BARRIE - Simcoe County says it wonders whether the Gateway Co-op on Anne Street has learned its lessons from going broke and into receivership.

A county staff report recommends the co-op be given a $192,192 grant to cover the cost of receivership and consulting fees.

“Does this board fully comprehend the financial woes they’re facing?” wondered Orillia Mayor Ron Stevens, who sits Simcoe County’s human services committee. “I understand (county) staff are going to be (supervising), but do the people we’re trying to help fully understand?”

It’s been a tumultuous time for the 217-unit coop. Its board of directors resigned in April 2007, after county staff laid down the law regarding financial controls. The law is literally the Social Housing Reform Act, which requires financial transparency and accountability and maintenance and operations standards be respected.

The receivership agreement ended last spring, and the county entered into a supervisory agreement with the co-op, which elected a new slate of directors. The county recruited a board member with professional financial accreditation, who has committed to a two-year term to help educate the new board. The new board took over governing in June 2009. The supervisory agreement ends in April.

Yet financial struggles continue, said social housing director Cathy Kytayko. The co-op still has an operating deficit, thanks to the fees it had to pay the receiver. County staff is suggesting taxpayers cover that cost in a one-time grant to enable the co-op board to get a fresh start going forward.

County council is to approve the grant at its meeting Jan. 26.