STAKEHOLDERS CAN PANDER TO CO-OP HOUSING DIRECTORS AND OFFICERS

Published on February 25, 2009, and revised October 2015.

By Ken Hummel, Member, Athol Green Co-operative Homes Inc

The Co-operative Housing Federation of Canada ("CHF") a self described umbrella group for non-profit housing co-operatives ("co-ops"), and the national voice of the co-op housing movement in Canada since 1968. CHF is also a lobbyist group that seek out funding from the federal government, provinces, and regional municipalities for co-ops, and other types of non-profit housing. CHF is also a business that profits mainly from its member co-ops.

CHF has some 9 member housing federations or associations that sell memberships & services to its member co-ops, claimed to be over 900 across Canada outside of Quebec. Some other CHF members' include management companies, and other businesses partners that may not have direct affiliation with the non-profit co-operative housing sector.

Conflict of interest has tarnished the image and reputation of the Canadian Non-Profit Co-operative Housing Sector. An independent investigation is needed that is totally objective, impartial and transparent. Recommendations are needed to ensure an affordable and efficient system of accountability.

 

All levels of government are unwary and reluctant to allocate funds to non-profit co-ops, and other types of non-profit housing because of the millions of dollars spent and wasted for a combination of reasons such as conflict of interest, duplication, profiteering, suspected fraud, and a lack of accountability.

The non-profit housing sector has been described as a "money pit" that should raise "red flags", and a lucrative trough of public money that many have come to feast.

In Ken's view, CHF and other co-op stakeholders appear to pander and be coddling co-op board of directors and perhaps management companies or general managers/coordinators at member co-ops and hurt the reputation and future of co-ops.

In Ken's view, the lack of or absence of principled leadership, integrity, core values and ethics associated with poor or bad governance and management at housing co-ops with it's 'inherent problems' are often ignored and hidden away. 

There are about 2000 non-profit housing co-operatives across Canada and each is separately incorporated and self governed under co-op legislation in each province. CHF does not have legal or administrative control over the operation of individual co-ops. CHF provide services to co-ops who are members of CHF, however do not become involved as advocates for individual members of co-ops as it is the housing co-op that is their member.

CHF and its member federations rely on their member support from the payment of annual membership dues each year, and buying their services. retaining member loyalty and support, and attracting new members is essential for CHF and its member federations continued operation.

Education workshops, mediation services, chairing and/or recording co-op meetings of members', and commercial programs that CHF has developed over the years such as insurance services are available to its members at additional cost.

Individual members' that live in member co-ops pay for the cost of membership dues, and services provided by CHF and its member federations. It is important to note that co-ops boards of directors that may include staff ("coordinator/general manager") or a management company are usually the only stakeholders at member co-ops involved in the decision making process to acquire and pay for the co-ops membership annual dues, and any associated services provided by CHF and its member federations.

CHF and its member federations that provide a chairperson and/or person to act as recording secretary at its member co-op meeting of members' or provide mediation services to co-op projects in difficulty or crisis resulting from poor governance and management, can be viewed as a conflict of interest because CHF and its member federations have a relationship with the co-op board of directors that may also include a management company or general manager, and CHF rely on them to pay for the annual membership dues, and any other services provided to their co-op members.

CHF and its member federations can also be viewed as advocates for the board of directors, management companies or general manager, if any, at its member co-ops.

Conclusions maybe reached that CHF and its member federations are in a conflict of interest that pander to co-op board of directors, management companies, and general manager, if any, at member co-ops in difficulty or crisis.

CHF lobbied the government of Canada and Canada Mortgage and Housing Corporation ("CMHC") to contract their sole partner, the Agency for Co-operative Housing ("the Agency") in the administration of federal program housing co-ops to monitor whether co-ops are abiding by the terms of their operating agreement with CMHC, ("compliance monitoring"). CHF helped to create and establish the Agency that staff many former management and staff from CHF.

Compliance monitoring is expensive, not done in detail, and many records that may document the co-ops management are not monitored. If a co-op breaches the operating agreement then obtaining a court order can be expensive in order to force the co-op to comply with the operating agreement ("specific performance"); or appoint a receiver to manage the co-op project.

A conclusion can be reached that the Agency would not recommend this type of action be taken because of their close business partnership with CHF, and over time will unlikely resolve the problems with many, if not all co-ops in breach of the operating agreement. These two co-op housing stakeholders can be viewed as coddling and pandering to the board of directors, management companies, and general manager, if any, and this can help explain why there appears to be a lack of accountability in the co-op housing sector.

In addition, management companies or staff coordinators hired by the board of directors can also be seen as coddling and pandering to the board, in order to keep their job or build a more profitable relationship with the board of directors.

The co-op general membership and/or individual members can also be seen as coddling and pandering to the board that may build a relationship with them that they may seem self-serving in their own personal self-interest over the collective best interest for the co-op, or that individual members maybe harassed and/or threatened with eviction. Poor 'member engagement' is seen as a huge problem across the Canadian co-op housing sector!

A conclusion can be reached that its not in the best interest of co-ops or its general membership to be coddling and pandering to the board of directors, management companies or coordinators, if any. We all should expect good governance and management at our co-ops that exemplify strong principled leadership and high ethical standards.

Some background information in regards to the business of lobbyists in Ontario, Canada and U.S.A can be access in report linked below, and other video and news stories:

thestar.com

October 20, 2010

By Rob Ferguson and Robert Benzie, Queen's Park Bureau

"Ontario tightens lobbying rules after scathing report"

http://tinyurl.com/akflqey

cnn.com

January 22, 2013

Posted by Drew Griffin and David Fitzpatrick, CNN

"Just re-elected Rep. Emerson resigning for lobbying job"---"Retiring congresswoman leads 2013 lobbying revolving door"

Click link below to watch 7:29 video and read this ridiculous list type news story:

http://tinyurl.com/af3eghx

youtube.com

Posted in 2012

Representative Jo Ann Emerson: Somebody that We, in Missouri's 8th. District Used to know...

Click link below to access and watch 4:12 video:

http://tinyurl.com/ar7t8us

youtube.com

Posted in 2013

John Stossel interviews Charles J. Sykes, author of the book "A Nation Of Moochers"

Click link below to access and watch 8:00 video:

http://tinyurl.com/bmqy93n

youtube.com

Posted in 2013

A Lobbyist And A Politician Walk into A Restaurant...

Click link below to access and watch this short video:

http://tinyurl.com/kq7px2k

An example of CHF's lobbyists efforts with the Regional Municipality of Ottawa-Carleton back in 1996 and 1997, re: Report and CHF Canada correspondence. Click link to access:

http://tinyurl.com/3cnhxbv

Ottawa-Carleton Community Services Committee Meeting Minutes, click link, then scroll to pages 3 through 6:

http://tinyurl.com/3mwkwb9

In Ken's view, there are plenty of news or social media outlets that report negative information about co-op housing and CHF Canada member non-profit co-ops that are often ignored and hidden away from view.

Lobbyist groups have been described as professional moochers that use their influence peddling, trying to shape public opinion that via for and expect Taxpayers dollars to support their special interest that include themselves.

Profiting in the Canadian non-profit co-operative housing sector, CHF Canada lobbyist expect Taxpayers money to solve the inherent problems with this type of housing that has been on the long road of self-destruction for over 40-years!

Ken is the organized voice that offer fair criticism about CHF Canada and its member non-profit co-ops in Canada.

Information noted above may be revised and/or deleted without prior notification.

Ken Hummel, Administrator, CHIE