Email this page2006 Minimum Market Rent for Municipal Non-Profits (Section 95)
Subject: 2006 Minimum Market Rent for Municipal Non-Profits (Section 95)
Legislation/Regulation Release 05-04
Operational
Starting with the 1997 fiscal year, the ministry developed an annual rent inflation factor, which is to be used in the calculation of subsidy for projects subsidized under the municipal non-profit program (1978-1985). The rent inflation factor is used to determine the minimum market rent that is expected to be charged. If a non-profit housing corporation does not increase market rents by this rent inflation factor, it will be subject to a reduction in subsidy. This notification applies to municipal non-profit corporations whose projects are now under administration by local service managers. The information is to be used to calculate minimum market rent levels.
PROCEDURE
The applicable rent inflation factor, from the attached 2006 list, is inserted on line 441, page 3a, of the municipal non-profit operating budget form 819 (01/95). When used in the budget, the factor is expressed as 1 plus a decimal number (e.g. 2.1% would be expressed as 1.021). The rent inflation factor is then multiplied by the actual market rents charged in 2005 to determine the minimum market rent for 2006.
If a corporation feels that it cannot charge market rents at this minimum market rent level, an application may be made to the service manager for an exemption when the 2006 budget is submitted. The application must include supporting evidence to clearly demonstrate the inability to charge the minimum market rent.
ACTION REQUIRED
Municipal non-profit housing corporations (1978-1985) are to use the attached 2006 rent inflation factors to determine the minimum market rent level for the 2006 market rents.
If an exemption from the minimum market rent level is required, an application must be submitted with the 2006 budget. The application must include evidence to clearly support the inability to charge the minimum market rent.
For additional information, please contact Terry Pearce at the Ministry of Municipal Affairs and Housing, Social Housing Branch 416-585-7349.
Toni Farley
Director
Social Housing Branch
Attachment: 2006 Rent Inflation Factors
(28K) Word version
October 12, 2005