HIP Housing In Peel Subject: Fluctuating Employment Income Date: January 27, 2010 Replaces: HIP P&P 2002-08 (formerly #9), dated June 21, 2002 Applicable to The policy and procedures contained in this document apply to the following social housing providers: Municipal & Private Non- Profit Co-operatives Peel Access to Housing (PATH) Federal Non-Profit Rent Supplement* *incl. former OCHAP/CSHP Content This document contains the following information: Legislation Purpose Document Policy Definition of fluctuating Examples of fluctuating Policy Calculating average monthly Income changes Questions Cross references Legislation Social Housing Reform Act, 2000, Ontario Regulation 298/01, Sections 50 (13); 52 (7) & (8); 53 (2) & (3); 54; & 55 to 59. Page 1 of 5
Purpose Document The purpose of this document is to inform social housing providers of the policy for determining the gross monthly for an RGI household when the household has that fluctuates from month to month. Policy The purpose of the policy is to be fair to households who pay RGI, by determining a monthly that accurately reflects the average fluctuating they earn a month. Definition of fluctuating For the purpose of this policy, fluctuating is defined as that is unpredictable and changes from month to month may be seasonal or irregular is generally hourly paid wages where the number of hours worked varies daily or weekly, and is received from one or more employer(s) during the same month. Note: Under this policy the following types of are not considered fluctuating : self- of any kind (e.g. baby-sitting, housekeeping, etc.); or any part of the household that is from Ontario Works (OW) or Ontario Disability Support Program (ODSP) Examples of fluctuating The following are examples of that may be fluctuating (Reminder: none of the is from self ): Temporary through an agency Bus driver Home-care provider (i.e. to help people live independently) Piece work Commission sales Policy calculating average In Peel, social housing providers are to use 12 consecutive weeks of gross to determine the average monthly for households with that fluctuates. This criterion is dependent Page 2 of 5
monthly on when the average monthly is being determined (e.g. first, second or third year of fluctuating with the same employer/s). Notes The change in is considered to have occurred at the end of the 12 consecutive week period The legislated notice period for rent changes continue to apply The timelines in the following table are to be adhered to unless there is a significant change in the source or amount (refer to Income Change block for details) The following table describes how social housing providers are to calculate the average monthly when households have that fluctuates from month to month, depending on when the calculation is occurring. If average monthly is being determined in the... first month (and for the first time before 12 consecutive weeks of gross is available) first year of fluctuating with the same employer/s second year (after the first 12 consecutive months of fluctuating Then rent is calculated in the first month every three months annually And rent is calculated using... verification available at the time such as: paystubs (may be only one or two weeks); or a letter from the employer confirming rate of pay and estimating number of hours per week/month Note: Do not use a paystub that contains a one-time payment. 12 consecutive weeks of pay stubs from the previous 3 months the average monthly from the previous 12 month period to determine rent Page 3 of 5
) for the next 12 months third and future years annually Notice of Assessment from the previous year s tax return to determine the average gross monthly for the next 12 months. Note: The use of the Notice of Assessment to determine the average monthly is unique to the fluctuating policy. Refer to: Hip P&P on Requesting Notice of Tax Assessment at the Annual Review Income Changes If there is a significant change in either the amount or source of a household is receiving (e.g. new employer), the housing provider is to use best judgment to determine if the change in is significant based on the tenant/member s amount of and circumstances. The following are examples of significant change of : Ester worked an average of 28 hours per week. Her hours have suddenly decreased to an average of 21 hours per week and this is not expected to change any time soon. Randy s hours have been increased from an average of 24 hours per week to an average of 33 hours per week and this is expected to continue. James had fluctuating from two employers but lost one of the jobs and/or started working with a new employer. Questions If you have any questions, please contact your Social Housing Page 4 of 5
Administrator at the Region of Peel. Cross reference The following policy document also pertains to this policy: Requesting Notice of Tax Assessment at the Annual Review Page 5 of 5