P0. Box 5035

267 Dundas Street

London ON

N6A4L9

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CANADA

Housing Division NoticeDate: January27,201l HDN#2011 -158

This applicable legislation/policy is to be implemented by the housing provider(s) under the followingprograms:

Please note if your program is not checked, this change is not applicable to your project.

Federal Non-Profit Housing Program

Private Non-Profit Housing Program

Co-operative Non-Profit Housing Program

Municipal Non-Profit Housing Program (Pre-1986)

Local Housing Corporation

Subject: NONJNCOME PRODUCING ASSETS -2011 IMPUTED RATE OF RETURN (Replaces HDIV2009-152)

Background:

The Social Housing Reform Act, 2000 and O.Reg. 2g8/0l requires rent-geared-to-income (RGl)tenants/members who possess non-income producing assets to have an imputed income charge addedto their gross income for these assets for the purposes of calculating rents/housing charges.

This annual imputed income is determined by multiplying the value of the non-income-producing assetsby an imputed rate of return. The imputed income approximates the income that tenants could reasonablyexpect to receive if their assets were converted into conventional financial investments.

Section 50(9) of Ontario Regulation 298101states that calculations for imputed monthly income on non-income producing assets will be based on one twelfth of the annual interest rate payable in the first yearon the most recent November issue of Canada Savings Bonds, with the annual interest rate roundeddown to the nearest whole percentage.

...t2

HND 2011-158

Current Canada Savings Bond interest rate information is always availableDo not use the rate for the Canada Premium Bonds.

The most current information shows:Series 126 - issue date November 1,2010, is 0.65%

Action:

Housing Providers are to verify non-income producing assets by requesting documentation fromtenants/members when conducting annual income reviews and completing rent-geared-to-incomecalculations.

Effective December 1,2010, the imputed rate of 0% is to be applied to the value of any non-incomeproducing assets as defined under the SHRA and accompany regulations and added to the household'stotal monthly adjusted income for the purposing of calculating RGI rent.

Louise StevensDirector of Housing

Attachment...Canada Savings Bonds Annual Interest Rates Table

at http://csb.oc. calabout/rates/

Page 2

CA}IAÞA SAV:ITGS BONÐS ANNUAL INTEREST R{TEST.4.UX Ð'TNTÉRÈT,4NNUELS ÐÐS OBLTGATIONS D'TìPARGNE DIi CAN,TÐA

For the year beginninq based on issue date / Pour I'année commençant selon la date d'émission

s92-l 02/2011 csB

CäI\¡AÞA SAV:iIGS BONÐS ANNLT"{i, TNTERÐST R .T'ÐS

TÁ.ÜX Ð'TJÌTÉRÊT A,NNUÐLS ÐÐS $BLIçATIONS Ð'ËP,{R.GNE DU CANÄÐ.A.

For the year beginning based on issue date / Pour I'année commençâDt selon Ia date d'émission

s92-1 022011 CSB

CANADA SAVT]ìçGS BONÐS ANNTTÅL TNTERÐST RA^TTSTAUX Ð'ÍNTÉRÊT,TNNUELS ÐÐS OBLTçÀTTONS D'EPARGII¡E DU C,{NAÐ.4^

For the year beginning based on issue date / Pour I'année commençânt selon Ia date d'émission

s92-1 022011 CSB

* These i¡tsest rates in the abov€ table are averages rornded to 2 decimals. Actlal Ínterest paid on annual

anniversaries or at redemption is ælculated based on interest rates that a¡e rounded to 7 decimals.

Accordingly, ifone was to veri& the interest amount based on the above rates, there may be a slightdifference with the amount of actual interest paid.

CAFIAÞA SAV¡¡ÈGSTÅ IíX Ð' TNTÉRÊT A NI-NãJELS

For the nnins based on issue date / Pour I'année com

BÛNÐS ASi\UåL INTÐRÐSI' .R"4"TAS

ÐES ÕBLfG.4T:ONS Ð'ÉFAR.GNE ÐT1 CÄNAÐ,{

ant selon la date d'émission

Ces taux d'intérêt (tableau cidessus) représentent des moyemes a¡rondies aux deux décimales. Les intérêts

an¡iversaires ou lors du rachat sont calculés à parür de taux mondis à 7 décimales. En conséquace, si I'on vérifie Ie mtntanten intérêt à partir des taux susmentiomés, il peut y avoír me légère différence avec Ie montant en intérêts effectifs versés,

verss aux

s92-1 022011 CSB