County of Wellington
Wellington and Guelph Housing Services
DIRECTIVE
Effective Date: September 24, 2010
Directive Number: 2010-03
This directive applies to housing providers funded under the following social housing programs:
Please note if your program is not checked, this communication is not applicable to your
project(s).

Provincially Reformed Non-Profit Housing Programs (MNP, PNP & OCHAP)

Provincially Reformed Co-operative Housing Programs (Co-ops)
Municipal Non-Profit Housing Program (Section 56.1 Pre-1986)
Wellington & Guelph Housing Services (LHC)
Federal Non-Profit Housing Program (Section 95 Pre-1986)
SUBJECT: 2011 Benchmarked Operating Costs and Revenues Indices
LEGISLATED REFERENCE: O. Reg. 339/01 (as amended to September 6, 2007)
SUMMARY:
On an annual basis, the Ministry of Municipal Affairs and Housing (MMAH) provides cost and
revenue indices to calculate subsidies under the Social Housing Reform Act (SHRA).
Purpose/ Overview:
This directive communicates: the 2011 Market Rent Index for section 103 only SHRA housing
providers, and the 2011 Cost Factor indices for section 103 and106 SHRA housing providers,
located in the City of Guelph and County of Wellington.
Cost Factors
On September 6th, 2007, amendments to O. Reg. 339/01 introduced the use of Cost Factors to
increase the Benchmarked Operating Costs used in the calculation of Sections 103 and 106
Housing Provider’s Operating Subsidy under the Benchmark Funding Model of the Social
Housing Reform Act. Commencing with fiscal years beginning in 2011, published cost indices
reflect a standard single-year index. See Table 1 for the 2011 Cost Indices.
Revenue Factors
The 2011 Market Rent Index is calculated as the lesser of the percentage change in local
average market rents, as reported by Canada Mortgage and Housing Corporation (CMHC), and
the Ontario Rent Increase Guideline. The Market Rent Index is used in the calculation of
operating and rent-geared-to income (RGI) subsidies for Section 103 housing providers. See
Table 2 for the Market Rent Index.
2010-03
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Wellington and Guelph Housing Service
DIRECTIVE
The Market Rent Index relates only to Section 103 providers. Published Market Rent Indices
within a Service Manager’s area could range from a negative factor (a market rent reduction) to a
positive factor similar to the Rent Control Guideline. Each year the prior year’s indexed
Benchmark Market Rents are to be adjusted by the Market Rent Index applicable to each project.
In order to maximize geared-to-income subsidy levels, it is recommended that providers ensure
that their actual Market Rents charged to market tenants/members equal or exceed the Indexed
Benchmark Market Rents as geared-to-income subsidy is only reconciled to the lower of these
two amounts.
DIRECTION:
The following 2011 indices are to be applied to the 2010 indexed benchmarked amounts
under the SHRA’s Benchmark Funding Model:
Table 1
Cost Indices
Sec. 103
Sec. 106
(Mixed MKT/RGI)
(100% RGI)
1
Administration & Maintenance
1.93%
1.93%
2
Insurance
14.14%
14.14%
3
Bad Debt
MRI *
1.93%
4
Electricity
8.99%
8.99%
5
Water
6.13%
6.13%
6
Natural Gas
6.49%
6.49%
7
Oil & Other Fuel
16.66%
16.66%
8
Capital Reserves
1.93%
1.93%
9
Market Rents
MRI *
N/A
10
Vacancy Loss
MRI *
N/A
11
Non-Rental Revenue
N/A
N/A
* Providers with a portfolio of projects situated in more than one zone and/or with more than one unit
type in the same zone are to utilize the highest Market Rent Index applicable within their
portfolio/project to inflate their benchmarked Bad Debt and Vacancy Loss figures.
2010-03
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Wellington and Guelph Housing Service
DIRECTIVE
Table 2
* Market Rent Indices – Section 103 Providers Only
Zone 1 – West
Fife Road Co-op;
Guelph Independent Living;
Guelph Non-Profit Housing (Imperial Rd, Flaherty, &
246 Westwood);
Royal City Co-op;
UpBuilding!
Townhouse
Apartment
0.0%
0.1%
Zone 2 - South
Cole Road Co-op;
Guelph Non-Profit Housing (7 Christopher Court)
Townhouse
Apartment
0.7%
0.7%
Zone 3 - East
Guelph Non-Profit Housing (394 Auden, 470 Auden
Place, 85 Neeve, 780 York Rd);
Victor Davis;
Wyndham Hill Co-op
Townhouse
Apartment
0.0%
0.1%
Ontario-Wide
Townhouse
Apartment
0.7%
0.7%
Clifford;
Gerousia;
Grand River;
Mount Forest;
New Hope
APPLICATION:
All housing providers must use the 2011 Indices, as detailed above, in the calculation of their rent
geared-to-income and operating subsidy for the fiscal year beginning in 2011. When used in the
budget form, each index is expressed as 1 plus a decimal number (e.g. 1.4% is expressed as
1.014).
For providers with a 2011 fiscal year commencing prior to the release of revised Annual Subsidy
Entitlement (budget) Forms, the appropriate Indices will be applied to the information submitted
on an earlier version of the form and communicated in detail to the provider.
If you require further clarification, please contact your Housing Advisor at 519-824-7822 –
Colleen Cybulski, Ext. 4120, e-mail Colleen, or Michele Shears De Dieu, Ext. 4080, e-mail Michele
– or Shauna Calder, Financial Analyst – Social Services, Ext. 4260, e-mail Shauna.
Heather Burke
Director of Housing
2010-03
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