City Guideline 2019-5: Required Rent Increases for 2020 Low End of Market Rents
Date Issued: July 11, 2019
Effective Date: Immediately
Applicability to Social Housing Providers
This Guideline is applicable to
- Federal Non-Profit Housing, Section 95
This Guideline is not applicable to
- 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)
- Toronto Community Housing Corporation
- Rent Supplement Programs for Sections 26, 27, 95 and New Affordable Housing Providers
- 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
Required Rent Increases for 2020 Low End of Market (LEM) rents are listed in Table 1. Required Rent Increases are based on:
- average Canada Mortgage and Housing Corporation (CMHC) market rent increases/decreases by rent district; or
- the Ontario Rent Control Guideline, where CMHC data was not available.
Where CMHC recorded decreases in rent, the Required Rent Increase is zero. Where CMHC recorded increases greater than the Rent Control Guideline, the Required Rent Increase is equal to the Rent Control Guideline.
What you should know about Required Rent Increases
- There are different Required Rent Increases for each of the rent districts in Toronto.
- Apartments and townhouses each have a separate column in the Required Rent Increase table.
- For stacked row housing, providers should use the Required Rent Increases for apartments.
| 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
Social housing provider RGI administrators (SHPs) to which this applies must take the following actions:
- For the 2020 budget year, all Section 95 social housing providers must increase their Low End of Market (LEM) rents by the Required Rent Increase for their rent district.
- If Section 95 housing providers would like to increase LEM rents by more or less than the Required Rent Increase for their rent district, they must submit a business case to their Housing Consultant.
Questions
If you have any questions, please contact your Housing Consultant or:
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