Date Issued: July 15, 2019

Effective Date: Immediately

Applicability to Social Housing programs

The City Guideline is applicable to the following programs:

  • Housing Services Act, Part VII Housing Projects, Market and Rent-Geared-to-Income, Section 78 Housing Providers (formerly 110)

The City Guideline is not applicable to the following programs:

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

About City Guidelines

Under the authority of the Housing Services Act, the City of Toronto, Shelter, Support and Housing Administration (SSHA) Division City Guidelines and Rent-Geared-to-Income (RGI) Manual are the authority for housing administration and RGI administration for social housing providers in the City of Toronto.

City Guidelines are the City of Toronto’s mandatory policies and procedures that social housing providers must follow. City Guidelines are most often issued when a Local Rule is established by the City of Toronto, the Rent-Geared-to-Income (RGI) manual is updated, or other relevant legislative changes or operational requirements occur. City Guidelines which impact RGI have been incorporated into the RGI Manual.

Background

The Ministry of Municipal Affairs and Housing provides indices for costs and revenues used to calculate subsidies under the Housing Services Act, 2011 (HSA) on an annual basis.

What you should know about Cost Factors

Cost factors are inflationary factors used to calculate:

  • the indexed Benchmark operating costs within the operating subsidy calculation; and
  • capital replacement reserve fund allocations.

Housing providers must use the following cost factors when calculating their subsidies for fiscal years beginning in 2020.

 Table 1 – 2020 Indices for Benchmark Costs for Mixed Non-Profit Projects
Item Index Description 2020 Index
Administration and maintenance Ontario CPI – All items 2.37%
Insurance Ontario CPI – Homeowner’s home and mortgage insurance sub-index 7.27%
Bad debt Market Rent Index MRI Table
Electricity Ontario CPI – Electricity sub-index 2.14%
Water Ontario CPI – Water sub-index 3.11%
Natural gas Ontario CPI – Natural gas sub-index 6.72%
Oil and other fuel Ontario CPI – Oil and other fuel sub-index 3.06%
Capital reserves Ontario CPI – All items 2.37%

 

 Table 2 – 2020 Indices for Benchmark Revenues for Mixed Non-Profit Projects 
Item Index Description 2020 Index
Indexed market rent Market Rent index See MRI Table 3 below
Vacancy loss Market Rent Index See MRI Table 3 below
Non-rental revenue Factor of 1 Factor of 1

What you should know about Market Rent Indices

  • There are different Market Rent Indices (MRI) for each of the rent districts in Toronto.
  • Apartments and townhouses each have separate MRI tables.
  • Housing providers are required to use the correct MRI to calculate their subsidy.
  • There are no MRI for stacked row housing, for any units considered to be stacked row housing, providers should use the apartment MRI.
 Table 3 – 2020 Toronto Market Rent Indices (MRI)
Toronto  District Rent District Codes Apartment Average Rent

2020 Market Rent Index

(Row) Townhouse Average Rent

2020 Market Rent Index

Toronto Zone 1 – Former City of Toronto (Central) M1A1 2.2 % 2.2 %
Toronto Zone 2 – Former City of Toronto (East) M1A2 2.2 % 2.2 %
Toronto Zone 3 – Former City of Toronto (North) M1A3 2.2 % 2.2 %
Toronto Zone 4 – Former City of Toronto (West) M1A4 1.0 % 2.2 %
Toronto Zone 5 – Etobicoke (South) M1C1 2.2 % 2.2 %
Toronto Zone 6 – Etobicoke (Central) M1C2 2.2 % 0.9 %
Toronto Zone 7 – Etobicoke (North) M1C3 0.1 % 2.2 %
Toronto Zone 8 – York M1F 2.2 % 2.2 %
Toronto Zone 9 – East York M1B 2.2 % 2.2 %
Toronto Zone 10 – Scarborough   (Central) M1E1 2.2 % 2.2 %
Toronto Zone 11 – Scarborough   (North) M1E2 2.2 % 2.2 %
Toronto Zone 12 – Scarborough (East) M1E3 2.2 % 2.2 %
Toronto Zone 13 – North York   (Southeast) M1D1 2.2 % -5.6 %
Toronto Zone 14 – North York   (Northeast) M1D2 2.2 % 2.2 %
Toronto Zone 15 – North York   (Southwest) M1D3 2.2 % 2.2 %
Toronto Zone 16 – North York (North Central) M1D5 2.2 % 2.2 %
Toronto Zone 17 – North York   (Northwest) M1D4 2.2 % 1.2 %

Actions required

All Market and Rent-Geared-to-Income, Section 78 Housing Providers must use the indices indicated in Tables 1, 2 and 3 to calculate the indicated cost items and revenues, as well as their operating and RGI subsidies for their fiscal year beginning in 2020.

Questions

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

Housing Stability Services

Shelter, Support & Housing Administration

City of Toronto

Metro Hall, 55 John Street, 6th floor

Toronto, ON M5V 3C6

Telephone: 416-392-4126

Email: HSS@toronto.ca