Rental Assistance Program (FCHI-2)

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 the Rental Assistance 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