Recording and Monitoring Move-out Damage Arrears (H-06-09)

Recording and monitoring move-out damage arrears during external transfers from one RGI unit to another RGI unit within the service area

Date: March 30, 2006

The policies and procedures in this Directive are to be implemented under the following programs:

• Public Housing Program
• Non-Profit Program
• Co-op Program
• Social Housing Registry
• Public Housing Rent Supplement Program
• Ontario Community Housing Assistance Program (OCHAP)
• Community Sponsored Housing Program (CSHP)

Background

Under Section 7 of O. Reg. 339/01 housing providers must ensure that their housing projects are well managed, are maintained in a satisfactory state of repair and are fit for occupancy. Housing providers shall proceed diligently to repair, restore and make habitable any unit in a housing project that is damaged to such an extent that it is uninhabitable.

To prevent damages to the social housing property, Housing Providers inspect units periodically and it varies from semi-annual to annual inspections. However, the critical area is recording and monitoring of move-out damage arrears in the process of tenant/members transfers from one RGI unit to another RGI unit in a housing project operated by another housing provider, i.e. external transfers under Section 38 and over housed transfers under Section 33 of O. Reg. 298/01.

Types of move-out damages may include, but not limited to:

• Front door damages
• Plastering/drywall, painting repairs, wallpaper removal
• Broken fixtures
• Broken handrails
• Plugged toilets
• Burnt and damaged countertops/carpets
• Appliances repairs and /or replacement
• Glazing and screen repairs
• Fencing Furnace repairs.

As prescribed by Section 7 of O. Reg. 298/01, to be eligible for continuous RGI assistance, no member of the household can owe rent arrears and/or money owed as the result of a reimbursement requested by the Service Manager under s. 86 of the Act, and/or money as a result of damage to a previous tenancy in any housing project under any housing program in the service area.  To be eligible for a transfer in case of rent reimbursement requested by a Housing Provider, and/or damage arrears, any member of the household is required to enter into an agreement with the Housing Provider for the repayment of the arrears and make all reasonable efforts to repay the arrears.

In the process of any transfer from one RGI unit to another RGI unit, which occurs during an over housed relocation or an external transfer request, The Social Housing Registry and Housing Providers must ensure continuous RGI eligibility of the tenant/member.

Therefore, rent reimbursement requested by a Housing Provider, and/or damage move-out arrears during over housed and external transfers through The Social Housing Registry must be identified, recorded, reported, and repayment schedule status must be monitored. Move-out arrears policy must be communicated to tenants/members.

Action to be taken

 Recording move-out arrears by a Housing Provider

• The following categories of move-out damages caused by a member of the household must be recorded:
  1. Damages to a unit interior that require repairs (for example, front doors, plastering, drywall, painting, broken fixtures, handrails, burnt and damaged countertops)
  2. Damages to a unit appliances and equipment (for example, sink, chipped enamel)
  3. Other damages to a housing project (for example, broken balcony handrails)
  4. Fire and water damage to a unit resulting from tenant’s negligence upon move-out.
• Move-out damage arrears must be identified by a former Housing Provider, from which a RGI tenant/member household transfers to an alternate unit.
• Move-out charges must be calculated upon damage that exceeds normal wear and tear of a unit interior and its equipment/appliances (depreciation factors must be considered based on lifespan of building components as recommended by Canada Mortgage and Housing Corporation attached to this Directive).
• Maximum move-out damage costs apart from rental arrears which may be charged back to the RGI tenant transferring from one RGI unit to another RGI unit through The Social Housing Registry is $5,000.
• Rent arrears must be recoded separately to reflect actual amount owed by a tenant/member.  Money owed as the result of reimbursement requested by the Housing Provider must be recorded separately to reflect actual amount owed by a tenant/member.

Move-out unit inspection

• The former Housing Provider must conduct a move-out inspection with or without a tenant/member household and process move-out damages and charges to a tenant/member account within a reasonable period of time.  Recommended move-out inspection form is attached to the Directive.

Reporting move-out arrears to The Social Housing Registry

• In case of any move-out rent requested reimbursement, and damage arrears, the former Housing Provider notifies The Social Housing Registry by forwarding a standard Former Tenant/Member Arrears Report within 10 business days from the date charges are recorded under the tenant/member account (the Former Tenant/Member Arrears Report Form is attached).
• For the purpose of timely arrears database update, the former provider with the repayment agreement in place must notify The Social Housing Registry within 10 business days after closing the repayment agreement with the tenant/member by indicating that arrears are paid in full or agreement is no longer in good standing in a Standard Tenant/Member Move-Out Arrears Report.

The Social Housing Registry responsibilities

• It is a responsibility of The Social Housing Registry to update and transfer tenant file based on a Standard Tenant/Member Move-Out Arrears Report (total amount of arrears, status of repayment agreement, if any).
• The Social Housing Registry must forward any changes in information and documents with respect to move-out rent and damage arrears to a new Housing Provider within 10 business days after receiving a Former Tenant/Member Arrears Report from the former Housing Provider.

Monitoring continuous RGI eligibility of a transferred tenant/members with move-out arrears by a new Housing Provider

• In case of any move-out rent reimbursement, or damage arrears, a new Housing Provider must initiate RGI eligibility review based on a notification from The Social Housing Registry by requesting a household, subject to review, to provide information and documents with respect to a repayment of owed arrears or a repayment schedule within the time period specified by a Housing Provider.
• If a transferred tenant/member fails to respond by an indicated deadline or fails to negotiate and sign a repayment agreement with a former provider or fails to keep it in a good standing, an opportunity to comment notice must be forwarded to the tenant/member with a summary of the information and a description of proposed decision on ineligibility for RGI assistance. Following the date, by which comments had to be provided, a new Housing Provider must send a notice of decision regarding continuous eligibility or ineligibility for RGI assistance.
• If a transferred tenant/member negotiates a repayment agreement with respect to move-out arrears, a new Housing Provider must monitor tenant’s RGI eligibility in consultation with The Social Housing Registry/or a former Provider to ensure its continuity.

Communication with tenants/members

Housing Providers must inform and remind tenants/members of move-out damage arrears policy:

1. At move-out at the time of lease signing
2. At the time of periodical inspection
3. At the time damage occurs and repairs are complete
4. At the time of completing a Tenant Information Sheet for external transfer through The Social Housing Registry.

Personal information

• Both former and new Housing Providers must safeguard the privacy of personal information in their custody or control and communicate in a secure manner, as prescribed by Section 22 of O. Reg. 368/01.
• Regulatory provisions under Section 22 do not apply to K&FHC and The Social Housing Registry that are subject to Freedom of Information and Protection of Privacy Act and the Municipal Freedom of Information and Protection of Privacy Act.

Attachments

• Move-in/Move-out Inspection Checklist
• Lifespan Chart of Building Components
• CMHC Life Expectancy Guidelines
• Procedural Flowchart for Monitoring Move-out Arrears during External Transfers
• Former Tenant/Member Move-Out Arrears Report to the Social Housing Registry

Reference

• Section 7, Ontario Regulation 298/01 amended to 556/05

Cheryl Mastantuono
Manager, Policy Development

The following individuals have received a copy of this Directive:

• Lance Thurston, Commissioner, Department of Community Services
• Greg Grange, Director, Community and Family Services Department
• Liz Fulton / Marian VanBruinessen / Susan Beckel, County of Frontenac
• Alan McLeod, Senior Legal Counsel, Legal Division
• Supervisors, Housing Programs
• The Social Housing Registry Tanie
• Steacy, Manager, Program Delivery
• Adéle Lafrance, Manager, Administrative Services

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