Aboriginal Housing Management Association

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Aboriginal Housing Management Association

• Self-management Plan

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Aboriginal Housing Management Association

• The Aboriginal Housing Management Association
  (AHMA) presents its plan to assume the self
  management of the Aboriginal Housing programs
  currently administrated by Canada Mortgage and
  Housing Corporation (CMHC) and the British
  Columbia Housing Management Commission (BC
  Housing).

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Aboriginal Housing Management Association

• AHMA is a unified group of Aboriginal housing
  societies committed to the self management of
  quality affordable housing to urban and rural
  Aboriginal people in British Columbia. AHMA is
  uniquely placed to deliver the housing programs
  currently managed by CMHC and BC Housing.

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AHMA is experienced in

• ? housing development ? real estate
  financing ? property management ? tenant
  relations ? non-profit administration

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What does AHMA own and/or manage?

• There are 21 Aboriginal housing societies in BC
  that manage and own off-reserve housing
• There are 1976 units funded under the Federal UNH
  housing program
• There are 994 units funded under the RNH housing
  program (448 home ownership 546 rental)
• 10 housing societies manage 341 units funded by
  BC Housing

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In June of 2000, the AHMA societies crafted the
following resolution

• We agree, in principle, to authorize AHMA to
  continue its negotiations with BC Housing on a
  self-management model for and by Aboriginal
  people provided there is

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AHMA Resolution

• 1. Adequate and sufficient financial resources
  offered by CMHC, BC Housing, or any other level
  of government, to ensure that Aboriginal housing
  providers will be able to responsibly meet their
  financial obligations for now, and in the future,
  and to the expiry of the current operating
  agreement

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AHMA Resolutions

• 2. Adequate authority
• 3. Appropriate legal protection against
  unilateral change by any party, including the
  federal and provincial governments
• 4. Appropriate protection against unforeseen
  events

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AHMA Resolution

• 5. A restructuring of AHMA that meets the needs
  of the Aboriginal community meets all legal
  requirements to accept a legal transfer and
  affirms Aboriginal control and self management

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AHMA Resolution

• 6. No agreement be executed with any
  indemnification of the provincial or federal
  governments
• 7. No agreement be executed, confirmed or denied
  without further consent of the Aboriginal housing
  providers present

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AHMA Resolution

• 8. AHMA establish a new technical team to work
  with the existing devolution committee
• 9. AHMA conduct necessary amendments to its
  current constitution/bylaws that would allow
  equal representation by all Aboriginal housing
  providers, ensuring that each has a
  representative on the Board of Directors of AHMA

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What has AHMA done since June 2000 to satisfy the
principles set out in the resolution?

• AHMA has established a technical-negotiating
  committee that has brought forward
  recommendations to the Board
• AHMA has called a special meeting of its members
  to review the report which has been written and
  distributed to all of the Aboriginal housing
  societies

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What has AHMA done since June 2000 to satisfy the
principles set out in the resolution?

• AHMA has examined the legal framework required to
  allow AHMA to assume its responsibilities in the
  administration of the social housing programs
• AHMA has developed a management plan to
  administer the Aboriginal housing programs

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What has AHMA done since June 2000 to satisfy the
principles set out in the resolution?

• AHMA has developed a delivery model and budget
  projections including start up and transitional
  budgets
• AHMAs Board of Directors has reviewed its
  organizational structure in the light of its
  responsibilities related to self-management of
  housing programs

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What has AHMA done since June 2000 to satisfy the
principles set out in the resolution?

• AHMA proposed to a meeting of its members that
  changes be made to its bylaws to ensure
  accountability by the Directors and efficiency in
  the management of the social housing programs
• AHMA has studied the financial situation of
  participating housing societies funded under the
  federal programs

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Where do we go from here?

• Immediate transfer of responsibility for the
  programs administered by BC Housing and
  subsequently when the devolution agreement is
  signed with the federal government for the
  programs administered by CMHC

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Where do we go from here?

• The management plan outlines tasks in nine core
  areas
• loans administration
• subsidies administration
• compliance monitoring
• risk management

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Where do we go from here?

• ? default management
• information services and best practices
• reporting to government clients
• education and training
• pooling of economic activities

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Issues to be resolved with BC Housing

• 1. Parties to the agreement
• 2. The legal agreement for administration of
  program
• 3. Core service areas
• 4. Risk analysis
• 5. Endowment fund
• 6. Start up and operating budgets

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1. Parties to the Agreement AHMA Position

• 1.1 BC Housing
• What is the approval process for interim or
  permanent agreements?

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1. Parties to the Agreement BC Housing Position

• 1.1 BC Housing
• Approval in principle to proceed with BCH
  portfolio
• Administration of the federal portfolio will be
  transferred to AHMA after devolution

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1. Parties to the Agreement AHMA Position

• 1.2 AHMA
• AHMA has the capacity to administer social
  housing programs
• Decisions are made by members based on one vote
  for each housing society which has one
  representative on the Board of Directors
• The executive committee is made up of eight
  persons and no individual can be a representative
  more than two consecutive years

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1. Parties to the Agreement BC Housing Position

• 1.2 AHMA
• AHMA has legal capacity
• No apparent conflict of interest (will provide
  conflict of interest guidelines)
• Should BCH have a representative on the AHMA
  board?
• AHMA is not an agent but rather an administrator
  of the contracts between housing societies, BCH
  and CMHC

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2. Legal Agreement for Program
Administration AHMA Position

• 2.1 Two stage transfer
• Immediately for programs administered by BC
  Housing
• Subsequently and simultaneously when
  devolution agreement is signed with the
  federal government

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2. Legal Agreement for Program
Administration BC Housing Position

• 2.1 Two stage transfer
• Agreement that there will be a two stage transfer
• There is no interest in holding onto the federal
  portfolio unless it allows a timely and efficient
  transfer it makes sense to transfer
  simultaneously if possible

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2. Legal Agreement for Program Administration
AHMA Position

• 2.2 Term
• Furthest termination date of the agreements
  governed by this contract, between the housing
  societies and BC Housing and between CMHC and
  the housing societies (agreed)
• Includes new projects financed by BC Housing and
  Aboriginal housing societies (agreed)
• Termination in case of fraud or gross negligence

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.2 Term
• Termination in case of fraud or gross negligence
  and general breach that has not been rectified

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2. Legal Agreement for Program Administration

• 2.3 Opting Out
• Housing societies have the choice to participate
  in AHMA and may opt out and continue to relate
  directly with BC Housing (agreed)
• Once the housing society commits to belong to
  AHMA, it can no longer opt out unilaterally
  (agreed, unless both AHMA and housing society
  agree otherwise)

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2. Legal Agreement for Program Administration
AHMA Position

• 2.4 Use of Funding
• Program funding from CMHC and BCH programs can be
  used for only housing or only for housing and
  community supportive services for tenants

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.4 Use of Funding
• Program funding from CMHC and BCH programs to be
  used according to whatever the operating
  agreements authorize

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2. Legal Agreement for Program Administration

• 2.5 AHMA Responsibilities
• Maintain basic program principles for each
  program (agreed)
• May modify elements with prior concurrence of BC
  Housing and CMHC (agreed)
• Responsible for assistance, contributions, costs,
  disbursements related to portfolio and programs,
  which are not greater than responsibilities of BC
  Housing (agreed)

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2. Legal Agreement for Program Administration

• 2.5 AHMA Responsibilities
• At liability of BC Housing, amend or replace any
  agreements with third parties following agreement
  of BCH and third parties (agreed)
• Meet reporting requirements (agreed)

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2. Legal Agreement for Program Administration

• 2. 6 Funding from BCH to AHMA
• AHMA agrees to carry out its obligations in
  return for funding (agreed)
• AHMAs funding will include its own operations
  (agreed as required for performing the
  obligations under this agreement)

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2. Legal Agreement for Program Administration
AHMA Position

• 2. 6 Funding from BCH to AHMA
• Aggregate liability of BC Housing shall not
  exceed total amounts set out in the Schedule,
  which will be adjusted from year to year in
  accordance with the rules governing the operating
  agreements

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2. Legal Agreement for Program Administration
BC Housing Position

• 2. 6 Funding from BCH to AHMA
• BCH shares the same concerns as AHMA that AHMA
  and the housing societies be funded adequately.
  AHMA will be adequately funded for the
  requirements of the housing societies including
  annual operations and the long-term requirements
  associated with the risks of interest rates, the
  physical properties, and employee salaries and
  benefits (we agree on adequacy)

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2. Legal Agreement for Program Administration

• 2. 7 Audit and Performance Measures
• Audited financial statements within four months
  of year end(agreed)
• Reporting requirements within four months of year
  end (agreed)
• Format according to BCH/CMHC agreement (agreed)

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2. Legal Agreement for Program Administration

• 2. 8 Evaluation
• At least once every five years (agreed)
• 2.9 Visibility
• Acknowledge contributions of governments of
  Canada and BC, CMHC, BCH (agreed)

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2. Legal Agreement for Program Administration
AHMA Position

• 2.10 Holding harmless
• BCH will hold AHMA harmless for all acts
  performed by AHMA

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.10 Holding harmless
• BCH holds AHMA harmless for acts performed by
  people acting reasonably
• BCH holds AHMA harmless for all acts before the
  transfer of responsibilities to AHMA
• BCH holds AHMA harmless for Acts of God and all
  acts beyond its financial capacity

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2. Legal Agreement for Program Administration
AHMA Position

• 2. 11 Expiration of funding
• Ends with Funding Expiration Date (agreed)
• At option of housing societies, the agreements
  can go beyond the current expiration date where
  revenues are insufficient to pay operating costs
  after payment of the current mortgage

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2. Legal Agreement for Program Administration
BC Housing Position

• 2. 11 Expiration of funding
• Ends with Funding Expiration Date (agreed)
• BCH cannot commit at the moment. BCH recognizes
  that this is an issue and it is an issue that has
  to be addressed across the whole portfolio

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2. Legal Agreement for Program Administration
AHMA Position

• 2.12 Performance and reporting
• If reporting requirements are not met, BCH may
  withhold funding until requirements are
  satisfied, need standard of materiality

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.12 Performance and reporting
• BCH agrees. In addition, AHMA will meet the
  requirements set out in the agreement between
  CMHC and BCH

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2. Legal Agreement for Program Administration
AHMA Position

• 2.13 Disclosure
• Records are confidential except for compliance
  with federal and provincial laws
• Confidentiality does not hinder need to carry out
  activities
• Does not extend to information which is of public
  record such as housing societies audited
  financial statements

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.13 Disclosure
• FOI law applies to information controlled by
  government agents. It will therefore not apply to
  AHMA because it is not an agent. Currently, BCH
  extends the spirit of the law to the housing
  societies which have an operating agreement with
  BCH, even though the societies are not obliged to
  furnish information. For example, when there is a
  tenant complaint, will BCH obtain information for
  these purposes from AHMA, or directly from
  housing societies?

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.13 Disclosure
• What will be AHMAs standard for proof of income?

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2. Legal Agreement for Program Administration

• 2.14 Assignability
• Not without consent of BC Housing (agreed)
• 2.15 Rights of Third Parties
• AHMA agrees to respect agreements between
  CMHC/BCH and third parties (agreed)

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2. Legal Agreement for Program Administration
AHMA Position

• 2.16 Aboriginal Assurance
• If courts decide that the transfer administration
  and management from CMHC to BCH is prohibited,
  and administration, the agreement shall not end
  unless with consent of AHMA

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.16 Aboriginal Assurance
• This provision will be removed from the agreement
  unless it is incorporated in the devolution
  agreement between CMHC and BCH

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2. Legal Agreement for Program Administration
AHMA Position

• 2.17 Arbitration and Mediation
• Settlement of disputes through mediation and
  arbitration
• Provided parties agree

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.17 Arbitration and Mediation
• Settlement of disputes through mediation and
  arbitration (agreed)
• There can be a detailed framework for arbitration
  and mediation to be used in the event of
  agreement by both parties

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2. Legal Agreement for Program Administration
AHMA Position

• 2.18 Schedules
• None provided to date
• List of properties
• Key elements of programs
• Housing income limits
• Annual funding requirements
• Annual program performance report
• Evaluation framework and standards
• Visibility requirements

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.18 Schedules
• BCH will provide the schedules
• BCH will verify what may now be available

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2. Legal Agreement for Program Administration

• 2.19 Change of Status
• No change of status as non-profit unless with
  prior consent (agreed)
• 2.20 Targeting
• Priority on targeting for low income Aboriginal
  people (agreed in addition, moderate income
  Aboriginal people are targeted)

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2. Legal Agreement for Program Administration
AHMA Position

• 2.21 Land Trust
• Fee simple title will pass to non-profit housing
  societies for RNH rental and BCH leasehold
• AHMA will facilitate discussion amongst its
  members on the pros and cons of a land trust

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.21 Land Trust
• New land policy for PRHC favours transfer of
  leasehold to trusts and charitable organizations.
  It is the intent of BCH to transfer the RNH
  rental and the leaseholds to non-profit
  organizations. This could go through AHMA or
  directly to the housing societies. Efforts will
  be made to reduce Property Transfer Tax (PTT) by
  limiting the number of transfers in the chain of
  title. Charitable organizations may be exempt
  from PTT.

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2. Legal Agreement for Program Administration
BC Housing Position

• 2.21 Land Trust
• Current RNH rental agreements are short term
  management contracts. There are 6 or 7 leasehold
  agreements between PRHC and the housing societies.

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3. Core Service Areas

• 3.1 Loans Administration
• Administer the direct loans made to housing
  societies by CMHC (agreed)
• 3.2 Subsidy Administration
• Administer operating subsidies in accordance with
  the operating agreements (agreed)
• Direct the subsidies to the housing societies
  without interruption in a manner that is fully
  accountable (agreed)

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3. Core Service Areas

• 3.3 Compliance Monitoring
• Monitor compliance with operating agreements
  (agreed)
• Identify and follow up on any breaches in
  agreement (agreed)
• Provide approvals to housing societies as
  required (agreed)
• Provide annual performance report to housing
  societies and compare to benchmark data (agreed)

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3. Core Service Areas

• 3.4 Risk Management
• Perform risk management function with goal of
  preventing, detecting and containing
  circumstances which may lead to breaches of the
  operating agreements or default under the
  mortgages (agreed)

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3. Core Service Areas

• 3.5 Default Management
• Carry out remediation activities where there is
  mortgage default or an immediate risk of such
  default, or where there is a critical failure to
  comply with the operating agreements (agreed)

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3. Core Service Areas

• 3.6 Information Services and Best Practices
• Offer an information service to housing societies
  and develop a comprehensive benchmarking and best
  practices service (agreed)
• 3.7 Reporting to Government Clients
• Provide periodic and annual reports and audits
  for the loans and subsidy administration as well
  as other activities (agreed)

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3. Core Service Areas

• 3.8 Education and Training
• Provide educational and training services
  (agreed)
• 3.9 Pooling of Economic Services
• Pool certain economic activities such as the
  purchasing of goods and services, insurance and
  mortgaging of properties (agreed)

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4. Risk Analysis

• 4.1 Replacement Reserves, Modernization, and
  Improvements
• Assess adequacy of reserves and ongoing property
  investments
• BCH agrees that these are areas of concern and
  that AHMA does not have the financial capacity to
  assume these risks

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4. Risk Analysis

• 4.2 Interest Rates
• Impact of interest rates
• 7.8 benchmark for more funding
• BCH agrees that these are areas of concern and
  that AHMA does not have the financial capacity to
  assume these risks

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4. Risk Analysis

• 4.3 Salaries and Benefits
• Harmonization of compensation package
• Need to resolve this before transfer
• BCH agrees that these are areas of concern and
  that AHMA does not have the financial capacity to
  assume these risks. This should be resolved
  before devolution from CMHC to BCH.

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5. Endowment Fund

• BC government to contribute 5 million to an
  equity fund
• Requires commitment from the government

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6. Start Up and Operating Budgets AHMA Position

• Start up budget of 432,000 for the first twelve
  months
• First year operating budget after transfer of BCH
  and CMHC social housing programs 1,291,833

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6. Start Up and Operating Budgets BC Housing
Position

• BCH is committed to give adequate funding support
  for operations
• Once AHMA starts to assume its responsibilities,
  there should be a reassessment on the nature of
  the skills required. Skills may be more hands
  on and less top heavy
• BCH is prepared to start in the next three weeks,
  after one or two further meetings to discuss the
  agreement, and put in place the ramp up capacity

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Resolution 1 Drafted April 11th, 2001

• Whereas we have been presented with the final
  report of the Technical Committee titled
  Returning Home to the Circle, which contains the
  position of AHMA respecting the transfer of the
  Administration of the housing agreements to AHMA
  
• Now therefore be it resolved we hereby approve of
  the final report and its position respecting the
  transfer with the Amendment that the endowment
  fund be raised to 10 million dollars.

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Resolution 2 Drafted April 11th, 2001

• Whereas
• a) we realize that we need to negotiate the final
  agreement with BC Housing Corporation for the
  transfer of the Administration of the Housing
  Agreements as outlined in Returning Home to the
  Circle as amended and approved by resolution of
  the membership and
• b) that we need to have a formal negotiating
  committee for these final negotiations.

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Resolution 2 Drafted April 11th, 2001

• Now therefore we hereby resolve that we create a
  formal negotiating team which shall be made up of
  the Executive Committee and the Technical
  Committee members.
• And further this committee shall be guided by the
  AHMA position as set out in our final report
  titled Returning Home to the Circle as amended.
• And that this committee is accountable to the
  Directors

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Resolution 3 Drafted April 11th, 2001

• Whereas BC Housing Management Commission is
  prepared to sign and implement an agreement with
  AHMA to transfer to AHMA the administration of
  the contracts between BC Housing Management
  Commission and our members

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Resolution 3 Drafted April 11th, 2001

• Now therefore be it resolved that we authorize
  the executive committee to execute
• 1) an agreement negotiated by our negotiating
  committee for the transfer of the administration
  of the contracts between BC Housing Management
  Commission and our members and
• 2) an agreement to start up the administration of
  these contracts provided there is adequate
  funding for AHMAs activities related to this
  start up administration.

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Resolution 4 Drafted April 11th, 2001

• Whereas the membership has of the final report of
  the approved Technical Committee titled Returning
  Home to the Circle requires various bylaw and
  constitutional amendments
• Now therefore be it resolved that the executive
  committee be directed to prepare the appropriate
  amendments as set out in Returning Home to the
  Circle, to issue the required notice according to
  the law, and to bring forward to the members for
  decision at their next meeting.

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Resolution 5 Drafted April 11th, 2001

• Whereas the Directors have created a personnel
  committee and that we need to develop job
  descriptions, process for hiring staff and human
  resource policy
• Now therefore we hereby resolve that the
  directors activate the committee to make
  recommendations to the directors in relation to
  the following matters
• a) a job description for the CEO and the Finance
  Officer
• b) the process for hiring staff
• c) the draft personnel policy

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Resolution 6 Drafted April 11th, 2001

• Whereas there is a need to hire staff to start up
  the transfer to AHMA of the contracts between BC
  Housing Management Commission and the Members
• Now therefore we hereby authorize the directors
  to hire a CEO and a Finance Officer, provided
• 1) the start up agreement between AHMA and BC
  Housing Management Commission is executed,
• 2) the job descriptions, hiring process, and
  human resources policy is approved by the
  directors.

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Where are we today
AHMA has now received a draft legal agreement
from BC Housing, which it is reviewing
AHMA has been able to hire an Acting CEO to keep
the process moving forward The AHMA model
is part of the core review process