RESOLUTION R2: INVESTMENT OF ENDOWMENT FUNDS TO SUPPORT THE GROWTH OF CO-OPERATIVE HOUSING IN CANADA
Managing Director, Ontario Region
313-720 Spadina Avenue
Toronto, ON M5S 2T9
Tel: (800) 268-2537, ext. 237
This resolution is for the meeting of:
all CHF Canada members
✓ Ontario Members
THAT the members’ 2017 commitment to invest at least $1 million to support the development of new housing co‑operatives and our movement’s growth agenda be funded from the Ontario and National endowment funds in the amount of at least $500,000 each, subject to the approval of the National members in respect of the National Endowment Fund.
OUR REASONS FOR THIS RESOLUTION ARE:
- CHF Canada’s new Vision Framework embraces growth of our movement through the development of new housing co‑operatives.
- CHF Canada has two endowment funds. These funds were created over three decades ago with sector support contributions from new housing co-operatives. The principal of these funds cannot be expended nor encumbered without permission from CHF Canada’s members.
- As at December 31, 2017, the national Endowment Fund had a balance of $4,321,696 and the Ontario Endowment Fund had a balance of $6,314,496.
- CHF Canada’s including Ontario Region’s other financial assets are intended to support our operations and services to our existing members. Making an investment of at least $1 million from the endowment funds will not interfere with our ability to maintain existing programs to our members.
- While CHF Canada wishes to protect the contributions made so many years ago, it is reasonable to invest some of these funds in the future of our movement by leveraging millions more from partners such as financial institutions and governments.
- With the federal government’s announcement of Canada’s first National Housing Strategy and the commitment of $40 billion to a 10-year plan to support affordable housing, and Ontario’s expected matching contribution for various components of the Strategy, now is the time to take action to develop our capacity to grow co-op housing.
- CHF Canada’s Board of Directors and the Ontario Council will approve any investment to support the development of new housing co-operatives based on receipt of a comprehensive proposal from staff.
- We acknowledge that there is an inherent risk in any investment in new and innovative development projects however we believe that at this time it is a risk worth taking.
WE THINK THAT THIS WILL COST:
This resolution asks members to invest at least $500,000 of the Ontario endowment fund for CHF Canada’s growth agenda. An investment of our endowment funds may result in a reduction in the income from interest generated by the funds that support our operations which may be as much as $25,000-$30,000 annually. However, it is expected that investments in new development will generate a direct return by increasing the dues base of CHF Canada, and for our regional federation partners.
Member approval is required to encumber the endowment funds. This resolution will authorize the Ontario Council to encumber at least $500,000 of the Ontario Endowment for CHF Canada’s growth agenda. A concurrent resolution will be considered by members during the National Business Meeting.