End the Silence of Poor or Bad Co-op Governance and Management

Ken Hummel ("Ken") strongly disagrees with Non-Profit Co-op Housing Stakeholders (sic) suggestion that Poor or Bad Governance and/or Management issues are "internal matters" that should be addressed back to the Board of Directors or Management. It should not be a taboo to speak out and raise awareness about Poor or Bad Governance and/or Management issues or raise awareness by discussing the abuse of Membership lawful rights or the abuse and waste of Canadian Taxpayers money at Member Non-Profit Housing Co-operatives. CHF Canada, its Member Federations, and the Agency for Co-operative Housing etc. do not like to hear about these type of issues shared with other Co-op Housing Stakeholders, various levels of Government or the General Public at large.

 

Example: The Agency for Co-operative Housing Client-Service Standards Report Card 2013 stated in part: "Concerns + Complaints In 2013, we responded to all concerns and complaints within the time allowed. As in the past, most concerns came from members of co-op clients and had to do with their governance or management. As before, we gave these callers information and referred them to their client co-op board or to the regional or national federation, where the co-operative was a member."

 

In Ken's view, the Agency referral to client co-op board or to CHF Canada and its regional federations can be regarded as 'Getting the Run-A-Round' back to the Agency co-op housing sector stakeholder partners who are known to pander to member co-op boards...  

In Ken's view, ALL Co-op Stakeholders that refuse to engage Co-op Board of Directors that place Co-ops at risk to mismanagement, fraud and/or theft, and possible recievership give the Canadian Non-Profit Co-operative Housing Sector its reputation known for conflicts of interest, duplication, profiteering, suspected fraud, and noted in print media as  a 'Money Pit" or "Black Hole" for Taxpayers' money with a lack of accountability that should raise red flags for Co-op Stakeholders and Canadian Taxpayers.

It seems to be apparent a large amount of individual Non-Profit Co-operative Housing Stakeholders are not interested in engaging themselves in the proper Governance and Management of their Co-operative Homes or addressing problems with Poor or Bad Governance and/or Management. A large amount of individual Members 'fear' (sic) abuse or harassment, and potential unlawful eviction by Directors and Officers that live and/or work at these Co-ops. Statisticts suggest co-op member engagement is very low across Canada

It may appear that CHF Canada places their own personal self-interest above other Non-Profit Co-operative Housing Stakeholders. In 2011, at CHF Canada's request, the Ontario Superior Court appointed a receiver-manager for Bridlewood Housing Co-op. This action removed control of the Co-op assets from its Board of Directors and Membership. CHF Canada stated it was a fight to protect Bridlewood Co-op Housing assets from the Membership personal self-interest. In Ken's view, CHF Canada were enhancing their own business self-interest financially in the Co-op.

 

 

In late 2012 Bridlewood's 101 single-dwelling units were reportetly sold for $5.361 million to Essex Non-Profit Homes Inc. a new non-profit company created by CHF Canada. At this point-in-time (September 2014), Essex Non-Profit Homes Inc. has not transitioned back to the Co-op Housing Model.

 

 

Some may view this as an acknowledgement by CHF Canada that the non-profit co-op housing model could be viewed as a failed experiment for over 40-years in Canada.

 

 

Its interesting that CHF Canada is on record as being strongly opposed to Court appointed receiver-managers, for example, Matthew Way Co-op, and Whitehorse Co-op because of financial mismanagement and the Membership personal self-interest at these Co-ops.

Individual Co-op Housing Members do not recieve the needed support in order to hold accountable Board of Directors and Staff. In Ken's view, CHF Canada and/or some of its Member Federations appear to be disingenuous about the issue of democratic control at its Member Housing Co-operatives across Canada. Ken's efforts to speak to the issues at Athol Green Co-op meetings of members have been underminded by Directors, Officers, and representatives from the former Lakeridge Co-operative Housing Federation etc. CHF Canada representitives banned Ken from discussing Co-op Housing issues on CHF Canada's Co-op Talk Members Network for other Co-op Stakeholders to view. The Co-op Housing Information Exchange Site ("CHIE") was established to help foster the sharing of information and speak to the issues of the day.

CHF Canada is a lobbyist organization that seeks financial aid from various levels of the Canadian government. It appears that CHF Canada's primary solution to solve Non-Profit Co-operative Housing's Poor or Bad Governance or Mismanagement problems is from Canadian Taxpayers money, selling services to its Member Co-operatives, and payment of Membership dues from Member Housing Co-operatives, and other Stakeholders.

Ken reviewed court documents in respect to legal proceedings involving Thornhill Green co-operative homes - At Thornhill Green's Annual General Meeting on September 23, 1997, the Co-op membership unanimously approved their own proposal to circumvent the Co-operative Corporations Act ("CCA") and convert the Co-op property to a private condominium for their own individual personal self-interest. In 1998, the then Co-op board and members approached the Ministry of Housing regarding their proposal to convert the Co-op property to a condominium. The proposal would have allowed the Co-op members to purchase their units by buying out the social housing mortgage, at purchase prices far below the Co-op market value. Their proposal was unsuccessful as it violated provisions of the CCA and the Thornhill Green Co-op Articles of Incorporation.

Ken has reviewed information about Memberships at other Non-Profit Housing Co-operatives in or out of recievership, and noted two issues that they share in common; individual member personal self-interest and incompetence in the Governance and Management of the Co-op. The Co-op membership have a duty and obligation to practice good Governance and Management. Co-ops that are well Governed and Managed by its membership are in compliance with applicable regulations and laws. Co-ops with a membership that choose to ignore or refuse to practice good Governance and Management may be in violation of these regulations and/or laws, and are placing their Co-op homes at risk to falling into recievership, and restructuring or foreclosure and being sold.

 

Example: The North End United co-op Debacle and the 54-page oversite review that places some blame on CHF Canada and the Project Board of Directors...

In Ken's view, it should be reasonable not to expect Canadian Taxpayers to support Non-Profit Housing Co-operatives with a blank cheque or at any cost.

Ken supports the July 16, 2009 court decision of Justice Morawetz that approved the sale of Thornhill Green Co-operative Homes to the Regional Municipality of York and its Social Housing Portfolio managed by Housing York Incorporated ("HYI"). Ken noted in the following paragraphs: [71] "I am satisfied that the Receiver has acted fairly and diligently in carrying out its activities during its appointment and, in particular, the sales process." "In my view, the Receiver has acted in accordance with Soundair principles set out above." [74] "The inescapable conclusion is that the co-operative governance model of Thornhill Green has not worked as envisioned. In my view, an operational change is necessary." [78] "it must be recognized that the status quo has not worked and change is necessary. The proposed change is, in these circumstances, fair, reasonable and equitable."

It is noteworthy that Ken used the phrase "We Cannot Be Satisfied with the Status Quo" on March 20, 2007 published in the Athol Green Co-op Newsletter, and later in Ken's blog entitled "I Have A Dream" that can be read on the CHIE site.

In Ken's view, the Canadian Non-Profit Co-operative Housing Sector is designed for failure because of the status quo that has not worked as envisioned, CHF Canada etc. personal self-interest and the type of relationship established with its Member Co-operatives and its Directors and Staff Management that may maintain a status quo that fail to address Governance and/or Management concerns placing the Co-op and individual members at risk.

Phrases or words have been used to describe the failures of the Canadian Non-Profit Co-operative Sector, and in Ken's view, phrases such as status quo, conflict of interest, individual personal self-interest, suspected fraud and the words incompetence, pandering, and fear appear to be near or at the top of the list.

 

 CHF Canada charges each of its member co-ops, membership dues that are levied against each resident housing unit calculated monthly at $4.00 in 2014, and $4.05 monthly starting in 2015. CHF Canada housing federations charge additional dues for its member co-ops! 

 

In Ken's view, membership to CHF Canada is not a voluntary act for each individual member residing inside a co-op housing unit. Some individual co-op members' can be can be opposed to paying membership dues, as they don't support CHF Canada's agenda...

 

If you want to consider withholding monthly membership dues from your co-op that are paid to CHF Canada, then consider writing a letter to the co-op board of directors explaining why you don't support paying membership dues towards CHF Canada...

 

Co-op members' can vote as being opposed to the approval of a co-op proposed annual budget when the budget is presented for consideration that include membership dues for CHF Canada...

 

When submitting monthly housing charge payment for the co-op, consider withholding $4.00 from your payment that represents the 2014 co-op unit membership dues for CHF Canada.

 

If your a resident member of a housing co-op that pays membership dues to any of CHF Canada's member regional hosuing federations', you may want to condider opting-out of that regional housing federation membership and withhold the portion of your monthly housing charges designated for a CHF Canada member federation.  

Information may be updated or revised without prior notice

Ken Hummel, Administrator, CHIE