Rent-Geared-to-Income. Guide

Transcription

1 Rent-Geared-to-Income Guide

2 TABLE OF CONTENTS: CHAPTERS 1. DEFINITIONS 2. OVERVIEW OF THE SOCIAL HOUSING PROGRAM RGI ADMINISTRATION BY THE CITY OF TORONTO 3. DOES THE HOUSEHOLD QUALIFY FOR RGI? BASIC ELIGIBILITY STANDARDS 4. OCCUPANCY STANDARDS 5. WHAT IS INCOME AND HOW TO VERIFY IT 6. CALCULATING RENT FOR AN RGI HOUSEHOLD 7. REVIEWING RGI INITIAL REVIEWS, ANNUAL REVIEWS, MID-YEAR CHANGES, SPECIAL REVIEWS 8. DO YOU HAVE RGI AVAILABLE? TARGETING PLANS, MANDATES, WAITING LISTS, RGI VACANCIES 9. COLLECTING AND KEEPING INFORMATION, RECORD KEEPING 10. APPENDIXES

3 CHAPTER 1: DEFINITIONS affidavit A written statement sworn before a notary public or another person who has the authority to witness an oath. alternative housing provider [Reg. 367, s.49.(1)3] 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 Benefit unit refers 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 individual s child is a child of the individual a child that the individual has legally adopted a child that the individual treats as their child. This does not include a foster child. A child is less than eighteen years of age. child of the household [Reg. 367, s.42.(1)2] A child of any member of the household. 1

4 CHAPTER 1: DEFINITIONS This household member has always lived at home except for short periods while in full-time attendance at a recognized educational institution has never had a spouse, and is not the parent of a child living in the household There are two applications of "child of the household": one in occupancy standards and one in RGI calculation. 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 HSA, individuals who receive assistance from Ontario Works or Ontario Disability Support Program are not considered a part of a family unit. 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. Housing Connections The City of Toronto has contracted responsibility for managing the centralized waiting list to Housing Connections. Housing Connections maintains waiting lists for rentgeared-to-income units in social housing. 2

5 CHAPTER 1: DEFINITIONS 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 1 st 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. 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 rules The rules which the HSA 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. mandate The Province of Ontario 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. 3

6 CHAPTER 1: DEFINITIONS 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 (excludes RRSPs and RESPs) overhousing An RGI household is overhoused if the unit has more bedrooms than the RGI occupancy standards allow. permanent resident A person who is legally residing permanently in Canada but is not a citizen. 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 or marital 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 4

7 CHAPTER 1: DEFINITIONS confidential correspondence sent by the individual to an institution and any response to such correspondence the views or opinions of another individual about them. This 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 Ontario Colleges of Applied Arts and Technology Act, a private career college, as defined in the Private Career Colleges Act, a private school, as defined in the Education Act, for which a notice of intention to operate has been submitted to the Ministry of Education in accordance with that Act all educational institutions other than universities must be located in Ontario. record A record is any document or written material created by a housing provider any document or written material related to the operation of a housing project that is given 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 Housing Services Act has several regulations. Regulation 367/11 and Regulation 298//01 deal with rent-geared-to-income administration. Regulation 367/11 deals with the operation of housing projects. removal order Immigration order that requires a person to leave Canada. 5

8 CHAPTER 1: DEFINITIONS rent In non-profits, rent is defined in the Residential 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 pay rent based on their income. residential property A property or part of a property that can be lived in. Review (HSA, s and Regulation 298, s.52-53) Members of a household have the right to request a review of certain housing provider decisions. RGI Service Agreement Section 17 of the HSA allows service managers to delegate some of their duties under the Act to other agencies. Toronto has signed RGI Service Agreements with most of its social housing providers. service manager The HSA 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. Social Housing Reform Act 2000, (HSA) The province of Ontario passed the Social Housing Reform Act in It transferred the Province s responsibility for funding and administering social housing to the municipal level of government. (Federal program co-ops such as Section 61, Section 95 and the Federal Co-operative Housing Program were not transferred.). On January 1, 2012, the Housing Services Act replaced the Social Housing Reform Act. 6

9 CHAPTER 1: DEFINITIONS 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 Reg. 367, s.54 Special priority category - eligibility 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 has sponsored the 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. spouses If two individuals refer to themselves as spouses, consider them as spouses for RGI issues. The definition in Regulation 367 includes two 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. support payment A payment required by a court order for support based on the federal Divorce Act or the Ontario Family Law Act, or a legal domestic contract such as a separation agreement, a paternity agreement, a marriage contract, or a co-habitation agreement. support services Services for people who need special help to live independently in the community. 7

10 CHAPTER 1: DEFINITIONS 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 and 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 two person family A two person family consists of either two spouses or a parent and child. 8

11 CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM RGI Administration by the City of Toronto... 2 RGI Administration... 3 City Guidelines... 3 The Role of the Housing Provider... 5 RGI Service Agreement... 5 Providing Information to the Public... 6 Good Communication

12 CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM RGI Administration by the City of Toronto 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. This Act transferred the responsibility for funding and administering social housing to the municipalities. On January 1, 2012, the Housing Services Act (HSA) replaced the Social Housing Reform Act. The HSA 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). Most rent geared-toincome (RGI) rent supplement units in privately owned buildings, with some exceptions such as the Strong Communities Rent Supplement Program. Note: The HSA 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. The Agency for Cooperative Housing administers and funds this housing. In the HSA, the term service manager refers 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. The City must follow the rules set out in the HSA and its regulations. Regulation 367/11 deals with RGI administration, including the rules for handling personal information. Under the Social Housing Program administered by the City of Toronto, co-operatives and non-profits provide housing for households paying market rent and geared to income rent. Rent-geared-to-income (RGI) assistance, a subsidy from the City, makes up the 2

13 CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM difference between the amount that the household pays for the unit and the market rent for the unit. Most co-operatives 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 the HSA, 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 HSA, the duties of the service manager include managing a centralized waiting list for people applying for RGI housing administering RGI assistance. The HSA allows the service manager to contract these responsibilities to other organizations. However, the service manager is accountable to the Province of Ontario. [HAS, Section 17] The City has contracted the management of the centralized waiting list for RGI units to Housing Connections. The City has contracted the administration of RGI assistance to housing providers. Most social housing providers have signed an RGI Service Agreement. Housing providers are required by law to implement the HSA and its Regulations. City Guidelines The HSA 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 sends these Guidelines to each housing provider that is required to follow them. City Guidelines are available on the City of Toronto s social housing website at 3

14 CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM Who Does What in Social Housing in Toronto 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 City of Toronto (service manager) funds social housing program makes sure housing providers follow HSA 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 Housing Connections manages centralized waiting list reports to City of Toronto manages rent supplement program Resident Households provide accurate and complete documents report changes on time comply with lease/occupancy agreement maintain units 4

15 CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM The Role of the Housing Provider RGI Service Agreement Most social housing providers administered by the City of Toronto have signed a RGI Service Agreement. This Agreement makes the housing provider responsible for administering RGI. The Board s role is to make sure that the co-operative or non-profit follows the RGI Service Agreement and the rules set out in the HSA 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 three months of beginning the job. All staff must attend follow-up courses. 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 household s 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 (For fixed income households, reviews must be carried out at least every 24 months). when the provider is notified of a change in income, assets, or household size or make up if the service manager requires a review before offering an RGI unit to an applicant Chapter 7 also deals with issues such as proper notice, and reviews. Some co-operatives and non-profits also have special 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. 5

16 CHAPTER 2: OVERVIEW OF THE SOCIAL HOUSING PROGRAM Housing providers are responsible for personal information about their tenants. They also have a duty to keep certain records. Chapter 9 outlines these duties. Providing Information to the Public Section 54 (1) of the HAS and Regulation 367/11 sections 62 and 83 The legislation has rules about information that housing providers must make available to tenants and the public including special needs clients You must give the public access to procedures for applications for rent-geared-to-income assistance, including what information and documents the service manager requires local eligibility rules occupancy standards the service manager s system for selecting households information on the housing project information about the provincial eligibility rules information about the provincial priority rules Make this information available so that people can copy it at their own expense. Good Communication 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. 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. 6

17 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? Basic Eligibility Rules for Every Household... 2 Other Eligibility Issues... 3 Eligibility for Special Needs Housing... 3 Special Priority as a Victim of Abuse Social Housing Residents... 4 Losing Special Priority Status... 5 Eligibility Issues Applying only to Residents... 5 Ceasing to be Eligible for RGI

18 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? Basic Eligibility Rules for Every Household The HSA 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 RGI assistance, a household must 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 claimant or Convention refugee. No removal order has become enforceable against any member of a household No member of the household owes arrears (money for rent or damage) from a former tenancy to a social housing provider in Ontario unless Housing Connections or a provider, decides there are extenuating circumstances about the case, or a member of the household has signed and is following an agreement to pay the money owing or a member of the household has made reasonable efforts to enter into a repayment agreement. Exception: Housing Connections or a provider may accept a special priority household who commits to repaying 50 per cent of the arrears. Exception: Housing Connections will accept RGI applications from tenants living in social housing who owe arrears. The HSA allows the Service Manager to make a local rule about certain convictions related to former RGI households. The City of Toronto rule (City Guideline ) is that: No member, or former member, of the household has been convicted by a court or the Ontario Landlord and Tenant Board of getting RGI assistance that they were not entitled to, or misrepresenting their income to get RGI assistance. 2

19 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? Once convicted, no member of the household can reapply for RGI assistance for two years from 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 is no 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 City's Local Rule, any person who helps a member of a household to get RGI assistance that the household is not eligible for could be charged with an offence. On conviction, they could be fined up to $5,000 or be imprisoned for up to six months, or both. Other Eligibility Issues Eligibility for Special Needs Housing Every housing provider has units that are modified for accessibility. These units are special needs units. Units in which households receive provincially funded support services are also special needs units. To be eligible for special needs units, households must need the specific modifications of that unit or need the support care services that are available with the unit. They must remain eligible after they move in. In many cases eligibility is assessed by the agency providing support care services in the units. Unless you have delegated vacancy management for special needs housing to Housing Connections, you must maintain a special needs waiting list. Or, special needs units may be handled by a referral agreement with an agency. 3

20 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? Applicants and residents of special needs units get RGI when they need it, as long as they meet the initial eligibility requirements [HSA, Reg 367, s.51.2] Special Priority as a Victim of Abuse Social Housing Residents Victims of abuse have priority on the centralized waiting list. Housing Connections first assesses an applicant for general eligibility, and if they qualify, places the household on the 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 which they express a preference. Victims of abuse currently living in social housing may wish to be placed on the provider s internal transfer list. This will most likely only happen when a housing provider has a lot of different buildings. Housing Connections reviews all applications for Special Priority Status. See Chapter 8 information on the application process. To qualify for special priority, the applicant must make a written request to Housing Connections 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. If the abuser and the applicant being abused do not live together now, the request must be submitted 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 time limit for making an application in this situation. To verify that the applicant is being abused, the applicant must submit a record written by one of the professionals listed in Reg 367, s. 58 (5). If the applicant is applying for special priority with the current housing provider, Housing Connections will not need a new housing application. If the applicant wishes to apply to a different housing provider, they must submit a new application to Housing Connections. 4

21 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? Losing Special Priority Status Once special priority status has been given to an applicant they maintain this status until they are housed. There are some exceptions. Applicants will lose their special priority status on the centralized waiting list if Housing Connections confirms that the applicant is adding the abuser to the application for RGI assistance Housing Connections confirms that the abuser has died Housing Connections confirms that the applicant has accepted an offer of RGI housing. If you have information that the abuser is deceased or that the applicant has accepted an offer for RGI housing somewhere else, tell Housing Connections as soon as possible. See City Guideline Eligibility Issues Applying only to Residents To remain eligible for RGI assistance housing, an RGI household must also meet the following conditions: Failure to Obtain 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 try to obtain this income. These types of income are Ontario Works (OW) assistance support payments under the Divorce Act (Canada), the Family Law Act, or the Reciprocal Enforcement of Support Orders Act Employment Insurance (EI) benefits A pension or supplement under Part I or II of the Old Age Security Act, for example, Old Age Security (OAS), Guaranteed Income Supplement (GIS), and Guaranteed Annual Income System (GAINS).This does not include Canada Pension Plan (CPP) benefits. support or maintenance from a sponsor (Immigration Act). See Appendix 10 Failure to Obtain Income - for more information about income entitlements and how to pursue these forms of income. 5

22 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? The written notice must identify the type of income the household may be eligible for set a reasonable time for the household to inform the housing provider of their efforts to get this income. The household may become ineligible for RGI if they do not respond to the notice from the housing provider within the time stated in the notice the housing provider decides that the household has not made a reasonable effort to obtain this income. As a guideline, the City recommends that households be given 60 days to inform the housing provider of the results of their pursuit of income. This includes 30 days to make a request for income and 30 days to receive and submit the reply to the housing provider. Note: Tenants seeking support from former spouses can go to the provincial Family Responsibility Office if they are afraid to approach the former spouse directly. Ownership of Residential Property If a household owns a residential property that can be lived in year-round, they must sell (divest) the property or their share in it within six months of moving into an RGI unit. If they do not do this, they may become ineligible for RGI assistance. If a household already receiving RGI assistance acquires or inherits a residential property that can be lived in year-round, they must sell (divest) the property or their share in the property within six months. If they do not, they may become ineligible for RGI assistance. The housing provider can extend the period of time beyond six months if there are reasonable 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 steps to sell a property would put them at risk, the housing provider must extend the period of time past six months. Ceasing to be Eligible for RGI A household may cease to qualify for RGI if the household does not meet an eligibility requirement 6

23 CHAPTER 3: DOES THE HOUSEHOLD QUALIFY FOR RGI? refuses three offers while on the centralized waiting list does not provide information and documents within the required timeframe ( see City Guideline and City Guideline ) is overhoused and cancels their application on the centralized waiting list is overhoused and refuses a total of three offers of housing, while on either the internal transfer waiting list or the centralized waiting list. However, the household cannot cease to be eligible until one year after they are notified that they are overhoused. (Reg 367, s. 38 (2) has failed to obtain 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 revised June 1, has paid market rent for one year. When a household living in social housing ceases to qualify for RGI assistance they are entitled 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. 7

24 CHAPTER 4: OCCUPANCY STANDARDS 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?... 3 Overhoused Households... 4 Housing Preferences... 5 Underhoused Households

25 CHAPTER 4: 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 overhoused under 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. Housing providers may set different occupancy standards for market-rent households. Under City Guideline , the occupancy standards are there cannot be more than two persons to a bedroom spouses must share a bedroom two children of the same sex must share a bedroom if the bedroom provides at least four 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 wants two children to share a bedroom. They may only share a bedroom that provides at least four 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. Two persons who live together are considered "spouses" 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. 2

26 CHAPTER 4: OCCUPANCY STANDARDS 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 extra bedroom for the child a member of the household has a legal agreement for joint custody of a child and the child 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 living away from home a member of the household? A student attending school away from home is a member of the household, if the student meets all these conditions: is a child of the household is in regular 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. 3

27 CHAPTER 4: OCCUPANCY STANDARDS Recognized educational institution A recognized educational institution is a school a university a college of applied arts and technology a private career college a private school. Note: a school, other than a post-secondary institution, must be within the Province of Ontario Overhoused Households An RGI household becomes overhoused if someone in the household leaves and the unit has more bedrooms than the City s RGI occupancy standards allow. If you decide that the household is overhoused, send the household a written notice of the decision, telling them that they could lose their RGI assistance if they do not move to a suitable unit. Make sure that the notice informs the household that they can ask for a 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 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 waiting list, 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: 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. However, an overhoused household cannot lose eligibility for RGI in the first 12 months after being notified that they are overhoused. 4

28 CHAPTER 4: OCCUPANCY STANDARDS 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 removed from 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. A housing provider must decide that a overhoused household is no longer eligible for RGI assistance if they have refused three housing offers, whether for internal transfer or from a different housing provider, and they have been overhoused for at least 12 months. 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 When an overhoused household is added to the Housing Connections waiting list, the household s application is ranked as third priority. Victims of abuse are first priority and terminally 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 housing provider. have been overhoused for at least 12 months and they refuse 3 unit offers of the size that they are eligible for, including both internal transfer offers 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 five preferences, not including their current provider, you must issue the household a notice of loss of eligibility for RGI assistance. See City Guideline Once a household has been overhoused for one year, Housing Connections keeps track of all refusals. 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 three offers, you must issue the 5

29 CHAPTER 4: OCCUPANCY STANDARDS household a notice of loss of eligibility for RGI assistance (if they have been overhoused for at least 12 months). Underhoused Households An RGI household is underhoused if the unit has less bedrooms than the City s RGI occupancy standards would allow. Underhoused households are not considered a priority under the HSA. When developing an internal transfer policy, housing providers may not rank underhoused households before special priority and overhoused households. 6

30 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT What income is included?... 2 A. Income from Employment... 3 B. Income from Assets or Investments... 3 C. Income from Pensions or Support Agreements... 4 D. Income from Social Assistance... 5 What income is excluded? [Reg. 298, s.50.3]... 5 Excluded Government Program Payments... 5 Excluded Employment-Related Payments... 5 Excluded Assets... 6 Excluded Income from Disposal of Assets... 6 Excluded Gifts... 6 Excluded Interest Income... 7 Excluded Education or Training Income... 7 Excluded Income for Foster Children/Crown Wards... 8 Excluded Home Care Allowances... 8 Excluded Income for Veterans and Victims of War... 8 Excluded Income for Aboriginal People... 8 Excluded Extraordinary Compensation Payments... 9 Verifying Income and Assets... 9 A. Verifying Income from Employment... 9 B. Verifying Income from Assets or Investments C. Verifying Income from Pensions or Agreements for Support D. Verifying Income from Social Assistance (OW and ODSP) Determining Gross Monthly Income A. Determining Income from Employment B. Determining Income from Assets or Investments C. Determining Income from Pensions and Agreements for Support D. Determining Income from Social Assistance

31 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT Housing providers that have signed RGI Service Agreements are responsible for calculating how much rent a rent-geared-to-income (RGI) household must pay. To calculate the RGI charge, housing providers must first determine the monthly income of each person in an RGI household. For this reason, all members of a household who are 16 years of age or older must report their income and assets and provide documents. Note: there is an exception for students who are children of the household. See City Guideline Income 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 should have received it (e.g. support payments received late). You must know what is included in income and what is excluded from income before you 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 HSA does not contain any provisions for deeming income. You may only calculate rent on income actually received. 2

32 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT 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 or dividends. The income from these assets is included in the total household income used for 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. 3

33 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT Non-income-producing assets include all investments or holdings which are intended to increase in value rather than produce income. Some examples of these are: non-interest bearing bank or credit union accounts (for example, some chequing accounts do not produce interest income). Deduct $1,000 from the sum of all of a household s 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 nonwinterized 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 assistance or any time after the household starts receiving RGI assistance. life interest in real estate. Note: Personal belongings such as jewellery, family heirlooms, or old family furniture, and possessions that do not normally increase in value (for example, a family 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 Québec 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. 4

34 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT Note: Support payments may be payments required by the federal Divorce Act or the Ontario Family Law Act, or payments required by legally-recognized separation agreements, paternity agreements, 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.50.3] The HSA includes a long list of excluded income income and payments which you are not to include as income. Although this list is long, it will probably not cover all situations. In this Guide, we have grouped these items into categories. The categories may help you to decide which types of income you may exclude. You will need to use good judgement when 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 Working Families 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 survivor s death benefit received from Canada Pension Plan a special allowance for resettlement assistance. Excluded Employment-Related Payments a lump sum severance payment 5

35 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT a business expense deduction from self-employed earnings that is allowed by Canada Revenue Agency and the HSA an allowance or payment for childcare, transportation, tuition, or other expenses for a person 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 Act as 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 estate Excluded Gifts a casual gift or casual payment of small value 6

36 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT a donation from a religious, charitable, or benevolent organization Excluded 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 secondary institution 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 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 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 Universities 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 the Canada Student Assistance Program. a Dr. Albert Rose bursary for post-secondary students (awarded by the Ministry of Municipal Affairs and Housing) a grant under the federal Employment Insurance Act received by a person receiving social assistance. This grant must be used to pay for a training course approved under the provincial Ontario Works Act. 7

37 CHAPTER 5: WHAT IS INCOME AND HOW TO VERIFY IT a Canada Education Savings Grant if it is paid into a Registered Education Savings Plan for a child of a member of a family unit. Excluded Income for Foster Children/Crown Wards payment from a Children s Aid Society for a child in care development Care Program payments (from Children s 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 Children s Aid Society) Excluded Home Care Allowances attendant care allowances disabled children s 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 on behalf of a disabled person, that will not be reimbursed, including expenses for items or services needed because of the household member s disability education or training expenses incurred because of the household member s disability 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 a student attending secondary school off the reserve 8