Climate Change Adaptation:
N/A

Financial Matters:

The amendments to Ontario Regulation 367/11 have minimal to no financial impact to the City of Windsor as the changes are primarily administrative in nature, and have led to system delivery amendments e.g., community safety, three offers to one, overhoused transfer list.

The RGI simplification in the new Ontario Regulation 316/19 could have a financial effect on the City of Windsor. This change, to be implemented in Windsor-Essex on July 1, 2021, will result in a change in how RGI rents are calculated by social housing providers and RGI rent supplement administrators. A reduction in RGI rental income could result in an offsetting increase in the legislated RGI subsidies payable by the City of Windsor, as Service Manager. At this time, Housing Services is unable to determine the effect, if any, of these changes to the legislated funding levels to social housing providers and our RGI rent supplement administrators.

The introduction of Bill 204, which will come into force as the Helping Tenants and Small Businesses Act, 2020 , and includes the 2021 rent freeze, may negatively impact the rent revenues of our social housing providers, which in turn may increase the level of subsidies the City of Windsor will need to issue as the Consolidated System Service Manager for Windsor and Essex County. It is anticipated the loss will be able to be absorbed within Housing Services 2021 budget, therefore no additional funding is being requested for 2021.

As social housing providers governed by the HSA receive operating and RGI subsidies based on a legislated funding model, which is calculated based on the rent increase guideline, there will be an increase in on-going subsidies funded by municipalities. Housing Services has undertaken an exercise to estimate the effect in 2021. It is estimated that, based on current RGI rent levels, this change could result in an increase in provider subsidies of approximately $135,000 annually. As the full effect of this change will be implemented in various stages throughout 2021 (based on the corporate year-end for each individual social housing provider), the 2021-cost pressure is estimated at $70,000 to $75,000. These estimates are based on the assumption our current levels of RGI and market rental units within our social housing portfolio in Windsor Essex County will be maintained.

Other factors that have the potential to negatively impact revenues for social housing providers will be their inability to increase an RGI tenant’s rent, as a result of their household changes such as increases in household income or changes in household composition. These household changes generally result in increases to an RGI tenant’s rent however, with the rent freeze legislation in effect, these increases will need to be deferred until on or after January 1, 2022. Housing Services is not able to project the impact these household changes will have on our RGI subsidy obligations at this time. Should the impact of Bill 204 result in costs in excess of the above estimates, updated projections will be reported to Council as part of the 2021 variance reporting process.