Community development corporations
112.2(1)The council of a municipality, either alone or together with one or more persons or municipalities, may incorporate a corporation under Part III of the Corporations Act as a community development corporation. Objects (2)For the purposes of this section, a community development corporation must be incorporated under Part III of the Corporations Act, (a) with the sole objects of promoting community economic development with the co-operation and participation of the community by encouraging, facilitating and supporting community strategic planning and increasing self-reliance, investment and job creation within the community; or (b) with objects substantially similar to those described in clause (a). Appointment of person to incorporate (3)The council of a municipality shall appoint one or more persons to apply, on the municipality’s behalf, for incorporation under subsection (1). Assistance to community development corporations (4)Despite section 111, the council of a municipality may, except as may be restricted or prohibited by regulation, provide financial or other assistance at less than fair market value or at no cost to a community development corporation, and such assistance may include, (a) giving or lending money and charging interest; (b) lending or leasing real property; and (c) giving, lending or leasing personal property. Same (5)Despite section 111, the council of a municipality may, except as may be restricted or prohibited by regulation, provide the services of employees of the municipality at no cost to a community development corporation. Prohibited assistance (6)The power extended to a council of a municipality in this section does not include the power to, either directly or indirectly, obtain, guarantee or purchase an interest in, (a) an asset or liability, including a contingent liability, of a community development corporation; (b) a security acquired by a community development corporation; or (c) a guarantee of a community development corporation. Council may nominate directors (7)The council of a municipality may nominate one or more persons, except as prescribed, to act as directors of a community development corporation. Reports and audits (8)If a municipality has assisted a community development corporation in a manner permitted by subsection (4) or (5) or has nominated a person who has become a director of a community development corporation, (a) the board of directors of the community development corporation shall make an annual financial report, and additional financial reports as requested, to the municipality in the form and manner, at the time and containing the information required by the municipality; and (b) the board of directors of the community development corporation shall, upon the request of the municipality, permit the municipal auditor to conduct an audit of the corporation, including an examination of the corporation’s assets. Powers on audit (9)In conducting an audit of a community development corporation, the municipal auditor is entitled to inspect all records, books, documents, transactions, vouchers, minutes and accounts of the corporation. Local board (10)If a municipality has appointed first directors or incorporators or nominated a person who has become a director of a community development corporation, the corporation is considered a local board for the purposes of the Municipal Conflict of Interest Act. Deemed local board (11)The Lieutenant Governor in Council may by regulation deem community development corporations to be local boards for the purposes of specified provisions of this Act and the Municipal Affairs Act, and may prescribe the extent and manner of application of those provisions to corporations deemed as local boards. Freedom of information (12)Community development corporations that receive municipal assistance in a manner permitted by subsection (4) or (5) or that have one or more directors nominated by the council of a municipality may be designated under the Municipal Freedom of Information and Protection of Privacy Act as a class of institution to which that Act applies. Regulations (13)The Minister may make regulations, (a) prohibiting or restricting the kind, manner and extent of assistance under subsections (4) and (5) that may be provided by a municipality to a community development corporation; (b) prescribing the number of persons a municipality may nominate to act as directors of a community development corporation. Same (14)A regulation under subsection (13) may be general or particular in its application. Definition (15)In this section, “municipality” includes a metropolitan, regional and district municipality and the County of Oxford. 1993, c. 26, s. 46.