Housing In Peel Revised Date: May 6, 2016 Replaces: October 31, 2007

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1 HIP Housing In Peel Revised Date: May 6, 2016 Replaces: October 31, 2007 Subject: Arrears Owed to a Housing Provider Reference: Housing Services Act, 2011 (HSA): O. Reg. 367/11, S. 26 Applicable to: X Municipal and Private Non-Profit X Federal Non-Profit X OCHAP/CSHP X Co-operatives X Rent Supplement Under each Service Agreement signed with the Regional Municipality of Peel, housing providers are required to comply with Regional policies and procedures. Summary This document outlines required follow up by housing providers with information on former tenants/members who have moved owing money. Purpose/Overview Arrears are defined as an outstanding payment owing for the rental of a housing unit and/or an outstanding payment resulting from damage(s) to a housing unit caused by a current household member, and/or money owing as a result of a reimbursement request for overpayment of rent subsidy. In the case of rent arrears, it may be further described in the following manner. Based on a family s declared income, a housing provider calculates their rent. The calculated rent is charged on a monthly basis, and it is expected that the household will pay this amount each month. In some cases, for whatever reason, a household will choose or is not able to pay the rent. When the rent is not paid, it is owed and becomes known as rent arrears. The Region of Peel is responsible for creating and maintaining a centralized arrears database system to monitor and assist with the collection of rent or damage arrears owed to housing providers by former tenants/members. Housing providers are therefore required to provide Peel with information on former tenants/members who have moved owing money. This is an on-going requirement for any move-outs with arrears. 1

2 Peel Access to Housing (PATH) will check the centralized database to ensure that any new housing applicant meets the basic eligibility requirement of not owing arrears to a housing provider has been met. Who is Responsible for Arrears For the purpose of this policy, the leaseholders will be the tenants/members of the household liable for the arrears. Policy A household will not be eligible for RGI subsidy if any member of the household owes, with respect to a previous tenancy or membership in any housing project under any housing program in Ontario, including federal housing projects: arrears of rent an amount as a result of overpayment of RGI subsidy, or an amount for damages caused by any current member of the household. A household with rent and/or damage arrears and/or overpayment of rent subsidy, however, is still eligible if: The household has entered into a repayment agreement and the service manager is satisfied it intends to make every reasonable effort to repay the money; or There are extenuating circumstances see the following notes that demonstrate examples of applicable extenuating circumstances where the household s eligibility for subsidy remains intact; and All other eligibility requirements have been met. Notes regarding Extenuating Circumstances : The following two examples demonstrate applicable extenuating circumstances in which the Service Manager has flexibility in determining that an RGI household remains eligible for subsidy: A household attempts to set up a repayment plan but the provider refuses for various reasons (e.g., the tenant/member and housing provider cannot agree on a schedule of repayment dates); and The matter regarding arrears/money owed for rent and/or damages has gone to a collections agency or Small Claims Court and there is evidence the household has made every reasonable effort to establish a repayment schedule and/or repay the arrears/money owed. Examples of evidence in the latter case include: authorized copy of proposed written repayment schedule; and recorded contact with representative from office of applicable housing provider. Note: In all other cases where there may be applicable extenuating circumstances that allow a household s eligibility to remain intact, housing providers must contact their Housing Programs Specialist. 2

3 Special Priority Category If the arrears are owed by a member of the household who has requested to be included in the special priority household category, and the request would be or has been granted, then that member of the household is responsible for one-half of the actual arrears owed if the arrears were incurred if member and the abusing individual were joint tenants/members. Action Required Provider Role As noted before, housing providers are required to provide the Region of Peel with information on former tenants/members that have moved owing arrears for rent and/or damages; this is an on-going requirement as move-out households with arrears occur. To create an effective system, housing providers should refer to Appendix 1 of this document (i.e., Arrears Move-out Form) to facilitate the delivery of the following mandatory information to PATH: Property address Names of all household members who are leaseholders that debt is owed by Date of birth for any/all household member name(s) provided Date household moved out Total amount owing, i.e., indicating outstanding amount for rent and/or damage arrears; and overpaid subsidy o NOTE: Damage arrears can only be included if the damages were caused by a current member of the household Information on: whether a re-payment agreement has been established (with comments); whether re-payment agreement is in good standing (with comments); and whether there has been misrepresentation (with date of order) Name of housing provider, including name of contact person and telephone number (with signature) Date of when this form was completed Housing providers should also refer to Appendix 2 (i.e., Re-payment Plan Update Form which is to be completed once a repayment plan has been established). Completion of this particular form requires the provision of information related to the provider, the tenant/member with whom the plan has been established, and information on the terms of the agreement. Service Manager Role The Region of Peel is responsible for creating and maintaining a centralized arrears database system to monitor and assist with the collection of rent or damage arrears owed to housing providers by former tenants/members. 3

4 The service manager will monitor housing providers compliance with the requirements as defined in this HIP Policy and Procedure; this will be done through both full and mini-operational reviews. The purpose of an operational review is to ensure that housing providers duties are in compliance with the HSA. The service manager (i.e., Housing Programs Specialist) will also determine that a household remains eligible for subsidy if it has entered into an acceptable repayment agreement or if there are extenuating circumstances involved. Please contact your Housing Programs Specialist if you require further clarification on this document. 4

5 APPENDIX 1: ARREARS MOVE-OUT FORM Peel Access to Housing Fax: ARREARS MOVE-OUT FORM TO BE COMPLETED Return to above address (or via fax) Name of Housing Provider: Property Address: Telephone Number: The following household (recently) moved out of our building and owes arrears. Money owed may include rental arrears, overpaid subsidy and/or damage related costs. The specifics are as given below. The following household was already reported as a move-out with arrears owing. However, we have now been able to assess in more detail the total amount owing (rental arrears, overpaid subsidy and/or damage related costs). The updated amount is listed below. Main Tenant / Member: LAST NAME FIRST NAME DATE OF BIRTH SIN (if provided by the tenant) Co-Tenant / Co-Member: Other Household Members: Move-Out Date: Total Amount Owing: rental arrears + overpaid subsidies + damage related costs Unit Number: Rental Arrears Overpaid Subsidy Damages Total Re-Payment Agreement Yes No Comments: Re-Payment Agreement in Good Standing Yes No Comments: Misrepresentation Based on Court Order on file for misrepresentation of Income Yes No Date of Order: Prepared By: Name: Signature: 5

6 Date: APPENDIX 2: RE-PAYMENT PLAN UPDATE FORM Peel Access to Housing Fax: RE-PAYMENT PLAN UPDATE FORM TO BE COMPLETED Return to above address (or via fax) Name of Housing Provider: Property Address: Telephone Number: An arrears re-payment plan has been put in place with regard to the following former tenant/member household (details below). Money owed may include rental arrears, overpaid subsidy and/or related costs. A former tenant/member household with an existing re-payment agreement is not complying with the terms of this agreement. The details are given below. Main Tenant / Member: LAST NAME FIRST NAME DATE OF BIRTH SIN (if provided by the tenant) Co-Tenant / Co-Member: Other Household Members: Terms of the Re-Payment Agreement: Note: See next page for rest of form to be completed. Other Details: Prepared By: Name: Signature: Date: 6