Posted on June 28, 2014 by IT Admin
HSC created FI in 2002 to administer the Social Housing Investment Program, an investment program that is currently utilized by many Ontario housing providers. As a result of the new ownership model, FI products and services will become available to non-profit and cooperative housing providers across Canada.
For current FI investors there will be no change as a result of the ownership expansion. Your funds will continue to be invested as you have directed in the past, and you will continue to have the same customer support contacts and access points as before. FI will continue oversee the management of funds that provide good returns at low cost to unit holders, and continue its dedication and commitment to customer service.
We believe that partnerships are a critical way forward for the sector and for the future of HSC programs — to keep service levels high and prices competitive, and to support providers in preserving the health and sustainability of the physical asset. To this end, HSC has been working with the FI board over the past year to find new Canadian housing partners to expand the investment funds program run by FI.
FI has successfully pioneered their investment model in Ontario for the past 12 years. As of March 31, 2014, approximately 850 Ontario housing providers invested more than $470 million in the Social Housing Investment Funds. The ownership expansion will give cooperative and non-profit housing providers in BC and across Canada access to investment options that they previously did not have, and will enable FI to broaden investment options in the future, and to build on the success of the investment program.
Under the new ownership model, Housing Services Corporation (HSC) will retain 40% of FI’s issued and outstanding shares and three new partners will each acquire 20% of the outstanding shares: the Co-operative Housing Federation of Canada (CHF Canada), the Co-operative Housing Federation of BC (CHFBC) and BC Non-Profit Housing Association (BCNPHA).
The expanded ownership of FI is to be finalized on September 30, 2014. Closing is subject to customary closing conditions and the approval of the regulators. FI’s dedication and commitment to customer service will remain a top priority and there are no anticipated immediate changes to the existing investment funds, staffing or administrative processes. We will follow up with more information after September 30.