Indexed benchmark operating costs
33.4 (1) The amount of a housing provider’s indexed benchmark operating costs for a fiscal year in respect of its housing projects in the service area is the amount determined by, (a) for the fiscal year commencing in 2008, (i) calculating the indexed benchmark operating cost for the fiscal year for each item listed in Column 1 of the Table to this subsection by, (A) expressing as a decimal number the operating cost index for the item for the fiscal year, as determined by the Minister in accordance with subsection (4), (B) adding one to the number determined under sub-subclause (A), and (C) multiplying the housing provider’s benchmark operating cost for the item for the fiscal year, as determined by the Minister under section 104 of the Act, by the number determined under sub-subclause (B), and (ii) calculating the sum of the indexed benchmark operating costs determined under subclause (i) and subsection (3) for all the items; and (b) for a fiscal year commencing in 2009 or later, (i) calculating the indexed benchmark operating cost for the fiscal year for each item listed in Column 1 of the Table to this subsection by, (A) expressing as a decimal number the operating cost index for the item for the fiscal year, as determined by the Minister in accordance with subsections (5) and (6), (B) adding one to the number determined under sub-subclause (A), and (C) multiplying the indexed benchmark operating cost for the item for the previous fiscal year by the number determined under sub-subclause (B), and (ii) calculating the sum of the indexed benchmark operating costs determined under subclause (i) for all the items. TABLE  Item No.

Column 1

Column 2


 

Item

Index


1.

Administration and maintenance

Ontario Consumer Price Index (All items), as published by Statistics Canada


2.

Insurance

Ontario Consumer Price Index (Homeowners’ home and mortgage insurance sub-index), as published by Statistics Canada 


3.

Bad debt

Market rent index, as determined under subsection 33.7 (1) 


4.

Electricity

Ontario Consumer Price Index (Electricity sub-index), as published by Statistics Canada


5.

Water

Ontario Consumer Price Index (Water sub-index), as published by Statistics Canada


6.

Natural gas

Ontario Consumer Price Index (Natural gas sub-index), as published by Statistics Canada


7.

Oil and other fuel

Ontario Consumer Price Index (Fuel oil and other fuel sub-index), as published by Statistics Canada


8.

Capital reserves

Ontario Consumer Price Index (All items), as published by Statistics Canada O. Reg. 535/07, s. 4. (2) Despite subsection (1), for a housing provider that is not subject to the Act on September 6, 2007, the amount of the provider’s indexed benchmark operating costs for a fiscal year in respect of its housing projects in the service area is, (a) for the first fiscal year that the provider is subject to the Act, the total of the provider’s benchmark operating costs, as determined by the Minister under section 104 of the Act; (b) for the next year, the amount determined in accordance with clause (1) (a); and (c) for each subsequent year, the amount determined in accordance with clause (1) (b). O. Reg. 535/07, s. 4. (3) Despite subsection (1), for the fiscal year commencing in 2008, the indexed benchmark operating cost for item 3 of Column 1 of the Table to subsection (1) is determined as follows: 1. Express as a decimal number the market rent index applicable for the fiscal year commencing in 2007 to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1). 2. Add one to the number determined under paragraph 1. 3. Multiply the benchmark operating cost for bad debt, as determined by the Minister under section 104 of the Act, by the number determined under paragraph 2. 4. Express as a decimal number the market rent index applicable for the fiscal year commencing in 2008 to a housing provider’s housing projects in the service area, as determined under subsection 33.7 (1). 5. Add one to the number determined under paragraph 4. 6. Multiply the number determined under paragraph 3 by the number determined under paragraph 5. O. Reg. 535/07, s. 4. (4) For the fiscal year commencing in 2008, the operating cost index for an item listed in Column 1 of the Table to subsection (1), other than for item 3, is calculated by, (a) dividing the index listed in Column 2 of the Table opposite the item for May of the current calendar year by that index for May of the calendar year two years prior to the current calendar year; (b) subtracting one from the number determined under clause (a); and (c) expressing the number determined under clause (b) as a percentage, rounded to two decimal places. O. Reg. 535/07, s. 4. (5) For a fiscal year commencing in 2009 or later, the operating cost index for an item listed in Column 1 of the Table to subsection (1), other than for item 3, is calculated by, (a) dividing the index listed in Column 2 of the Table opposite the item for May of the current calendar year by that index for May of the previous calendar year; (b) subtracting one from the number determined under clause (a); (c) expressing the number determined under clause (b) as a percentage, rounded to two decimal places. O. Reg. 535/07, s. 4. (6) For a fiscal year commencing in 2009 or later, the operating cost index for item 3 of Column 1 of the Table to subsection (1) is the market rent index determined under subsection 33.7 (1). O. Reg. 535/07, s. 4. (7) The Minister shall notify each service manager and housing provider affected by this section of the operating cost index for a fiscal year for each item listed in Column 1 of the Table to subsection (1). O. Reg. 535/07, s. 4.