Rental Assistance Program (FCHI-2)

Townhouses with blue sky

Program Objectives

  • To fund the difference between the occupancy charge and the geared-to-income charge for qualified households that cannot compete for housing in the open market

Program Features

  • Unilateral federal program
  • Available to housing co-operatives with operating agreements that expired after 31 March 2016 and ILM co-operatives that have repaid their first mortgage
  • Enrolment form sent to co-operatives at least six months before the expiry of their agreement with Canada Mortgage and Housing Corporation (CMHC)
  • Initial amount of rental assistance and number of assisted households based on Annex form completed by co-op
  • Assisted households pay 25 % to 30 % of household income for housing
  • Base number of assisted households and amount of guaranteed rental assistance set after first annual review and reconciliation of assistance
  • Households pay the greater of the assisted charge and the provincial shelter component, where provided
  • Incomes verified annually, using CMHC’s Request for Rental Assistance Annual Household Declaration form
  • Overhoused households required to move or pay extra
  • Action Plan submitted after 12 months in the program and updated every three years
  • Transition funding temporarily available for deep-need housing groups

CMHC Authority under Operating Agreement

  • Requirement for co-ops to select assisted households by means of a formal and consistent procedure
  • Financial statements that show rental assistance was spent on helping to house qualified households
  • Right to inspect co-op’s books, records and accounts, which must be kept for seven years
  • Requirement for a signed agreement from assisted households to give CMHC or its representative access to all information needed to provide rental assistance
  • Requirement for a signed occupancy agreement with provisions against overhousing
  • Annual requirement to document and verify income and composition of assisted households and to calculate the appropriate assisted charge
  • Annual requirement for a reconciliation of assistance in a form acceptable to CMHC or its representative
  • Requirement to afford assisted households the same privileges as other co‑op members
  • Requirement to deny rental assistance to any household already receiving such assistance from a province or municipality
  • Requirement to inform CMHC of any sale or lease of the property at least 60 days in advance.
  • Requirement to avoid real or potential conflicts of interest and act promptly to cure it, if one occurs
  • Right to terminate agreement if the co-op breaches it, with insolvency considered a breach
  • Requirement to manage and maintain the property adequately
  • May require co-op to supply such information as CMHC may want for statistical or other purposes
  • Requirement for recipients of transition funding, to submit annual budget

Accountability Framework

  • FCHI-2 (Rental Assistance) Agreement
  • Annual audited financial statement and information return
  • Annual report on assistance spent
  • Action Plan submitted after first year and updated every three years

Reference Guide 2020 (FCHI-2)

CMHC

Request for Rental Assistance Annual Household Declaration (PDF)

CMHC

Overview of Rental Assistance (FCHI-2) for S95 co-ops

Agency of Cooperative Housing
Download

Summary of Rental Assistance Program (FCHI-2) Obligations

Agency of Cooperative Housing
Download

Management Trend

The trend to hire management companies continues. 58% of co-ops hire management companies, compared to 28% that employ independent staff as their managers.