City Guideline 2015-9: Factors to be used in 2016 Fiscal Year to Calculate Subsidies

Date issued Effective date
August 14, 2015 January 1, 2016

Applicability to Social Housing programs

The City Guideline is applicable to the programs for which there is an “X” in the table below.

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

If your program is not checked in the Applicability column, this City Guideline does not apply.

Background

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 100% RGI 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 1.0095
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 1.8484
Capital reserves Ontario CPI – All items 1.0095

Action 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

  • A Budget Tool is available on the Social Housing Unit website.
  • 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.
  1. Property taxes
  2. Total RGI rent revenue
  3. Market rents on RGI units (broken down by unit type)
  4. Number of RGI units (broken down by unit type)

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