CMHC Rent Supplement Program

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