Municipal Service Corporation (MSC)

MSC Consultation:

On April 21, 2026, Council supported moving forward with the legislated process for the creation of an MSC. As a first step, a draft business plan (available in 'documents' on the right) was presented and tabled at the June 16, 2026 Council meeting.

As a next step, the Township is gathering feedback from the public in order to evaluate whether an MSC is the best-suited governance and delivery model to support housing and future property development initiatives. No decision has been made to create an MSC at this time.

As required under Ontario Regulation 599/06 of the Municipal Act, 2001, a municipality must conduct a public consultation before incorporating an MSC. This public consultation framework is intended to inform residents and shareholders about the proposed MSC, gather meaningful input, and support transparent, Council-led decision-making before any decision is made to establish an MSC.

The public consultation period is proposed to begin June 25, 2026 and will end July 28, 2026. Members of the public will be able to submit feedback and questions to Township staff.

Please read the background information under 'What is an MSC?' and the Frequently Asked Questions to the right. Send remaining questions and feedback via email to communications@southfrontenac.net.

What is an MSC?

The Township of South Frontenac is exploring the creation of a Municipal Service Corporation (MSC) to develop, hold, and manage property, which includes municipal housing assets such as the Verona Housing Project (development of 92 new residential units - 48 townhouses and 44 apartments. All units are anticipated to be maintained at or below 100% of Median Market Rent (MMR), with more than 80% of them targeted at 80% MMR or less).

The proposed MSC would be established as a separate corporate entity responsible for advancing housing and other property development and holding property assets on behalf of the Township.

While the MSC would provide overall ownership, governance, and strategic oversight, operational functions such as property management, tenant services, maintenance, and day-to-day housing operations may be delivered directly by the MSC or through contracted service providers. As the Township advances the Verona Project and plans for future growth, it recognizes the need for a governance and delivery model that increases flexibility, reduces pressure on municipal capacity, and aligns with long-term financial objectives.

A Municipal Service Corporation (an MSC) can be created for several different reasons, the main reasons include:

  • Creating an autonomous body that will oversee the Verona Housing project and possible other housing projects in the future in South Frontenac.
  • Separating housing-related debt from the Township so that the project does not affect the Township’s long-term borrowing capacity and the Township is not directly responsible for repayment of the housing debt.

The proposed MSC structure has been designed to align with the Municipal Act, 2001 and Ontario Regulation 599/06 while providing the Township with a flexible governance framework that can evolve alongside its objectives. The structure also provides the ability to adapt over time, including the potential to introduce additional shareholders or expand the MSC's mandate should Council determine that such changes support the Township's long-term objectives. Overall, the proposed MSC represents a strategic approach to addressing housing needs in South Frontenac. It provides a scalable model that supports long-term growth, strengthens financial and operational flexibility, and enables the Township to play a more effective role in delivering housing while maintaining public accountability.

It is anticipated that, without a dedicated housing delivery corporation, the Township will continue to face challenges in meeting future demand for affordable and rental housing while balancing long-term financial sustainability and broader municipal service delivery responsibilities. The establishment of an MSC for housing is therefore expected to:

  1. Provide dedicated capacity and expertise to advance municipal housing priorities;
  2. Integrate the use of communal servicing solutions that enable compact growth in the Township including settlement areas such as Verona;
  3. Support the Township in achieving the housing expectations and population targets set out in its Official Plan.


Additional Resources:

The Municipal Act, 2001, S.O.2001, c 25, s. 203

Ontario Regulation 599/06: Municipal Services Corporations

MSC Consultation:

On April 21, 2026, Council supported moving forward with the legislated process for the creation of an MSC. As a first step, a draft business plan (available in 'documents' on the right) was presented and tabled at the June 16, 2026 Council meeting.

As a next step, the Township is gathering feedback from the public in order to evaluate whether an MSC is the best-suited governance and delivery model to support housing and future property development initiatives. No decision has been made to create an MSC at this time.

As required under Ontario Regulation 599/06 of the Municipal Act, 2001, a municipality must conduct a public consultation before incorporating an MSC. This public consultation framework is intended to inform residents and shareholders about the proposed MSC, gather meaningful input, and support transparent, Council-led decision-making before any decision is made to establish an MSC.

The public consultation period is proposed to begin June 25, 2026 and will end July 28, 2026. Members of the public will be able to submit feedback and questions to Township staff.

Please read the background information under 'What is an MSC?' and the Frequently Asked Questions to the right. Send remaining questions and feedback via email to communications@southfrontenac.net.

What is an MSC?

The Township of South Frontenac is exploring the creation of a Municipal Service Corporation (MSC) to develop, hold, and manage property, which includes municipal housing assets such as the Verona Housing Project (development of 92 new residential units - 48 townhouses and 44 apartments. All units are anticipated to be maintained at or below 100% of Median Market Rent (MMR), with more than 80% of them targeted at 80% MMR or less).

The proposed MSC would be established as a separate corporate entity responsible for advancing housing and other property development and holding property assets on behalf of the Township.

While the MSC would provide overall ownership, governance, and strategic oversight, operational functions such as property management, tenant services, maintenance, and day-to-day housing operations may be delivered directly by the MSC or through contracted service providers. As the Township advances the Verona Project and plans for future growth, it recognizes the need for a governance and delivery model that increases flexibility, reduces pressure on municipal capacity, and aligns with long-term financial objectives.

A Municipal Service Corporation (an MSC) can be created for several different reasons, the main reasons include:

  • Creating an autonomous body that will oversee the Verona Housing project and possible other housing projects in the future in South Frontenac.
  • Separating housing-related debt from the Township so that the project does not affect the Township’s long-term borrowing capacity and the Township is not directly responsible for repayment of the housing debt.

The proposed MSC structure has been designed to align with the Municipal Act, 2001 and Ontario Regulation 599/06 while providing the Township with a flexible governance framework that can evolve alongside its objectives. The structure also provides the ability to adapt over time, including the potential to introduce additional shareholders or expand the MSC's mandate should Council determine that such changes support the Township's long-term objectives. Overall, the proposed MSC represents a strategic approach to addressing housing needs in South Frontenac. It provides a scalable model that supports long-term growth, strengthens financial and operational flexibility, and enables the Township to play a more effective role in delivering housing while maintaining public accountability.

It is anticipated that, without a dedicated housing delivery corporation, the Township will continue to face challenges in meeting future demand for affordable and rental housing while balancing long-term financial sustainability and broader municipal service delivery responsibilities. The establishment of an MSC for housing is therefore expected to:

  1. Provide dedicated capacity and expertise to advance municipal housing priorities;
  2. Integrate the use of communal servicing solutions that enable compact growth in the Township including settlement areas such as Verona;
  3. Support the Township in achieving the housing expectations and population targets set out in its Official Plan.


Additional Resources:

The Municipal Act, 2001, S.O.2001, c 25, s. 203

Ontario Regulation 599/06: Municipal Services Corporations

Page last updated: 25 Jun 2026, 09:31 AM