At the 5th annual meeting was held at Sampo Hall on April 14, 1989, at which time Taisto Eilomaa and Aino Krats were elected as Chairman and Secretary. An honorary membership was awarded to Aino Krats for her dedicated work during the early years of the society. The efforts of the Society regarding Phase II were finally rewarded in February of 1990, at which time the Province of Ontario announced that it would fund the construction of Palvelukoti as a joint venture involving the Finnish Rest Home Society, the Ministry of Housing and the Ministry of Community and Social Services.
The responsibility for this task fell to the new board headed by Antti Kurkimnki and Ainu Krats who were elected at the 8th annual meeting held at Sampo Hall on March 26, 1990. Viljo Rinne was presented with an honorary membership for his past efforts on behalf of the Society. A major media event was held on June 18, 1990 to officially declare the start of Phase II and Palvelnkoti’s fund-raising campaign. At this time Mark Mieto, the Director of Health and Social Services for the Regional Municipality of Sudbury, was formally introduced as the campaign’s Honorary Chairman.
The opening ceremony involved the cutting of the first tree on the lot and the announcement that the Ministries of Housing and Community and Social Services would contribute $4.3 million and $544 000 restrictively to the capital costs of the project. According to the agreement reached with the Province, the remaining $ 1.2 million required for Phase II was to be raised by the Society.
To assist in this endeavour, the first fund-raising Dinner Dance was held at Laurentian University on October 13. This was followed by the signing of the building contract with Tribury Construction on December 12, 1990. The Society was then saddened by the passing away of Ainu Krats and Teuvo Eloranta in January and March of 1991 Both of these individuals had long served as hard-working members of the Society since its inception in 1982. Maire Laurikainen assumed the position of secretary at the 9th annual meeting of the Society held at Voima Hall on March 24, 1991. Antti Kurkimaki was re-elected as Chairman.