Bill 122 the Broader Public Sector Accountability Act was recently fast tracked through Queen’s Park and has reached royal assent. While this Bill appears to be directed at hospitals and local health integration networks, it casts a broader net that may impact some housing providers in Ontario’s social housing sector.

Expanded Definition of ‘Broader Public Sector Organization’

Introduced by the Ministry of Health and Long-Term Care, the aim of Bill 122 is to ensure financial accountability within the broader public sector concerning the use of lobbyists, consultants, expense claims and procurement standards. What may cause issues for social housing is Bill 122’s definition of a “Broader Public Sector Organization” which includes any non-profit organization receiving funding from the Government of Ontario.

The expanded definition means that any organization that receives more than $10 million from the Province is considered a “broader public sector organization”. This Act requires that these organizations to be subject to the government’s own complex procurement policies. Organizations must also report on use of lobbyists, consultants and expense claims.

Organizations that receive under $10 million are less impacted but still would need to follow yet to be determined provincial guidelines.

Potential Impacts

The majority of housing providers in Ontario likely receive $0 or less than $10 million from the Province. Some providers however, receive funding from the Ministry of Health and Long-Term Care or the Ministry of Community and Social Services and are caught under this Act.

What has not yet been clarified is whether all types of provincial funding are included. For example, some providers receive funding from the Ontario Power Authority. Sector organizations are in the process of getting clarification about this funding to determine if this constitutes “public funding” under this new Act.

Bill 122 may ultimately be not particularly relevant to most housing providers in Ontario, which are typically one building operations of less than 100 units. The conditions surrounding procurement intended for large government organizations might result in administrative complexities that exceed staff capacity. Furthermore, while larger housing providers may have the capacity to follow government processes they usually have their own set of best practices and procurement guidelines, thus making transitioning to a different set of practices challenging.

Regardless of whether Bill 122 impacts housing providers right now, what it does indicate is a further movement within the current trend of fulfilling the public’s expectation of corporate and government transparency and responsibility. If this trend continues the social housing sector may be subject to similar bills in the future.

Bill 122 reached royal assent on December 8th. For the current version of the Bill, visit Broader Public Sector Accountability Act.

For more information on the many ways Bill 122 will affect not-for-profit corporations, check out the Ontario Non-profit Network website.