S95 co-ops are well aware that their Subsidy Surplus Reserve is not allowed to grow beyond $500 per unit plus interest. Anything more than that must be paid back to Canada Mortgage and Housing Corporation (CMHC). Our clients are busy and some find the refund process something of a nuisance. This is especially trying for co-ops at the end of their operating agreement.
The Agency is pleased to report that, as of 1 March 2016, S95 co-ops that owe income-tested assistance (ITA) to CMHC will begin to enjoy the benefit of a simplified process. After that date, these clients will no longer have to return excess subsidy by means of a refund cheque. Instead, ITA repayments will be deducted from future subsidy disbursements, saving time and trouble for everyone.