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Subject: 2004 Rent Control Guideline and Inflation Factor (Rent Control Index)

This item is selected / cette item est selecté Legislation/Regulation                                                        Release 03-12

This item is NOT selected / Cette item n'est pas selecté Operational

 

Co-operative projects originally approved under the Federal/Provincial Non-Profit Program and the Ontario Non-Profit Programs require the Rent Control Guideline and the Inflation Factor (Rent Control Index) percentages to determine the amount of bridge subsidy payable in the second and subsequent years of operation.

The Rent Control Guideline is determined by the Rent Control Index (Inflation Factor), which measures the average increase in the cost of operating projects over the preceding three years. Please refer to the Tenant Protection Act, 1997 (Bill 96), Section 129 (2), for information on calculating the Rent Control Guideline and Rent Control Index.

The Rent Control Guideline and Inflation Factor
(Rent Control Index)

In completing your Annual Operating Budget - Summary of Costs and Revenues, the Rent Control Guideline and Inflation Factor (Rent Control Index) to be used for 2004 are:

Rent Control Guideline                           =   2.9%

Inflation Factor (Rent Control Index)       =   1.72%

These percentages will be in effect from January 1, 2004 to December 31, 2004.

 

Application Of The Rent Control Guideline And Inflation Factor (Rent Control Index)

The Rent Control Guideline and the Inflation Factor (Rent Control Index) are used to determine the amount of bridge subsidy available in the project.

BRIDGE SUBSIDY = TOTAL ADJUSTED COSTS - TOTAL ADJUSTED REVENUE

Refer to the Federal-Provincial Non-Profit Housing Program Administration Manual (Section NA-0502-03) and/or page 12 of the AGuide for Co-operatives Operating Budget and Annual Information Return Non-Profit Housing Program@ for more details on the calculation of the bridge subsidy.

PLEASE NOTE:    This notification applies to Co-operative excluded projects currently under administration by the Social Housing Branch and will be used to create interim benchmarks for Co-operative housing providers whose project are now under current administration by local Service Managers until benchmarks have been approved and implemented.

If you have any questions, please contact your Service Manager or, for excluded providers, please contact your Senior Risk Advisor in the Social Housing Branch.

Toni Farley
Director
Social Housing Branch

September 24, 2003