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ontario regulation 535/07
made under the
social housing reform act, 2000
Made: September 6, 2007
Filed: September 6, 2007
Published on e-Laws: September 10, 2007
Printed in The Ontario Gazette: September 22, 2007
Amending O. Reg. 339/01
(Housing Projects Subject to Part VI of the Act)
1.Sections 28 and 29 of Ontario Regulation 339/01 are revoked.
2.(1)Subsection 30 (1) of the Regulation is amended by striking out “For the purposes of subsection 103 (11) of the Act” at the beginning and substituting “For the purposes of subsection 33.10 (2) of this Regulation and subsection 103 (11) of the Act”.
(2)Subsection 30 (2) of the Regulation is amended by striking out “For the purposes of subsection 103 (11) of the Act” at the beginning and substituting “For the purposes of subsection 33.10 (2) of this Regulation and subsection 103 (11) of the Act”.
3.Sections 32.1 and 33 of the Regulation are revoked.
4.The Regulation is amended by adding the following sections:
Change in economic conditions — Table 2 service areas
33.1(1)For a fiscal year commencing on or after January 1, 2008, sections 33.2 to 33.10 apply to a housing provider in respect of its housing projects located in a service area listed in Column 1 of Table 2.
(2)Despite subsection (1), sections 33.2 to 33.10 do not apply to any housing provider in respect of housing projects described in subsection 33.11 (1).
(3)The requirements set out in sections 33.2 to 33.10 are prescribed under section 110 of the Act as requirements altering the formula for calculating the subsidy payable to a housing provider in respect of its housing projects described in subsection (1).
(4)All amounts that are not whole numbers that are used in calculations under sections 33.2 to 33.10 or that result from calculations under those sections must be rounded to two decimal places, unless otherwise indicated.
Total subsidy
33.2For the purpose of calculating the amount of a housing provider’s total subsidy for a fiscal year in respect of its housing projects in the service area, the definition of “A” in the formula set out in subsection 103 (2) of the Act is not the definition in that subsection but is as follows:
“A”is the amount of the provider’s operating subsidy for the fiscal year in respect of its housing projects in the service area;
Operating subsidy
33.3(1)The amount of a housing provider’s operating subsidy for a fiscal year in respect of its housing projects in the service area is the amount determined using the formula,
E + F – G
in which,
“E”is the amount of the provider’s indexed benchmark operating costs for the fiscal year in respect of its housing projects in the service area,
“F”is the amount of the provider’s shelter mortgage costs for the fiscal year in respect of its housing projects in the service area, and
“G”is the amount of the provider’s indexed benchmark revenue for the fiscal year in respect of its housing projects in the service area.
(2)An amount determined under subsection (1) may be a positive or negative number or zero.
Indexed benchmark operating costs
33.4(1)The amount of a housing provider’s indexed benchmark operating costs for a fiscal year in respect of its housing projects in the service area is the amount determined by,
(a)for the fiscal year commencing in 2008,
(i)calculating the indexed benchmark operating cost for the fiscal year for each item listed in Column 1 of the Table to this subsection by,
(A)expressing as a decimal number the operating cost index for the item for the fiscal year, as determined by the Minister in accordance with subsection (4),
(B)adding one to the number determined under sub-subclause (A), and
(C)multiplying the housing provider’s benchmark operating cost for the item for the fiscal year, as determined by the Minister under section 104 of the Act, by the number determined under sub-subclause (B), and
(ii)calculating the sum of the indexed benchmark operating costs determined under subclause (i) and subsection (3) for all the items; and
(b)for a fiscal year commencing in 2009 or later,
(i)calculating the indexed benchmark operating cost for the fiscal year for each item listed in Column 1 of the Table to this subsection by,
(A)expressing as a decimal number the operating cost index for the item for the fiscal year, as determined by the Minister in accordance with subsections (5) and (6),
(B)adding one to the number determined under sub-subclause (A), and
(C)multiplying the indexed benchmark operating cost for the item for the previous fiscal year by the number determined under sub-subclause (B), and
(ii)calculating the sum of the indexed benchmark operating costs determined under subclause (i) for all the items.
Table
Item No. / Column 1 / Column 2Item / Index
1. / Administration and maintenance / Ontario Consumer Price Index (All items), as published by Statistics Canada
2. / Insurance / Ontario Consumer Price Index (Homeowners’ home and mortgage insurance sub-index), as published by Statistics Canada
3. / Bad debt / Market rent index, as determined under subsection 33.7 (1)
4. / Electricity / Ontario Consumer Price Index (Electricity sub-index), as published by Statistics Canada
5. / Water / Ontario Consumer Price Index (Water sub-index), as published by Statistics Canada
6. / Natural gas / Ontario Consumer Price Index (Natural gas sub-index),as published by Statistics Canada
7. / Oil and other fuel / Ontario Consumer Price Index (Fuel oil and other fuel sub-index), as published by Statistics Canada
8. / Capital reserves / Ontario Consumer Price Index (All items), as published by Statistics Canada
(2)Despite subsection (1), for a housing provider that is not subject to the Act on September 6, 2007, the amount of the provider’s indexed benchmark operating costs for a fiscal year in respect of its housing projects in the service area is,
(a)for the first fiscal year that the provider is subject to the Act, the total of the provider’s benchmark operating costs, as determined by the Minister under section 104 of the Act;
(b)for the next year, the amount determined in accordance with clause (1) (a); and
(c)for each subsequent year, the amount determined in accordance with clause (1) (b).
(3)Despite subsection (1), for the fiscal year commencing in 2008, the indexed benchmark operating cost for item 3 of Column 1 of the Table to subsection (1) is determined as follows:
1.Express as a decimal number the market rent index applicable for the fiscal year commencing in 2007 to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1).
2.Add one to the number determined under paragraph 1.
3.Multiply the benchmark operating cost for bad debt, as determined by the Minister under section 104 of the Act, by the number determined under paragraph 2.
4.Express as a decimal number the market rent index applicable for the fiscal year commencing in 2008 to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1).
5.Add one to the number determined under paragraph 4.
6.Multiply the number determined under paragraph 3 by the number determined under paragraph 5.
(4)For the fiscal year commencing in 2008, the operating cost index for an item listed in Column 1 of the Table to subsection (1), other than for item 3, is calculated by,
(a)dividing the index listed in Column 2 of the Table opposite the item for May of the current calendar year by that index for May of the calendar year two years prior to the current calendar year;
(b)subtracting one from the number determined under clause (a); and
(c)expressing the number determined under clause (b) as a percentage, rounded to two decimal places.
(5)For a fiscal year commencing in 2009 or later, the operating cost index for an item listed in Column 1 of the Table to subsection (1), other than for item 3, is calculated by,
(a)dividing the index listed in Column 2 of the Table opposite the item for May of the current calendar year by that index for May of the previous calendar year;
(b)subtracting one from the number determined under clause (a);
(c)expressing the number determined under clause (b) as a percentage, rounded to two decimal places.
(6)For a fiscal year commencing in 2009 or later, the operating cost index for item 3 of Column 1 of the Table to subsection (1) is the market rent index determined under subsection 33.7 (1).
(7)The Minister shall notify each service manager and housing provider affected by this section of the operating cost index for a fiscal year for each item listed in Column 1 of the Table to subsection (1).
Shelter mortgage costs
33.5The amount of a housing provider’s shelter mortgage costs for a fiscal year in respect of its housing projects in the service area is the total amount of principal and interest payable by the provider for the fiscal year, where such payments are,
(a)payable under mortgages guaranteed by the Province of Ontario or the Ontario Mortgage and Housing Corporation in respect of those projects; and
(b)applicable to the portions of those housing projects that,
(i)are used for residential accommodation and ancillary functions, including meeting rooms, recreational facilities, laundry facilities, parking areas and exterior grounds, and
(ii)have been approved by the service manageras being part of the shelter component of its housing projects.
Indexed benchmark revenue
33.6(1)The amount of a housing provider’s indexed benchmark revenue for a fiscal year in respect of its housing projects in the service area is,
H – I + J
in which,
“H”is the amount of the provider’s indexed benchmark revenue for market rents for the fiscal year in respect of its housing projects in the service area,
“I”is the amount of the provider’s indexed benchmark vacancy loss for the fiscal year in respect of its housing projects in the service area, and
“J”is the total amount of the provider’s benchmarked non-rental revenue for the fiscal year in respect of its housing projects in the service area, as determined by the Minister under section 104 of the Act.
(2)The amount of a housing provider’s indexed benchmark revenue for market rents for a fiscal year in respect of its housing projects in the service area is the amount determined as follows:
1.Express as a decimal number the market rent index applicable in the fiscal year to the provider’s housing projects in the service area, as determined under subsection 33.7 (1).
2.Add one to the number determined under paragraph 1.
3.Multiply the provider’s indexed benchmark revenue for market rents for the prior fiscal year by the number determined under paragraph 2.
(3)Despite subsection (2), for a housing provider that is not subject to the Act on September 6, 2007, the amount of the provider’s indexed benchmark revenue for market rents for a fiscal year in respect of its housing projects in the service area is,
(a)for the first fiscal year that the provider is subject to the Act, the provider’s benchmark revenue for market rents, as determined by the Minister under section 104 of the Act;
(b)for the next year, the amount determined by finding the product of,
(i)the provider’s benchmark revenue for market rents, as determined by the Minister under section 104 of the Act, and
(ii)the sum of one and the market rent index applicable for the fiscal year to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1), expressed as a decimal number; and
(c)for each subsequent year, the amount determined in accordance with subsection (2).
(4)The amount of a housing provider’s indexed benchmark vacancy loss for a fiscal year in respect of its housing projects in the service area is the amount determined by,
(a)for the fiscal year commencing in 2008,
(i)expressing as a decimal number the market rent index applicable in the fiscal year to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1),
(ii)adding one to the number determined under subclause (i), and
(iii)multiplying the provider’s benchmark vacancy loss, as determined by the Minister under section 104 of the Act, by the number determined under subclause (ii); and
(b)for a fiscal year commencing in 2009 or later,
(i)expressing as a decimal number the market rent index applicable in the fiscal year to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1),
(ii)adding one to the number determined under subclause (i), and
(iii)multiplying the provider’s indexed benchmark vacancy loss for the prior fiscal year by the number determined under subclause (ii).
(5)Despite subsection (4), for a housing provider that is not subject to the Act on September 6, 2007, the amount of the provider’s indexed benchmark vacancy loss for a fiscal year in respect of its housing projects in the service area is,
(a)for the first fiscal year that the provider is subject to the Act, the provider’s benchmark vacancy loss, as determined by the Minister under section 104 of the Act;
(b)for the next year, the amount determined in accordance with clause (4) (a); and
(c)for each subsequent year, the amount determined in accordance with clause (4) (b).
Market rent index
33.7(1)The market rent index applicable for a fiscal year to a housing provider’s housing projects in a service area is the lesser of,
(a)the guideline published under subsection 120 (3) of the Residential Tenancies Act, 2006; and
(b)the percentage change in the average rent for rental units, as determined under subsection (2).
(2)For the purposes of clause (1) (b), the percentage change in the average rent for rental unitsis determined using the following formula, rounded to the first decimal point:
(R/S – 1) × 100
in which,
“R”is the number indicated in the most recently published October edition of the Rental Market Report, published by the Canada Mortgage and Housing Corporation, as the “Total” average rent for a “Private Apartment” or “Private Row (Townhouse)”, as the case may be, and for a census metropolitan area centre, census agglomeration centre or a zone, as the case may be, and
“S”is the number indicated in the report published the year before the report referred to in “R” that corresponds to the number determined under “R”.
(3)If the Rental Market Report does not provide data required for the calculation of “R” or “S”, then “R” or “S”, as the case may be, is equal to the number indicated in the Rental Market Report as the “Total” average rent for the census metropolitan area centre or census agglomeration centre, as the case may be, or, if that data is not available, for Ontario.
(4)Despite subsection (1), the Minister may, after consultation with the service manager for the service area, adjust the percentage change determined under clause (1) (b) for a housing project, a census metropolitan area centre, census agglomeration centreor a zone.
Rent-geared-to-income subsidy
33.8For the purposes of clause (a) of the definition of “F” in the formula for calculating a housing provider’s rent-geared-to-income subsidy set out in subsection 103 (6) of the Act, the total amount of a housing provider’s indexed market rents for a fiscal year from rent-geared-to-income units in its housing projects in the service area is not the amount determined using the rules in subsection 103 (7) of the Act, but using the following rules:
1.For the first fiscal year for which the housing provider receives a subsidy under the Act, the total amount of its indexed market rents is the total amount of the provider’s benchmark market rents for those units as determined by the Minister under section 104 of the Act.
2.For each subsequent fiscal year, the total amount of the provider’s indexed market rents is the amount determined by,
i.expressing as a decimal number the market rent index applicable in the fiscal year to the provider’s housing projects in the service area, as determined under subsection 33.7 (1),
ii.adding one to the number determined under subparagraph i, and
iii.multiplying the number determined under subparagraph ii by the total amount of the provider’s indexed market rents for the previous fiscal year.
Mandatory payment
33.9For the purpose of the definition of “D” in the formula set out in subsection 103 (2) of the Act, the amount of the housing provider’s mandatory payment for the fiscal year in respect of its housing projects in the service area is not the amount determined under subsection 103 (8) of the Act, but is zero.
Surplus
33.10(1)For the purpose of the definition of “E” in the formula set out in subsection 103 (2) of the Act, the amount, if any, of the housing provider’s surplus for a fiscal year in respect of its housing projects in the service area is not the amount determined under subsection 103 (10) of the Act, but is the amount determined using the formula,
L – M
in which,
“L”is the amount of the provider’s net operating income for the fiscal year as set out in the annual report required under subsection 113 (1) of the Act relating to that fiscal year, and
“M”is the amount of the provider’s operating reserve.
(2)For the purposes of the definition of “L” in subsection (1), the net operating income of a housing provider for a fiscal year with respect to its housing projects in the service area is the amount by which its revenue for the fiscal year from those projects, as determined in the manner set out under section 30, exceeds its operating costs for the fiscal year with respect to those projects, as determined in the manner set out under section 30.
(3)For the purposes of the definition of “M” in subsection (1), the amount of a housing provider’s operating reserve, if any, in respect of its housing projects in the service area for a fiscal year ending after the transfer date is the amount determined under the following rules:
1.If the housing provider’s accumulated surplus in respect of the service area at the beginning of the fiscal year or at the beginning of any previous fiscal year that ends after the transfer date, as set out in its annual report for that fiscal year under section 113 of the Act, is equal to or greater than the product of $300 multiplied by the number of the housing provider’s units in housing projects in the service area at the beginning of that fiscal year, the housing provider’s operating reserve for the fiscal year is nil.
2.If the amount determined in respect of the housing provider for the fiscal year under subsection (4) is nil or a negative amount, the housing provider’s operating reserve for the fiscal year in respect of those housing projects is,
N – P
where,
“N”is the product of $300 multiplied by the average number of the housing provider’s units in the service area in the fiscal year, and