Legislation/Regulation
Operational
Release 02-07
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Co-operative projects 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 2003 are:
Rent Control Guideline = 2.9%
Inflation Factor (Rent Control Index) = 1.72%
These percentages will be in effect from January 1, 2003 to December 31, 2003.
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 excluded projects and will also be used to create interim benchmarks for housing providers until benchmarks are ready to be implemented.
If you have any questions, please contact your nearest Service Manager or the Social Housing Branch.
Toni Farley
Director
Social Housing Branch
October 10, 2002