Rent-Geared-to-Income – Treatment of Temporary Benefits (H-23-02)

Date: March 10, 2023

This Directive is to be implemented by the Social Housing Registry and 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
• 4 – Federal Program
• 6 (a) – Non-Profit Program
• 6 (b) – Non-Profit Co-Op Program
• 8 – Urban Native Program

Background

Since July 1, 2021, the province has introduced changes to the Rent-Geared-to-Income (RGI) calculation and introduced flexibility to exclude temporary benefits and emergency payments from rent-geared-to-income calculations. For example:

• Canada Emergency Response Benefit
• Canada Emergency Student Benefit (except where exempted for full-time students under the Housing Services Act, 2011)
• and the 2020 temporary doubling of the Ontario Guaranteed Annual Income System (GAINS) payments.

The Ministry of Municipal Affairs and Housing is expecting Service Managers to take advantage of regulatory flexibility regarding the treatment of the temporary doubling of GAINS payments in 2023 and determine RGI assistance in accordance with the Ministry’s simplified rules prescribed in Ontario Regulation 316/19 under the Housing Services Act, 2011.

Section 6(4) of Ontario Regulation 316/19 allows a Service Manager to project income and deductions for the 12-month period following an annual RGI review if, in the opinion of the Service Manager, the net income amount on the most recent income tax return is not reflective of a household member’s current financial position. This may occur in a situation where a household member received taxable emergency and/or recovery benefits that do not reflect their historically expected income and their income in the coming year is expected to decrease. The Ministry expects Service Managers will utilize this flexibility to exclude income from the temporary increase to GAINS provided in the current tax year from RGI calculations.

Action to be taken

Housing Providers will exclude income from the temporary increase to GAINS provided in the 2023 Notice of Assessment from RGI calculations upon annual reviews and upon acceptance of a RGI unit when reviewing if the household is above the Household Income Limits as set out in Directive H-23-01.

The Social Housing Registry will exclude income from the temporary increase to GAINS in 2023 when determining initial eligibility for RGI upon application or for continued eligibility at annual review.

Reference

• Social Housing Notification 23-03- Rent-Geared-to-Income and Canada-Ontario Housing Benefit Calculations: Treatment of Temporary Increase to the Ontario Guaranteed Annual Income System (GAINS)
• O. Regulation 316/19 – Determination of Geared-To-Income Rent
• Directive H-23-01- Household Income Limits

Ruth Noordegraaf
Director, Housing & Social Services Department

The following have received a copy of this Directive:

• Lanie Hurdle, Chief Administrative Officer, City of Kingston
• Jannette Amini, County of Frontenac
• Jenna Morley, Director, Legal Services & City Solicitor
• Mitchell Grange, Policy Manager, Housing & Social Services Department
• Housing Programs Administrators, Housing & Social Services Department

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