Frigid Waters

On April 15, 2009 our co-op voted for a Financial Solvency By-law. The alternative was to go into Court ordered Receivership. The crisis was set out as follows:

1. The arrears and vacancy rates have created a cash flow loss in the co-op.

2. The subsidy is over-allocated and has created an internal subsidy program that the co-op cannot afford.

3. The cash flow crisis means that repairs are not getting done and vacant units cannot be adequately marketed.

4. The capital reserves have been heavily used in recent years. There are insufficient funds for current major repair needs.

5. The community has no lasting trust in the successive boards that it elects. It results in a hostile atmosphere that has delayed important and effective decision-making in the co-op. It creates lack of pride, concern and enjoyment by co-op members.

A representative of The Agency told us that there were a dozen other housing co-ops in Ontario which were also 'in care'. We were to be governed by 3 non-resident and 2 resident Board Members. Our By-laws were to be suspended for 3 years.* There would be no committees, although social and gardening volunteerism would be allowed.

We are now 2 1/2 years into this 3-year plan. There are no visible improvements in the co-op, nor in the sense of community. The All Members Meeting, which should have been held in June, might be held this month. If so, another resident member will be elected to the Board, replacing a non-resident Board member. Next year, technically speaking, the co-op should revert back to the membership. It would be interesting to hear how the dozen other co-ops 'in care' are doing. Without signals from other co-ops in dire straights, we are a lone drifting iceberg.

*Our By-laws are cherry-picked - invoked at will.