Memorandum of Understanding, 2016

The Memorandum of Understanding, 2016 (MOU) between the Minister and the Ontario Mortgage and Housing Corporation, is an administrative agreement that promotes mutual understanding of the roles and responsibilities of the agency, the Minister, the Board, and its officers and support staff.

Mandate responsibilities

OMHC’s mandate responsibilities are listed in the MOU. Responsibilities are primarily financial in nature and include:

  1. administration of public housing debt to Canada Mortgage and Housing Corporation (CMHC) and the Province
  2. managing OMHC’s contingent liability to CMHC with respect to certain social housing mortgages for non-profit housing programs in accordance with OMHC’s loan insurance agreement with CMHC
  3. managing any environmental liabilities under the Environmental Protection Act (EPA) on public housing properties formerly owned by OMHC that were transferred to Local Housing Corporations
  4. managing and administering Affordable Home Ownership Program legacy mortgages transferred to it by Minister’s Order in accordance with the OMHCA
  5. using the monies in the Affordable Home Ownership Revolving Loan Fund and the monies received under the transferred Affordable Home Ownership Program mortgages, including interest earned on the monies, only for housing purposes in accordance with a Minister approved by-law
  6. administering marketable and forgivable loans and mortgages related to former housing programs, including loans and mortgages that were owned by OMC and transferred to OMHC on April 1, 2015
  7. administration of loans to colleges and universities under the Ontario Student Housing program for the development of on-campus student housing
  8. administration of housing programs, or parts of housing programs, as may be prescribed under the OMHCA, including making grants and loans related to such prescribed programs and taking security for such loans
  9. making housing related loans, grants, guarantees or advances in accordance with the OMHCA and the HDA
  10. carrying out building developments as defined under the HDA in accordance with the OMHCA and HDA
  11. coordinating and arranging all borrowing, financing, short-term investment of funds and financial risk management activities through the Ontario Financing Authority, unless the Minister of Finance approves otherwise
  12. subject to applicable legislation, such other matters which are within OMHC’s statutory mandate as may be assigned to, or may have been assigned to OMHC by the Minister

OMHC By-law No. 2: Affordable Home Ownership Mortgages and Revolving Loan Fund

OMHC administers the repayment of mortgages issued under the Affordable Home Ownership Program (AHP). This federal-provincial program was established in 2005 to provide down payment assistance in the form of second mortgages. The AHP loans are forgivable after twenty years. However, if a mortgagor wishes to sell the property prior to that time, the loan must be repaid. Loan repayments are deposited in an account called the Affordable Home Ownership (AHP Revolving Loan Fund). The OMHC through amendments to the OMHCA which came into force on April 1, 2015. The AHP Revolving Loan Fund is held outside of the Consolidated Revenue Fund.

The OMHCA requires that monies held in the AHP Revolving Loan Fund be used only for housing purposes in accordance with an OMHC by-law approved by the Minister. OMHC By-law No. 2: Affordable Home Ownership Mortgages and Revolving Loan Fund (By-law No. 2).

No. specifies that the Corporation is authorized to use the money in the Fund and the money it receives under the AHP mortgages, including any interest earned, for housing purposes, as requested by the Minister and approved by the Board of Directors. As of March 31, 2019 no funds from the AHP Revolving Loan Fund had been used.