Canada Mortgage and Housing Corporation (CMHC) Rent Supplement Program Objectives
To help households in need by setting a limit on the percentage of their incomes used to pay rent in Ontario and Prince Edward Island. The program funds the difference between the occupancy charge and the geared-to-income charge for qualified households.
Program Features
Unilateral federal program for Ontario and Prince Edward Island
Available to housing co-operatives developed under the Section 27/61 Program and the Federal Co-operative Housing (ILM) Program, beginning on 1 June 2017
For households receiving social assistance, a social-assistance rent scale used to set assisted housing charges, plus or minus a charge for services
For households not in receipt of social assistance, 30 % of household income charged for housing, plus or minus a charge for services
Assistance received by 15 to 50 % of households per co-op, according to the program requirements in each co-operative’s operating agreement
Incomes verified annually
Damage claims paid where assisted households damaged the unit beyond normal wear and tear (ILM program only)
Assistance paid on vacant units for one half to two months
CMHC Authority under Operating Agreement
Requirement for co-ops to select assisted households through a formal and consistent procedure
Requirement to observe human-rights laws and codes and protect residents’ privacy
Requirement to give assisted households the same privileges as other co‑op members
Requirement that co-ops approve and follow a policy on overhousing
Requirement that residents be able to live independently
Requirement to document and verify income and composition of assisted households and to calculate the appropriate assisted charge annually and on any change to household income or composition
Completion of an annual on-line claim reconciling assistance received from CMHC and assistance distributed to qualified households within two months of the fiscal year end
Requirement to avoid real or potential conflicts of interest and, if one occurs, act promptly to cure it
Requirement to manage and maintain the property adequately
Right to inspect co-op’s books, records, accounts, income verification and rent-supplement calculations, which must be kept for seven years
Accountability Framework
Rent Supplement Agreement
Annual audited financial statement and information return
Annual on-line report on assistance claimed and received
The average co-op with an approved capital replacement plan tucks away more than $3,600 per unit in reserves each year--triple the 2007 amount. Does their future hold better windows? New kitchens? Savings mean more choices.
