Some of the operating agreements and mortgages under which these providers have been operating have already expired and this trend will accelerate in the next few years. In general, housing providers created under the Federal programs between 1978 and 1988, generally referred to as Section 27 or Section 95 providers, are the most suitable for leveraging their assets to build new affordable housing. The suitability of these providers is due to the low proportion of households requiring RGI subsidies compared with other programs, which can run as high as 100%. Of the GTHA’s 144,000 units of social housing, almost 39,600 units were built in these federal programs. There is a small but growing number of existing Section 95 housing providers who have already, or are in the process of, leveraging their housing to creating additional affordable housing. There is the potential, however to do much more.

From the 28,400 Section 27/95 units of either private non-profit or co-operative housing, it is estimated that perhaps $350-400 million could be leveraged and targeted towards the creation of new affordable housing. Although general reports have been undertaken on the financial and physical viability of the not-for-profit housing providers post end of operating agreements in the GTHA, there are no comprehensive studies for these not-for profit existing housing providers created under federal housing programs. It should be noted that some Service Managers are in the process of doing so. Until the studies are completed, only general estimates can be given as to how many housing providers in the GTHA are in a good position to leverage their assets.