City Guideline 2007-4: Transferred Assets
|Date Issued||Effective Date|
|June 29, 2007 (Revised February 11, 2008)||Immediately|
Applicability to Social Housing Programs
The policies and procedures in this City Guideline are to be implemented under the following programs.
|X||Housing Providers, Section 110 (formerly Section 103 & 106)|
|X||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.
Under Regulation 298, section 50.(10), housing providers must include the interest on assets when calculating rent-geared-to-income (RGI). “Transferred assets” are assets that are transferred from a member of an RGI household to someone outside of that household
- less than 36 months before the household begins to receive RGI assistance, or
- any time after the household receives RGI assistance.
The interest is calculated by multiplying the value of the asset by the imputed rate of return.
Housing providers may make exceptions, if they decide that the asset was transferred in good faith and was not transferred to avoid including the asset in the RGI calculation.
Before Regulation changes in November 2005, the value of the transferred asset was reduced each year by $2,000 until the asset was fully depreciated. The changes gave the service manager the ability to determine how the asset will be depreciated. The City of Toronto decided that housing providers must not apply any depreciation to the asset.
- Housing providers must use the same asset value each year when imputing interest on the transferred asset. The value of a transferred asset will remain the same as long as the household is receiving RGI assistance.
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
 Addition from August 2007 Regulation change. Previously, the Regulation only included assets transferred before the household begins to receive RGI. It now includes assets transferred after the household begins to receive RGI.