Surplus
33.10 (1) For the purpose of the definition of “E” in the formula set out in subsection 103 (2) of the Act, the amount, if any, of the housing provider’s surplus for a fiscal year in respect of its housing projects in the service area is not the amount determined under subsection 103 (10) of the Act, but is the amount determined using the formula, L – M 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) of the Act relating to that fiscal year, and “M” is the amount of the provider’s operating reserve. O. Reg. 535/07, s. 4. (2) For the purposes of the definition of “L” in subsection (1), 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 set out under section 30, exceeds its operating costs for the fiscal year with respect to those projects, as determined in the manner set out under section 30. O. Reg. 535/07, s. 4. (3) For the purposes of the definition of “M” in subsection (1), the amount of a housing provider’s operating reserve, if any, in respect of its housing projects in the service area for a fiscal year ending after the transfer date is the amount determined under the following rules: 1. If the housing provider’s accumulated surplus in respect of the service area at the beginning of the fiscal year or at the beginning of any previous fiscal year that ends after the transfer date, as set out in its annual report for that fiscal year under section 113 of the Act, is equal to or greater than the product of $300 multiplied by the number of the housing provider’s units in housing projects in the service area at the beginning of that fiscal year, the housing provider’s operating reserve for the fiscal year is nil. 2. If the amount determined in respect of the housing provider for the fiscal year under subsection (4) is nil or a negative amount, the housing provider’s operating reserve for the fiscal year in respect of those housing projects is, N – P where, “N” is the product of $300 multiplied by the average number of the housing provider’s units in the service area in the fiscal year, and “P” is the housing provider’s accumulated surplus for its housing projects in the service area at the beginning of the fiscal year. 3. If neither paragraph 1 nor 2 applies for the fiscal year, the housing provider’s operating reserve for the fiscal year in respect of those projects is the housing provider’s net operating income for the fiscal year from those housing projects. O. Reg. 535/07, s. 4. (4) For the purposes of paragraph 2 of subsection (3), the amount determined under this subsection is the amount determined using the formula, N – (P + Q) in which, “N” and “P” have the same meaning as in the formula in paragraph 2 of subsection (3), and “Q” is the amount that would be determined under paragraph 3 of subsection (3) in respect of those housing projects for the fiscal year. O. Reg. 535/07, s. 4. (5) For the purposes of this section, a housing provider’s accumulated surplus in respect of a service area at the beginning of a fiscal year is the portion of its retained earnings at the end of the previous fiscal year, as set out in its annual report under section 113 of the Act and determined in accordance with generally accepted accounting principles as they apply to social housing, that can reasonably be considered to be derived from its housing projects in the service area. O. Reg. 535/07, s. 4.