A Guide To Municipal Service Corporations
Municipal Services Corporations
A practical tool for municipalities looking to move housing, infrastructure, and community development forward.
Municipal Services Corporations (MSCs) provide municipalities with a flexible way to deliver services, manage assets and advance municipal priorities through a municipally owned corporation that operates at arm’s length. In Ontario, MSCs are established under the Municipal Act, 2001 and Ontario Regulation 599/06, which provide the framework for creating and operating an MSC.
2B has extensive knowledge and hands-on experience helping municipalities explore, establish and implement MSCs. Through our work, we have developed our own practical, step-by-step approach to guide municipalities through the MSC process. This includes determining whether an MSC is the right fit, developing the business case and financial model, establishing governance structures, conducting public consultation, and creating asset transfer policies. Our approach takes municipalities through the process from the initial exploration through to incorporation and every step in between.
Our team maintains a strong understanding of MSCs across Canada. Our broader knowledge, combined with our direct experience, allows us to bring both proven expertise and innovative thinking to each MSC we are a part of.
In partnership with Rural Impact Canada, our MSC work received national recognition and more than $4 million in funding through CMHC’s Housing Supply Challenge to further develop and demonstrate an innovative approach to the model. By combining research, innovation and hands-on implementation, 2B has become a leading resource for municipalities considering or establishing an MSC.
Building Municipal Capacity to Deliver Housing
For many municipalities, particularly smaller and rural communities, the challenge is not simply identifying the need for housing, but having the capacity, resources and delivery model needed to move housing projects forward.
2B works directly with municipalities to help deliver housing. Our MSC approach provides municipalities with a dedicated structure to take a more active role in housing, including developing municipal land, holding housing assets, working with development and operating partners, and managing housing over the long term.
Our approach helps municipalities build the capacity needed to move housing development forward while maintaining municipal ownership and oversight, bringing together the land, infrastructure, financing and partnerships needed to advance housing projects and support them over the long term.
Our MSC Expertise
2B supports municipalities through the full process of exploring, establishing and implementing an MSC. Our expertise includes:
MSC feasibility and options analysis
Business case development
Financial modelling and risk analysis
Governance and corporate structure
Board composition and shareholder direction
Public and stakeholder consultation
Asset transfer policies and supporting municipal policies
Council reports and presentations
Coordination with legal, accounting, and financial advisors
Bylaws, incorporation and implementation planning
Long-term operating and accountability frameworks
Integration of MSCs with housing, land development and municipal asset strategies
Our work goes beyond establishing the corporation. We help municipalities consider how an MSC will function over the long term, including municipal oversight, financial sustainability, accountability, decision-making, asset ownership and the relationship between the corporation and its municipal shareholder.
Frequently Asked Questions
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MSCs are used to help advance complex, often time consuming goals like affordable housing development, expanded servicing in rural areas, and upgrading infrastructure delivery.
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An MSC can provide a system, service or thing that the municipality itself is authorized to provide. This can include housing and land development, water and wastewater servicing, infrastructure and asset management, economic development and other municipal services.
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Municipalities may use an MSC when a dedicated corporate structure can help advance a particular priority or project. An MSC can provide focused expertise, greater operational flexibility, and an arm’s-length structure while the municipality retains ownership and oversight.
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An MSC is governed by a Board of Directors. Its governance structure can be designed to bring together the skills and expertise needed to support the corporation’s mandate while establishing clear accountability to its municipal shareholder.
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In Ontario, MSCs are established under the Municipal Act, 2001 and Ontario Regulation 599/06. The process includes specific requirements, including the creation of a business case, conducting public consultation, and an asset transfer policy.
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Yes. An MSC can provide municipalities with a dedicated structure to develop municipal land, hold housing assets, work with development and operating partners, and support the long-term management of housing.
Our Work With Municipal Service Corporations
