The money in a co-op’s Subsidy Surplus Reserve is not allowed to grow beyond $500 per unit plus interest. Anything more is paid back to CMHC every year. This process has not always gone smoothly for some of the Agency’s clients. We knew there was a better way, so we proposed a change, which CMHC has agreed to.
In future, you will not need to send any more refund cheques for excess subsidy. If your co-op owes CMHC any income-tested (ITA) assistance at year end, you will enjoy the benefit of a simplified refund process. From now on, CMHC will deduct any ITA repayments owed by your co-op from your future subsidy payments.
If this change could mean cash-flow problems for your co-op, the Agency can arrange to schedule your repayment of excess subsidy over a longer period. Please ask your relationship manager for more information.