6.2 — Shelter calculation

Shelter is defined as the cost for a dwelling place used as a principal residence. Allowable shelter costs for a principal residence include rent, principal and interest on a mortgage or loan, occupancy costs paid under an agreement to purchase, taxes, utilities, heat, water, sewage and insurance premiums for the dwelling place or its contents.

Legislative Authority

Summary of Directive

• The shelter allowance can only be paid for dwelling places in Ontario and is subject to a maximum amount based on the size of the benefit unit.
• An annual adjustment tied to inflation will be applied to the maximum shelter allowances each July.
• Where utilities, heat, water, sewage, and insurance are not included in the rent/mortgage, the actual cost of these items for members of the benefit unit must be verified and can be included in the shelter allowance subject to the maximum amount.
• Mandatory cable costs directly related to building security can be included in the shelter allowance subject to the maximum amount.
• Mandatory charges for normal rental accommodation services such as garbage disposal and laundry facilities can be included in the shelter allowance subject to the maximum amount.
• If heating costs on their own exceed the maximum amount payable for shelter, the amount payable will be the actual cost of heating.
• The amount of assistance provided for shelter is reduced when accommodation is shared with someone other than a dependant.
• Shelter costs can be approved for a second residence on a temporary basis as long as the person meets specific disability related criteria.

Intent of Policy

To provide assistance for shelter costs up to the maximum amounts allowable.

Application of Policy

Standards

The shelter allowance can only be paid for dwelling places in Ontario.

The maximum amount of assistance that can be provided for shelter is based on family size as set out in the table below. Related shelter costs such as heating and utilities can be included in the shelter calculation if verified as separate from the amount charged for rent. Directives 9.3 Heating Costs and 9.5 Utilities provide more information related to these additional shelter costs. An annual adjustment tied to inflation for the maximum shelter allowances in the table below will be applied each July.

Upon request, or at the time of update, shelter costs are reassessed for the period under review to ensure the correct amount of assistance was provided. If the verified amount was too low, and the recipient was not receiving the maximum shelter amount, arrears can be provided up to the maximum amount allowable in the shelter table. If the average monthly amount input was too high, an overpayment will be established and recovery will commence.

Other shelter costs related to the principal residence may include the following subject to the maximum shelter amount:

• Rent. The rental agreement is reviewed to assess what is included in the rent and to determine which costs can be included in the shelter calculation. Costs for mandatory cable related to building security can be included in the shelter calculation as well as mandatory cable or telephone costs, subject to the shelter maximum. In addition, mandatory costs related to normal rental accommodation services such as garbage disposal and laundry facilities can be included. However, where costs are not mandatory or not necessary for the preservation, maintenance and use of the dwelling place, they cannot be included in the shelter calculation. Costs related to parking, even if the costs are mandatory, cannot be included in the shelter calculation.
• Principal and interest on a mortgage or loan. Principal and interest can be included in the shelter calculation. Property taxes can also be included if they are part of the mortgage or loan payment. The mortgage agreement should be reviewed to identify what is included in the payment amount. In cases where a recipient has a Manulife One account mortgage, the mortgage sub account should be reviewed to verify payments.
• Property Taxes. If not included in a mortgage or loan payment, can be included in the shelter calculation.
• Occupancy costs paid under an agreement to purchase. This cost can be included in the shelter calculation.
• Insurance premiums for the dwelling place and its contents. The cost of fire insurance and content insurance can be included in the shelter calculation. The cost for a heating insurance plan that covers maintenance / replacement of a furnace can also be included.
• Second Residence. Where a second residence is required temporarily to enable the applicant/recipient or spouse to participate in a training program to enhance employment prospects, an amount can be provided that is the lesser of:
  • the cost to maintain the principal residence, and
  • $455.
    • This amount is in addition to the shelter allowance payable for the principal residence. The applicant/recipient or spouse must be either a person with a disability, in receipt of disability benefits under the Canada Pension Program or Quebec Pension Plan, grandparented from Family Benefits as Blind/Disabled, Dependent Father, or Permanently Unemployable or eligible for services, supports and funding under the Services and Supports to Promote the Social Inclusion of Persons with Developmental Disabilities Act, 2008 ( SIPDDA )

    Note: Allowable shelter costs cannot be increased where a recipient has obtained a home equity loan or line of credit for the purposes of consolidating debt. Only principle or interest on a mortgage or loan that is incurred to purchase the dwelling place or to make necessary repairs can be included as a shelter cost.

    Reduced Income Support due to Shelter Conditions

    • No Shelter Costs. People with no shelter costs do not receive a shelter allowance.
    • Joint Ownership. The amount of shelter allowance paid in joint ownership situations is as follows:
      • Pay half shelter (up to the shelter maximum) - Where a principal residence is jointly owned and both owners are living in the home, both owners are equally responsible for the shelter costs (50/50).
      • Pay full shelter (up to the shelter maximum) - Where a principal residence is jointly owned between an ODSP recipient (resident) and a non- ODSP recipient (non-resident) allow full shelter costs to the ODSP recipient residing in the home alone.

      Sponsored Immigrants living with their sponsors and eligible for shelter costs

      If an applicant/recipient is living with a defaulting sponsor (or in a place owned or controlled by the sponsor) and the sponsorship agreement is still in effect, shelter costs can only be paid if:

      • the sponsor is in receipt of Ontario Works, ODSP , the Guaranteed Income Supplement under the Old Age Security Act or GAINS;
      • there is a breakdown in the sponsorship relationship due to family violence and/or abuse;
      • the sponsored immigrant:
        • has a legal obligation to pay shelter costs ( e.g. the sponsored immigrant is a lessee or named as a co-owner on a deed/mortgage), or
        • satisfies the Director that he/she will not be allowed to remain in the current residence unless he or she pays shelter costs.

        Any actual support that the sponsored immigrant receives from the sponsor will be treated as income and deducted from the sponsored immigrant's income support.

        Sponsored Immigrants living with their sponsors and not eligible for shelter costs

        Where the sponsored immigrant is living with his/her sponsor and is not eligible for shelter costs, a sponsorship deduction will be applied.

        The sponsorship deduction is the greater of:

        • the amount the sponsor is paying to the applicant/recipient, and
        • the amount of income support that would otherwise be calculated under section 30 of the ODSP Regulation less the applicable basic needs amount.

        Example - A single recipient who is living with his/her sponsor, not eligible for shelter costs, and not receiving any funds from the sponsor will have their income support calculated in the following manner:

        Amount single recipient receives under Reg. s. 30 - $1,368
        Less amount calculated under ODSP Reg. s. 40 - $582
        Total income support $786

        Shelter Arrears

        Under ODSP , the shelter allowance is intended to be used to pay for actual monthly shelter costs. As such, the shelter allowance is not to be used for the payment of arrears that are related to rent, utilities or heating.

        Recipients with shelter arrears should be instructed to contact their respective Housing Service Manager for information on housing-related services that may be provided under a Ministry of Municipal Affairs and Housing ( MMAH ) program to prevent homelessness.

        If supports are not available through an MMAH program to prevent homelessness, then payment of arrears related to shelter may be covered as a discretionary benefit under Ontario Works, where approved by the Administrator.

        Canada-Ontario Housing Benefit

        The Canada-Ontario Housing Benefit ( COHB ) is a portable housing allowance program for eligible low-income households to help them with their housing costs.

        Housing Service Managers will identify households who may be eligible and assist with the application, while the Ministry of Finance will confirm eligibility and issue payments directly to households. Assistance will be portable across the province, and may be provided to a third party ( e.g. paid directly to the landlord) where both parties consent.

        For ODSP applicants/recipients, COHB should not be deducted when assessing actual shelter costs to help them access adequate and affordable housing.

        Individuals may also receive assistance for rental deposits ( e.g. first and last month’s rent) through the COHB program.

        All payments under the COHB program are exempt as income for the purposes of social assistance.

        Federal “Reaching Home” Program

        Reaching Home is the Government of Canada’s program aimed at preventing and reducing homelessness by providing direct support and funding to Designated Communities (urban centers), Indigenous communities, territorial communities and rural and remote communities across Canada.

        More detailed information about funding streams, and eligible activities is available at Government of Canada’s Reaching Home Program.

        Payments under the Reaching Home program are to be treated in the following manner:

        • Housing allowances/rent supplements are exempt up to the amount that actual rent exceeds the maximum payable for shelter under social assistance.
        • Other housing/homelessness-related payments or supports under a program to prevent homelessness administered by the Ministry of Municipal Affairs and Housing provided by a Service Manager are exempt as income.

        See Directive 5.1: Definition and treatment of Income for types of payments exempt under an MMAH program to prevent homelessness and Reaching Home .

        Exempt Credits on Electricity Bills

        The value of grants, payments, credits, services or items provided by Ontario utilities and regulators, municipalities, and the Governments of Ontario or Canada, for the purposes of energy efficiency, conservation or affordability, are exempt as income for social assistance purposes. The value of such payments or benefits should not reduce the amount of shelter allowance otherwise payable to the benefit unit. See 9.5 Utilities for how to calculate utility costs.

        Treatment of Payments Under the Transplant Patient Expense Reimbursement ( TPER ) Program

        The Ministry of Health’s TPER program provides up-front payments or reimbursement of temporary accommodation costs incurred by eligible patients while awaiting heart, heart-lung and lung transplants, up to a maximum of $1,500 per month.

        TPER payments are exempt as income for the purposes of social assistance if used for the intended purpose within a reasonable period of time as determined by the Director.

        MOH -funded Rent Supplement for Permanent Supportive Rental Housing

        The Ministry of Health ( MOH ) funded rent supplement aims to provide permanent supportive rental housing to persons with a mental illness who are homeless or at risk of becoming homeless. The program is also available to other client groups as determined by MOH such as people with mental illness who come in contact with the criminal justice system or those with a physical disability.

        Where an applicant/recipient is in receipt of the MOH -funded rent supplement payment, the portion of the payment that exceeds the maximum social assistance shelter allowance is exempt as income up to the actual shelter costs.

        Investment in Affordable Housing - Ontario Renovates

        Under the Ontario Renovates program, Housing Service Managers may provide funding to eligible low and moderate income households for renovations and modifications. Ontario Renovates payments are exempt as income and assets for the purposes of social assistance.

        Related Directives

        • 3.1 Consolidated Verification Information Requirements
        • 6.1 Basic Needs Calculation
        • 6.3 Board and Lodge
        • 9.3 Heating Costs
        • 9.5 Utilities