Toronto Community Housing Corp. in a state of ‘crisis,’ says board member

Thestar.com
December 19, 2018
David Rider

Canada’s largest public housing provider is operating in what one board member described as a state of “crisis” as the fourth chief executive officer to head up the corporation in less than a decade is placed on paid leave pending the review of a lucrative consulting contract.

The board for the Toronto Community Housing Corp. announced Monday that CEO Kathy Milsom was on administrative leave and a close to $1.3-million contract procured under her watch was being reviewed by an outside law firm.

Management and consulting agency Orchango was brought on to help reorganize the embattled housing provider. Now law firm Bennett Jones will review a process that “was flawed and did not follow existing TCHC regulations,” the board said in a statement.

The existence of the contract and its value was first reported by the Toronto Sun.

Recent board addition Councillor Paula Fletcher said the consultancy issue just adds to long-held concerns that the social housing provider --home to about 110,000 tenants in 2,100 properties --is in serious trouble.

“I’ve seen for a while that TCH seems to be in crisis, and has been in crisis since 2010 with so many changes in leadership. I wanted to go on the board to see if I can help because I have been heavily involved with different housing communities for years,” said Fletcher (Ward 14, Toronto—Danforth), speaking with the Star on Tuesday.

The Orchango contract was cancelled and a second employee involved in the deal is also on paid leave as “part of a prudent effort to ensure the independence and integrity of the ongoing review.” But neither leave is disciplinary action, the board said.

Orchango’s president and co-founder told the Star on Monday they were “looking into the matter” and declined to comment further.

The value of the public assets run by TCH is about $9 billion. The corporation is facing a massive repair backlog with fixes projected to cost $1.6 billion over 10 years. Funding issues have resulted in unit closures, including 423 people forced out of two townhome blocks in the Firgrove community, near Jane St. and Finch Ave.

Fletcher said the City of Toronto, as the main funder and official “service manager” for TCH, needs to pay more attention to the arm’s-length agency and how it can be helped, as good management is vital for tenants.

“TCH is so big and seems to be so independent. I personally think everybody’s role needs to be clearly defined --the corporation, the board, the city --and we need to work together to bring things back to equilibrium,” Fletcher said.

Mayor John Tory, in a statement on Monday, said the “decisive action” taken by the board was the right decision and he had spoken with current board chair Kevin Marshman to ensure tenants are not disrupted.

“The good governance of all city agencies is essential and requires that everyone involved with these organizations is held to the highest standards,” Tory said.

When Milsom took over the top job in August 2017 she followed Marshman who was acting as interim CEO after Greg Spearn stepped down in 2017. Before he left, Spearn had warned that a restructuring plan being considered by the corporation could put them at risk of significant financial losses.

Before him was Gene Jones, who was forced out in 2014 because of poor management. Jones was preceded by Keiko Nakamura who was ousted in 2011 following a spending scandal.

Funding shortages and senior staff churn are not the only challenges the TCH is dealing with.

Less than six months into Milsom’s watch, another law firm was brought in to investigate what was reported to be a culture of fear and intimidation.

“You’re bullied, you’re harassed, you’re intimidated,” a current manager with the corporation told the Star’s Jennifer Pagliaro earlier this year. “It’s just unbelievable to say that this is a municipal agency.”

Susan Gapka, a 12-year TCH resident and tenant activist, said Tuesday she hopes the latest controversy is resolved quickly because the corporation is moving in the right direction.

“My experience with (Milsom) is she’s been very responsive to tenants and I’ve been very impressed with her so far,” Gapka said. “She’s put tenant-centred policies in place and designated an enormous amount of resources to the tenant-consultation process. I’m saddened this has happened because we’re moving forward and a lot of pieces are coming together to improve life for tenants.”

Councillor Ana Bailao, a TCH board member and chair of the city’s housing and planning committee, told the Star on Tuesday the board “did what we needed to do,” given new information about the consultant contract.

“We’re focused on keeping the integrity of the process and delivering good housing for people and for the tenants,” she said.