Social Housing Reform Act, 2000

ONTARIO REGULATION 339/01

Amended to O.Reg. 345/06

housing projects subject to Part VI of the Act

Historical version for the period June 27, 2006 to August 30, 2006.

This is the English version of a bilingual regulation.

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CONTENTS

PART I
APPLICATION AND INTERPRETATION
1. / Application
2. / Interpretation
PART II
CORPORATE GOVERNANCE
3. / Corporate requirements
4. / Conflict of interest
5. / Replacement of conflict of interest rules
6. / Expenses and remuneration, directors
PART III
OPERATION OF HOUSING PROJECTS
7. / Management of housing project
8. / Property management
PART IV
SELECTION OF HOUSEHOLDS FOR UNITS
9. / Provision of information to the public
10. / Before centralized waiting list established
11. / Internal transfers
11.1 / Request to be a special priority household
11.2 / Special priority households
12. / Waiting lists, rent-geared-to-income units
12.1 / Duty to provide information
13. / Waiting list, special needs housing
14. / Selection of households
14.1 / Households referred to in s. 35.1 of O. Reg. 298/01
15. / Alternative housing provider
16. / Selection of households, supportive housing provider
17. / Notice of decision
18. / Refusal to offer
19. / Record of refusal to offer
20. / Internal review of refusal
PART V
LEASES AND OCCUPANCY AGREEMENTS
21. / Requirements
22. / Rent
23. / Occupancy standards
PART VI
CAPITAL RESERVE
24. / Capital reserve requirements
25. / Investments
26. / Exception, investments
PART VII
SUBSIDIES
27. / Definitions
28. / Market rent index
29. / Operating reserve
30. / Revenue and operating costs
31. / Benchmark amounts
32. / Section 106 housing providers
32.1 / Change in economic conditions, calculating housing provider’s mortgage subsidy
33. / Change in economic conditions
34. / Additional subsidy
PART VIII
ADMINISTRATION
35. / Records
36. / Annual report
37. / Insurance
38. / Mortgage renewals
PART IX
LOCAL HOUSING CORPORATIONS
39. / Transitional
Table 1
Table 2
Table 3
Table 4

PART I
APPLICATION AND INTERPRETATION

Application

1.This Regulation applies as follows:

1.To every housing provider in respect of a transferred housing project referred to in section 92 of the Act that is subject to Part VI of the Act, commencing on the date set out in Table 1 opposite the housing project.

2.To a local housing corporation in the manner required by section 32 of the Act and Part IX in respect of a housing project, commencing on the first day this Regulation applies to a housing provider in respect of a housing project in the service area in which the local housing corporation is located. O.Reg. 339/01, s.1; O.Reg. 408/01, s.1; O.Reg. 341/04, s.1.

Interpretation

2.(1)In this Regulation,

“centralized waiting list” means the waiting list established under section 35 of Ontario Regulation 298/01; (“liste d’attente centralisée”)

“eligible capital expenditure” means an expenditure made by a housing provider on the capital account for the construction, renovation or repair of a housing project and includes reasonable expenditures incurred by the housing provider in planning and budgeting for those expenditures; (“dépense en immobilisations admissible”)

“internal transfer” means, in respect of a household residing in a housing project of a housing provider,

(a)the transfer of the household from one rent-geared-to-income unit to another rent-geared-to-income unit in the same or another housing project of the housing provider, or

(b)the transfer of the household from one special needs housing to another special needs housing in the same or another housing project of the housing provider; (“transfert interne”)

“mandate” means, in respect of a housing provider, its mandate established under section 99 of the Act; (“mandat”)

“rent” means,

(a)in relation to a unit of a non-profit housing co-operative that is occupied by a member of the co-operative, housing charges as defined in the Co-operative Corporations Act, other than the sector support levy, if any, and initial membership fees, or

(b)in all other cases, rent as defined in the Tenant Protection Act, 1997; (“loyer”)

“subsidiary waiting list” means, in respect of a housing project, the subsidiary waiting list for the housing project referred to in section 36 of Ontario Regulation 298/01; (“liste d’attente subsidiaire”)

“targeting plan” means, in respect of a housing provider, its targeting plan established under section 98 of the Act. (“plan de ciblage”) O.Reg. 339/01, s.2(1); O.Reg. 557/05, s.1.

(2)Unless otherwise indicated by the context, a reference in this Regulation to a service manager, in relation to a housing provider or housing project, means the service manager for the service area in which the housing provider’s housing project is located. O.Reg. 339/01, s.2(2).

PART II
CORPORATE GOVERNANCE

Corporate requirements

3.(1)Every housing provider shall ensure that it is a non-profit corporation or a non-profit co-operative corporation in good standing under one of the following statutes by the end of six months after its operating agreement is terminated under section 91 of the Act and shall ensure that it continues to be in good standing as long as it is subject to Part VI of the Act.

1.Business Corporations Act.

2.Corporations Act.

3.Co-operative Corporations Act.

4.Canada Business Corporations Act. O.Reg. 339/01, s.3(1).

(2)A housing provider shall continue to do the following:

1.Provide rent-geared-to-income housing or special needs housing as part of its regular activities.

2.Operate only as a charity registered under the Income Tax Act (Canada) or as a non-profit corporation exempt from tax under Part I of that Act. O.Reg. 339/01, s.3(2).

(3)A housing provider shall not amend its articles, amalgamate with another corporation or take action to voluntarily wind-up or dissolve the corporation without the prior written consent of the service managers for all service areas in which its housing projects are located. O.Reg. 339/01, s.3(3).

(4)Despite subsection (3), a housing provider’s articles must require that upon the winding-up or dissolution of the corporation, all of its assets, after discharging all outstanding liabilities, must be distributed to one or more of the following entities:

1.A registered charity, within the meaning of the Income Tax Act (Canada), that operates only in Canada.

2.Another housing provider under the Act.

3.A service manager or municipality within the service area of the service manager where the housing provider is located. O.Reg. 339/01, s.3(4); O.Reg. 86/02, s.1.

(5)The board of directors of a housing provider shall meet at least four times each year. O.Reg. 339/01, s.3(5).

Conflict of interest

4.(1)This section applies to a housing provider in addition to the provisions of the Act listed in subsection 3 (1) to which the housing provider is subject. O.Reg. 339/01, s.4(1).

(2)A conflict of interest exists if any of the following situations occur:

1.The personal or business interests of a director, officer, agent or employee of a housing provider are in conflict with the interests of the housing provider.

2.A personal gain, benefit, advantage or privilege is directly or indirectly given to or received by a director, officer, agent or employee of the housing provider or a person related to one of them as a result of a decision by the housing provider. O.Reg. 339/01, s.4(2).

(3)A director, officer, agent or employee of the housing provider shall not enter into any situation, arrangement or agreement which results in a conflict of interest. O.Reg. 339/01, s.4(3).

(4)Directors, officers, agents and employees of the housing provider must notify the chair of the board of directors of the housing provider of every potential or actual conflict of interest no later than the first meeting of the board after the director, officer, agent or employee becomes aware that he or she has entered into a situation, arrangement or agreement that results in or may result in a conflict of interest. O.Reg. 339/01, s.4(4).

(5)The board of directors shall consider the notice given under subsection (4) no later than the second meeting of the board after the notice is given and consideration of the notice must be reflected in the minutes of the meeting. O.Reg. 339/01, s.4(5).

(6)The chair of the board shall notify the service manager in writing of the receipt of every notice under subsection (4) and the board of directors shall resolve every conflict of interest or potential conflict of interest to the satisfaction of the service manager. O.Reg. 339/01, s.4(6).

(7)Despite subsection (3), a director, officer, agent or employee or a person related to one of them may directly or indirectly receive a gain, benefit, advantage, privilege or remuneration from the housing provider if all of the following conditions are satisfied:

1.A notice of the conflict of interest or potential conflict of interest is given in accordance with subsection (4).

2.The service manager agrees that there is no reasonable alternative for the housing provider other than entering into the situation, arrangement or agreement that results in or may result in the conflict of interest. O.Reg. 339/01, s.4(7).

(8)For the purposes of this section, a person related to a director, officer, agent or employee includes a parent, spouse, child, household member, sibling, uncle, aunt, nephew, niece, mother-in-law, father-in-law sister-in-law, brother-in-law or grandparent, or a person with whom the director, officer, agent or employee has a business relationship. O.Reg. 339/01, s.4(8); O.Reg. 341/05, s.1 (1).

(9)In this section,

“child”, in relation to an individual, means a child of the individual born within or outside marriage (unless that child has been adopted by one or more other individuals in Ontario or according to the law of another jurisdiction), a child adopted by the individual in Ontario or according to the law of another jurisdiction, and a child whom the individual has demonstrated a settled intention to treat as a child of his or her family, but does not include a child placed in the individual’s home as a foster child for consideration by another person having lawful custody; (“enfant”)

“parent”, in relation to an individual, means a natural parent of the individual (unless the individual has been adopted by one or more other persons in Ontario or according to the law of another jurisdiction), an adoptive parent of the individual who has adopted the individual in Ontario or according to the law of another jurisdiction, and a person who has demonstrated a settled intention to treat the individual as a child of his or her family, but does not include a person in whose home the individual has been placed as a foster child for consideration by another person having lawful custody; (“père ou mere”)

“spouse”, in relation to a person, means,

(a)an individual who, together with the person, has advised the housing provider that the individual and the person are spouses, or

(b)an individual who is residing in the same dwelling place as the person, if the social and familial aspects of the relationship between the individual and the person amount to cohabitation and,

(i)the individual is providing financial support to the person,

(ii)the person is providing financial support to the individual, or

(iii)the individual and the person have a mutual agreement or arrangement regarding their financial affairs. (“conjoint”) O.Reg. 339/01, s.4(9); O.Reg. 341/05, s.1 (2-4).

Replacement of conflict of interest rules

5.The conflict of interest provisions set out in section 4 may be replaced for a housing provider by rules agreed to by the housing provider and the service managers for all areas in which its housing projects are located, in accordance with subsection 93 (3) of the Act. O.Reg. 339/01, s.5.

Expenses and remuneration, directors

6.(1)A housing provider shall not pay remuneration to a director other than amounts to reimburse the director for reasonable expenses incurred in the performance of the director’s duties as a director. O.Reg. 339/01, s.6(1).

(2)A housing providermay employ a director if,

(a)the director resides in the housing provider’s housing project and is employed by the housing provider on a part-time or temporary basis; or

(b)the director does not reside in the housing provider’s housing project and is employed by the housing provider to carry out functions of a non-supervisory and non-managerial nature and the housing provider has,

(i)five or fewer directors and no other director is employed by the housing provider to carry out the same functions, or

(ii)more than five directors and not more than one-fifth of the directors are employed by the housing provider to carry out the same functions. O.Reg. 339/01, s.6(2).

(3)Despite subsection (1), a housing provider may pay reasonable remuneration to a director employed in accordance with subsection (2) in respect of his or her employment functions. O.Reg. 339/01, s.6(3).

PART III
OPERATION OF HOUSING PROJECTS

Management of housing project

7.(1)A housing provider shall ensure that its housing projects are well managed, are maintained in a satisfactory state of repair and are fit for occupancy. O.Reg. 339/01, s.7(1).

(2)Subject to the provisions of any mortgage guaranteed by the Province of Ontario or the Ontario Housing Corporation to which the housing project is subject, a housing provider shall proceed diligently to repair, restore and make habitable any unit in a housing project that is damaged to such an extent that it is uninhabitable. O.Reg. 339/01, s.7(2).

Property management

8.(1)Subject to subsection (4), a housing provider shall establish and follow open and competitive practices in hiring its employees, subject to the provisions of any collective bargaining agreement to which the housing provider is a party, and in retaining persons to provide property management services for its housing projects. O.Reg. 339/01, s.8(1).

(2)A contract for property management services for a housing project must be in writing and must satisfy the following requirements:

1.The term of the contract must not exceed three years.

2.The contract must not be renewable.

3.The contract must be capable of termination by the housing provider on 60 days written notice any time during the term of the contract and on 30 days written notice if the termination is for breach of the contract, unless the parties to the contract agree to shorter notice periods.

4.The contract must specifically identify and describe the nature of the goods and services provided under the contract and the consideration to be paid by the housing provider.

5.The contract must be non-assignable. O.Reg. 339/01, s.8(2).

(3)Every corporation providing management services for a housing project shall give notice to the housing provider of the housing project of any change in control of the corporation. O.Reg. 339/01, s.8(3).

(4)A housing provider is not required to follow open and competitive practices in retaining persons to provide property management services if the service manager is satisfied that open and competitive practices are not appropriate in the circumstances in order for the housing provider to obtain a reasonable level of property management services at a reasonable cost. O.Reg. 339/01, s.8(4).

PART IV
SELECTION OF HOUSEHOLDS FOR UNITS

Provision of information to the public

9.(1)Every housing provider shall make the following information concerning a housing project available to the public:

1.The information provided under section 60 of Ontario Regulation 298/01 to the housing provider by the service manager.

2.Information concerning the types and sizes of units in its housing project.

3.The housing provider’s policies and procedures for internal transfers.

4.The housing provider’s procedures for internal reviews under section 20. O.Reg. 339/01, s.9(1).

(2)A housing provider shall allow members of the public to make copies of the information at their own expense. O.Reg. 339/01, s.9(2).

Before centralized waiting list established

10.(1)Until a centralized waiting list is established, a housing provider shall continue to select households for placement in vacant units in accordance with the Ministry of Municipal Affairs and Housing Directive 97-17 dated July 4, 1997 — Implementing a Modified Chronological Resident Selection System. O.Reg. 339/01, s.10(1).

(2)For the purposes of subsection (1), the directive mentioned in that subsection shall be read without reference to the portion entitled Changes to Portfolio Targets. O.Reg. 339/01, s.10(2).

Internal transfers

11.(1)Every housing provider shall do the following in respect of its housing projects in a service area:

1.Establish policies and procedures for internal transfers and provide a copy of them to the service manager.

2.Establish and maintain a waiting list for internal transfers in accordance with its policies and procedures for internal transfers. O.Reg. 339/01, s.11(1).

(2)A housing provider’s policies and procedures for internal transfers in housing projects in a service area must include the following requirements:

1.Revoked: O. Reg. 86/02, s.2(1).

1.1That the waiting list for internal transfers include all special priority households referred to in section 11.1.

2.That the waiting list for internal transfers include all households referred to in subsection 32 (2) of Ontario Regulation 298/01 if the housing provider has at least one unit of a size within the range for which the household is eligible to receive rent-geared-to-income assistance.

3.Revoked: O.Reg. 181/02, s. 1(2).

4.That households described in paragraph 1.1 (special priority households) rank higher in priority on the waiting list for internal transfers than households described in paragraph 2 and households not described in paragraph 2 that are eligible to be included on the waiting list for internal transfer.

4.1That special priority households that also meet the requirements of paragraph 2 rank higher in priority on the waiting list for internal transfers than households described in paragraph 2.

4.2That a special priority household ranks higher on the waiting list for internal transfers than another special priority household if the housing provider determines that a member of the first household is at greater risk of being abused than the members of the other household.

4.3That, subject to paragraph 4.2, if the member who has been subject to abuse of a special priority household lives with the person who has committed the abuse, that household ranks higher on the waiting list for internal transfers than another special priority household for which that is not the case.

4.4That, subject to paragraph 4, households described in paragraph 2 rank higher in priority on the waiting list for internal transfers than households not described in paragraph 2 that are eligible to be included on the waiting list for internal transfer.

5.That the housing provider notify the service manager when a household that has been placed on the waiting list for internal transfers under paragraph 2 has refused an offer of a unit. O.Reg. 339/01, s.11(2); O.Reg. 86/02, s.2; O.Reg. 181/02, s.1; O.Reg. 557/05, s.2.

Request to be a special priority household

11.1(1)If a household is applying for an internal transfer, any member of the household who is 16 years old or older may request that the housing provider determine whether it should be included in the special priority household category on the waiting list for internal transfers. O.Reg. 181/02, s.2.

(2)A request for a determination that a household should be included in the special priority household category may not be made except as provided in subsection (1). O.Reg. 181/02, s.2.

(3)The request must be in writing and must state that,

(a)a member of the household has been subject to abuse from another individual;

(b)the abusing individual is or was living with the member or is sponsoring the member as an immigrant; and

(c)the abused member who intends to live permanently apart from the abusing individual. O.Reg. 181/02, s.2.