What is EOA?
The end of operating agreements or “EOA” marks the end of the federal funding that has previously flowed through the province to Service Managers. EOA involves the end of operating agreements, mortgages, and debentures for all housing providers administered by Service Managers, and funding for housing providers will have to be paid entirely by municipalities and their property tax base.
How can we prepare for EOA?
Most housing providers will continue to need subsidy from their Service Managers after EOA to operate. In its current form, however, the system is not sustainable for the long term unless housing providers take action now to reduce costs where they can. Whatever steps a provider can take to lower, or at least maintain, their existing subsidy needs (less mortgage) are critical and will contribute to the ongoing sustainability of the building asset.
How are utility costs and EOA linked?
Housing providers are facing increasing utility costs, which in turn impacts their ability to reduce operating costs in anticipation of EOA. Since utility costs of the most controllable operating cost, there are many benefits to be realized if those costs can be reduced.
Solutions range from implementing energy retrofits, to monitoring your energy and water usage through UMP, to engaging with residents about the benefits of reducing consumption through HSC’s Community Champions Program. For best results, housing providers should take a strategic approach including creating an Energy Management Plan.
Contact HSC Energy Services to learn more about the programs and opportunities available for housing providers and Service Managers to start reducing utility consumption, and stay tuned for next quarter’s UMP article for a more in-depth guide on constructing an Energy Management Plan!