Date Issued Effective Date
August 14, 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

X

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
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

What you should know about Cost Factors

Cost factors are inflationary factors that housing providers use to calculate:

  • the indexed benchmarked operating costs within the operating subsidy calculation,
  • the operating subsidy in their budgets, and
  • their capital replacement reserve fund allocations.

The Ontario Ministry of Municipal Affairs and Housing (MMAH) reviews these factors each year and adjusts them to reflect changes in the Consumer Price Indices.

Housing providers must use the following cost factors when calculating their subsidies for fiscal year beginning January 1, 2016.

Table 1 – 2016 Indices for Benchmark Costs for Mixed Non-Profit Projects

Item Index Description 2016 Index
Administration and maintenance Ontario CPI – All items 1.0095
Insurance Ontario CPI – Homeowner’s home and mortgage insurance sub-index 1.1471
Bad debt Market Rent Index See MRI Table 3 below
Electricity Ontario CPI – Electricity sub-index 1.0716
Water Ontario CPI – Water sub-index 1.0616
Natural gas Ontario CPI – Natural gas sub-index 0.8323
Oil and other fuel Ontario CPI – Oil and other fuel sub-index 0.8484
Capital reserves Ontario CPI – All items 1.0095

Table 2 – 2016 Indices for Benchmark Revenues for Mixed Non-Profit Projects

Item Index Description 2016 Index
Vacancy loss Market Rent Index See MRI Table 3 below
Non-rental revenue Factor of 1 1.000

Table 3 – 2016 Toronto Market Rent Indices (MRI)

oronto  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 % -2.9 %
Toronto Zone 8 – York M1F 2.0 % 0.0 %
Toronto Zone 9 – East York M1B 1.1 % -2.6 %
Toronto Zone 10 – Scarborough   (Central) M1E1 2.0 % 2.0 %
Toronto Zone 11 – Scarborough   (North) M1E2 -1.0 % 0.0 %
Toronto Zone 12 – Scarborough (East) M1E3 1.6 % 0.0 %
Toronto Zone 13 – North York   (Southeast) M1D1 2.0 % -4.4 %
Toronto Zone 14 – North York   (Northeast) M1D2 -2.5 % 2.0 %
Toronto Zone 15 – North York   (Southwest) M1D3 2.0 % 0.0 %
Toronto Zone 16 – North York (North Central) M1D5 -0.3 % 0.0 %
Toronto Zone 17 – North York   (Northwest) M1D4 2.0 % -1.8 %

Actions required

  1. Housing providers must use the appropriate Cost Factor for each benchmarked category to calculate indexed benchmarked costs and revenues for fiscal years beginning in 2016.

Helpful Hint

Note that housing providers are not required to submit budget forms to the Social Housing Unit, but may continue to submit these forms if they prefer. If they do not submit budget forms, they must at least submit the following information.

  • Property taxes
  • Total RGI rent revenue
  • Market rents on RGI units (broken down by unit type)
  • Number of RGI units (broken down by unit type)

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
Website: www.toronto.ca/socialhousing