General subsidy
103. (1) The amount of the subsidy payable under section 102 to a housing provider for a fiscal year in respect of its housing projects in a service area of a service manager is determined in accordance with this section. 2000, c. 27, s. 103 (1). Amount of subsidy (2) The amount of the housing provider’s total subsidy for a fiscal year in respect of its housing projects in a service area is determined using the formula, (A + B + C ) – (D + E ) in which, “A” is the amount of the provider’s mortgage subsidy for the fiscal year in respect of its housing projects in the service area; “B” is the amount of the provider’s rent-geared-to-income subsidy for the fiscal year in respect of its housing projects in the service area; “C” is the amount of property taxes payable by the provider for the fiscal year in respect of its housing projects in the service area; “D” is the amount of the provider’s mandatory payment for the fiscal year in respect of its housing projects in the service area; and “E” is the amount equal to 50 per cent of the amount of the provider’s surplus for the fiscal year in respect of its housing projects in the service area, or such lesser amount as the service manager may determine. 2000, c. 27, s. 103 (2). Mortgage subsidy (3) The amount of the housing provider’s mortgage subsidy for a fiscal year in respect of its housing projects in the service area is the amount determined using the following formula: R – S in which, “R” is the total amount of principal and interest payable by the provider for the fiscal year under mortgages guaranteed by the Province of Ontario or the Ontario Mortgage and Housing Corporation in respect of those projects, and “S” is the amount of the provider’s affordable mortgage payment in respect of those projects. 2006, c. 19, Sched. O, s. 5 (5); 2006, c. 32, Sched. E, s. 5 (2). Affordable mortgage payment (4) The amount of the housing provider’s affordable mortgage payment in respect of its housing projects in the service area is the amount determined using the following formula: T – U in which, “T” is the housing provider’s benchmark revenue from those projects, as determined by the Minister under section 104, and “U” is the amount of the housing provider’s benchmark operating costs in respect of those projects, as determined by the Minister under that section. 2006, c. 19, Sched. O, s. 5 (5). Phase-in subsidy reduction (5) If the amount of a housing provider’s subsidy (other than the rent-geared-to-income subsidy) determined under this section is less than the subsidy (other than the rent-geared-to-income subsidy) paid to the provider under an operating agreement that is terminated by this Act, the following rules apply: 1. The provider may request that the service manager negotiate with the provider a schedule for phasing in the reduction in the subsidy over a series of years. 2. If the provider and the service manager are unable to agree on a schedule, the provider may request that the Minister authorize the phase-in of the reduction in the subsidy and set a schedule for phasing in the reduction over a series of years. 3. The Minister’s decision on whether to authorize a phase-in of the reduction in the subsidy and any schedule set by the Minister for phasing in the reduction are binding on the provider and the service manager. 2000, c. 27, s. 103 (5). Rent-geared-to-income subsidy (6) The amount of the housing provider’s rent-geared-to-income subsidy for a fiscal year in respect of its housing projects in the service area is the amount determined using the formula, F – G in which, “F” is the amount that is the lesser of, (a) the total amount of the provider’s indexed market rents for the fiscal year from the rent-geared-to-income units in the provider’s housing projects in the service area, and (b) the total actual market rent for the fiscal year for those units; and “G” is the amount of rental payments payable to the provider for the fiscal year by the households accommodated in those rent-geared-to-income units. 2000, c. 27, s. 103 (6). Indexed market rents (7) The total amount of a housing provider’s indexed market rents for a fiscal year from rent-geared-to-income units in its housing projects in a service area is the amount determined using the following rules: 1. For the first fiscal year for which the housing provider receives a subsidy under this Act, the total amount of its indexed market rents is the total amount of the provider’s benchmark market rents for those units as determined by the Minister under section 104. 2. For each subsequent fiscal year, the total amount of the housing provider’s indexed market rents is the amount determined by multiplying the market rent index prescribed by the Minister that is applicable to those units for the fiscal year by the total amount of the provider’s indexed market rents for the previous fiscal year. 2000, c. 27, s. 103 (7). Mandatory payment (8) The amount, if any, of the provider’s mandatory payment for a fiscal year in respect of its housing projects in the service area is the amount, if any, determined using the formula, H – (H × J/K) in which, “H” is the amount, if any, by which the amount of the provider’s indexed market revenue for the fiscal year in respect of its projects in the service area exceeds the amount of the provider’s benchmark revenue from those projects, as determined by the Minister under section 104; “J” is the amount of the provider’s benchmark operating costs in respect of those projects in the service area as determined by the Minister under section 104; and “K” is the amount of the provider’s benchmark revenue from those projects as determined by the Minister under section 104. 2000, c. 27, s. 103 (8). Indexed market revenue (9) The amount of the provider’s indexed market revenue for a fiscal year in respect of its housing projects in a service area is the amount determined in accordance with the following rules: 1. For the first fiscal year for which the housing provider receives a subsidy under this Act, the amount of its indexed market revenue is the amount of the provider’s benchmark revenue as determined by the Minister under section 104. 2. For each subsequent fiscal year, the amount of the housing provider’s indexed market revenue is the amount determined by multiplying the market rent index prescribed by the Minister that is applicable to the housing projects for the fiscal year by the amount of the provider’s indexed market revenue for the previous fiscal year. 2000, c. 27, s. 103 (9). Surplus (10) The amount, if any, of the provider’s surplus for a fiscal year in respect of its housing projects in the service area is the amount determined using the formula, L – (M + N + P) in which, “L” is the amount of the provider’s net operating income for the fiscal year as set out in the annual report required under subsection 113 (1) relating to that fiscal year; “M” is the amount of the provider’s affordable mortgage payment determined by the Minister under section 104; “N” is the amount of the provider’s mandatory payment for the fiscal year; and “P” is the amount of an operating reserve, as determined in the manner prescribed by the Minister. 2000, c. 27, s. 103 (10). Net operating income (11) The net operating income of a housing provider for a fiscal year with respect to its housing projects in the service area is the amount by which its revenue for the fiscal year from those projects, as determined in the manner prescribed by the Minister, exceeds its operating costs for the fiscal year with respect to those projects, as determined in the manner prescribed by the Minister. 2000, c. 27, s. 103 (11).