Ontario housing co-ops to benefit from new RGI rules

Published October 15, 2019

Housing co-ops administered under the Housing Services Act (HSA) will benefit from changes to Rent-Geared-to-Income regulations announced by the Ministry of Municipal Affairs and Housing (SH Notification 19-09 – RGI Simplification).

Simplified RGI calculations mean that co-op households with employment income will not have to declare increases in income in between annual reviews. Working members will now be able to keep the benefits of increased wages until the next annual review.

Co-op households will still be protected if there is a loss of income. Members can ask for a recalculation of their housing charge if their income has decreased by 20% or more.

Households that transition to market housing charges have the assurance that they remain eligible to return to RGI subsidy if necessary within a 24-month period.

Students also benefit under new regulations, as their income is excluded if they attend full-time studies at a recognized educational institution. New students living on their own would pay the new minimum rent of $129.00. Returning students living on their own would pay the revised minimum rent of $93.00.

For co-op staff, changes in RGI regulations means less time spent recalculating housing charges during the year, leaving more time for property management duties, community development and capital planning.

Members on Ontario Works and the Ontario Disability Support Program will see no changes in how their housing charge is calculated. All co-op members receiving RGI assistance, however, will now have to submit their annual Canada Revenue Agency’s Notice of Assessment within a designated time.

Service Managers will have discretion in implementing the new RGI rules on either July 1, 2020 or July 1, 2021. Look for directives from your local Service Manager to determine further details on RGI simplification.