O. Reg. 339/01: HOUSING PROJECTS SUBJECT TO PART VI OF THE ACT

 

ONTARIO regulation 339/01

made under the

Social Housing reform act, 2000

Made: August 28, 2001
Filed: August 30, 2001
Printed in The Ontario Gazette: September 15, 2001

housing projects
subject to Part VI of the Act

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
12.	Waiting list, rent-geared-to-income units
13.	Waiting list, special needs housing
14.	Selection of households
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
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
PART X COMMENCEMENT
40.	Commencement

 

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 in Table 1 opposite the name of the service manager for the service area in which the housing project is located.

2. To local housing corporations in the manner required by section 32 of the Act and Part IX.

Interpretation

2. (1) In this Regulation,

“centralized waiting list” means the waiting list established under section 35 of Ontario Regulation 298/01;

“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;

“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;

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

“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 a pro-rated portion of the annual amount, if any, payable by the co‑operative to the Co-operative Housing Federation of Canada and initial membership fees, or

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

“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;

“targeting plan” means, in respect of a housing provider, its targeting plan established under section 98 of the Act;

(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.

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.

(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.

(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.

(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 local housing corporation.

(5) The board of directors of a housing provider shall meet at least four times each year.

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.

(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.

(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.

(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.

(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.

(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.

(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.

(8) For the purposes of this section, a person related to a director, officer, agent or employee includes a parent, spouse, same-sex partner, 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.

(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;

“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;

“same-sex partner”, in relation to a person, means,

(a) an individual of the same sex as the person, if the individual and the person have together advised the housing provider that they are same-sex partners, or

(b) an individual of the same sex as the person who resides 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;

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

(a) an individual of the opposite sex to the person, if the individual and the person have together advised the housing provider that they are spouses, or

(b) an individual of the opposite sex to the person 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.

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.

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. 

(2) A housing provider may 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.

(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.

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.

(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.

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.

(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.

(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.

(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. 

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.

(2) A housing provider shall allow members of the public to make copies of the information at their own expense.

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.

(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.

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.

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

1. That the waiting list for internal transfers include all households in rent-geared-to-income units or special needs housing in those housing projects that have requested an internal transfer.

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. That a household described in paragraph 2 will have a higher priority on the waiting list for internal transfers than another household described in that paragraph if it first applied to the service manager for rent-geared-to-income assistance before the other household first applied to the service manager for rent-geared-to-income assistance.

4. That households described in paragraph 2 rank higher in priority on the waiting list than households mentioned in paragraph 1.

5. If the housing provider gives a notice under paragraph 2 of section 33 of Ontario Regulation 298/01 in respect of the household, that the household be removed from the waiting list for internal transfers when the housing provider gives the notice.

Waiting list, rent-geared-to-income units

12. (1) A housing provider shall not establish or maintain a waiting list of households eligible for rent-geared-to-income assistance other than the following:

1. A waiting list for internal transfers established and maintained in accordance with section 11.

2. A waiting list for special needs housing established and maintained in accordance with section 13.

(2) A housing provider shall refer all households for rent-geared-to-income assistance to the service manager.

Waiting list, special needs housing

13. (1) Unless the waiting list for special needs housing for a service area is established and maintained by the service manager or a lead agency, a supportive housing provider shall,

(a) adopt policies and procedures consistent with section 45 of Ontario Regulation 298/01, the housing provider’s mandate and its targeting plan for the establishment and maintenance of a waiting list for households who require the type of special needs housing available in its housing project;

(b) provide, within six months after the termination of its operating agreement, a copy of the policies and procedures described in clause (a) in written or  electronic format to the service manager; and

(c) accept applications for special needs housing from households who require the type of special needs housing available in the housing project.

(2) A housing provider shall not impose a charge for accepting or processing an application for special needs housing.

Selection of households

14. (1) Subject to sections 15 and 16, a housing provider shall select a household for placement in a vacant unit in its housing project in accordance with the rules set out in this section.

(2) The vacant unit is considered to be a rent-geared-to-income unit if,

(a) no targeting plan has been established for the housing project in which the unit is located; or

(b) the unit must be a rent-geared-to-income unit in order to satisfy the requirements of the targeting plan established for the housing project in which the unit is located.

(3) The following rules apply with respect to rent-geared-to-income units, other than special needs housing:

1. The housing provider shall offer the unit to households on the housing provider’s waiting list for internal transfers that are eligible for the unit under Part V of Ontario Regulation 298/01, starting with the highest ranked household and continuing in the order in which the households are ranked on that list, until an offer is accepted.

2. If no household on the housing provider’s waiting list for internal transfers is eligible for the unit or accepts the unit, the housing provider shall offer the unit to households on the subsidiary waiting list for the housing project who are eligible for the unit under Part V of Ontario Regulation 298/01, starting with the highest ranked household and continuing in the order in which the households are ranked on the subsidiary waiting list, until an offer is accepted by a household.

Alternative housing provider

15. (1) The rules set out in section 14, as they apply to alternative housing units, may be replaced in accordance with subsection 93 (3) of the Act with rules agreed to by the alternative housing provider and the service manager.

(2) In this section,

“alternative housing provider” means a housing provider that has a mandate to provide housing to households that are homeless or hard to house;

“alternative housing unit” means a rent-geared-to-income unit of an alternative housing provider that is made available to households that are homeless or hard to house.

Selection of households, supportive housing provider

16. (1) A supportive housing provider that is a specified supportive housing provider shall select households for its units in accordance with the following rules:

1. If the specified supportive housing provider provides provincially-funded support services in respect of the unit and the unit has been modified to improve accessibility, the specified supportive housing provider shall offer the unit to the highest ranked household on its own waiting list that requires both the accessibility modifications of the unit and the provincially-funded support services, whether or not the household is eligible for rent-geared-to-income assistance.

2. If the specified supportive housing provider provides provincially-funded support services in respect of the unit and the unit has not been modified to improve accessibility, the specified supportive housing provider shall offer the unit to the highest ranked household on its own waiting list that requires the provincially-funded support services, whether or not the household is eligible for rent-geared-to-income assistance.

3. If the unit has been modified to improve accessibility but the specified supportive housing provider does not provide provincially-funded support services in respect of the unit, the specified supportive housing provider shall offer the unit to the highest ranked household on its own waiting list that requires the accessibility modifications of the unit, whether or not the household is eligible for rent-geared-to-income assistance.

(2) A supportive housing provider, other than a specified supportive housing provider, shall select households for its units in accordance with the following rules:

1. If the supportive housing provider provides provincially-funded support services in respect of the unit and the unit has been modified to improve accessibility, the supportive housing provider shall offer the unit to the highest ranked household on the area waiting list that requires both the accessibility modifications of the unit and the provincially-funded support services, whether or not the household is eligible for rent-geared-to-income assistance.

2. If the supportive housing provider provides provincially-funded support services in respect of the unit and the unit has not been modified to improve accessibility, the supportive housing provider shall offer the unit to the highest ranked household on the area waiting list that requires the provincially-funded support services, whether or not the household is eligible for rent-geared-to-income assistance.

3. If the unit has been modified to improve accessibility but the supportive housing provider does not provide provincially-funded support services in respect of the unit, the supportive housing provider shall offer the unit to the highest ranked household on the area waiting list that requires the accessibility services, whether or not the household is eligible for rent-geared-to-income assistance.

(3) If the highest ranked household to whom a supportive housing provider offers the unit under subsection (1) or (2) does not accept the unit, the supportive housing provider shall offer the unit to other households on the same waiting list who would otherwise qualify for the unit, starting with the next highest ranked household and continuing in the order in which the households are ranked on the waiting list until an offer is accepted by a household.

(4) In subsections (1) and (2), a supportive housing provider is a specified supportive housing provider in respect of a housing project if,

(a) a lead agency is not designated with respect to the supportive housing provider’s special needs housing in the housing project; and

(b) the supportive housing provider is listed in Column 2 of Table 2 of Ontario Regulation 298/01 opposite the name of the service manager for the service area in which the housing project is located.

(5) In this section,

“area waiting list” means, in respect of a housing project, the waiting list for special needs housing maintained by a lead agency designated with respect to special needs housing in the housing project or the waiting list for special needs housing maintained by the service manager.

Notice of decision

17. (1) If a housing provider offers a unit to a household, other than a household on the housing provider’s waiting list for internal transfers, the housing provider shall give the service manager notice in writing of the household’s decision to accept or refuse the unit.

(2) A notice under subsection (1) must be given within 10 days after the household advises the housing provider of the household’s acceptance or refusal and must include the following information:

1. The name and address of the housing provider.

2. The name and address of the housing project and sufficient information to identify the unit.

3. The name of the members of the household and sufficient information to enable the service manager to identify the members of the household who will reside in the unit or who would have resided in the unit if the household had not refused the unit.

Refusal to offer

18. (1) Despite sections 14 and 16 and any rules referred to in section 15, a housing provider may refuse to offer a unit to a household if,

(a) selection of the household would be contrary to its mandate;

(b) the housing provider has reasonable grounds to believe, based on the household’s rental history, that the household may fail to fulfil the obligation to pay rent for the unit in the amount and at the times it is due;

(c) the household does not agree to accept its responsibilities as a member of the housing provider, if the housing provider is a non-profit housing co-operative, or the housing provider has reasonable grounds to believe that the household will not accept or will be unable to accept those responsibilities;

(d) in the case of a unit in which individuals will reside in a shared living situation, the housing provider has reasonable grounds to believe that it is unreasonable for the household to reside in the shared accommodation;

(e) the housing provider has reasonable grounds to believe that the unit is not suitable for the household due to the physical characteristics of the unit in relation to the number, gender and ages of the members of the household; or

(f) in the case of special needs housing, the level of service required by the household is significantly greater or significantly less than the level of service provided to a household in the unit.

(2) Despite sections 14 and 16 and any rules referred to in section 15, a housing provider shall refuse to offer special needs housing to a household if the household is not eligible under section 19 of Ontario Regulation 298/01 for special needs housing.

(3) A housing provider who refuses to offer a unit to a household under subsection (1) or (2) shall notify the household of the refusal.

(4) The following rules apply in respect of a notice under subsection (3):

1. The notice must be in writing and given to the household not more than 10 days after the housing provider offers the unit to another household.

2. The notice must contain the reasons for the housing provider’s refusal to offer the unit to the household and set out the facts on which the housing provider relied in making its decision.

3. The notice must set out the procedures established by the housing provider under section 20 for the internal review of the housing provider’s refusal to offer the unit to the household.

Record of refusal to offer

19. (1) If a housing provider refuses to offer a unit to a household under section 18,  the housing provider shall maintain a written record of its decision, including a copy of the notice given to the household under that section and the information used by the housing provider in making its decision to refuse to offer the unit to the household, for a period of at least seven years after the day the notice of the decision is given to the household.

(2) The service manager may review the written record described in subsection (1) on reasonable notice and within normal business hours at any time within the time period described in subsection (1).

Internal review of refusal

20. (1) A housing provider shall establish procedures for the internal review of a refusal to offer a unit to a household.

(2) The procedures established under subsection (1) must include the following:

1. An internal review must be carried out if a written request for the review from the household is given to the housing provider within 10 business days after the housing provider gives a notice of refusal to the household under section 18.

2. The household may withdraw the request for internal review by giving written notice of the withdrawal to the housing provider before the review is completed.

3. An individual who participated in the making of the decision to refuse to offer the unit to the household shall not participate in an internal review of that decision.

4. The internal review must be completed within 10 business days after the request for the review is received by the housing provider.

5. The housing provider shall give written notice of the result of the internal review to the household within five business days after the review is completed.

(3) In this section,

“business day” means a day from Monday to Friday, other than a holiday.

PART V
LEASES AND OCCUPANCY AGREEMENTS

Requirements

21. (1) Every housing provider and household that rents or occupies a rent-geared-to-income unit or special needs housing in the housing provider’s housing project shall enter into a lease or, in the case of a co-operative housing unit, an occupancy agreement that satisfies the following:

1. In the case of a lease, the term of the lease must not exceed one year.

2. The lease or agreement must specify the amount of rent that would be payable if the unit were a market unit, the rent payable by the household and any other charges that the housing provider may impose under this Regulation or the Tenant Protection Act, 1997.

3. In the case of a rent-geared-to-income unit,

i. the lease or agreement must restrict the occupancy of the unit to the members of the household at the time the lease or agreement is entered into and any additional persons whose occupation of the unit is agreed to subsequently by the housing provider,

ii.  the lease or agreement must require the household to advise the housing provider of any persons who cease to occupy the unit or commence to occupy the unit after the lease or agreement is executed, and

iii. the lease or agreement must prohibit the assignment of the lease or the right to occupy the unit, as the case may be, and prohibit the household from renting or subletting the unit to any person.

4. In the case of a rent-geared-to-income unit, the lease or agreement must provide that the amount of rent for the unit is subject to change if the household’s financial circumstances changes sufficiently that the amount of their rent-geared-to-income assistance changes or the household ceases to  qualify for rent-geared-to-income assistance.

5. In the case of a rent-geared-to-income unit, the lease or agreement must be executed by every individual,

i. whose income is taken into consideration in determining the amount of rent payable by the household, or

ii. who is a member of the household and at least 16 years of age.

(2) A housing provider shall ensure that the household residing in a rent-geared-to-income unit complies with the requirements described in paragraph 3 of subsection (1).

(3) A housing provider shall establish rules for the temporary accommodation of guests in its rent-geared-to-income units and shall provide a copy of the rules in either written or electronic format to the service manager and to the households residing in those units.

Rent

22. (1) The amount of rent payable by a household for a rent-geared-to-income unit is the amount determined under the rules prescribed under Part V of the Act.

(2) A housing provider may impose only fees or charges other than rent that are not prohibited by the Tenant Protection Act, 1997 in respect of a unit that is subject to that Act.

(3) A housing provider that is a non-profit housing co-operative may impose on a member of the co-operative only the following fees and charges in respect of a unit in addition to occupancy charges:

1. Any fee or charge that would be permitted under the Tenant Protection Act, 1997 if the unit were a rental unit.

2. The initial fee for membership in the housing provider.

3. A pro-rated portion of the annual amount, if any, payable by the housing provider to the Co-operative Housing Federation of Canada.

(4) A housing provider shall not refuse to give vacant possession of a rent-geared-to-income unit to a household that is unable to pay part or all of an amount that is required to be paid at the time that it enters into the written lease or occupancy agreement for the unit, other than rent or occupancy charges, if the household agrees to make payments on account of the unpaid amount in accordance with a reasonable payment schedule acceptable to the housing provider.

(5) Unpaid amounts referred to in subsection (4) that are not paid in accordance with the payment schedule are deemed to be rent payable for the unit.

Occupancy standards

23. The housing provider shall comply with the occupancy standards applicable to its units, as prescribed in Part V of Ontario Regulation 298/01.

PART VI
CAPITAL RESERVE

Capital reserve requirements

24. (1) A housing provider that receives a subsidy under the Act shall establish and maintain a capital reserve for its housing projects in a service area that includes the following amounts:

1. The amount in the housing provider’s capital reserve fund maintained for those housing projects immediately before the operating agreement for the housing projects was terminated under section 91 of the Act.

2. Contributions made by the housing provider to the capital reserve.

(2) The housing provider shall contribute all amounts each of which is its contribution for a fiscal year, as determined under subsection (3), to its capital reserve for its housing projects in a service area.

(3) The amount of a housing provider’s contribution for a fiscal year to its capital reserve for its housing projects in a service area is the amount determined under the following rules:

1. If the fiscal year ends before the fiscal year referred to in paragraph 2, the amount of the housing provider’s contribution is the amount determined by the Minister.

2. If the fiscal year is the first fiscal year beginning after the Minister determines the benchmark annual contribution for the housing provider, the amount of the housing provider’s contribution is the amount of the benchmark annual contribution.

3. If the fiscal year ends after the fiscal year referred to in paragraph 2, the amount of the housing provider’s contribution is the amount determined by multiplying the amount of the housing provider’s contribution for the previous fiscal year by the cost index applicable to those housing projects for the fiscal year, as determined by the Minister.

(4) Despite subsection (3), a housing provider shall not contribute an amount to its capital reserve fund for a fiscal year for its housing projects in a service area in excess of the amount by which its surplus for the fiscal year in respect of those housing projects, as determined for the purposes of Part VI of the Act, exceeds,

(a) the amount of “E” for that fiscal year under subsection 103 (2) of the Act, if the housing provider is entitled for that year to a subsidy calculated under that subsection; or

(b) the amount of “E” for that fiscal year under subsection 106 (2) of the Act, if the housing provider is entitled for that year to a subsidy calculated under that subsection.

(5) At the option of a housing provider, contributions made by it to its capital reserve within six months after the end of a fiscal year may be considered to be contributions made during the fiscal year.

(6) A housing provider shall account for the funds and property in its capital reserve and the income and expenses of the capital reserve separately from its other property, income and expenses.

(7) A housing provider may use its capital reserve for its housing projects in a service only for the following purposes:

1. To fund eligible capital expenditures related to those housing projects.

2. To make investments permitted under the Act or this Part.

(8) Despite subsection (7), a housing provider shall use funds in its capital reserve that were provided by a service manager in accordance with any conditions or requirements imposed by the service manager at the time the funds were provided.

Investments

25. (1) Subject to section 26, a housing provider shall maintain its capital reserve only in the following types of property:

1. Debt obligations that are fully guaranteed by a financial institution.

2. Debt obligations that are fully secured by deposits with a financial institution.

3. Debt obligations that are fully secured by other debt obligations that are fully guaranteed by a financial institution.

4. Debt obligations issued by the Government of Canada, the government of a province or territory of Canada, a municipality or an agency of such a government or municipality.

5. Debt obligations that are guaranteed by, or fully secured by securities issued by, the Government of Canada, the government of a province or territory of Canada, a municipality or an agency of such a government or municipality.

6. Interests in Canadian dollar money market mutual funds sold by a financial institution with no front-end or back-end sales charges.

(2) Investments made in a housing provider’s capital reserve must mature no later than one year after acquisition or must be marketable or capable of redemption no later than one year after acquisition.

(3) If, before the operating agreement for an eligible housing provider is terminated under section 91 of the Act, the Minister has approved a proposal in respect of the investment of funds in the housing provider’s capital reserve, the housing provider may continue to invest the funds in its capital reserve in accordance with the proposal.

(4) In this section,

“eligible housing provider” means Toronto Housing Company Inc., Peel Non-Profit Housing Corporation or City of Ottawa Non-Profit Housing Corporation;

“financial institution” means,

(a) a bank,

(b) a corporation registered under the Insurance Act or the Investment Contracts Act,

(c) a corporation registered under the Loan and Trust Corporations Act,

(d) an entity that is,

(i) incorporated or formed by or under an Act of the Parliament of Canada or of the legislature of a province, and

(ii) primarily engaged in dealing in securities, including portfolio management and investment counselling, or

(e) a credit union.

Exception, investments

26. The following rules apply if a housing provider is prescribed for the purposes of clause 142 (1) (c) of the Act:

1. Section 25 does not apply in respect of the housing provider’s capital reserve.

2. The housing provider shall participate in a system for pooling capital reserves for investment purposes and shall follow such investment policies referred to in that clause as may be established by the Social Housing Services Corporation.

PART VII
SUBSIDIES

Definitions

27. In this Part,

“class” means, in respect of units in a housing project, a class that includes only townhouses or apartments of a specific size;

“transfer date” means, in respect of a housing provider’s housing projects in a service area, the day on which this Regulation first applies to those housing projects.

Market rent index

28. (1) For the purposes of paragraph 2 of subsection 103 (7) of the Act, the market rent index applicable for a fiscal year to a housing provider’s rent-geared-to-income units in housing projects in a service area is the index determined under the following rules:

1. If the fiscal year begins before the Minister determines the final amounts of the benchmark market rents applicable to those units, the market rent index is one.

2. If the fiscal year begins after the Minister determines the final amounts of the benchmark market rents applicable to those units, the market rent index applicable to those units is determined using the formula:

A / B

in which,

“A” is the sum of all amounts each of which is the product of the housing provider’s index determined under subsection (2) for the fiscal year in respect of a class of units in the service area or in part of the service area, as applicable, multiplied by the average number of the housing provider’s market units of that class in that service area or part of the service area in the fiscal year, and

“B” is the average number of the housing provider’s market units in the service area in the fiscal year.

(2) For the purposes of paragraph 2 of subsection (1), a housing provider’s index for a fiscal year in respect of a class of units in a service area or in part of a service area is determined using the formula:

(C ´ D/B) + [E ´ (B - D)/B]

in which,

  “C” is the annual percentage change in rent for the fiscal year for the class of units of the housing provider in the service area or part of the service area, as the case may be, as set out in Table 2,

  “D” is the total number of the housing provider’s market units of that class in that service area or part of the service area for which there has been at least one change in household occupying the unit during the fiscal year,

  “B” is the average number of the housing provider’s market units in that service area or that part of the service area in the fiscal year, and

“E” is the rent guideline referred to in section 129 of the Tenant Protection Act, 1997 for the calendar year in which the housing provider’s fiscal year begins.

(3) For the purposes of paragraph 2 of subsection 103 (9) of the Act, the market rent index applicable to a housing provider’s housing projects in a service area, for a fiscal year beginning after the Minister determines the final amount of the housing provider’s benchmark market revenue in respect of those housing projects, is the index determined under the formula:

F ´ G/H

in which,

“F” is the market rent index that would be determined under subsection (1) for the housing provider for the fiscal year in respect of the service area if the housing provider had rent-geared-to-income units in the fiscal year in the service area,

  “G” is,

(a) the final amount of the housing provider’s benchmark market rent in respect of the housing projects, if the fiscal year is the first fiscal year referred to in paragraph 2 of subsection 103 (9) of the Act, or

(b) the housing provider’s indexed market rent in respect of the housing projects for the previous fiscal year, if the fiscal year is subsequent to the fiscal year referred to in clause (a), and

  “H” is,

(a) the final amount of the housing provider’s benchmark market revenue from the housing projects, if the fiscal year is the first fiscal year referred to in paragraph 2 of subsection 103 (9) of the Act, or

(b) the housing provider’s indexed market revenue from the housing projects for the previous fiscal year, if the fiscal year is subsequent to the fiscal year referred to in clause (a).

Operating reserve

29. (1) The amount of a housing provider’s operating reserve, if any, in respect of its housing projects in a service area for a fiscal year ending after the transfer date for the purposes of subsection 103 (10) of the Act 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 (2) is nil or a negative amount, the housing provider’s operating reserve for the fiscal year in respect of those housing projects is the amount by which “I” exceeds “J” where,

“I” 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

“J” is the housing provider’s accumulated surplus for its housing projects in the service area at the end of the fiscal year.

3. If neither paragraph 1 nor 2 applies for the fiscal year, the housing provider’s operating reserve for the fiscal year in respect of those projects is the amount by which “K” exceeds “L” where,

“K” is the housing provider’s net operating income for the fiscal year from those housing projects, as determined for the purposes of subsection 103 (11) of the Act, and

“L” is the sum of the housing provider’s affordable mortgage payment, as determined under subsection 103 (4) of the Act, and its mandatory payment for the fiscal year, if any, as determined under subsection 103 (8) of the Act, in respect of those housing projects.

(2) For the purposes of paragraph 2 of subsection (1), the amount determined under this subsection is the amount determined using the formula:

I - [J + (K - L)]

in which,

“I” and “J” are the amounts that would be determined under paragraph 2 of subsection (1) in respect of those housing projects for the fiscal year, and

“K” and “L” are the amounts that would be determined under paragraph 3 of subsection (1) in respect of those housing projects for the fiscal year.

(3) The amount of a housing provider’s operating reserve, if any, in respect of its housing projects in a service area for a fiscal year ending after the transfer date for the purposes of subsection 106 (4) of the Act 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 the amount by which “I” exceeds “J” where,

“I” 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

“J” is the housing provider’s accumulated surplus for its housing projects in the service area at the end of the fiscal year.

3. If neither paragraph 1 nor 2 applies for the fiscal year, the housing provider’s operating reserve for the fiscal year in respect of those projects is the amount by which “M” exceeds “N” where,

“M” is the housing provider’s indexed operating costs for the fiscal year from those housing projects, and

“N” is the amount of the housing provider’s operating costs for the fiscal year for those housing projects.

(4) For the purposes of paragraph 2 of subsection (3), the amount determined under this subsection is the amount determined using the formula:

I - [J + (M - N)]

in which,

“I” and “J” are the amounts that would be determined under paragraph 2 of subsection (3) in respect of those housing projects for the fiscal year, and

“M” and “N” are the amounts that would be determined under paragraph 3 of subsection (3) in respect of those housing projects for the fiscal year.

(5) For the purposes of this section, a housing provider’s accumulated surplus in respect of a service area at the beginning of a fiscal year is the portion of its retained earnings at the end of the previous fiscal year, as set out in its annual report under section 113 of the Act and determined in accordance with generally accepted accounting principles as they apply to social housing, that can reasonably be considered to be derived from its housing projects in the service area.

(6) All amounts that are not whole numbers that are used in calculations under this section or that result from calculations under this section must be rounded to two decimal places.

Revenue and operating costs

30. (1) For the purposes of subsection 103 (11) of the Act, the revenue of a housing provider for a fiscal year with respect to its housing projects in a service area is the total of the following types of revenue earned by the housing provider in the fiscal year in respect of the housing projects and units in the housing projects:

1. Revenue derived from the parts of the housing projects allocated to residential accommodation.

2. Revenue related to the parts of the housing projects allocated for use by residents of the housing projects including revenue derived from the use of meeting rooms, recreational facilities, laundry facilities, parking areas, exterior grounds, external building walls and roofs.

(2) For the purposes of subsection 103 (11) of the Act, a housing provider’s operating costs for a fiscal year from its housing projects in a service area equal the total amount of the following expenses, allowances and contributions of the housing provider for the year that are reasonably applicable to the portions of those housing projects used for residential accommodation and ancillary functions, as determined in accordance with generally accepted accounting principles as they apply to social housing:

1. Salaries, wages and employment benefits.

2. Maintenance expenses.

3. Utility costs, including electricity, fuel, water and sewer charges.

4. Administration expenses.

5. Insurance premiums.

6. Bad debt expenses.

7. Contributions to the housing provider’s capital reserve.

(3) For the purposes of this section, gifts and donations made to a housing provider are not considered to be revenue of the housing provider.

Benchmark amounts

31. (1) For the purposes Part VI of the Act, the Minister shall determine a housing provider’s benchmark revenue and benchmark costs for its housing projects in a service area based on an analysis of historical data from comparable housing projects operated under comparable market conditions.

(2) The Minister shall determine a housing provider’s benchmark market rent for each unit in a housing project based on an analysis of historical data from comparable units in comparable housing projects operated under comparable market conditions.

Section 106 housing providers

32. For the purposes of section 106 of the Act, the cost index for a fiscal year applicable to the housing projects in a service area of a housing provider named in Table 3 is the index set out in the same row of that Table as,

(a) the name of the housing provider;

(b) the calendar year in which the fiscal year ends; and

(c) the name of the service manager for the service area in which the housing projects are located. 

Change in economic conditions

33. (1) This section applies to a housing provider in respect of its housing projects located in a service area in a part of Ontario determined by the Minister for the purposes of subsection 110 (2) of the Act.

(2) Despite section 103 of the Act, if this section applies to a housing provider for a fiscal year in respect of its housing projects in a service area, the amount of the housing provider’s subsidy under section 102 of the Act for the fiscal year in respect of those housing projects is the amount that would be determined under section 103 of the Act for the fiscal year if the amount of the housing provider’s mandatory payment for the fiscal year in respect of those housing projects for the purposes of subsection 103 (2) of the Act were the lesser of,

(a) the amount that otherwise would be determined to be its mandatory payment for the fiscal year in respect of those housing units under subsection 103 (8) of the Act; and

(b) the amount of its adjusted mandatory payment for the fiscal year in respect of those housing projects.

(3) For the purposes of subsection (2), the amount of a housing provider’s adjusted mandatory payment for a fiscal year in respect of its housing projects in a service area is the amount determined using the formula:

A - B

in which,

  “A” is the difference between the housing provider’s indexed market rents for the fiscal year from all units in those housing projects and the total of the housing provider’s benchmark market rents for those units, as determined under this Part, and

  “B” is the difference between the housing provider’s indexed operating costs for the fiscal year in respect of those housing projects and the benchmark operating costs for those housing projects. 

(4) For the purposes of subsection (3), a housing provider’s indexed operating costs for a fiscal year in respect of its housing projects in the service area is the amount that otherwise would be determined under the rules in subsection 106 (3) of the Act for the fiscal year in respect of the housing projects, if that subsection applied to the housing provider, using the indices set out in Table 4 opposite the name of the service manager for the service area in which the housing projects are located and calendar year in which the fiscal year ends.

(5) For the purposes of subsections (1) and (2), an amount determined under subsection (2) or (3) may be a positive or negative number or zero.

(6) Subsection 103 (5) of the Act applies with necessary modifi­cations if the amount of subsidy payable to a housing provider, as determined under this section, is less than the subsidy (other than a rent-geared-to-income subsidy) paid to the housing provider under an operating agreement that is terminated by the Act.

(7) Section 105 of the Act applies with necessary modifications in respect of a housing provider entitled to a subsidy calculated under this section.

Additional subsidy

34. (1) A service manager may impose the following terms and conditions for the payment of an additional subsidy to a housing provider:

1. The service manager may require the housing provider to provide proof to the satisfaction of the service manager that the housing provider requires the additional subsidy.

2. The service manager may require the housing provider to repay all or part of the additional subsidy within a period of time specified by the service manager.

3. If the housing provider is required to repay all or part of the additional subsidy, the service manager may require the housing provider to establish a reasonable schedule for the repayment and to demonstrate to the satisfaction of the service manager how the housing provider intends to fund the repayment.

4. If the housing provider is required to repay all or part of the additional subsidy, the service manager may require the housing provider to submit the housing provider’s annual budgets for the housing projects for review and approval by the service manager for five or fewer fiscal years after the fiscal year in which the additional subsidy is repaid or its repayment is forgiven by the service manager.

5. If the housing provider is required to repay all or part of the additional subsidy, the service manager may require the housing provider to provide reports on the following at such times as the service manager may direct during the period that ends not later than five years after the additional subsidy is repaid or its repayment is forgiven by the service manager:

i. the market rents established by the housing provider for units in the housing project, and

ii. the variances and explanations of the variances between amounts forecasted in the housing provider’s budgets, as approved by the service manager, and actual amounts.

6. The service manager may require the housing provider to retain a person acceptable to the service manager to provide property management services or to terminate a contract for property management services in accordance with the terms of the contract and enter into a contract for property management services with a different person acceptable to the service manager.

7. The service manager may require the housing provider to increase its revenue by increasing occupancy charges or market rents on units, subject to any restriction imposed by the Tenant Protection Act, 1997.

8. The service manager may require the housing provider to obtain training for its staff or directors.

9. Subject to the Act and the regulations, the service manager may impose restrictions on the amount the housing provider may expend on eligible capital expenditures.

10. Subject to subsection 111 (4) of the Act and subsection (2), the service manager may require the housing provider to agree to such temporary amendment to the housing provider’s targeting plan for the housing project to which the additional subsidy relates or to the housing provider’s mandate as the service manager may specify.

(2) A temporary amendment mentioned in paragraph 10 of subsection (1) must provide that it ceases to apply and the original provisions of the targeting plan or mandate, as the case may be, applies as of a day that is not later than two years after the day the temporary amendment takes effect.

PART VIII
ADMINISTRATION

Records

35. (1) Subject to subsection (2), every housing provider shall retain its financial records and its records relating to a housing project for at least seven years after the end of the fiscal year to which the record relates.

(2) Every housing provider shall retain its records relating to every household which occupies a unit in its housing projects for a period of at least five years after the date the household last resides in a unit in the housing project.

Annual report

36. For the purposes of subsection 113 (2) of the Act, a housing provider shall include the following information and documents in its annual report for a fiscal year:

1. Audited financial statements for the fiscal year.

2. Information concerning amounts reported in the audited financial statements for the fiscal year.

3. The information needed to enable the service manager to calculate the amount of any subsidy payable to the housing provider for the fiscal year under section 102 of the Act.

4. Statistical information concerning households in housing projects in the service area.

Insurance

37. (1) Every housing provider, other than a non-profit housing co-operative, shall obtain and maintain insurance with respect to its housing projects in accordance with the Ministry of Municipal Affairs and Housing Directive 2001-02 dated March 14, 2000 — Group Insurance Program for Municipal and Private Non-profit Housing Corporations.

(2) Despite subsection (1), if a housing provider is prescribed for the purposes of clause 142 (1) (d) of the Act, it shall participate in such insurance programs as may be co-ordinated by the Social Services Housing Corporation.

Mortgage renewals

38. For the purposes of clause 93 (2) (h) of the Act, a housing provider shall participate in such process as may be established by the Minister for the renewal and replacement of mortgages.

PART IX
LOCAL HOUSING CORPORATIONS

Transitional

39. (1) A local housing corporation that has a housing project in the service area of a service manager listed in Table 1 shall select households for placement in vacant units of the housing project in accordance with the Ministry of Municipal Affairs and Housing Directive 97-17 dated July 4, 1997 — Implementing a Modified Chronological Resident Selection System, commencing on the day set out opposite the name of the service manager in Table 1 and ending on the day the centralized waiting list is established by the service manager for the service area.

(2) For the purposes of the application of the provisions of the directive referred to in subsection (1),

(a) the directive shall be read without reference to the portion entitled Changes to Portfolio Targets; and

(b) a local housing corporation shall be treated as if it had a targeting plan under section 98 of the Act that requires all of its units to be rent-geared-to-income.

PART X
COMMENCEMENT

Commencement

40. (1) Subject to subsection (2), this Regulation comes into force on the day it is filed.

(2) Section 26 comes into force on the later of,

(a) the day section 141 of the Social Housing Reform Act, 2000 comes into force; and

(b) the day this Regulation is filed.

TABLE 1

 

Table 2

 

Table 3

 

Table 4

 

Chris Hodgson

Minister of Municipal Affairs and Housing

Dated on August 28, 2001.