For Immediate Release March 23, 2015 ONTARIO AFFORDABLE HOUSING MONEY LOST IN BRITISH INVESTMENT? QUEEN S PARK Today in the Ontario Legislature Oxford MPP Ernie Hardeman, PC Critic for Municipal Affairs and Housing, P on over a million dollars in Ontario affordable housing money that went astray under her g v watch, including money invested in a company located in Manchester, England. Instead of providing housing for Ontario families in need Housing Services Corporation put affordable housing money in what appears to be a shell corporation located in England, a Ha a. I ca understand why anyone would think it was acceptable to use money intended for affordable housing in this way. Social Housing Services Corporation invested over $30,000 in a company called HS 497 Ltd, whose c p a a wa a law office in Manchester, England. There are a number of other HS numbered companies who list the same corporate address. There is no evidence that the corporation ever operated or that any money was returned to Ontario. The investment was listed in the 2010 financial statements that should have gone to then Minister of Municipal Affairs and Housing Kathleen Wynne. Hardeman also asked the Premier about other questionable Housing Services Corporation (HSC) investments, such as: Over a million dollars which HSC gave to a for-profit solar panel company called InnoServ, mostly through loans that were written off as uncollectable in the same year they were given; and $125,000 which HSC advanced to a partnership formed with the Chartered Institute of Housing United Kingdom. The British organization has an option to take majority control of the partnership. Th a pa h f ha wa f aff abl h g g g abl deals ha v la wha happ a ORNGE a a b la c, a Ha a. Affordable housing providers are required by provincial legislation to purchase their insurance and natural gas through HSC. To fund their operations HSC marks up the cost of these services and municipalities have reported that they are paying as much as a million dollars extra per year because they are required to purchase through HSC. Th g v v w f HSC l h la w a a w ll investigate the money that went to either HS 497 Ltd. or InnoServ Solar. HS 497 and InnoServ have both been dissolved which means that those affordable housing dollars are gone, but taxpayers and families waiting for affordabl h g deserve some answers, a Ha a. We need the provincial auditor to investigate to see what happened, are there more of these questionable deals and are there any where we can get the affordable housing money back? - 30 - For more information, contact: Ernie Hardeman, MPP Oxford (416) 325-1239
Backgrounder: Affordable Housing Money to For-Profit Companies HS 497 Limited Social Housing Services Corporation, which became Housing Services Corporation, reported an investment of $31,430 in HS 497 Ltd. in their 2010 financial statements, which should have been reviewed by the 2011 Minister of Municipal Affairs and Housing Kathleen Wynne. There is no record in any other financial reports of the investment or any repayment. HS 497 s corporate address was 5th Floor Free Trade Exchange, 37 Peter Street, Manchester, England. This address was for a lawyer s office, Heatons LLP, and is the registered address for a large number of companies. HS 497 Ltd was incorporated on July 22, 2009 and the directors were Heatons Secretaries, Heatons Directors and a lawyer from Heatons LLP. Lindsey Reed, then CEO of Social Housing Services Corporation, became a director from Feb 19, 2010 and served until January 3, 2013. There is no record that HS 497 Ltd. ever carried on any business. It was voluntarily dissolved in September 2013. InnoServ Inc. InnoServ was a solar panel company formed to put solar panels on the social housing buildings. It was incorporated September 4, 2007. In 2007, HSC advanced $282,444 to InnoServ. There is no record this was ever repaid. In 2008, HSC advanced $404,356 to InnoServ and wrote off the whole amount that year as uncollectable. In 2010, HSC advanced $335,664 to InnoServ and wrote off the whole amount that year as uncollectable. In 2011, HSC advanced $13,854 to InnoServ and wrote off the whole amount that year as uncollectable. InnoServ Inc. was dissolved May 6, 2014. One of the directors of InnoServ was Derek Ballantyne, who is now the CEO of Encasa, HSC s subsidiary that manages over $400 million in pooled capital for affordable housing providers. Chartered Institute of Housing (CIH) In 2013 Housing Services Corporation advanced $125,000 to Chartered Institute of Housing Canada, a partnership with Chartered Institute of Housing UK. According to HSC s 2013 financial statements: The Chartered Institute of Housing (CIH UK) holds an option to purchase 50.1% of the share held by the Organization. As CIH UK ultimately controls CIH Canada through their purchase option, it has not been consolidated. HSC s CEO has spent thousands and thousands on meals and travel related to CIH including many trips to England, trips to Alberta and Manitoba and meals fancy restaurants, such as Jump.
Housing Services Corporation (HSC) All affordable housing providers are required by provincial legislation to buy natural gas and insurance through Housing Services Corporation, a not-for profit corporation created by the province. HSC funds their operations by marking up the cost of these services to the housing providers. A number of housing providers have reported that it costs them significantly more to purchase through HSC. For instance Hamilton said it cost them an additional 49% or $1.1 million in one year for natural gas. Oxford County estimates they could save approximately $100,000 a year enough to house 25 families.
WebCHeck - Select and Access Company Information http://wck2.companieshouse.gov.uk//compdetails Page 1 of 2 3/23/2015 Home Bookmark site Contact us Login My Account My Download My Monitor My Order Company Details Name & Registered Office: HS 497 LIMITED 5TH FLOOR FREE TRADE EXCHANGE 37 PETER STREET MANCHESTER GREATER MANCHESTER M2 5GB Company No. 06969567 Status: Dissolved 04/06/2013 Date of Incorporation: 22/07/2009 Country of Origin: United Kingdom company Order information on this Monitor this company Company Type: Private Limited Company Nature of Business (SIC): 74990 - Non-trading company Accounting Reference Date: 31/03 Last Accounts Made Up To: 31/03/2011 (TOTAL EXEMPTION SMALL) Next Accounts Due: Last Return Made Up To: 10/10/2012 Next Return Due: Tell Us Are you satisfied with our service? Have you got a question? Mortgage: Number of charges: ( 0 outstanding / 0 satisfied / 0 part satisfied ) Last Members List: 10/10/2012 Previous Names: No previous name information has been recorded over the last 20 years. UK Establishment Details There are no UK Establishments associated with this company. Oversea Company Info There are no Oversea Details associated with this company. System Requirements
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