

Mitigation Strategies for Capital Reserves Shortfalls

Mitigation Strategies for Capital Reserves Shortfalls

"SHSC has conducted numerous studies, including one in March 2004 that attempted to understand the extent to which Service Managers (or their housing providers) had completed Building Condition Assessments (BCAs), to determine the state of their stock, as well as to forecast, with some degree of accuracy, how the pooled capital reserve funds would perform in the long term. This sample of Service Managers/providers that had done capital reserves represented about 40% of the housing stock in Ontario. The study conclusions and findings demonstrate that the current level of annual contribution is not adequate to meet or sustain the capital needs of the Social Housing portfolio, although it was also noted that interpretation of the actual BCA played a role in actually assessing the extent, size and scope of the potential capital reserve shortfall."

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