rent-geared-to-income guide - toronto

8/6/2019 Rent-Geared-to-Income Guide - Toronto

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Rent-Gea

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INTRODUCTION

HOW TO USE THIS GUIDE

This Guide describes the administration of rent-geared-to-income (RGI) assistance for the Social

Housing Program administered by the City of Toronto. It is for staff or directors of co-operative

and non-profit housing providers. It is not for housing providers with federal operatingagreements (unless you have rent supplement programs).

This Guide will take you through the steps to complete a rent-geared-to-income calculation from

beginning to end. You can also use it to find the answers to specific questions.

The rules that govern the Social Housing Program are set out in provincial legislation - the SocialHousing Reform Act(SHRA) and its Regulations. TheActdescribes the general principles of the

Program. The Regulations set out specific details.

You will need to refer to theActand the Regulations that affect RGI administration

Social Housing Reform Act, 2000

Regulation 298/01 Regulation 339/01, Part IV and V Regulation 368/01, Section 21, 22, and 23.They are available at www.e-laws.gov.on.ca. There are references to the SHRA and theseRegulations throughout this Guide. They will help you find the exact wording in the legislation

for issues that may be confusing.

This legislation is complicated. There are exceptions allowed for special cases and detailed

procedures that you must follow. You may have to look in several places for information about aspecific question.

The legislation also allows municipalities to set local rules to deal with some issues. This Guide

includes the rules that the City of Toronto has adopted for administering RGI. You will need to

know these rules. They are set out in City Guidelines.

You will also need to know how the legislation defines certain terms. Definitions for some of

these terms are in the first few pages of this Guide. Terms that have special definitions will be in

italics the first time that they appear in a section.

Non-profits and co-ops use different terms, too. People who live in co-ops are called members,not tenants. They pay housing charges, not rent. They sign occupancy agreements, not leases.

For simplicity, we have used the non-profit terms. We ask co-op members and staff to think of

tenants as members rent as housing charge leases as occupancy agreements.This Guide explains the basic rules for administering RGI. However, people lead complex lives

and you will come across situations that are not dealt with in this Guide. If you have questions,

you can contact


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INTRODUCTION

your Social Housing Consultant at the City of TorontoPhone: 416-338-8342

Ontario Non-Profit Housing AssociationPhone: 416-927-9144Website: www.onpha.org

Co-operative Housing Federation of TorontoPhone: 416-465-8688

Website: www.coophousing.com

The Social Housing Reform Act, its Regulations, and the Local Rules set by City of

Toronto may change in the future. The Guide is designed so that you will be able to add

new information easily.


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Document Control

Revision

Date

Description of Changes

2008 05 The City of Toronto Social Housing Unit (SHU) completed

revisions to text and language in most chapters of the RGI Guide.

The SHU issued a new hard copy of the RGI Guide to all housingproviders who use it.

2009 11 The Ontario Disability Support Program (ODSP) table , on page

18 of chapter 6, was replaced with the new table from the ODSP

Act, effective October 2, 2009

2010 07 The RGI Guide document is now divided into chapters. Eachchapter has a table of contents. When the RGI Guide is updated in

one chapter, this will no longer affect the page numbers of other

chapters. Users may wish to print out just the chapter containingthe changes.

Pages 2 and 3 of chapter 4 were updated to reflect changes to

occupancy standards for two person families and for bachelor

units. A definition of family unit has been added on page 9 ofchapter 1.

Pages 5 to 8 of chapter 7 were updated to reflect the retraction ofCity Guideline 2007 -7, and to include new information for

housing providers about how they can help keep tenants housed.

Taxi licences are no longer considered an asset. Pages 4 and 13 ofchapter 5, and page 10 of the appendixes reflect this change.

On page 27 of the appendixes, Appendix 8, new information was

added about rent supplement agreements.

2010 10 The Ontario Disability Support Program (ODSP) table , on page

18 of chapter 6, was replaced with the new table from the ODSP

Act, effective October 5, 2010


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TABLE OF CONTENTS: CHAPTERS

1. DEFINITIONS2. OVERVIEW OF THE SOCIAL HOUSING PROGRAM R GI

ADMINISTRATION BY THE CITY OF TORONTO

3. DOES THE HOUSEHOLD QUALIFY FOR RGI ? BASI C ELIGIBI LITYSTANDARDS

4. OCCUPANCY STANDARDS5. WHAT IS INCOME AND HOW TO VERIFY IT6. CALCULATING RENT FOR AN RGI HOUSEHOLD7. REVIEWING RGI IN ITIAL REVIEWS, ANNUAL REVIEWS, MI D-YEAR

CHANGES, SPECIAL REVIEWS

8. DO YOU HAVE RGI AVAILABLE? TARGETING PLANS, MANDATES,WAI TING LISTS, RGI VACANCI ES

9. COLLECTING AND KEEPING INFORM ATION, RECORD KEEPING10. APPENDIXES


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CHAPTER 1: DEFINITIONS

1

1. DEFINITIONS ............................................................................................ 2


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1. DEFINITIONS

Many of these terms are defined in the legislation. You will find most of these

definitions at the beginning of the SHRA, Regulation 298, and Regulation 339. You will

also find definitions scattered throughout the legislation.

affidavit

A written statement sworn before a notary public or another person who has the authority

to witness an oath.

alternative housing provider

[Reg. 339, s.15 (2)]

A housing provider with a mandate to provide housing to households that are homeless or

hard to house.

arrears

Money owed as rent or as a result of damage caused by a member of the household.

benefit unit

Under the SHRA, the term benefit unitrefers to a single person or a family that receives a

monthly payment from Ontario Works (OW) or Ontario Disability Support Program

(ODSP).

business day

A day from Monday to Friday, other than a statutory holiday.

capital gains

Profits from the sale of personal assets such as real estate, stocks, or investments.

child

An individuals child is

a child of the individual born within or outside of marriage a child that the individual has legally adopted a child that the individual treats as their child.A foster child is not considered a child of an individual.


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child of the household

[Reg. 298, s.49 (4)]

Regulation 298 defines a child of the household as a child who

is a child of any member of the household has always lived at home except for short periods while in full-time attendance at a

recognized educational institution

has never had a spouse is not the parent of a child living in the household.divest

Sell a property, transfer an interest in a property, or terminate the lease for a property.

Family Responsibility Office

The Family Responsibility Office is a part of the Ontario Ministry of Community and

Social Services. They receive every support order made by a court in Ontario and have

the legal authority to collect support payments.

family unit

A family unit is

a person a person and their spouse a person, their spouse, and, if either person has children, any children that live with

them.

Under the SHRA, individuals who receive assistance from Ontario Works or Ontario

Disability Support Program are not considered a part of a family unit.

full-time attendance

Full-time attendance means taking at least 60% of a full course load. For a student with a

permanent disability, full-time attendance means taking 40% of a full course load.

household

Household refers to the people who live in a housing unit. Household can refer to one

person who lives alone or to a group of people who live together in the unit.


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Housing Connections

The City of Toronto has delegated responsibility for managing the centralized waiting list

to Housing Connections. Housing Connections maintains waiting lists for rent-geared-to-

income units in social housing.

housing provider

In general, an organization that provides social housing. In this Guide, non-profit

housing or co-operative housing.

imputed rate of return

The imputed rate of return is an estimate of the financial benefit an individual receives

from assets that do not produce regular income or interest, but do increase in value. The

imputed rate of return is the interest rate for the first year of the November 1st

issue of

Canada Savings Bonds, rounded down to the nearest whole per cent. Always use the rate

given in the most recent City Guideline entitled Imputed Rate of Return.

Income producing asset

An investment that produces a predictable income, such as interest from a Guaranteed

Investment Certificate or a bond.

internal review

Members of a household 16 years of age or older have the right to request an internal

review of certain decisions.

landed immigrant

An immigrant is landed when they receive permanent resident status.

live independently

A person can live independently if they can do the essential activities of day-to-day living

(such as dressing, eating, bathing) for themselves or if support services are in place to

help them with these tasks.

local rulesThe rules which the SHRA allows a service manager to establish, for example, the length

of time an RGI household can be absent from their unit. Housing providers must follow

the local rules that their service managers set.


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mandate

The Province approved mandates for some housing providers. These include a

commitment to house

seniors homeless or hard to house people (alternative housing) frail seniors people with disabilities people recovering from substance abuse people living with AIDS aboriginal people.Toronto also recognizes special mandates to house

artists in live/work spaces performing artists.The City may also recognize other special mandates.

For these special mandates, housing providers must prove that they qualify for the

exemptions contained in section 14 or section 18 of the Human Rights Code.

market rent

The rent paid by a household that is not receiving RGI assistance.

modified units

Units with special features to meet the needs of people with physical disabilities.

non-income-producing assets

Assets that do not produce regular income or interest but do increase in value, for

example, assets such as financial investments (including RRSPs)

opportunity to comment

Before a housing provider makes certain decisions that would have an adverse effect on a

household, the housing provider must give all members of a household who are 16 years

of age or older an opportunity to comment.


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overhousing

An RGI household is overhousedif the unit has more bedrooms than the RGI occupancy

standards allow.

personal information

Personal information is defined as recorded information that identifies an individual and

gives information such as

their race, national or ethnic origin, colour, religion, age, sex, sexual orientation ormarital or family status

their education, medical, criminal, or employment history their financial transactions any identifying number or symbol assigned to them their address, telephone number, fingerprints, or blood type confidential correspondence sent by the individual to an institution and any response

to such correspondence

the views or opinions of another individual about themThis applies to any record of information however recorded whether in print, on film, or

by electronic means.

recognized educational institution

A recognized educational institution is

a school, as defined in the Education Act a university a college of applied arts and technology, established under the Ministry of Training,

Colleges and Universities Act

a private vocational school as defined in the Private Vocational Schools Act a private school, as defined in the Education Act.record

A record is

any document or written material created by a housing provider


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any document or written material related to the operation of a housing project that isgiven to a housing provider.

refugee claimant

A refugee claimant is someone who has made a claim to the Government of Canada to be

accepted as a Convention refugee.

Regulation

The government issues regulations to set out the details of legislation. The Social

Housing Reform Acthas several regulations. Regulation 298/01 and Regulation 339/01

deal with rent-geared-to-income administration. Regulation 368/01 has rules for

handling personal information.

Removal order

Immigration order that requires a person to leave Canada.

rent

In non-profits, rent is defined in theResidential Tenancies Act.

For co-ops, rent means housing charges as defined under the Co-op Corporations Act

except for fees for sector support or membership.

rent-geared-to-income assistance (RGI)

Financial assistance given to a housing provider so that a qualified household can payrent based on their income.

residential property

A property or part of a property that can be lived in.

RGI Service Agreement

Section 16 of the SHRA allows service managers to delegate some of their duties under

theActto other agencies. Toronto has signed RGI Service Agreements with most of its

social housing providers.

service manager

The SHRA designates service managers to administer and fund the social housing

program. A service manager may be a municipality, agency, commission, or board (such

as a district social services administration board). The City of Toronto is a service

manager.


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Social Housing Reform Act 2000, (SHRA)

The province of Ontario passed the Social Housing Reform Actin 2000. It transferred the

provinces responsibility for funding and administering social housing to the municipal

level of government. (Federal program co-ops such as Section 61, Section 95 and theFederal Co-operative Housing Program were not transferred.)

special needs housing

Housing with special features to make it accessible to a person with physical disabilities,

or housing that provides provincially-funded support services to help a person live

independently.

special priority

A household may apply for special priority if a member of the household is being abused

by someone they live with or have recently lived with, or by a person who is sponsoringthe member as an immigrant. Special priority households go to the top of Housing

Connections waiting list. An RGI household on the special needs waiting list or the

internal transfer list can also apply for special priority.

Reg. 298, Part IV Special priority category

Reg. 298, s.45 Special needs waiting list

spouses

If two individuals of the opposite sex or of the same sex refer to themselves as spouses,

consider them as spouses for RGI issues.

The definition in Regulation 298 includes 2 individuals who live in the same unit if

the social and familial aspects of the relationship amount to cohabitation, and one individual provides financial support to the other , or the individuals have a mutual agreement or arrangement regarding their financial

affairs.

statutory declaration

A statutory declaration is a signed, written statement that has been witnessed by a person

authorized by the court.


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support payment

A payment required by

a court order for support based on the federal Divorce Act or the Ontario Family LawAct, or

a legal domestic contract such as a separation agreement, a paternity agreement, amarriage contract, or a co-habitation agreement.

support services

Services for people who need special help to live independently in the community.

targeting plan

Before the provincial government transferred social housing to the municipalities, it sent

each housing provider a targeting plan. The targeting plan sets out the minimum number

of units of

rent-geared-to-income households market households high need households

special needs households, if any.

transferred assets

An asset that a person has sold, leased or given to someone who is not a member of the

household. See City Guideline 2007-4.

two person family

A two person family consists of either two spouses or a parent and child.


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CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM

1

1. OVERVIEW OF THE SOCIAL HOUSING PROGRAM RGI ADMI NISTRATIONBY THE CITY OF TORONTO .............................................................................. 2

The Social Housing Reform Act ..................................................................................2

RGI Administration...................................................................................................... 3

City Guidelines............................................................................................................. 4

The Role of the Housing Provider ...............................................................................6

RGI Service Agreement........................................................................................6

Providing Information to the Public [Reg. 339, s.9].............................................7

Good Communications .........................................................................................7


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1. OVERVIEW OF THE SOCIAL HOUSING PROGRAMRGI Administration by the City of Toronto

The Social Housing Reform Act Until 1999, the federal and provincial governments administered and funded social

housing programs. However, early in 2000, the federal government transferred some of

its social housing responsibilities to the provinces. In turn, the Ontario government

passed the Social Housing Reform Act(SHRA). ThisActtransferred the responsibility

for funding and administering social housing to the municipalities.

The SHRA applies to

non-profit housing developed through provincial programs non-profit housing co-operatives developed through provincial programs any unit in a federal non-profit if the household receives RGI assistance through a

Rent Supplement Agreement (formerly CSHP or OCHAP). Only Part V of the SHRA

applies to these units.

any geared - to - income rent supplement unit in privately owned buildings. Only PartV of the SHRA, with certain exceptions applies to these units. This includes rent

supplement units in the Strong Communities Rent Supplement Program.

Note: The SHRA does not apply to

federal non-profit and urban native housing. Municipalities administer and

fund this housing. However, these housing providers follow their original

Operating Agreements.

Co-ops developed under federal government programs Section 61,

Section 95, and the Federal Co-op Housing Program. Canada Mortgage

and Housing Corporation (CMHC) continues to administer and fund this

housing.

In the SHRA, the term service managerrefers to the municipal level of administration.

In Toronto, the City is the service manager. This means that the City of Toronto

administers, funds, and sets local rules.


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The City must follow the rules set out in the SHRA and its regulations. Regulations

298/01 and 339/01 deal with RGI administration. Rules for handlingpersonal

information are in Regulation 368/01.

Under the Social Housing Program administered by the City of Toronto, co-operativesand non-profits will continue to provide housing for people who need their rent geared to

their income and for people who can pay the full rent for their unit. Rent-geared-to-

income (RGI) assistance, a subsidy from the City, makes up the difference between the

amount that the household can pay for the unit and the market rentfor the unit.

Most co-ops and non-profits also provide housing for people with special needs. They

offer

modified units. A unit with special features to help people with physical disabilities. support services. Services for people who need special help to live independently in

the community. To qualify as special needs housing under SHRA, these services

must be funded by the province.

A modified unit may also provide support services.

Some non-profits are alternative housing providers. They house the homeless and the

hard to house.

RGI Administration

Under the SHRA, the duties of the service manager include

managing a centralized waiting list for people applying for rent-geared-to-income(RGI) housing

administering RGI assistance.The SHRA allows the service manager to delegate these responsibilities to other

organizations. However, the service manager is accountable to the province.

[SHRA Section 16]

The City has delegated the management of the centralized waiting list for RGI units to

Housing Connections.


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The City has delegated the administration of RGI assistance to housing providers. Most

social housing providers have signed anRGI Service Agreement.

Housing providers are required by law to implement the SHRA and regulations.

City Guidelines

The SHRA allows service managers to set local rules to deal with certain issues. You

will find the local rules for Toronto in City Guidelines. The City will send these

Guidelines to each housing provider that is required to follow them. Some Guidelines

deal with subjects that do not apply to all housing providers. These Guidelines will be

sent only to the housing providers who must implement them.

City Guidelines are available on the City of Torontos social housing website at

.


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Federal Government

(through CMHC)

holds mortgages on some federal non-profit housing providers

Provincial Government (through MMAH)

renews mortgages monitors administration of social housing reports to CMHC

Housing Connections

manages centralizedwaiting list

reports to City ofToronto

manages rentsupplement program

Who Does W hat in Social Housing in Toronto(after May 1, 2002 transfer)

City of Toronto (service manager)

funds social housing program makes sure housing providers follow SHRA and its

Regulations, their RGI Service Agreements or

Operating Agreements

sets local rules and guidelines for social housing responsible for centralized waiting list through

Housing Connections

reports to Province

Housing Providers

day-to-day property management internal transfer list, market waiting list fills vacancies using centralized waiting list RGI administration under RGI Service Agreements reports to service manager

Resident Households provide accurate and complete documents report changes on time comply with lease/occupancy agreement maintain units


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The Role of the Housing Provider

RGI Service Agreement

Most social housing providers administered by the City of Toronto have signed anRGI Service Agreement. This Agreement makes the housing provider responsible for

administering RGI.

The boards role is to make sure that the co-op or non-profit follows the RGI Service

Agreement and the rules set out in the SHRA and its Regulations. Staff usually look after

the day-to-day RGI administration.

The RGI Service Agreement requires each staff person who administers RGI to attend

training provided by the City. Any new staff must attend a training course within 3

months of beginning the job. All staff must attend follow-up courses every 18 months.

To comply with the RGI Service Agreement, each housing provider must

make sure that a household is eligible for RGI housing(See Chapter 3 of this Guide.)

decide the size of unit that the household qualifies for(See Chapter 4 of this Guide.)

determine the households income and assets(See Chapter 5 of this Guide.)

calculate how much rent the RGI household will pay.(See Chapter 6 of this Guide.) Chapter 7 of this Guide provides information on the

housing providers responsibility to review RGI eligibility. These reviews must take

place

annually [Reg. 298, s.11 (1)] For fixed income households, reviews must be carriedout every 24 months. [Reg.298, s.52 and City Guideline 2008-5]

when the provider is notified of a change in income, assets, or household size or makeup [Reg. 298, s.53 (1)]

if the service manager requires a review [Reg. 298, s.11 (2)] before offering an RGI unit to an applicant [SHRA 66]


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Chapter 7 also deals with issues such as proper notice, the opportunity to comment, and

internal reviews.

Each housing provider has a targeting plan that sets the minimum number of market and

RGI units that the housing provider must have. Some co-ops and non-profits also havespecial mandates, for example, seniors housing. Housing providers must comply with

their targeting plans and mandates, as well as any local priorities. Chapter 8 of this Guide

deals with these issues.

Housing providers are responsible forpersonal information about their tenants. They

also have a duty to keep certain records. Chapter 9 outlines these duties.

Providing Information to the Public[Reg. 339, s.9]

The legislation has rules about information that housing providers must make available totenants and the public.

You must provide tenants with your policy for internal transfers and your procedures for

an internal review of a decision.

You must give the public access to

information about the size and type of units in the project your policy for internal transfers your procedures for an internal review of a decision to refuse to offer a unit to ahousehold.Make this information available so that people can copy it at their own expense.

Good Communications

As a housing provider, you will have to provide information to people who live in the

project, to applicants, and to the public. You will need to communicate

with people who speak English as a second language with people who find reading difficult with people who have difficulty seeing or hearing.


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The rules of the program are complicated and strict. The challenge will be to provide

information that will help people understand and follow these rules so that they can get

and keep the housing they need.


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CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR R GI?

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1. DOES THE HOUSEHOLD QUALIFY FOR RGI? BASIC ELIGIBI LITYSTANDARDS ..................................................................................................... 2

Basic Eligibility Rules for Every Household............................................................... 2

Other Eligibility Issues.................................................................................................3Eligibility for Special Needs Housing ..................................................................3Special Priority as a Victim of Abuse Social Housing Residents .....................4Losing Special Priority Status...............................................................................5Eligibility Issues Applying only to Residents.......................................................5Pursuit of Income.................................................................................................. 5Ownership of Residential Property.......................................................................6

Ceasing to be Eligible for RGI.....................................................................................7


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1. DOES THE HOUSEHOLD QUALIFY FOR RGI?Basic Eligibility Standards

Basic Eligibility Rules for Every HouseholdThe SHRA sets out rules about who is eligible for rent-geared-to-income (RGI)assistance. To be eligible to apply for RGI assistance or continue to receive RGIassistance, a householdmust meet the following conditions

At least one member of the household is 16 years of age or older At least one member of the household is able to live independently, with or without

support services

Each member of the household is

a Canadian citizen a permanent resident of Canada or has applied for permanent resident status, or a refugee claimantor Convention refugee.

No removal orderhas become enforceable against any member of a household No member of the household owes arrears (money for rent or damage) to another

social housing provider in Ontario unless

Housing Connections or a provider, decides there are extenuating circumstancesabout the case, or

a member of the household has signed and is following an agreement to pay themoney owing or

a member of the household has made reasonable efforts to enter into arepayment agreement.

Exception: Housing Connections or a provider may accept a special priority householdwho commits to repaying 50% of the arrears.

Exception: Housing Connections will accept RGI applications from market rent tenants

living in social housing who owe arrears.


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No member, or former member, of the household has been convicted by a court or theOntario Rental Housing Tribunal of

getting RGI assistance that they were not entitled to, or misrepresenting their income to get RGI assistance.Once convicted, no member of the household can reapply for RGI assistance for 2 yearsfrom the date the offence or misrepresentation occurred.

Exception: A household may apply earlier if

the member of the household who was convicted of RGI fraud or misrepresentation isno longer a part of the household, and

the housing provider is satisfied that current members of the household did not know that the former member was committing this offence, or could not have prevented it.

Note: Under the SHRA, any person who helps a member of a household to get RGIassistance that the household is not eligible for could be charged with an offence. Onconviction, they could be fined up to $5,000 or be imprisoned for up to 6 months, orboth.

[SHRA 85 (1) (2) & (3)]

Other Eligibility Issues

Eligibil ity for Special Needs Housing

Every housing provider has units that are modified for accessibility. These units arespecial needs units. Units in which households receive provincially funded supportservices are also special needs units.

To be eligible for special needs units, households must need the specific modifications ofthat unit OR need the support care services that are available with the unit. They mustremain eligible after they move in.


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In many cases eligibility is assessed by the agency providing support care services in theunits. Unless you have delegated vacancy management for special needs housing to

Housing Connections, you must maintain a special needs waiting list. Or, special needsunits may be handled by a referral agreement with an agency. The SHRA recognizescertain referral agreements but the City of Toronto will also recognize other referralagreements entered into by housing providers and support care agencies.

Special Priority as a Victim of Abuse Social Housing Residents

Victims of abuse have priority on the centralized waiting list. Housing Connections firstassesses an applicant for general eligibility, and if they qualify, places the household onthe waiting list.

Then Housing Connections assesses the applicant for Special Priority Program (SPP)eligibility. If the applicant qualifies, they move to the top of each subsidiary list for whichthey express a preference.

Victims of abuse currently living in social housing may wish to be placed on theproviders internal transfer list. This will most likely only happen when a housingprovider has a lot of different buildings. Housing Connections reviews all applications forSpecial Priority Status. See Chapter 8 information on the application process.

To qualify for special priority, the applicant must make a written request to HousingConnections stating that

the abuser is or was living with the applicant, or the abuser is sponsoring the applicant as an immigrant, and the applicant being abused intends to live separately from the abuser on a permanent

basis.

Applicants and residents of special needs units get RGI when they need it, as long asthey meet the initial eligibility requirements [Reg. 339. s.16].


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If the abuser and the applicant being abused do not live together now, the request must besubmitted within three months of their separation. Housing Connections must accept a

request after three months if they are satisfied that the abuse is ongoing. There is no timelimit for making an application in this situation.

To verify that the applicant is being abused, the applicant must submit a record written byone of the professionals listed in Reg. 298 s.25(5).

If the applicant is applying for special priority with the current housing provider, HousingConnections will not need a new housing application. If the applicant wishes to apply to adifferent housing provider, they must submit a new application to Housing Connections.

Losing Special Priority Status

Once special priority status has been given to an applicant they maintain this status untilthey are housed.

There are some exceptions. Applicants will lose their special priority status on thecentralized waiting list if:

Housing Connections confirms that the applicant is adding the abuser to theapplication for RGI assistance

Housing Connections confirms that the abuser has died

Housing Connections confirms that the applicant has accepted an offer of RGIhousing in another service area.

If you have information that the abuser is deceased or that the applicant has accepted anoffer for RGI housing somewhere else, tell Housing Connections as soon as possible.

See City Guideline 2008-1.

Eligibil ity Issues Applying only to Residents

To remain eligible for RGI assistance housing, an RGI household must also meet thefollowing conditions:

Pursuit of Income

If a housing provider thinks that a household may be eligible for certain types of income,the housing provider must give them a written notice to obtain or pursue this income.


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If a household already receiving RGI assistance acquires or inherits a residential propertythat can be lived in year-round, they must sell (divest) the property or their share in the

property within 6 months. If they do not, they may become ineligible for RGI assistance.

The housing provider can extend the period of time beyond 6 months if there arereasonable grounds for doing so.

This rule applies to property in Ontario or outside of Ontario.

Exception: If a special priority household informs the housing provider that taking stepsto sell a property would put them at risk, the housing provider must extend the period oftime past 6 months.

Ceasing to be Eligible for RGI

A household may cease to qualify for RGI if the household

does not meet an eligibility requirement does not provide information and documents within the required timeframe ( see City

Guideline 2008-3 and City Guideline 2007 7 )

is overhoused and cancels their application on the centralized waiting list is overhoused and refuses a total of 3 offers of housing, while on either the internal

transfer waiting list or the centralized waiting list

refuses 3 offers while on the centralized waiting list has not pursued income to which they are entitled (this does not apply to applicants on

the waiting list)

does not divest property (this does not apply to applicants on the waiting list) is absent from the unit for more than 120 days, and does not qualify for the

exemptions given in City Guideline 2002-3 revised June 1, 2004.

has paid market rent for 1 year.When a household living in social housing ceases to qualify for RGI assistance they areentitled to stay in their unit but will be charged market rent.

See Chapter 7 for more information on maintaining or removing eligibility for RGI

assistance.


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CHAPTER 4 : OCCUPANCY STANDARDS

1

1. OCCUP ANCY STANDARDS ......................................................................... 2

How Many Bedrooms Does a Household Qualify for? ...............................................2

When is a household eligible for an additional bedroom?...........................................3

Is a student living away from home a member of the household? [Reg. 298,

s.29].......................................................................................................................3

Overhoused Households [Reg. 298, s.32 to s.34 and Reg. 339, s.11 (2)].................... 4

Underhoused Households............................................................................................. 6


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1. OCCUPANCY STANDARDS

Note: These occupancy standards do not apply to households that were receiving RGI

before May 1, 2003 unless

the household composition changes the household requests a transfer to another unit, or the household was overhousedunder the Occupancy Standards set out in the

Appendix to Ministry of Municipal Affairs and Housing Directive 97- 16,

Implementing a Ministry Approved Co-ordinated Access System.

How Many Bedrooms Does a Household Qualify for?

Toronto has set their own occupancy standards for RGI households. Torontos occupancy

standards replaced the occupancy standards set out in Regulation 298.Housing providers

may set different occupancy standards for market-rent households.

City Guideline 2010-2 replaces City Guideline 2003-8 (revised June 28, 2004). In the

new version of the City Guideline, a two person family (parent and child) may live in a

bachelor or one bedroom unit, if they request it.

The occupancy standards are

there cannot be more than 2 persons to a bedroom spouses must share a bedroom 2 children of the same sex must share a bedroom if the bedroom provides at least 4

square metres (approx. 43 square feet) of space for each child. If not, they will each

qualify for their own room.

children of the opposite sex may have their own bedroom unless the household wants2 children to share a bedroom. They may only share a bedroom that provides at least

4 square metres (approx. 43 square feet) of space for each child.

a single parent may share a bedroom with a child if the applicant wants to share. Bachelor units are normally allocated to single persons. However, a two person

family is eligible for a bachelor unit, if the applicant requests it.


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The SHRA defines spouses as 2 individuals who refer to themselves as spouses. The

definition in Regulation 298, section 4 (1) also includes 2 individuals who live in the

same unit if

the social and familial aspects of the relationship amount to cohabitation, and one individual provides financial support to the other , or the individuals have a mutual agreement or arrangement regarding their financial

affairs.

A two person family consists of either two spouses or a parent and child.

When is a household eligible for an additional bedroom?

A household is eligible for another bedroom if

a member of the household has a disability or medical condition that requires a separate bedroom a room to store equipment, or an individual to live in and provide support services. This person cannot be a

member of the household

a member of the household is pregnant and the household would need an extrabedroom for the child

a member of the household has a legal agreement for joint custody of a child and thechild would need a separate bedroom a member of the household has a legal agreement for visiting rights with a child and

an extra bedroom would be necessary to provide overnight accommodation. The

legal agreement must require this overnight accommodation

To decide if a household qualifies for an additional bedroom, you will have to review the

documents that the household provides. You will have to base your decision on this

information.

The forms in Appendix 9 will help you to get the information you need to assess requests for an

additional bedroom for medical reasons.

Is a student l iving away from home a member of the household?[Reg. 298, s.29]

A student attending school away from home is a member of the household, if the student

meets all these conditions:


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is a child of a household member is in full-time attendance at a recognized educational institution

lives with the household while not attending school and depends in whole or in part, on the household for financial support.Full-time attendance

Full-time attendance means taking at least 60% of a full course load or, for a student

with a permanent disability, 40% of a full course load.

Recognized educational institution


a school a university

a college of applied arts and technology

a private vocational school

a private school.

Note: a school, other than a post-secondary institution, must be within the Province

of Ontario

See Reg. 298, s. 4 for the complete definitions.

Overhoused Households[Reg. 298, s.32 to s.34 and Reg. 339, s.11 (2)]

An RGI household becomes overhousedif someone in the household leaves and the unit

has more bedrooms than the Citys RGI occupancy standards allow.

If you think that a household may be overhoused, you must give each member of the

household, 16 years of age or older, an opportunity to commentbefore you make a

decision. See Chapter 7 for more information on the opportunity to comment.

If you decide that the household is overhoused, send the household a written notice of thedecision, telling them that they could lose their RGI assistance if they do not move to a

suitable unit. Make sure that the notice informs them that they can ask for an internal

review of this decision and tells them the process that they must follow. See Section 7.

If you have a unit of the size that the household is eligible for, you must add the

household to your internal transfer list. This is the list of households already living in

your housing project that would like to or must move to different units. An RGI


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household that is overhoused has priority on the internal transfer list unless there is a

special priority household on the list.

After one year on the internal transfer waiting list, the household must be added to the

centralized waiting list. Do not remove the household from the internal transfer waitinglist, unless the household requests that they be removed.

You will have to submit a form, called Provider Authorized Application Form, to

Housing Connections. Housing Connections will provide you with this form. You can

also download the form from the Housing Provider area of the Housing Connections

website: http://www.housingconnections.ca/Providers/ProviderForms.asp.

If your project does not include units of the size that the household is eligible for, you

will have to submit this form to Housing Connections right away.

Even if the housing provider has units of the size needed, an overhoused household can

ask to be placed on the centralized waiting list right away. They can ask to be removedfrom the centralized waiting list during the 12 month period after they become

overhoused, because their application was voluntary.

Once the household has been overhoused for 12 months, their application to the

centralized waiting list is no longer voluntary.

If an overhoused household refuses three housing offers, whether for internal transfer

or from a different housing provider, a housing provider must decide that the

household is no longer eligible for RGI assistance.

Housing Preferences

Overhoused households who must apply to the centralized waiting list will have to

choose at least 5 housing preferences, not including their current housing provider. They

may also choose their current housing provider, but this will not be counted as part of the

minimum of five needed to maintain RGI eligibility. See City Guideline 2008-6.

When an overhoused household is added to the Housing Connections waiting list, the

households application is ranked as third priority. Victims of abuse are first priority andterminally ill applicants (optional for housing providers) are second priority.

Overhoused households that are required to be on the Housing Connections list will lose

their eligibility for RGI if they

are listed for less than five housing preferences, not including their current housingprovider.


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refuse 3 units of the size that they are eligible for, including both internal transferoffers made before they were added to the centralized waiting list and centralized

waiting list offers, or

ask to be taken off the centralized waiting list.If a household does not have at least 5 preferences, not including their current provider,

you must issue the household a notice of loss of eligibility for RGI assistance. See City

Guideline 2008-6.

Housing Connections keeps track of all refusals by overhoused households. When an

overhoused household on the centralized waiting list refuses an offer, report this refusal

to Housing Connections immediately. When Housing Connections tells you that a

household has refused 3 offers, you must issue the household a notice of loss of eligibility

for RGI assistance.

Underhoused Households

An RGI household is underhousedif the unit has less bedrooms than the Citys RGI

occupancy standards would allow.

Underhoused households are not considered a priority under the SHRA. When

developing an internal transfer policy, housing providers may not rank underhoused

households before special priority and overhoused households.


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CHAPTER 5: WHAT IS IN COME AND HOW TO VERIFY I T

1

1. WHAT IS IN COM E AND HOW TO VER IFY IT .............................................. 2

What Income Is Included?............................................................................................2A. Income from Employment........................................................................... 3B. Income from Assets or Investments ..............................................................3C. Income from Pensions or Support Agreements............................................. 4D. Income from Social Assistance ...................................................................5

What Income is Excluded? [Reg. 298, s.50]................................................................ 5Excluded Government Program Payments ........................................................... 5Excluded Employment-Related Payments............................................................ 5Excluded Assets .................................................................................................... 6Excluded Income from Disposal of Assets...........................................................6

Excluded Gifts ...................................................................................................... 6Excluded Interest Income .....................................................................................7Excluded Education or Training Income.............................................................. 7Excluded Home Care Allowances ........................................................................8Excluded Income for Veterans and Victims of War.............................................8Excluded Income for Aboriginal People .............................................................. 8Excluded Extraordinary Compensation Payments ...............................................9

Verifying Income and Assets .......................................................................................9A. Verifying Income from Employment .......................................................... 9B. Verifying Income from Assets or Investments ...........................................11C. Verifying Income from Pensions or Agreements for Support ....................15D. Verifying Income from Social Assistance (OW and ODSP) ....................15

Determining Gross Monthly Income .........................................................................16A. Determining Income from Employment ...................................................16B. Determining Income from Assets or Investments....................................... 20C. Determining Income from Pensions and Agreements for Support.............21D. Determining Income from Social Assistance............................................21


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1. WHAT IS INCOME AND HOW TO VERIFY IT

Housing providers that have signedRGI Service Agreements are responsible forcalculating how much rent an RGI householdmust pay.

To calculate the rent-geared-to-income charge, housing providers must first determine themonthly income of each person in an RGI household. For this reason, all members of ahousehold who are 16 years of age or older must report their income and assets andprovide documents.

Note: there is an exception for students who are children of the household. See City

Guideline 2003 -12Income of Full-Time Students Living with their Parents.

What Income Is Included?

When calculating RGI, always apply income to the month in which the household shouldhave received it (e.g. support payments received late).

You must know what is included in income and what is excluded from income beforeyou begin a rent-geared-to-income calculation.

There are four types of income

A. income from employment

B. income from assets or investments

C. income from pensions or support agreements

D. income from social assistance.

Deeming Income

The SHRA does not contain any provisions for deeming income. You may only calculaterent on income actually received.


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A. Income from Employment

salary or wages including holiday pay bonuses or incentive pay tips or gratuities overtime pay Employment Insurance (EI) benefits (including parental benefits) short-term Workers Safety and Insurance Board (WSIB) benefits work incentive program payments training allowances income from self-employment regular payments for sick leave or short-term disability under a private or workplace

insurance plan

strike pay.B. Income from Assets or Investments

There are two types of assets

income-producing non-income producing.Income-producing assets are investments which produce income such as interest ordividends. The income from these assets is included in the total household income usedfor the RGI calculation. Some examples of these are

interest-bearing bank or credit union accounts term deposits, guaranteed income certificates (GICs), treasury bills, bonds, or

debentures

annuities (life, fixed-term) and RRIF withdrawals stocks, shares, or mutual funds mortgages and loans. These are mortgages and loans for which the individual

receives payment.


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Non-income-producing assets include all investments or holdings which are intended toincrease in value rather than produce income. Some examples of these are:

non-interest bearing bank or credit union accounts (for example, some chequingaccounts do not produce interest income). Deduct $1000 from the sum of all of ahouseholds minimum monthly bank balances.

non-income producing equity or share in a business life insurance with cash surrender value non-income producing stocks, shares or mutual funds any property suitable for year-round occupancy until it is sold (see Ownership of

Residential Property in Chapter 3, pg. 6)

any residential property not suitable for year-round occupancy (for example, a non-winterized cottage)

land holdings or non-residential property non-income-producing assets transferred or given to someone outside of the

household, less than 36 months before the household starts receiving RGI assistanceor any time after the household starts receiving RGI assistance.

life interest in real estate.

Note: Personal belongings such as jewellery, family heirlooms, or old familyfurniture, and possessions that do not normally increase in value (for example, afamily automobile) are not considered non-income-producing assets.

C. Income from Pensions or Support Agreements

Canada Pension Plan for the Disabled (CPP-D) public pensions (OAS, CPP or Qubec Pension Plan (QPP), GIS, GAINS) private pensions, benefits, or annuities, including RRIF withdrawals private or public pensions, benefits or annuities received from any other country long-term disability payments from a private insurance company or WSIB child support payments spousal support payments.


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Note: Support payments may be

payments required by the federalDivorce Actor the Ontario Family Law Act, or

payments required by legally-recognized separation agreements, paternityagreements, marriage contracts, or co-habitation agreements.

D. Income from Social Assistance

Ontario Works (OW) Ontario Disability Support Program (ODSP).What Income is Excluded?

[Reg. 298, s.50]

The SHRA includes a long list of excluded income income and payments which youare not to include as income. Although this list is long, it will probably not cover allsituations.

In this Guide, we have grouped these items into categories. The categories may help youto decide which types of income you may exclude. You will need to use good judgementwhen you decide whether to exclude income or not.

Excluded Government Program Payments

a payment, refund, or credit from the provincial or federal government such as income tax refunds Canada Child Tax Benefits, Universal Child Care Benefit, Working Income Tax

Benefit, Ontario Child Benefit and Ontario Child Care Supplement for WorkingFamilies.

property or sales tax credits, or tax grants for people 65 years of age or older a child benefit received from the Canada Pension Plan a survivors death benefit received from Canada Pension Plan a special allowance for resettlement assistance.Excluded Employment-Related Payments

a lump sum severance payment


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a business expense deduction from self-employed earnings that is allowed by CanadaRevenue Agency and the SHRA

an allowance or payment for childcare, transportation, tuition, or other expenses for aperson enrolled in a job training or employment-related program

an allowance for travelling expenses related to employment an allowance for room and board expenses if a person is employed away from home a payment from the federal Opportunities Fund for People with Disabilities program

if this payment is used to cover the costs of employment-related activities

a loan from a government agency or financial institution used to support a business a payment received under the Workers Compensation Actas of December 31, 1997

subsection 147 (14).

Excluded Assets

Registered Retirement Savings Plan (RRSP) and Registered Education Savings Plan(RESP)

a lump sum payment received as the result of a decision by a court or tribunal a lump sum insurance payment money received on the death or injury of a household member as damages or

compensation for

pain and suffering reasonable expenses

an inheritance lottery winnings a loan to the individual.Excluded Income from Disposal of Assets

a capital gain the proceeds from the sale of personal assets such as furniture, equipment, or an

automobile

the proceeds from the sale of real estateExcluded Gifts

a casual gift or casual payment of small value


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a donation from a religious, charitable, or benevolent organizationExcluded Interest Income

interest accrued on a prepaid funeral plan interest, income, or dividends earned on a RRSP or on a RESP.Excluded Education or Training Income

income received by a full-time student at a recognized primary or secondaryinstitution if the student

is a child of a member of the household has always lived with the household with the exception of short periods while in

full-time attendance at a recognized educational institution does not have a spouse does not have dependant children

income received by a full-time student in a recognized post-secondary institution ifthe student

is a child of a member of the household has always lived with the household with the exception of short periods while in

full-time attendance at a recognized educational institution

does not have a spouse does not have dependant children has not been out of secondary school for more than 5 years at the start of the

current period of study

a bursary for a full-time secondary school student a payment from the Canada Millennium Scholarship Fund an award or grant from the Ministry of Training, Colleges and Education for a student

at a post-secondary institution. This includes a loan or grant from the Ontario Student

Assistance Program (OSAP) as well as amounts received through OSAP from theCanada Student Assistance Program.

a Dr. Albert Rose bursary for post-secondary students (awarded by the Ministry ofMunicipal Affairs and Housing).

a grant under the federal Employment Insurance Act received by a person receivingsocial assistance. This grant must be used to pay for a training course approved underthe provincial Ontario Works Act.


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a Canada Education Savings Grant if it is paid into a Registered Education SavingsPlan for a child of a member of a family unit

Excluded Income for Foster Children/ Crown W ards

payment from a Childrens Aid Society for a child in care development Care Program payments (from Childrens Aid Society) foster allowances (from Ontario Works) income earned or received by a foster child who is living with the household extended care and maintenance allowances for former Crown wards (from Childrens

Aid Society)

Excluded Home Care Allowances

attendant care allowances disabled childrens allowances foster allowances (from Ontario Works) subsidies for adoptive parents under the Child and Family

Services Act

payments from a trust or life insurance policy or gifts or voluntary payments made onbehalf of a disabled person, that will not be reimbursed, including expenses for items or services needed because of the household members

disability

education or training expenses incurred because of the household membersdisability

Excluded Income for Veterans and Victims of War

a periodic or lump sum war reparation payment a benefit from Veterans Affairs Canada under the Veterans Independence Program or

a special allowance under the Veterans Disability Pension Program

Excluded Income for Aboriginal People

a payment received from the federal government or a bank for board and lodging of astudent attending secondary school off the reserve


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a payment received from a treaty between a band and the government of Canada,other than funds for post-secondary education

a payment from a band as an incentive to keep a child of a householdin school a payment under Order in Council P.C. 1977-2496 made under section 40 of the

Indian Act(Canada)

a payment received as a result of a claim that relates to an aboriginal residentialschool

Excluded Extraordinary Compensation Payments

a payment from the federal Extraordinary Assistance Plan a payment from any of the following agreements made with the Ontario government

Helpline Reconciliation Model Agreement Multi-Provincial/Territorial Assistance Program Agreement the Grandview Agreement

a payment from the Walkerton Compensation Plan a payment from the Government of Alberta as compensation for sterilization a lump sum payment from the 1986 1990 Hepatitis C Settlement Agreement (a

federal agreement)

a payment from the Ontario Hepatitis C Assistance Plan

Verifying Incom e and Assets

Here is a summary of the types of documents you will need to collect as proof of incomeand the value of assets. Each person in the household who is 16 years of age or oldermust provide information. (See City Guideline 2003 12 for the exception for a studentwho is a child of the household.)

Appendix 1 contains sample forms that you can use for income and asset reviews. Thereis a list of documents that households should provide to verify their income.

A. Verifying Income from Employment

Income from Regular Employment

consecutive pay stubs covering an 8-week period. The pay stubs must include theemployers name and address and which pay periods are covered, or


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a letter from an employer stating gross annual income and any overtime pay orbonuses. This letter must be on company letterhead, recently dated, and contain thetelephone number and signature of the letter writer

Income from Irregular Employment (seasonal, intermittent)

current income documents such as payroll stubs, a letter from an employer, or arecord of EI benefits, or

a working copy of both the income tax return and Notice of Assessment from theprevious year (available from Canada Revenue Agency).

Income from Self-Employment

Self-employment includes

freelance workers independent contractors sole proprietors of a business a partner in a businessIf an individual has been self-employed for less than one year, ask them to provide

a financial statement every 3 months. This statement does not have to be audited.After the first year of business, you will need different documents depending on whetheror not the business is incorporated. Most self-employed individuals will not incorporatetheir business. However, some may.

For a business that is not incorporated, ask them to provide

the working copy of the income tax return, including the Statement of BusinessActivities and a Notice of Assessment (available from Canada Revenue Agency).Note: if the income is not the same on both documents, seek further information.

For an incorporated business, ask them to provide

an audited financial statement for the most current fiscal year including a balancesheet which states

the value of the business asset the amount of dividends the retained earnings or net income of the business

a T4 slip for the individual


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a copy of the corporations income tax return and the Notice of Assessment receivedfrom Canada Revenue Agency, plus

a copy of the individuals income tax return and Notice of Assessment. Note: if theindividuals income is not the same on both documents, seek further information

Employment Insurance (EI)

a copy of a benefit statement showing the gross weekly amount.Strike pay

a cheque stub, or a letter from the unionB. Verifying Income from Assets or Investments

Income-producing assets

Income-producing assets are investments which produce income such as interest ordividends.

Interest-bearing bank or credit union accounts

a current passbook or a monthly bank statement (showing the account number, thename and address of the bank or credit union, the total interest earned in the past year

or the average monthly interest earned in the past year)

T5 slips issued by bank or credit union for tax purposes, or a letter from a bank or credit union describing the amount of interest earned in the

past year

Term deposits, GICs, treasury bills, bonds or debentures

a letter from a bank or credit union, or documents or certificates from a bank or credit union which give the following details

the principal amount of investment the interest rate the amount of interest earned the date of issue and the term the identifying serial number


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Stocks, shares or mutual funds

cheque stubs or copies of cheques, or T5 slips issued for tax purposes, which give the following details

the amount of dividends received the company name the series or type of stock the number of stock shares mutual fund company statements with value of investment

Mortgages or loans

an amortization or loan payment schedule showing the principal and interest of eachpayment. Include only the interest portion of mortgage or loan payments indetermining income for an RGI calculation. Do not include repayments of principal.

If the interest rate of the mortgage or loan is below the imputed rate of return, use theimputed rate of return to determine the income.

Note: The imputed rate of return is the interest rate for the first year of the November1st issue of Canada Savings Bonds, rounded down to the nearest whole per cent. Usethe figure given in the most recent City Guideline entitledImputed Rate of Return.

Non-income-producing assets

Non-income-producing assets do not produce regular income or interest but do increasein value. Use the imputed rate of return to estimate the financial benefit to an individualfrom this type of asset. For example, if the imputed rate of return were 2%, add 2% ofthe value of the non-income-producing asset to the individuals total income.

Note: RRSPs and RESPs are excluded from non-income-producing assets. Anyincome earned on an RRSP, an RESP or a prepaid funeral plan is not consideredincome under the SHRA.

Non-interest-bearing bank or credit union accounts

a copy of a bank passbook or other documents giving details of the account


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Non-income-producing equity or share in business

an audited financial statement, or a letter from an accountantTaxi plate or licence

a taxi licence in Toronto is not considered to be an asset. Households do not need toprovide information about their value.

The net income earned from driving a taxi and/or renting the taxi (the amount the ownercharges to the other drivers), and/or renting the use of a taxi licence is included inhousehold income. For information about verifying Self-Employment Income, see page10.Life insurance with a cash surrender value

a letter from the insurance company indicating the policy number and the current cashsurrender value

The value of the non-income producing asset is the current cash surrender value of thepolicy. If the person has borrowed against the insurance, reduce the value of the asset bythe amount borrowed.

Note: Include any dividend income from the insurance in the total household

income.

Non-income producing stocks, shares, bonds, or mutual funds

a letter or bank statement from a bank or credit union, or a document from a brokerage company or financial institution, giving the current

value

Residential property suitable for year-round occupancy

a written appraisal of the property done by a qualified appraiserIn most cases, any residential property suitable for year-round occupancy must be soldwithin 6 months of the household receiving RGI assistance. Until the property is sold, itis considered a non-income producing asset.

Note: The household is responsible for the cost of the appraisal.


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Residential property not suitable for year-round occupancy

a written appraisal of the property done by a qualified appraiserNon-residential property such as land

a written appraisal of the property done by a qualified appraiserTransferred Assets

Transferred assets are included in income if they were transferred to reduce RGI rent.

If, in the 3 years (36 months) before receiving RGI assistance, an individual has sold,leased or given an asset to someone who is not a member of the household, include the

asset when you determine the individuals income. If the household transferred an assetafter beginning to receive RGI assistance, include the asset when you determine theindividuals income. Treat it as a non-income producing asset. This applies to income-producing or non-income-producing assets.

Base the imputed income on the total value of the asset at the time of the transfer.

If the asset was real estate, then the individual needs to provide

a written appraisal of the property from a qualified appraiserIf the asset was a financial holding, the individual needs to provide

a letter from a bank or credit union documents or certificates from a bank or credit union, or a letter from an accountant

Note: The rule involving transferred assets deals with households that sell or giveaway valuable assets. The housing provider must use judgement in dealing with atransferred asset.

For example, if a couple gave $5,000 to their daughter a month before the husbanddied in an accident, you may choose to ignore the transferred asset.


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Life interest in real estate

An individual may receive a life interest in real estate through a will or other document.You can determine the value of this non-income producing asset through a written

appraisal of the value of the life interest which reflects the individuals ability to sell orrent the real estate.

For example, a widow may be granted the right to live in her current home, even thoughthe title to the property has been transferred to her son. She lives there for a while, butthen moves into social housing. She has the right to rent out the house during her lifetime,but doesn't exercise that right. Her son's family moves into the home. In this situation, thelife interest has no value.

C. Verifying Income from Pensions or Agreements for Support

Pension, long-term disability, or annuity income

a copy of a current cheque stub which shows the gross amount of income and howoften it is paid or

a slip issued for income tax purposes showing the annual amount of the pension,disability or annuity income or

a letter from the pension manager stating the amount of the paymentReceiving child or spousal support payments

a copy of the support agreement or court order, and a letter from a lawyer or the Family Responsibility Office, or a statutory declaration stating how much the person receives and how often they

receive it

Paying child or spousal support payments

a copy of the support agreement or court order, and copies of cancelled cheques (showing support paid)D. Verifying Income from Social Assistance (OW and ODSP)

Ontario Works or Ontario Disability Support Program payments

a copy of the benefit statement from the City or the Province plus a copy of themonthly drug card. The drug card verifies the number and names of the beneficiaries.


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Note: If a person receiving social assistance has income from employment,assets, or a pension or support agreement, they must provide documents to verifythis non-benefit income as well as their social assistance benefits.

Determining Gross Monthly Income

To determine the RGI Rent for a household, you must first calculate the gross monthlyincome (net of excluded income) of each individual in the household who is 16 years ofage or older.

Rounding amounts up and down

Do not work with cents in your calculations. For example, if an individuals grossmonthly income is $1,533.34, you would round this amount down to $1,533. If the gross

monthly income is $1,533.55, then you would round it up to $1,534.

A. Determining Income from Employment

Regular employment income

Remember, you must base your RGI calculation on gross monthly income. Grossincome is an employees income before deductions for income tax, EI payments, CPPpayments, union dues, and so on. To find an employees gross monthly income, find outhow often the person is paid and convert the amount to monthly income.

Regular employees are usually paid

at the middle and the end of each month (semi-monthly), or every 2 weeks (bi-weekly)Semi-monthly pay is received 24 times a year. Bi-weekly pay is received 26 times ayear.

Use the following table to determine gross monthly amounts.

Income Frequency Calculation Factor

Annual Divide by 12

Semi-monthly (twice a month) Multiply by 2


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Weekly Multiply by 4.333

Bi weekly (every 2 weeks) Divide by 2 and multiply by 4.333

Daily Multiply by 21.66

Fluctuating income

A tenants income may change from month to month. For the first year of fluctuatingincome, calculate their RGI Rent every 3 months based on their income for the previous 3months.

After the first year, calculate their RGI Rent based on the income from their previousyears tax return. You are not required to decrease their RGI Rent during the year unlessthere is a significant change in the amount of income or the source of their incomechanges. See City Guideline 2008-3.

For example, a single mother starts a job as a home care worker on an on-call basis. Askher to submit income documents every 3 months. Base her RGI Rent for the next 3months on the income from the past 3 months. After the first year, calculate her RGIRent based on her previous years tax return.

Individuals who receive this type of income should provide a working copy of their

income tax return and the Notice of Assessment. You may wish to ask for a statutorydeclaration stating the amount of tips or gratuities received during the period.

Tips, gratuities, or commissions

Include any money that an individual receives from tips, gratuities and commissions.

Employees that normally receive such income are

wait staff taxi drivers barbers and hairdressers.Irregular income

If a persons income is seasonal or intermittent, treat it as fluctuating income. When asource of income ends, start over with a new fluctuating income period.


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Self-employment income

If a tenant has been self-employed for less than a year, ask for financial statements every3 months. These statements do not have to be audited. You will have to calculate RGI

every 3 months based on the earnings of the past 3 months. After the first full year ofself-employment, the RGI Rent may be adjusted retroactively if the un-audited financialstatements did not reflect the actual income.

If the tenant has been self-employed for more than a year but the business is notincorporated, determine the net business income from the working copy of the incometax return, including the Statement of Business Activities and the Notice of Assessment.

If Canada Revenue Agency has allowed the following deductions, you must add themback to the net income of the business. These are

depreciation of capital assets rent child care expenses

Divide the net business income by 12 to determine the gross monthly income.

After the first year of self-employment, base the households RGI rent on the averageincome of the prior year. Once RGI rent is based on a yearly average, do not decreaseRGI rent mid-year unless there is significant change in the amount of income from self-employment or the source of income changes. See City Guideline 2008-3.

Employment Insurance benefits

Benefits are paid bi-weekly but stated in weekly amounts. Remember to use the factor of4.333 to determine gross monthly benefit amount.

Income from a Child of the Household

The legislation defines a child of the householdas a child of any member of thehousehold who

has always lived at home except for short periods while in full-time attendance at arecognized educational institution,

has never had a spouse, and

Negative income from self-employment must be counted as zero income.


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is not the parent of a child living in the household.Children who are 16 years of age or older who are not full-time students must report theirincome. If a child earns more than $75 a month and does not qualify as a student, you

must do a separate calculation to determine the childs income. See Section 6.

There is no age limit. For example, you would treat the income of a 30-year-old daughterwho has always lived at home in this way as long as she has always been single anddoesnt have any children living with her.

Student Income of a Child of the Household

Do not include the students income in the household income if:

a child of the householdattends primary or secondary school a child of the householdis in full-time attendance at a recognizedpost-secondaryeducational institution (for example, a college, university, or vocational school) and

the student has not been out of secondary school for more than 5 years at the start ofhis or her study program.

Full-time attendanceFull-time attendance means taking at least 60% of a full course load. For a studentwith a permanent disability, full-time attendance means taking 40% of a fullcourse load.

Recognized educational institution


a school

a university

a college of applied arts and technology

a private vocational school

a private school.

Note: A school, other than a post-secondary institution, must be within the

Province of OntarioSee Reg. 298/01 s. 4 for the complete definitions.

To document full-time attendance, the student should provide


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a letter from the principal or registrar, a certified timetable, a document from a funding agency that outlines the name of the educational

institution and the number of courses the student is taking, or

a receipt from the educational institution showing the tuition fees paid.Do not ask a child of the household who is a student to provide income documents, if thestudent has provided documents to confirm their status as a full-time student. See CityGuidelines 2003-12 Income of Full time Students Living with their Parents.

B. Determining Income from Assets or Investments

Note: Ignore the first $1,000 of each family units total assets in bank accountswhen you calculate the RGI assistance. For example, if a family unit has $1,800as the minimum monthly balance in a chequing account count the asset as $800.

Income-producing assets(interest bearing bank accounts, credit union and trust company accounts, term deposits,bonds or debentures, GICs)

Take any income earned and add it to the individuals gross monthly income. Forexample, if an individual has a Guaranteed Income Certificate (GIC) which produced $90of interest in the past year, divide the amount of the interest earned by 12 and add $8 tothe gross monthly income.

$90 12 = $7.50 Rounded to $8.

Non-income-producing assets(non-interest bearing bank accounts and non-residential real estate)

Use the imputed rate of return to calculate the imputed amount of income from the

non-income-producing asset. Add this amount to the individuals monthly income. Forexample, an individual has a bank account with a minimum monthly value of $4,000.Subtract the first $1,000. If the imputed rate of return were 3%, the imputed annualamount would be $90. Divide this amount by 12. Add $10 to the households grossmonthly income.

$3,000 x 3% = $90$90 12 = $7.50 Rounded to $8


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Transferred Assets

If an asset was transferred in order to reduce RGI rent, then the value of the asset at thepoint of transfer is included in non-income-producing assets. Include this asset value as

long as the household continues to receive RGI assistance. See City Guideline 2007 4.

This is a policy change following regulation amendment in 2005. For assets that werepartially depreciated before the Guideline was issued, use the last depreciated value.

C. Determining Income from Pensions and Agreements for Support

Pensions, child or spousal support, long-term disability payments

If a member of the household receives child or spousal support, you must add it to theirmonthly income.

Note: If a member of the household pays child or spousal support, you mustsubtract it from their income.

D. Determining Income from Social Assistance

Ontario Works, Ontario Disability Support Program

If an individual in the household receives income from OW or ODSP, you calculate the

RGI Rent by using a set of tables. This process is described in Chapter 6. An individualwho receives OW or ODSP may also have income from employment, assets, or pensionsor support payments. This is called non-benefit income.


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CHAPTER 6: CALCULATING RENT FOR AN RGI HOUSEHOLD

1

1. CALCULATING RENT FOR AN RGI HOUSEHOLD ........................................ 2

Steps for Calculating Rent for an RGI Household.......................................................2Step 1 Review the income and assets verification form for completeness..........

rent-geared-to-income guide - toronto

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