City Guideline – 2019-4: Factors to be used in 2020 Fiscal Year to Calculate Subsidies – 100% RGI
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, 100% 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, Market and 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.
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.
|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||Ontario CPI – All items||2.37%|
|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%|
All 100% Rent-Geared-to-Income, Section 78 Housing Providers must use the indices indicated in Table 1 to calculate the indicated benchmark costs items for fiscal years beginning in 2020.
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