Implementation of Income and Asset Limits to Determine Eligibility for Rent-Geared-to-Income Assistance

In response to Council's direction, the new Provincial requirements, and through the authority of the Executive Director, Housing Secretariat to implement new requirements under the HSA, this report outlines for Council's information the City's new Local Rules for household Income and Asset limits to determine eligibility for households applying for and/or receiving on-going RGI assistance. The household Income Limit for RGI applicants will be based on the Household Income Limits (HILs) established annually by the Province (currently $48,000 to $78,000 depending on number of bedrooms in the unit). There is no Income Limit required for existing RGI recipients as the assistance ceases when a households income increases above 30% for the market rent for their home. The housing Asset Limits for RGI applicants and recipients of RGI assistance will be $50,000 for individuals (household with one member) and $75,000 for households (household with more than one member). Certain assets such as funds in a Registered Education Savings Plan or Registered Retirement Savings Plan, personal effects and furnishings, a motor vehicle, tools of a trade, and business assets are excluded from the Asset Limit calculation. Implementation of the Income and Asset limits is planned for July 1, 2023 and will help make service delivery more equitable by directing scarce housing resources to those most in need. The limits allow RGI applicants and residents receiving assistance the ability to save for their education, health care, retirement or other needs while balancing the need to ensure that RGI assistance is provided to those most in need. Staff reviewed limits in place in other jurisdictions in Ontario and in large cities across Canada. The limits being implemented in Toronto are in line with the limits in place in other jurisdictions. Staff will review the Income and Asset limits on an annual basis, will monitor the impacts on applicant and tenant households, and will revise the limits and exclusions as needed to ensure they remain fair and equitable.