The minimum monthly geared-to—income rent amount will be indexed year over year to Ontario's annual rent increase guideline in accordance with Ontario Regulation 316/19 s 2 (4) which states:
”For each subsequent period of July 1 to June 30, the minimum rent amount is the amount determined as follows:
- Express as a decimal the rent increase guideline published in the Ontario Gazette under subsection 120 (3) of the Residential Tenancies Act, 2006 for the calendar year in which the period commences.
- Add 1 to the number determined under paragraph 1.
- Multiply the minimum rent amount for the prior period from July 1 to June 30 by the number determined under paragraph 2. ”
On August 29, 2020, the 2021 Rent Control Guideline of 1.5% was published in the Ontario Gazette. An example of the formula used to determine the new minimum rent using the 2021 rent increase guideline amount of 1.5% would be as follows:
Current minimum monthly geared—to~income rent amount Le, 2020 = $129 multiplied by (rent increase guideline expressed as a decimal e.g., .015 + 1) = $130.94 rounded to $131 is the new minimum monthly geared—to-income rent amount.
Grandfathering of Geared-to-Encome Tenants
For current geared-to-income tenants paying fess than the new minimum monthly rent on or before June 30, 2020, the Ministry has developed a multi-year phase-in approach aliowing an S8 annual incremental increase to the minimum rent on July 1, 2020 Le, $93 ($85 + 8) and for every luly 1“ thereafter, e.g., $1011uly 1, 2021 ($93 + 8), $109 July 1, 2022 ($101 + 8), etc., until such time that the legislated minimum geared-to-income rent amount is achieved. This multi-year phase-in approach wiIE take effect on the tenant's annual income review on or after July 1, 2020.
For example, a geared-to—income tenant housed on June 1, 2019 and paying the minimum geared—to—income rent of $85 on their annual review for June 1, 2021 if all other information remains the same e.g., household income, their minimum geared-to-income rent will increase to $93 ($85 + 8) and will increase another $8 every year thereafter, until the legislated minimum geared-to-income rent amount is achieved.
Ontario Works/Ontario Disability Support Program (OW/ODSP) & Minimum Rent (Clarification - September 2020)
In general, the changes to minimum rent under Ontario Regulation 316/19 came into effect on July 1, 2020 — regardless of the City of Windsor's decision to implement the other RGI rent calculation changes July 1, 2021. This means for most households, the minimum rent is either $129 per month or the phased-in amount of $93 per month.
Housing & Children’s Services * 400 City Hall Square East * PO. Box 428 * Windsor ON * N9A 6L? * FAX (519) 256-7107 www.citmindsoma