Operating Surplus
For the majority of the federal/provincial
programs, where the operating agreement perfmits, operating
surpluses are repayable to BC Housing and/or CMHC. The exception is
housing developed under the Non-Profit Housing for Seniors program
(section 82(1)(b) of the National Housing Act) where CMHC allows
the society to retain operating surpluses.
There are other operating agreements that may
permit the non-profit to retain operating surpluses. Please refer
to your operating agreement.
The first priority for surplus operating funds is
to repay any outstanding deficit from a previous year. In addition,
surplus funds can be accumulated and used for shelter related
expenses in subsequent years.
An operating surplus occurs when the operating
revenue received for the year exceeds operating expenses. Your
organization may develop an operating surplus through:
-
Generating revenue through innovative practices such as rooftop leases.
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Efficient management practices.
-
Using sector cooperation to share staff, or buying in bulk to reduce costs.
Under the HOMES BC program, only developments
with non-profit or cooperative operating agreements may retain an
operating surplus.
Click
here
for information on Accumulated Operating Surplus
Click here
for Excessive Surplus