1.1 Ownership of property

A household is applying for RGI. A household member owns a house which he rents out. Does he have to sell his property if it is a source of income?

Yes, if it is a property that can be lived in all year. According to HSA Regulation 367, section 32, an owner of residential property which is "suitable for year-round occupancy" must sell the property within 180 days of receiving RGI assistance. This regulation does not make an exception for property owners whose property is a source of income.

The housing provider can give more time to sell the property if there are reasonable grounds for doing so or an abused member of a special priority household believes that selling the property would put their life at risk.

1.2 Year-round property: What does it mean?

If a household owns a "year round" property, they must sell it within 6 months of receiving RGI. Does the legislation define year round property?

No definition of "year-round property" is given in the legislation. Regulation 367, section 32 states that "each member of the [RGI] household who has a legal or beneficial interest in a freehold or leasehold estate in residential property located in or outside Ontario that is suitable for year-round occupancy shall divest himself or herself of his or her interest in the property and shall give written notice to the service manager of the divestment."

Practically speaking, a year-round residential property would be any dwelling of a permanent nature that: • is winterized, • has indoor plumbing • is in a reasonable state of repair (has insulation, a roof, windows and doors, plumbing and wiring in working order), and • has year-round road access. Each housing provider will determine whether a property is suitable for year-round occupancy.

1.3 Renting another property

Can an RGI household rent a dwelling somewhere else?

No, the household cannot rent a dwelling somewhere else. Regulation 367, s.32 (1) prohibits an RGI household from having a "leasehold interest" other than their RGI unit.

2.1 Minor children absent from unit for extended periods of time

Some households send their minor children abroad to live with family to learn their language and culture. If a child is living abroad, is the child a member of the household?

A child living abroad, and not attending university or college, is not a member of the household.

Children living away from the household can continue to meet the definition of “child of the household” while at a "recognized educational institution". Per Regulation 367, section 42 (2), the only recognized educational institution outside Ontario is a university or college (post-secondary).
Households must report changes in household composition within 30 days as stated in City Guideline 2008-3. If the child had their own bedroom, the household would be overhoused when the child leaves.

 

2.2 Overhoused household: grandchild added to household composition

A household, which is overhoused in their current unit, has added a grandchild to the household. Is the household still considered overhoused if adding the grandchild makes them eligible for the unit size?

No, the household will no longer be overhoused if the housing provider agrees that the child can join the household.

If a household wishes to add additional members, they must request the consent of the housing provider. Regulation 339, section 21.(1) gives housing providers the authority to decide if they want to permit additional persons to join a household. Housing providers should establish a policy that outlines when individuals can join a household and whether or not a new lease or occupancy agreement will be drawn up. Housing providers’ policies should not unreasonably restrict occupancy of additional persons.

2.3 Caregivers: treatment for occupancy standards and income

When are caregivers members of a household? When are they not members? When are they eligible for an additional bedroom? Is their income included in household income?

The City’s Local Occupancy Standards state that you may give an additional bedroom for an individual who is not a member of the household but who is there to provide overnight support services for a member with a disability or medical condition.

The City has created 3 medical forms that will help housing providers decide when to give a household another bedroom and whether an individual is a member of the household. To download copies of medical forms, see Chapter 10 of the RGI Guide.

If the caregiver is only there to provide services to a member of the household, then the caregiver is not a member of the household. In this case, the caregiver’s income is not included in the household income. If the caregiver is a member of the household, then the caregiver’s earnings are included in the household’s income.

 

3.1 RRSP as income

If a household makes either (a) a lump sum RRSP withdrawal or (b) monthly RRSP withdrawals, are any of these withdrawals treated as income when calculating RGI?

No in both cases. Withdrawals from an RRSP are not considered income when calculating RGI. All funds invested in an RRSP, whether principal or earnings on the principal, are excluded from income when calculating RGI.

3.2 Deduction for children in a family unit
A family unit is allowed $150 deduction if the family unit has at least one child. Who gets this deduction if the child's parents are separated, live in two different RGI households and have joint custody of the child?
Both households would be eligible for the $150 employment deduction.
3.3 Support payments received in arrears
When support payments are received in arrears, how is the income treated?
If the household member receives a retroactive payment of support, treat it as income of the month in which it should have been received.
The payment will result in a mid-year increase in rent effective the first day of the third month following the month in which it should have been received. If the household income drops in the following month, the effective date of the reduced rent is the first day of the month after the income dropped.
If there is more than one retroactive lump sum support payment, use the fluctuating income method. Average the household income received in each 3 month period(s), and calculate rent based on the average.
3.4 Calculating minimum rent with utility charges
If the household's income is so low that I calculate their RGI and it is less than $85 minimum rent, should I bring the RGI up to $85 and then add the utilities?
No. Calculate the part of RGI rent based on the income and then add the utility charges/allowances. If the final amount is $85 or higher, use this amount for the household's RGI rent. If the final amount is less than $85, then the household's RGI rent will be $85.
Example 1: Income = $50 a month 30% of income ($50 x 30%)= $15 Utility charge = $30 Total = $45 RGI rent (minimum rent) = $85
Example 2: Income = $250/month 30% of income ($250 x 30%)= $75 Utility charge= $30 Total= $105 The household RGI rent is $105
3.5 RGI calculation for Ontario Works beneficiaries
A benefit unit is made up of more beneficiaries than being claimed to Social Assistance on the drug card. Does a provider calculate RGI on the beneficiaries that are on the drug card or all the beneficiaries in the unit?
You must calculate RGI using the number of beneficiaries on the drug card. Confirm the number of beneficiaries declared by the household. If there is a household member not included on the drug card, you may have to ask the household member to try to obtain income. Tell the household that they must ask Toronto Employment and Social Services to review the number of beneficiaries in the unit.
3.6 How is RGI rent calculated?
RGI rent is calculated in accordance with Regulation 298 of the Housing Services Act. The text below provides a simplified explanation of how RGI rent is calculated. There are some other factors which will affect RGI rent.
For households whose primary source of income is not social assistance: Add up all sources of gross income, except those excluded under Regulation 298. Common exclusions from income are: payments, refunds or credits from governments, assets/interest on assets held in RRSPs or RESPs, and, income of students who are children of a household. Multiply by 30%. Determine utility charge or utility allowance depending on what utilities are paid by the housing provider or the household. Add 2. and 3. The total equals RGI rent. Determine non-RGI charges such as parking, cable TV, etc. Add 4 and 5. The total equals monthly rent for the RGI household.
For households whose primary source of income is social assistance: Instead of following steps 1 and 2, take the amount shown for the "benefit unit" size in column 2 of the following tables found in Regulation 298 of the SHRA link: Table 3: Ontario Works Rent Scale for single parents Table 4: Ontario Works Rent Scale for households without dependants, or, Table 5: Ontario Disability Support Program Rent Scale
Here are some examples of rent calculations for RGI households. Employment Income Applicant A is a single parent with two young children. Her annual income is $30,000. The housing provider pays for all utilities for her 2 bedroom apartment.
Applicant A's monthly income	$30,000/ 12 =          $2,500
Less: employment related income deduction	$(150)
Applicant A's adjusted income for RGI	$2,350
Income part of RGI rent: 30% of adjusted income	$2,350 x .3 =           $705
Utility part of RGI rent: Add charge for lights, cooking power for 2 bedroom apartment	$43
Total RGI Rent	$748
Non-RGI charges: Parking	$35
Total Monthly Rent	$783
Diagram Ontario Disability Support Income Applicant B lives in a one bedroom apartment. He receives income from the Ontario Disability Support Program (ODSP). He is just moving in to an RGI unit. He will pay for hydro, but the housing provider will pay for the other utilities. Applicant B currently receives the maximum entitlement from ODSP. His RGI rent is based on the ODSP rent scale (Table 5 of Regulation 298).
Income part of RGI rent (column 2 of Table 5)	$109
Utility part of RGI rent	$ 0
Total RGI rent	$109
For more information about how RGI rent is calculated, see Chapter 6 of the City's RGI Guide. Diagram

4.1 Disclosing information about household members

Is there an issue of confidentiality when one member of the household does not want another member to know about his or her income?

No, there is no confidentiality issue in this situation. The rent is calculated based on the household income and each household member is responsible for payment.

Each member of the household, 16 years of age or older, must disclose income and assets information. They must sign the income and asset form to verify that the information is complete for the household.

Each member of the household is responsible for ensuring that all of the household's information is true. Each of the members signs a lease that states that the geared-to-income rent will change if the household's financial circumstances change. Each member of the household has the right to know why the rent changed and what information was used to calculate it.

 

5.1 Annual Reviews

When must we complete an annual review when there has been a mid-year income change?

If a member of a household reports a change in income, you must complete a mid-year review for that household to ensure the correct rent is charged and to review their eligibility for RGI.

You must review RGI households for RGI eligibility once every 12 months according to Regulation 367 Section 59 and Regulation 298/01 Section 52. Per City Guideline 2008-5, housing providers can choose to complete reviews every 24 months or less for fixed income households.

Once the mid-year review is completed, and if you are satisfied that the income documents are acceptable until the next annual review, you can shift the date of the next annual review to 12 months after the last.

If housing providers wish to maintain consistent annual review dates based on other factors, they may. The HSA requires annual reviews at least every 12 months (24 months for fixed income per the City’s local rule), but does not prohibit more frequent reviews.

6.1 When a household asks for a review of a decision

A staff member makes a decision about a household and the household asks for a review of the decision. Can that staff member be present at the review?

No, a staff member who participated in making the original decision cannot be present at the review. However, the staff member may provide information about the decision to the review body before they discuss the original decision.

7.1 Selecting applicants to fill RGI vacancies

Do housing providers have to take applicants from the top of their subsidiary waiting list, even if the top applicant household is unsuitable for the co-op project?

No, a housing provider does not have to accept every applicant. According to Regulation 339,18.1, a housing provider may refuse to offer an RGI unit to an applicant on their subsidiary list if:

• the housing provider determines, based on the household’s rental history that they may not pay their housing charges on time or • the household does not agree to accept its responsibilities as a member of the housing co-operative or the housing provider has reasonable grounds to believe that the household will not accept or will be unable to accept those responsibilities.

Housing Connections will ensure that applicants meet basic eligibility requirements. Co-ops may pre-screen household applicants for membership while they are on the subsidiary list. If the co-op decides that the household does not qualify for membership, the co-op cannot take any action until the household reaches the top of the subsidiary list and there is a vacancy.

When there is a vacancy, a co-op can refuse to offer the unit to the top applicant on the subsidiary list if they were not suitable for membership. The co-op will also ask Housing Connections to remove the applicant from the subsidiary list. If the applicant asks for an internal review and the decision is reversed, Housing Connections will place the applicant back on the subsidiary list with the original application date.

Once they have refused the applicant household (based on the criteria outlined above), the housing provider can offer the unit to the next prescreened household. Prescreening will help to prevent vacancy losses.

7.2 Co-ops and special priority applicants

Do special priority applicants go through the co-op membership process in a co-op the same way as every other applicant does?

Yes, the co-op can follow its regular membership process, keeping in mind the need of the applicant for RGI housing. The co-op does not have the right to ask questions about the reasons for the special priority status.

7.3 Co-op bylaw for absence of unit

If a co-op has a bylaw which states that, after an absence of 90 days, membership is lost, the bylaw does not agree with City Guideline 2002-3 (revised June 1, 2004). It states that RGI must be taken away if a household is absent from their unit for more than 120 consecutive days. Do co-ops have to change their bylaws to extend the absence rule to 120 days to be consistent with City Guideline 2002-3 (Revised June 1, 2004)?

Yes. The HSA, Regulation 367 Section 37 lets the Service Manager (City of Toronto) establish a maximum absence period of no less than 60 consecutive days. In City Guideline 2002-3 (revised June 1, 2004), the City set the maximum absence period to 120 days. Refer to this City Guideline for exceptions such as medical reasons. All transferred housing providers must change any bylaws or policies to comply with this City Guideline.

7.4 Co-op long-term guest income

Does a registered long-term guest at a co-op have to sign the Occupancy Agreement if their income is included in the household income? Will this affect the long-term guest's right to the unit if all other household members vacate, leaving only the long-term guest in the unit?

A long-term guest is not required to sign the Occupancy Agreement. They are, however, required to sign a Long Term Guest Agreement which is required under the Occupancy Bylaw. The co-op must include the long-term guest's income in the household income for calculating RGI.

The sample bylaws prepared by the co-op sector and used by co-ops state the conditions under which the long-term guest may remain in the unit. If all other household members vacate the unit, the long-term guest would not be allowed to stay. One of the conditions for long-term guests is that they must immediately vacate the unit when the member's occupancy rights end. Although this type of policy is different from rules in the Residential Tenancies Act (RTA), remember that the RTA does not apply to co-ops.

For more information or to report errors on our Web site please contact us at socialhousing@toronto.ca