6. PAYMENTS TO APPLICANTS
MOF provides benefit payments by direct deposit each month to the individual who applied for the benefit on behalf of the household and signed the application form. Alternatively, the applicant can choose to have the funds deposited directly to a landlord by submitting a Schedule 5 form (Tenant Authorization and Direction to Pay Landlord Direct) and a Schedule 6 form (Landlord Consent to Receive Payment). Payments will be made by direct deposit only, except for extenuating circumstances.
Service Managers provide payments directly to applicants for first and last month's rent in accordance with the COHB program guidelines and as outlined in 6.7 "First and Last Month's Rent" on page 14.
6.1 Calculation of COHB
The benefit is calculated using a formula that is generally consistent with Schedule 4.1 of Ontario Regulation 367/11 under the Housing Services Act, 2011. The formula includes AMR and AFNI.
This formula is responsive to changes in:
- Household income, through the use of AFNI;
- Household composition, through selecting the AMR for the type of housing associated with the family composition; and
- Local housing markets, through the use of local AMR.
The maximum benefit amount payable is 80% AMR less the RGI minimum rent amount. The RGI minimum rent amount is $85 until June 30, 2020. From July 1, 2020 to June 30, 2021, the RGI minimum rent amount will be $129 and will be adjusted annually thereafter in accordance with subsection 2(4) of Ontario Regulation 316/19 under the Housing Services Act, 2011.
The minimum monthly benefit payable is $10. Any monthly benefit calculated as an amount less than $10 will be considered a nil ($0) payment.
For information on the benefit calculation for social assistance recipients, see 6.4 "Interaction with Social Assistance" on page 13.
6.2 Average Market Rent (AMR)
The amount of a COHB benefit is based on the difference between 80 per cent of the CMHC AMR for an appropriately sized rental unit, based on household composition, and 30 per cent of annual household AFNI divided by 12. AMR is defined as the average expense of market rent in the relevant service area, as provided by CMHC to MMAH based on CMHC's annual rental survey, adjusted as appropriate. In service areas where there are no CMHC AMRs, Service Managers will be able to submit a business case