Member Support Question: Rent-geared-to-income
Question: My tenant is 20 years old and lives alone. Her only source of income is $1,200 from Child and Family Services in a different province. She gave me a letter that calls it “income support”. What is this income and how do I calculate it?
Answer: The Housing Services Act (HSA) is written in an Ontario context, and so will not include all of the different types of income from other governments. In these cases, where the HSA does not list all of the possible excluded income from every location, we can look for equivalents.
Under O. Reg. 298/01 50 (3) Paragraph 2, “A payment received from a Children’s Aid Society on behalf of a child in care under the Child and Family Services Act” is excluded. In Ontario, that would include money under a Continued Care and Support for Youth agreement.
Continued Care and Support for Youth is money received by youth who are transitioning out of the care of a Children’s Aid Society. It is available to them in Ontario until they turn 21 years old. Youth receiving this money in Ontario would get $850 and possibly extra funds for specific needs such as travel. It sounds like what your tenant is receiving is similar.
The first step is to speak with your tenant. Confirm that the money they’re receiving is for a similar program. You can also contact the Child and Family Services who issued you the letter, and they may be able to clarify the program. In order to discuss your tenant’s specific income, Child and Family Services may require a release. They might provide you with a release form, or often they will accept the disclosure that’s part of your tenant’s annual review form.
While the amount in Ontario is only $850, the purpose of these programs is the same: to help youth transition from being in care to living independently. This income is excluded.
The tenant’s income is $0. Add the utility adjustment before comparing the total adjusted amount to the minimum rent of $85. The rent would be $85 plus additional charges for cable or parking.
Have a question? Contact ONPHA Member Support at email@example.com or 1-800-297-6660 x115.