Toronto Community Housing Corp. (TCHC) is a huge problem that Mayor John Tory has vowed to address.

It is the second largest housing organization in North America and is fully dependent on government funding, but as it now operates that funding isn’t enough. The organization has failed to adapt and the lack of visionary leadership has created a rigid environment where following procedure matters more than innovative ideas. Instead of adapting to the lack of funding, TCHC has allowed its housing to fall into such a state of disrepair that they estimate it will take approximately $2.6 billion to cover all the capital repairs required over the next decade.

The organization has failed to provide adequate living conditions to our most vulnerable citizens, from exterior walls crumbling, to buildings infested with vermin, bed bugs and unsafe environments. There is no question that TCHC is failing our citizens, or that blame for the terrible conditions there must fall on the board, which has chosen to carry on with a flawed system instead of tackling the need to restructure the organization.

Government organizations are structured to be stable environments where rigid adherence to procedure is valued more than innovation. While stable environments work well for governing and legislative offices, they are terribly ineffective in constantly changing environments where thousands of lives interact. Managing housing effectively requires qualities that government organizations lack - quick response times, adaptability, local knowledge, and personal concern for the property.

The horrendous conditions at TCHC aren’t unique to Toronto. London’s Council Housing and the “projects” in New York suffered from the same shortcomings that happen when government organizations try to be landlords. But these cities have found some very creative solutions.

In London non-profit housing associations run by a volunteer board of residents, local business and community leaders have had great success at improving living conditions for their tenants. By properly managing a building and capturing the value of the property the housing associations have managed to create safe, clean and affordable housing.

In New York the introduction of housing vouchers to allow low-income households to rent modest market-rate housing of their choice allow a large part of the private housing industry to provide social housing rather than placing the burden to maintain and repair onto the government.

New York is also developing Social Impact Bonds (SIBs) that allow the government to partner with private investors to pay for social programs. Unlike a loan, a SIB requires that all the services it pays for have a quantifiable impact.

For example, in Toronto a SIB could be used to attract investors to fund a nonprofit organization to manage and operate some of TCHC’s worst buildings where repairs and maintenance have fallen far behind and where living conditions are horrendous. The results of the work the non-profit organization does are then measured and the city pays investors back once benchmarks are achieved. Given the positive impact that the nonprofit housing associations have had in the U.K., this solution allows government oversight while connecting with the broader community.

Many successful solutions to community housing in other cities involve moving the management and service from the public sector to a nonprofit organization in the private sector. This would be a drastic change but one that would see better living conditions for those most vulnerable in our city. It is the right, reasonable and responsible way to solve the problems that a rigid government organization has imposed on our tenants.

Mayor Tory is willing to tackle the issue of affordable housing, and this says a lot about his desire to make Toronto a better city. But with most of the problems at TCHC stemming from the flawed structure of the organization, he won’t be able to do much until he gets the board to address the structural issue, and bring in someone who knows how to lead organizational change.

In the biblical story of David and Goliath, David refused to be weighed down by armor and entered into his combat with nothing but his sling and his stick. He didn’t fight in close combat because it gave Goliath the advantage. Instead he ignored the conventional way of fighting and changed the playing field. Similarly, the Goliath-sized problems at TCHC will not be solved by a bureaucrat who wants to create “action plans” while keeping the status quo, but only by a leader who is willing to break with convention and allow the broader community to participate in finding solutions.

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From forming housing associations, to creating social impact bonds and housing voucher systems, there are better ways to provide affordable housing to our most vulnerable and Toronto finally has a Mayor with the courage to stand up to the Goliath that is TCHC. But will he find a David who can change the playing field?

Sarah Thomson was a candidate for mayor in 2010.

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