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Subject: 2008 Minimum Market Rent for Municipal Non-Profits (Section 95)

SHB - unchecked boxLegislation/Regulation                                                             Release 07-07

SHB - unchecked boxOperational

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 provider does not increase market rents by this rent inflation factor, it will be subject to a reduction in subsidy.

PROCEDURE

The Rent Inflation Factor, from the attached 2008 list, is inserted on Line 441, page 3A, of the Municipal NP 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 2007 to determine the Minimum Market Rent for 2008.

If a provider 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 2008 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 Providers (1978 - 1985) are to use the attached 2008 Rent Inflation Factors to determine the Minimum Market Rent level for the 2008 market rents.

  • If an exemption from the Minimum Market Rent level is required, an application must be submitted along with the 2008 budget. The application must include evidence to clearly support the inability to charge the Minimum Market Rent.

PLEASE NOTE: This notification applies to Municipal Non-Profits and will be used to create a minimum market rent level for Municipal Non Profit housing providers whose project are now under administration by local Service Managers.

If you have any questions, please contact your respective Service Manager.

For additional information, please contact Terry Pearce at Ministry of Municipal Affairs and Housing, (416) 585-7349.

Mitra Maharaj
Acting Director
Housing Finance Branch

Attachment: 2008 Rent Inflation Factors Attachment (72.3 KB) (27 KB)

Novermber 16, 2007