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Resolution 4: Investment of Endowment Funds to Support the Growth of Co-operative Housing in Canada

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SUBMITTED BY:
CHF Canada Board of Directors

CONTACT:
Tim Ross
Director, Strategic Affairs
311 – 225 Metcalfe Street
Ottawa, ON   K2P 1P9

Tel.: (800) 465-2752

Email: tross@chfcanada.coop

WE RESOLVE:

THAT CHF Canada members’ 2017 commitment to invest at least $1 million to support the development of new housing co‑operatives and our movement’s growth agenda be funded from the Ontario and National endowment funds in the amount of at least $500,000 each, subject to the approval of the Ontario members in respect of the Ontario Endowment Fund.

OUR REASONS FOR THIS RESOLUTION ARE:

  1. CHF Canada’s new Vision Framework embraces growth of our movement through the development of new housing co‑operatives.
  2. CHF Canada has two endowment funds. These funds were created over three decades ago with sector support contributions from new housing co-operatives. The principal of these funds cannot be expended nor encumbered without permission from CHF Canada’s members.
  3. As at December 31, 2017, the National Endowment Fund had a balance of $4,321,696 and the Ontario Endowment Fund had a balance of $6,314,496.
  4. CHF Canada’s other financial assets are intended to support our operations and services to our existing members. Making an investment of at least $1 million from the endowment funds will not interfere with our ability to maintain existing programs to our members.
  5. While CHF Canada wishes to protect the contributions made so many years ago, it is reasonable to invest some of these funds in the future of our movement by leveraging millions more from partners such as financial institutions and governments.
  6. With the federal government’s announcement of Canada’s first National Housing Strategy and the commitment of $40 billion to a 10-year plan to support affordable housing, now is the time to take action to develop our capacity to grow co-op housing.
  7. CHF Canada’s Board and Ontario Council will approve any investment to support the development of new housing co-operatives based on receipt of a comprehensive proposal from staff.
  8. We acknowledge that there is an inherent risk in any investment in new and innovative development projects. However, we believe that at this time it is a risk worth taking.

WE THINK THAT THIS WILL COST:

This resolution asks members to invest at least $500,000 of the National Endowment Fund for CHF Canada’s growth agenda. An investment of our endowment funds may result in a reduction in income from interest generated by the funds that support our operations, which may be as much as $25,000-$30,000 annually. However, it is expected that investments in new development will generate a direct return by increasing the dues base of CHF Canada, and of our regional federation partners.

OTHER REMARKS:

Member approval is required to encumber the endowment funds. This resolution will authorize the Board to encumber at least $500,000 for CHF Canada’s growth agenda. A concurrent resolution will be considered by members during the Ontario Business Meeting.