Household Asset Limits (H-23-03)

Date: July 1, 2023

This Directive is to be implemented by Housing Providers listed under the following programs in Schedule 1 of Ontario Regulation 367/11:

• 1 (a) – Local Housing Corporation
• 2 (a) and 2 (b) – Rent Supplement Programs
• 6 (a) – Non-Profit Program
• 6 (b) – Non-Profit Co-Op Program
• Social Housing Registry

Background

In March 2022, the Province introduced Ontario Regulation 242/22 under the Housing Services Act, 2011 (HSA). This regulation introduced new criteria that requires Service Managers to implement asset limits for Rent Geared to Income (RGI) assistance no later than July 1, 2023.

The asset limits will provide opportunity for RGI households to save for education, health care, retirement or other needs while balancing the need to ensure that RGI assistance is provided to those most in need.

Amended Ontario Regulation 367/11, section 32.5, prescribes a Service Manager to make a local RGI eligibility rule requiring that the value of the assets of the household not exceed a specified maximum value in accordance with the listed eight points below:

• Household asset limits must be at least $50,000,
• Service Managers can set different asset limits by household size and type,
• There are prescribed asset exclusions,
• Service Managers have flexibility to exclude additional assets,
• Service Managers are required to exempt social assistance clients provided all household members are part of a social assistance benefit unit,
• Service Managers are required to apply local asset limits as part of determining both initial and continued eligibility for RGI assistance (i.e., new RGI applicants, applicants on waitlists, and households in receipt of RGI assistance),
• Service Managers are to make reasonable efforts to notify households before implementing the new requirements, and
• Service Managers are encouraged to periodically review and update their asset limit rules.

Asset exclusions as prescribed in O. Reg 367/11, Section 32.5 (5) are as follows:

1. The value of ONE motor vehicle per household member of driving age (does not refer to recreational vehicles such as boats, snowmobiles, all-terrain vehicles, campers etc.)
2. The value of tools of a trade that are essential to the work of a member of the household as an employee.
3. The value of assets of a member of the household that are necessary to the operation of a business that the member operates or has an interest in, subject to:
   • the value of assets of a member of the household, up to a maximum of $20,000 for that member; and
   • the value of assets necessary to the operation of a business, up to a maximum of $20,000 for that business.
4. The value of a prepaid funeral.
5. The cash surrender value of a life insurance policy, up to $100,000.
6. The proceeds of a loan taken against a life insurance policy that will be used for disability-related items or services.
7. A payment under the Ministry of Community and Social Services Act for the successful participation in a program of activities that assists the person with the successful completion of a high school diploma, the development of employment-related skills and the further development of the person’s parenting skills (OW LEAP program) provided the value of any portion of the payment is used for post-secondary education within twelve months.
8. The value of funds held in a Registered Education Savings Plan (RESP) for a child of a member of the household.
9. The value of the clothing, jewellery and other personal effects of a member of the household.
10. The value of the furnishings in the accommodation used by the household, including decorative or artistic items, but not including anything used primarily for the operation of a business.
11. The value of the beneficial interest in a trust of a member of the household who has a disability if the capital of the trust was derived from an inheritance or from the proceeds of a life insurance policy, up to $100,000.
12. The value of funds held in a Registered Disability Savings Plan (RDSP) if the beneficiary of the plan is a member of the household.
13. The value of funds held in an account of a member of the household in conjunction with an initiative under which the service manager or an entity approved by the service manager commits to contribute funds towards the member’s savings goals. For example, a scholarship program for post-secondary education.
14. The value of funds held by a member of the household in a Registered Retirement Savings Plan (RRSP), or in a Registered Retirement Income Fund (RRIF).

Local rules

• This Asset Limit Directive takes effect July 1, 2023.
• The asset limit for RGI applicants or recipients will be $50,000 for individuals and $75,000 for households with more than one member.
• Assets held jointly with a party that is not a member of the household are considered in the household’s asset assessment.
• Should assets be more than the asset limit but are held jointly by a couple who are separating, they shall be made temporarily exempt until they have been divided during the legal separation process and will then be re-evaluated.
• Asset exemptions in addition to assets prescribed as exempt in the regulation include:

1. 1. Locked-in investments that are not cashable by the member of the household including:
      • Locked-in Retirement Account (LIRA)
      • Locked-in Retirement Income Fund (LRIF)
      • Restricted Life Income Fund (RLIF)
      • Life Income Fund (LIF)
      • Non-Cashable Guaranteed Investment Certificate (GIC)
      Where an asset is verified as locked-in for a limited term, the value is exempt until maturity date.
   2. An amount received as damages or compensation for:
      • pain and suffering due to the injury or death of a household member,
      • expenses reasonably incurred as a result of the injury or death of a household member, OR
      • a government compensation payment received under any of the following schemes:
        • Helpline Reconciliation Model Agreement
        • Multi-Provincial/Territorial Assistance Program Agreement
        • randview Agreement o Ontario Hepatitis C Assistance Plan
        • 1986-1990 Hepatitis C Settlement Agreement
        • Walkerton Compensation Plan
        • compensation for sterilization from the Government of Alberta
        • Ontario Disaster Relief Assistance Program
        • Indian Residential Schools Settlement agreement
        • Huronia Regional Centre class action settlement fund
        • Rideau Regional Centre class action settlement fund
        • Southwestern Regional Centre class action settlement fund
        • Settlement Agreement received by a class member in the class action Clegg v. Her majesty the Queen in the Right of the Province of Ontario that was approved by the Superior Court of Justice on April 25, 2016
        • Nova Scotia Home for Colored Children Settlement
        • The Government of Canada’s Thalidomide Survivors Contribution Program
        • Payments received by a class member under the Sixties Scoop Settlement Agreement
        • Payments received by a class member under the Federal Indian Day Schools Settlement Agreement
        • Payments received under the Mercury Disability Fund of the English and Wabigoon River Systems Mercury Contamination Settlement Agreement Act, 1986
   3. The value of an asset is reduced by the amount of a verified debt owing against it such as vehicle loans, lien, and mortgage.
   4. A household member may choose to use their savings or the proceeds of the sale of an asset to pay off a formal debt. The use of the asset must be verified.
   5. The Service Manager may determine that a household with assets that exceed the asset limit is eligible for RGI assistance provided that the Service Manager is satisfied that there are extenuating circumstances such as those with Special Priority status being placed at risk from the abuser if RGI is not granted.

Action to be taken

The Social Housing Registry shall use the asset limit rules in determining a household’s eligibility to be placed on the Centralized Waiting List (CWL). The Housing Providers that collect asset information from households prior to initial occupancy of an RGI unit shall use the asset limit rules to verify eligibility for the RGI unit.

The Social Housing Registry and Housing Providers shall use the asset limit rules at annual reviews to verify continued RGI eligibility. This shall take effect at the first annual review completed on or after July 1, 2023.

The Social Housing Registry shall send a letter via mail to all current applicants on the CWL informing them of the new Asset Limit Directive and that information on their assets will be required at their next annual review taking place on or after July 1, 2023. Housing Providers shall send a letter via mail to all current RGI tenants informing them of the new Asset Limit Directive and that information on their assets will be required at their next annual review taking place on or after July 1, 2023.

The Service Manager will review Directive on an as needed basis and update as deemed appropriate.

Reference

• Housing Services Act, 2011, section 42 – Eligibility Rules
• O. Reg 367/11, section 32.5 – Required local rule – maximum household assets

Ruth Noordegraaf
Director, Housing & Social Services Department

The following list of four individuals have received a copy of this Directive

• Paige Agnew, Commissioner, Community Services
• Jenna Morley, Director, Legal Services & City Solicitor
• Housing Programs Administrators, Housing & Social Services Department
• Jannette Amini, County of Frontenac

If you have any questions, please contact a Housing Programs Administrator, Housing and Social Services Department.