7. FUNDING

The COHB program is jointly funded by the federal and provincial governments through the NHS Bilateral Agreement. Up to $27,947,100 in the 2020-21 fiscal year and up to $36,619,000 in 2021-22 fiscal year is available to assist households approved for the COHB program. Service Managers have received their planning allocations for these two years. MMAH will also ensure funding is available for all households participating in the PHB-SPP program as of March 31, 2020 and who remain eligible for payments under the COHB program.

These planning allocations were determined using the same funding methodology used in the Ontario Priorities Housing Initiative, which ensures appropriate geographic distribution of funding.

Funding allocations are provided on a "use it or lose it" basis, since funding from one fiscal year cannot be reallocated to future years. For this reason, annual planning allocations that cannot be fully taken up within the respective fiscal year may be reallocated by MMAH after December 31 to Service Manager areas with higher take-up rates. A Service Manager's funding allocation may not be reallocated if as of December 31 of each year, the Service Manager is projected to spend 90 per cent of its annual planning allocation by the end of the fiscal year.

In addition, the number of eligible households approved to receive a benefit in a Service Manager area will be limited in any year by the amount of funding available in the following year for their service area.

Service Managers will identify households who may be eligible for the COHB program and assist with the application process. Households who apply for the COHB program and are approved will be provided with a monthly subsidy to assist with the costs of renting a unit of their choosing. This monthly subsidy will be paid directly to households through MOF. Service Managers will receive annual planning allocations to assist them in determining the number of households that may be assisted within a fiscal year.

All Service Managers are eligible for reimbursement on a quarterly basis of actual costs incurred for:

Service Managers will receive administration payments of $250 per approved application from their service area, up to 5 per cent of their annual planning allocation. The "Service Manager Use Only" section of the application form must be completed before the administration payment can be made.

Details related to Service Managers providing approved applicants with funding for first and last month's rent are included in 6.7 "First and Last Month's Rent" on page 14.

Payments to Service Managers will be made quarterly based on the number of eligible applicants approved for the COHB program in each service area, as reported by MOF through an online portal, and through quarterly claims from Service Managers.

Service Managers are required to sign a Transfer Payment Agreement with MMAH and MOF that sets out the roles and responsibilities of the parties and the accountability framework for the COHB program, including the terms for funding and reporting requirements. For more information, see 8.2 "Transfer Payment Agreements" on page 18.