BC Housing and the BC Non Profit Housing Association (BCNPHA) have prepared a guide to help non-profit housing providers who are near the end of their operating agreements.
In British Columbia, project operating agreements representing almost 30,000 subsidized housing units will expire by the year 2033.
Operating agreement set out the amount, duration, and conditions of the subsidy provided by the provincial and/or federal governments. Their expiry, often tied to a 35 year mortgage amortization period means when the mortgage expires, non-profit housing providers are responsible for the project's ongoing financial viability.
The reasoning behind this is that following repayment of the mortgage, a project should be able to generate sufficient revenue to maintain its viability, while continuing to provide affordable housing. Many non-profit housing providers will be in a position to preserve the affordability of their buildings and to continue serving low-income households in B.C. However, others will experience viability issues related to the end of their subsidy agreements.
Expiring Operating Agreements: A Planning Guide for BC's Non-Profit Housing Societies
This guide provides information to help non-profits prepare for the expiry of their operating agreements and outlines options to consider pre- and post-expiry.