City Guideline 2015-10: Required Rent Increases for 2016 Low End of Market Rents

Date Issued Effective Date
October 26, 2015 January 1, 2016

Applicability to Social Housing Programs

The policies and procedures in this City Guideline are to be implemented under the following programs.

Applicability Program
Housing Services Act, Part VII Housing Projects, Market and Rent-Geared-to-Income, Section 78 Housing Providers (formerly 110)
Housing Services Act, Part VII Housing Projects, 100% Rent-Geared-to-Income, Section 78 Housing Providers (formerly 110)
Federal Non-Profit Housing, Section 26/27
X Federal Non-Profit Housing, Section 95
Rent Supplement Programs for Sections 26, 27, 95 and New Affordable Housing Providers
Toronto Community Housing Corporation

Please note: If your program is not checked, this City Guideline does not apply to your project.

Background

Required Rent Increases for 2016 Low End of Market (LEM) rents are listed in the attached Appendix A – table of Required Rent Increases for 2016 Low End of Market Rents.

Required Rent Increases are based on:

  • average Canada Mortgage and Housing Corporation (CMHC) market rent increases/decreases by rent district, or
  • the Ontario Rent Control Guideline, where CMHC data was not available.

Where CHMC recorded decreases in rent, the Required Rent Increase is zero. Where CMHC recorded increases greater than the Rent Control Guideline, the Required Rent Increase is equal to the Rent Control Guideline.

What you should know about the Required Rent Increases:

  • There are different Required Rent Increases for each of the rent districts in Toronto.
  • Apartments and townhouses each have separate columns in the Required Rent Increase table.
  • For stacked row housing, providers should use the Required Rent Increases for apartments.

Action Required

  1. For the 2016 budget year, all Section 95 social housing providers must increase their low end of market (LEM) rents by the Required Rent Increase for their rent district.
  2. If Section 95 housing providers want to increase LEM rents by more or less than the Required Rent Increase for their rent district, they must submit a business case to their Social Housing Consultant.

Appendix A to City Guideline 2015-10
Table 1 – Required Rent Increases for 2016 Low End of Market (LEM) Rents

Toronto  District Rent District Codes Apartment Average Rent (Row)Townhouse Average Rent
2016 Market Rent Index 2016 Market Rent Index
Toronto Zone 1 – Former City of Toronto (Central) M1A1 2.0 % 2.0 %
Toronto Zone 2 – Former City of Toronto (East) M1A2 2.0 % 0.0 %
Toronto Zone 3 – Former City of Toronto (North) M1A3 2.0 % 0.0 %
Toronto Zone 4 – Former City of Toronto (West) M1A4 2.0 % 2.0 %
Toronto Zone 5 – Etobicoke (South) M1C1 0.8 % 0.0 %
Toronto Zone 6 – Etobicoke (Central) M1C2 2.0 % 2.0 %
Toronto Zone 7 – Etobicoke (North) M1C3 0.1 % 0.0 %
Toronto Zone 8 – York M1F 2.0 % 0.0 %
Toronto Zone 9 – East York M1B 1.1 % 0.0 %
Toronto Zone 10 – Scarborough   (Central) M1E1 2.0 % 2.0 %
Toronto Zone 11 – Scarborough   (North) M1E2 0.0 % 0.0 %
Toronto Zone 12 – Scarborough (East) M1E3 1.6 % 0.0 %
Toronto Zone 13 – North York   (Southeast) M1D1 2.0 % 0.0 %
Toronto Zone 14 – North York   (Northeast) M1D2 0.0 % 2.0 %
Toronto Zone 15 – North York   (Southwest) M1D3 2.0 % 0.0 %
Toronto Zone 16 – North York (North Central) M1D5 0.0 % 0.0 %
Toronto Zone 17 – North York   (Northwest) M1D4 2.0 % 0.0 %

Questions

If you have any questions, please contact your Housing Consultant or the HSS:

Housing Stability Services
Shelter, Support & Housing Administration
City of Toronto
365 Bloor Street East, 15th floor
Toronto, ON M4W 3L4
Telephone: 416-392-4126
Email: HSS@toronto.ca
Website: www.toronto.ca/socialhousing