Let CHF Canada be your co-op’s first choice for financial and long term asset planning tools, advice, products and services.
As co-op buildings age members face an entirely new set of challenges and opportunities and often find themselves without the money, know-how and resources needed to address the capital repair deficits that have accumulated over the years.
CHF Canada is committed to helping members protect the long-term social, economic, and environmental resilience of our sector. We strive to keep our co-op communities thriving and sustainable in the future by offering long-term planning, refinancing and sustainability services.
We Help Your Co-op:
Acquire the technical reports (engineering studies) needed for long-term planning.
If your co-op doesn’t have a BCA (Building Condition Assessment) carried out by a professional engineering firm or it is out of date (more than three years old) our team can help you commission one. The building condition assessment is the foundational report for long term planning and financial decisions
Apply for grants or funding.
Often, co-ops can apply to have some or all of the required reports paid for through special funds established by CMHC, provincial grants or sector funding. We can support you throughout the application process and help you identify the reports you may need.
Develop an Asset Management Plan (AMP).
Once the BCA is completed and reviewed by the co-op, it is time to turn those findings into capital repair plans and financial projections that make sense to the co-op. See here for more information about CHF Canada’s Asset Planning Services.
Acquire other reports.
Depending on the findings from the BCA and AMP, additional reports may be necessary. For example, you may need a report that investigates drainage issues, retaining walls, or potential energy savings. If the AMP recommends refinancing, it may be time to secure an appraisal and environmental site assessment.
A co-op with a federal agreement may need approval for short term capital plans from the Agency for Co-operative Housing, CMHC or a provincial or municipal (Ontario) regulator to refinance. You should contact us and we will let you know what you need to do.
Technical reports identify co-op buildings’ current issues and help understand the co-op’s capital requirements. They reveal whether the buildings are equipped to meet members’ needs today and in the long-term.
Knowing what repairs and replacements need to happen, and when, is critical for the co-op’s financial health and sustainability in the long run.
CHF Canada can help your co-op procure the services of qualified professionals to:
Evaluate the current condition of co-op buildings: A Building Condition Assessment (BCA) is conducted by a certified building science professional to provide a report on the condition of the co-op’s buildings including necessary repairs.
The report is a core planning document for the co-op identifying necessary repairs and replacements along with the associated cost estimates and timelines.
We will help prepare and send a request for proposals to qualified companies, analyze the proposals you receive, review the draft BCA reports, and ensure delivery of a quality product.
Based on the BCA recommendations and the co-op’s priorities, the AMP will provide a short to medium-term and long-term capital expenditure schedule to carry out repairs and replacements in the most beneficial manner.
If co-ops are looking for information on building capital repair needs, please visit our educational webinar Where to Start: Building Envelope Repairs
provide recommendations that will lower your energy costs through Energy and Environmental Audits.
assess co-op building condition, explore opportunities to accommodate older members and members with special needs, adhering to aging -in-place and accessibility standards via Aging In Place and Accessibility Studies.
Long-term planning can be complex, potentially risky, and requires the right expertise. CHF Canada’s Asset Planning Services has a deep understanding of housing co-ops. The Asset Management plan is a tool that takes the guesswork out of deciding what should get replaced, when, by whom, and at what cost. CHF Canada works with boards to create a long-term plan that secures the sustainability and continued success of housing co-ops. Asset Management is about planning, developing and preserving homes into the future.
Every co-op needs long-term planning. Effective asset management planning is key to helping housing co-ops carry out much needed building repairs and improvements.
The Asset Management Plan is a proprietary report prepared by CHF Canada. It synthesizes technical reports and builds a plan that is:
Written in clear, plain language.
Customized for the co-op; Reflecting the co-op’s goals and needs to ensure long-term sustainability.
Includes a 30-year capital repair schedule, using researched estimates of future costs and revenue to prepare financial projections.
Designed to be handed down over time—boards and staff may change, but the plan continues. The co-op retains control while the plan provides the information needed to make informed choices.
Explains how to manage the co-op’s money so it can afford repair and renovation work.
Provides a complete financial analysis: including operating revenues and expenses, reserve fund balances, market rents, debt obligations, and capital expenditure schedules.
Defines the co-op’s financial needs including housing charge strategies, government assistance and subsidies, savings, grants, loans, and when recommended, borrowing or refinancing and supports the co-op in securing these funds.
Translates the reserve fund study into action by identifying current issues and providing strategies for maintenance and long-term viability. It specifies how much the co-op will need to spend—and when—on repairs and replacements.
The Process:
A BCA Building Condition Assessment is a prerequisite to prepare an Asset Management Plan.
At the start of the plan, the co-op will be asked to provide feedback on the Building Condition Assessment done by the engineering firm, to confirm accuracy of data and component description.
We will work with the co-op to understand your concerns and goals while drafting the AMP. Once the draft is complete, we will meet with your board and present the analysis and findings outlined in the report.
We will gather your feedback on the draft AMP, make necessary adjustments and then provide you with a final Asset Management Plan.
The AMP is developed prioritizing the co-ops’ needs, to ensure a bright and sustainable future. The co-op should review the plan annually and update it every five years.
Connecting co-ops with long-term financing through a network of credit union partners.
How do co-ops find the money to get on top of repairs?
CHF Canada helps boards make decisions about saving and borrowing. If there are grant opportunities, those will be explored as well.
Some co-ops may find they have enough money in their reserves for repairs, but most will need extra funds to start. The AMP will show how to combine a co-op’s reserve with a new mortgage for renovations.
When asking for a loan, co-ops will need to ask three basic questions:
Can the co-op pay back the loan? (debt coverage assessment).
What is the property worth? (security for the lender).
How will the co-op handle repairs during the loan? (plan for repairs while the lender has the investment at the co-op).
The co-op will also need a formal loan package, including a BCA, reserve forecast, and asset management plan. Without assistance this may prove to be a challenge for most co-ops. Realizing this, CHF Canada has developed a financing program that co-ops across Canada have consistently used to successfully refinance and fund large scale capital repairs.
Many co-ops may ask “Do we really need a project manager? Can’t we manage our own projects?” However, they often find their projects take longer than planned and exceed the budget. Overlooking the importance of project management can lead to significant issues for co-ops, underestimating the role of a project manager is a critical mistake.
Large capital projects require expert planning and oversight. Tendering, setting up and managing contracts with contractors and ensuring the quality of work are essential for staying on time and on budget as well as ensuring the work is done right.
Take the guesswork and stress out of your major projects. CHF Canada Asset Management Services can help you get the project management services you need to ensure the best outcomes for your co-op and your members.
Finding A Project Manager
Big repair projects can be costly and complicated. The right project manager can make a significant difference, saving co-ops from expensive mistakes. CHF Canada can help co-ops find a project manager by developing a request for proposals, implementing the co-op’s tendering process and evaluating the proposals received. Alternatively, CHF Canada can connect co-ops with trusted partners with whom we have successfully collaborated on numerous projects.
Investment experts dedicated to the Canadian affordable housing sector. Owned by CHF Canada & Housing Services Corp their investment products are tailored to the long-term needs of non-profit housing co-ops, Encasa offers:
Mutual funds of varying risk tolerance.
Responsible investing.
Low management fees.
Our goal: help affordable housing providers best position their funds today, so they’re equipped to operate for years to come.
