Subject: 2006 Rent Control Guideline and Inflation Factor for Co-operatives
Legislation/Regulation Release 05-03
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 inflation factor (rent control index), which measures the average increase in the cost of operating projects over the preceding three years. Please refer to the Tenant Protection Act, 1997, s.129 (2), for information on calculating the rent control guideline and inflation factor (rent control index).
The Rent Control Guideline And Inflation Factor (Rent Control Index)
In previous years, the rent control guideline and the inflation factor (rent control index) percentages were used to complete the annual operating budget - summary of costs and revenues.
The amounts for 2006 are:
Rent control guideline = 2.1%
Inflation factor (rent control index) = 3.87%
These percentages will be in effect from January 1, 2006 to December 31, 2006.
Application Of The Rent Control Guideline And Inflation Factor (Rent Control Index)
The rent control guideline and the inflation factor (rent control index) were previously used to determine the amount of bridge subsidy available in the project.
BRIDGE SUBSIDY = TOTAL ADJUSTED COSTS - TOTAL ADJUSTED REVENUE
PLEASE NOTE: With the approval and implementation of final benchmarks scheduled to take effect January 1, 2006, this notification is being supplied for information purposes only. Co-operative housing providers with fiscal years beginning in 2006 will now be funded under the Social Housing Reform Act, 2000 (SHRA).
Toni Farley
Director
Social Housing Branch
October 12, 2005