Glossary

Terms are listed alphabetically. Specific types of housing, such as "supportive seniors" or "LIUS" may be found alphabetically under HOMES BC.

A-B - see below;  C-G   H-L   M-O   P-Z

GLOSSARY OF TERMS

Amortization Period ~ Assets with a long but limited life are amortized, or depreciated, over the life of each asset to show the asset as a cost of operation, and to recognize the cost over its useful life.

Annual Review ~ On the anniversary of the date each building opened, societies and housing co-operatives review household income and family composition for everyone who receives rent/housing charge subsidies. Tenant rent contributions are adjusted at this time, if necessary. BC Housing sends annual review packages containing all the required forms. Residents paying non-RGI rents or housing charges are not required to submit proof of income annually.

Assisted Living ~ Assisted living units are self-contained apartments for seniors or people with disabilities who need some support services to continue living independently, but do not need 24-hour facility care. Services provided include daily meals, social and recreational opportunities, assistance with medications, mobility and other care needs, a 24-hour response system and light housekeeping.

Audit ~ Professional external auditors examine financial statements to ensure there is evidence to support the amounts stated, to assess the accounting principles used in preparing the statements, and to review the overall presentation of the
statements.

BC Benefits ~ BC residents are entitled to a guaranteed minimum income called BC Benefits, through the provincial government. Monthly payments have two components — support and shelter payments. The shelter payment is a variable amount, up to a maximum, to cover shelter costs such as rent and hydro. The support rate is based on:

BC Housing ~ The provincial government agency responsible for subsidized housing in British Columbia. BC Housing owns and manages about 7,800 units of older affordable housing for families, seniors, and people with disabilities, and provides rent subsidies for affordable non-profit and co-op housing developments and some private market units.

BC Non-Profit Housing Association (BCNPHA) ~ The BC Non-Profit Housing Association is an umbrella organization of non-profit housing societies that manage affordable housing developments across the province. The BCNPHA takes a leadership role in representing the non-profit housing sector’s interests to government and the public.

Business Number ~ The Canada Revenue Agency assigns a nine-digit account number, called a business number (BN), to deal with various types of business accounts. You must apply to the CRA for a BN.

Canada Mortgage and Housing Corporation (CMHC) ~ CMHC is the national housing agency of the federal government and:

Capital Replacements ~ Capital items that need to be replaced as their useful life wears out, such as appliances, flooring, furnaces, hot water tanks, carpets, linoleum, window covering, painting and paving. These items are included in the list of eligible items for the replacement reserve fund.

Canada Revenue Agency (CRA) ~ The Canada Revenue Agency (CRA) administers tax laws for the federal government and most provinces.
CHF BC ~ The Co-operative Housing Federation of BC is an association of housing co-ops and related organizations in mainland BC. The CHF BC offers education services and conferences for member co-ops to develop democratic management practices and self-sufficiency.

Cold Wet Weather ~ Cold wet weather services include shelter facilities and services that operate and/or are funded on a seasonal basis. Shelters add cold wet weather beds (seasonal beds and mats) to provide the option of a warm, dry place to sleep for people who are homeless as winter weather sets in and the need increases. There are also emergency shelter facilities that are open only during winter months.

Co-operative housing ~ A housing development in which individual residents own a share in the co-operative. This share grants them equal access to common areas, voting rights, occupancy of an apartment or townhouse as if they were owners, and the right to vote for board members to manage the co-operative. Each member has one vote and members work together to keep their housing well-managed and affordable.

Core Housing Need ~ Households in core housing need are those individuals who currently reside in housing that is either in need of major repair, does not have enough bedrooms for the size and makeup of the household, or costs 30 percent or more of their total income, and who are unable to rent an alternative housing unit that meets these standards without paying 30 percent or more of their income.

Core Need Income Threshold (CNIT) ~ Canada Mortgage and Housing Corporation produces annual Core Need Income Threshold tables (CNITs) for each community. CNITs set maximum income levels for different sized units in different areas of the province. These incomes represent the most people can earn and remain eligible for a rent subsidy. Below these income levels, it’s difficult for people to find uncrowded housing in good repair, without spending more than 30 per cent of their income for rent.

Designated Municipality ~ The Canada Revenue Agency considers rent-geared-to-income (RGI) housing to be a municipal activity. Consequently, the CRA will designate housing providers supplying RGI housing as municipalities for the purpose of claiming rebates. Under GST legislation, a designated municipality is entitled to claim a rebate of 100% for GST incurred in providing RGI housing.

Economic Rent ~ Economic rent is the estimated amount it costs per unit per month to operate the development at a break even level. The economic rent is set at the beginning of each fiscal year and is used to calculate subsidy and repayable assistance.

Election ~ The Canada Revenue Agency uses the term election to indicate when a business or housing provider can choose among options that make it easier to comply with GST regulations. These options allow you to adapt GST requirements to your business activities, and each election has eligibility requirements.

Emergency Housing ~ Short-stay housing of 30 days or less. Includes emergency shelters that provide single or shared bedrooms or dorm-type sleeping arrangements, with varying levels of support to individuals.

Emergency Shelter ~ Short-stay housing of 30 days or less. Emergency shelters provide single or shared bedrooms or dorm-type sleeping arrangements, with varying levels of support to individuals.

Exempt goods and services ~ The GST is not charged on goods and services that are designated exempt. Organizations cannot claim an input tax credit for the GST paid on purchases related to the provision of exempt goods and services. Exempt services include rentals of residential accommodation for a month or more, sales of used residential property, and certain health services.

Federal/Provincial Programs ~ Between 1986 and 1992, the provincial and federal governments jointly funded several subsidized housing programs. Canada Mortgage and Housing Corporation pays two-thirds of the subsidy costs, and BC Housing pays one-third. CMHC forwards its share of the subsidy to BC Housing, and we pay the full amount to your organization. These programs include:

Goods and Services Tax (GST) ~ The GST is a 7% federal tax that is charged on most goods and services in Canada.

Group Home ~ A small, community-based development, usually under 10 beds/units, that provides affordable housing with supports to those with special needs including individuals with servere mental and physical disabilities, youth, and women with their children fleeing abuse. BC Housing provides administration and property management support for group homes on behalf of other provincial ministries and health authorities.

HOMES BC Homeless/At Risk (HAR) ~ HOMES BC is a provincial housing program that funds second stage housing to help lower income people at risk of homelessness. HAR developments provide an intermediate stage of housing, between emergency shelters and independent housing, and offer support services to help people regain or maintain their independence.

HOMES BC Non-Profit and Co-operative Housing ~ HOMES BC non-profit and co-operative developments provide housing for low and moderate-income families, seniors, and people with disabilities.

HOMES BC Lower Income Urban Singles (LIUS) ~ Low income single people in urban centres account for almost half of households paying 50 per cent or more of their income for rent, putting them at risk of homelessness. LIUS developments provide affordable housing for this group.

HOMES BC Multi-Service Housing ~ Multi-service housing developments combine short-term, emergency shelter beds and support services for people who are homeless or at risk of homelessness, and some self-contained, second stage apartments.

HOMES BC Rent Supplement Units ~ HOMES BC offers rent supplements to help eligible applicants pay market rents in existing private, non-profit and co-op rental housing in their community.

HOMES BC Rent Support ~ BC Housing gives some housing providers a predetermined, flat subsidy amount, called rent support, for a number of units, over a minimum period of ten years. For example, we may provide $5,000 per month for ten units for ten years, and the housing provider uses the funds to distribute subsidies to low income seniors and people with disabilities in need of assistance.

HOMES BC Supportive Seniors Housing ~ Supportive seniors developments combine secure, affordable housing with a variety of personal support services. Research has shown that supportive housing helps seniors live independently longer and can improve their health.

Housing or Occupancy Charge ~ Co-op members pay a housing or occupancy charge, similar to rent, for their units. Housing co-ops are jointly owned and managed by the members living there. Co-op members are asked to participate in decision-making, and share responsibility for running the co-op.

Housing Provider ~ Non-profit housing societies and housing co-operatives, which own and manage affordable housing developments. This term can also include private market landlords, through which BC Housing provides rent supplements to low-income households.

Interest Adjustment Date (IAD) ~ The interest adjustment date is the date your organization takes out the mortgage for the development, which occurs when it goes from the construction phase to occupancy.

Index Linked Mortgage (ILM) ~ Co-ops under the Federal Co-operative Housing Program have index-linked mortgages, a type of mortgage loan in which the monthly payment changes each year with the change in the Consumer Price Index. Thirty to 50 per cent of the units in these co-ops are available for people with lower incomes.

Input tax credit (ITC) ~ Businesses pay GST on most purchases and expenses related to taxable activities. An input tax credit (ITC) is a full refund of this GST, claimed in the GST return. Generally, an organization registered for the GST is entitled to claim an input tax credit for 100% of GST paid on expenses related to taxable goods and services (including zero-rated).

Land Lease ~ Most developments are built on land owned by the Provincial Rental Housing Corporation (PRHC), a Community Land Trust, a municipal government, or a non-profit agency, and leased to the non-profit societies and housing co-operatives that manage the developments. Most land leases are prepaid, and the cost is included as part of the mortgage payment, although some leases require a separate monthly or quarterly payment.

Market Rent ~ Market rent means the amount a unit could be rented for on a monthly basis in the private market, based on an appraisal. Even though the economic, or break even, rent for operating a unit may exceed the market rent, an individual’s rent contribution will not exceed the market rent.

Market Rent Review ~ Market rents are reviewed periodically, based on the amount of rent someone would pay for a unit that size in the private market. Rents can be appraised and adjusted annually, but not more than once a year.

Mortgage ~ The mortgage is the loan amount borrowed to cover the cost of the development. Many mortgages also include the cost of the prepaid land lease. The mortgage must be repaid over the number of years the money was borrowed for, which is the amortization period of the mortgage.

Non-Profit Housing for the Disabled ~ This program was introduced in 1979 to support adults 19 and older, with physical, mental and psychiatric disabilities. A society covers care costs, and BC Housing pays subsidies to cover shelter costs. Residents living in group homes and self-contained units pay 30 per cent of their income for rent. The maximum amount anyone will pay is the economic rent, which is determined each year by BC Housing. (Section 82(1)(a) of the National Housing Act.)

Non-Profit Housing ~ Rental housing that is owned and operated by community-based non-profit societies. The mandates of these societies are to provide safe, secure, affordable accommodation to households with low to moderate incomes. Most non-profit housing societies receive some form of fincancial assistance from government to enable them to offer affordable rents. Each society operates independently under the directions of a volunteer board of directors.

Non-Profit Housing for Seniors ~ This program began in 1975 to provide housing for seniors, 55 and older, and these developments can also offer units to people with disabilities. Residents pay 30 per cent of their income for rent, up to the maximum, which is the economic rent. (Section 82(1)(b) of the National Housing Act.)

Non-RGI ~ Forty per cent of HOMES BC non-profit and co-op units are non-RGI, where rent is not geared-to-income. People pay rents or housing charges that are slightly lower than the cost for private market rental units. BC Housing provides “repayable assistance” to cover the remaining costs for these units, which societies and co-ops eventually repay. (See RGI and repayable assistance.)

Non-Taxable Goods and Services ~ Certain types of goods and services are non-taxable. GST is not collected on these revenues, and the person producing these goods cannot claim any input tax credits for the GST paid on expenses. Any goods and services provided by organizations that are not registered for the GST are not taxable.

Operating Agreement ~ The operating agreement is the contract that defines the roles and responsibilities of your organization and BC Housing, the criteria for selecting tenants and members, resident rent/housing charge contributions, rent reviews, budget and financial reporting requirements, rent subsidy payments, the process for transferring residents who become over or under housed, record keeping requirements, the operational review process, minimum insurance and liability coverage, and the process for terminating an operating agreement.

Operating Budget ~ An operating budget is the annual budget for a development. The budget forecasts costs for operating a development, based on income and expenses, and is used to determine how much subsidy BC Housing provides each month to run the building.

Property Portfolio Manager (PPM) ~ BC Housing Property Portfolio Managers work with society and co-operative representatives to provide assistance with budgeting and operations. They also conduct building inspections and use this information to plan for upgrading and maintenance.

Provincial Rental Housing Corporation (PRHC) ~ The Provincial Rental Housing Corporation owns real estate for social housing, and leases the land to non-profit societies and housing co-operatives.

Provincial Rental Assistance Programs (PRAP) ~ PRAP for seniors was introduced in 1979 to provide subsidized housing for senior citizens, 55 or older. This program also provides housing for adults with disabilities, PRAP for the Disabled began in 1983 to support people with physical, mental or psychiatric disabilities living in group homes. For both PRAP programs, residents pay 30 per cent of their income for rent, up to a maximum, which is the market rent.

Public Housing: This housing is jointly funded by the provincial and federal governments and predominantly managed by BC Housing. Most of these developments were constructed in the 1950s and 1960s.

Public Service Bodies ~ Under GST legislation, public service bodies include non-profit organizations, registered charities, municipalities, school authorities, public colleges, universities and hospital authorities.

Qualifying Non-Profit ~ Qualifying non-profit organizations are entitled to claim rebates of 50% of any GST that cannot be claimed as an input tax credit. To qualify, a nonprofit must receive at least 40% of its total revenue from government, or a qualifying agency, including BC Housing, CMHC, and regional health authorities.

Rebate ~ A rebate is a full or partial recovery of GST paid, and is available to public service bodies. These organizations often provide exempt or non-taxable goods and services, and cannot claim input tax credits for any GST incurred on expenses,but may qualify for a rebate of the GST instead. For example, charities and qualifying non-profit organizations can claim a 50% rebate, and designated municipalities can claim a 100% rebate of GST paid on expenses related to providing RGI housing.

Registered Charity ~ For GST purposes, registered charities must have a registration number issued by the Canada Revenue Agency, and can issue official income tax receipts for donations. Housing providers who are registered charities are entitled to claim a rebate of 50% of GST that cannot be recovered by claiming input tax credits.

Rental Assistance ~ Rent supplement agreements with private landlords as well as housing allowances paid directly to households in the private market.

Rent/Housing Charge Roll ~ A rent/housing charge roll lists who is living in each unit in a development, how much the rent is for each unit, whether the rent is paid every month, when and how the rent is paid, and how much rent has been paid. The roll enables groups to monitor and control arrears, and keep track of rent/housing charge contributions, which affect cash flow, the operating budget and subsidy payments.
Rent-Geared-to-Income (RGI) ~ In social housing, many people with low or modest incomes pay 30% of gross household income toward the rent/housing charge, which is called rent-gearedto-income, or RGI, housing.

Repayable Assistance ~ Housing providers charge 90 per cent of the market rent for residents in non-RGI units. BC Housing sends ‘repayable assistance’ to cover the difference between 90 per cent of the appraised rent and the cost of operating the units — called the economic rent. Initially, the economic rent will exceed the non-RGI amount you charge. But the gap between the non-RGI amount and operating costs begins to close over the years. When market rents exceed economic rents, you start repaying the loan assistance, using the surplus funds you collect from the non-RGI rents. Refer to Chapter three for more information on repayable assistance.

Replacement Reserve ~ Developments are required to have a replacement reserve to set aside funds in the annual budget to cover the future replacement cost of refrigerators, stoves, furnaces and other major capital replacement items.

Self-Supply Rules ~ Self-supply refers to the liability to pay the GST when a new housing development or a substantial renovation of an existing housing development is complete. The housing provider is deemed to have sold and repurchased the development, and is therefore liable for the GST.

Small Supplier ~ Organizations considered small suppliers are not required to register for the GST. Asmall supplier means a business or organization with annual revenues from taxable goods and services of less than $30,000. The threshold for public service bodies, which include charities and non profit organizations, is $50,000. In addition, a registered charity with less than $250,000 in annual revenues is also a small supplier, even if taxable revenues exceed $50,000.

Social Housing ~ This housing includes both public housing and housing owned and managed by non-profit and co-operative housing providers.
Subsidy ~ BC Housing advances monthly subsidies to organizations to cover the costs of operating affordable developments. The amount of the subsidy is based on the operating costs set out in the annual budget, less the total rents/housing charges collected from residents. Subsidy payments include rent subsidies/repayable assistance, and cover the mortgage payments, building maintenance and other shelter related costs.

Subsidized Housing ~ This type of housing emcompasses all types of housing in which the provincial government provides some type of subsidy or rental assistance, including public, non-profit and co-operative housing, as well as rent supplements for people living in private market housing. It also includes emergency housing and short-term shelters.

Substantial Renovation ~ Substantial renovation is considered new construction and requires the renovation or alteration of 90% or more of the interior of an existing residential building.

Subsidy ~ BC Housing provides monthly subsidies to organizations to fund the costs of operating subsidized housing units. The subsidy is based on the operating costs set out in the annual budget, less the total rents / housing charges collected from tenants. Subsidy payments include rent subsidies / repayable assistance and cover the mortgage payments, building maintenance and other shelter-related costs.

Supportive Housing ~ There is no limit on the length of stay. Provides ongoing supports and services to residents who cannot live independently and who are not expected to become fully self-sufficient. This form of housing may be located in a purpose-designed building or scattered site apartments.
Taxable Goods and Services ~ GST is charged on taxable goods and services. GST registered organizations must collect the 7% GST on most goods and services they provide, although some specific goods and services are not taxed.

Tenant Rent Contribution ~ Organizations running subsidized housing developments calculate how much rent or housing charges tenants and co-op members will pay for RGI units. The amount will vary depending on the number of people in the household and the total household income. The most common formula for the tenant rent contribution is 30 per cent of household income. Refer to the Rent Calculation section of the Operations Guide for detailed instructions on calculating rent contributions.

Tender ~ When organizations need contract or repair work done, competitive bids may be obtained by putting the contract out to tender to compare estimates and obtain the best combination of price, quality and service.

The Housing Registry ~ Centralized database of applicants' information and housing providers co-ordinated by BC Housing. It allows individuals to apply for housing with multiple service providers using one application form.

Transitional Housing ~Housing from 30 days to two or three years that includes the provision of support services, on- or off-site, to help people move towards independence and self-sufficiency. Transitional housing is often called second-stage housing, and includes housing for women fleeing abuse.

Zero-Rated Goods and Services ~ Zero-rated goods or services are considered taxable, but tax is charged at zero per cent, so no tax is collected. An organization providing zero-rated goods and services is not required to collect the GST, but the organization can still claim an input tax credit for GST paid on expenses, because the goods and services are classified as taxable. Prescription drugs, medical devices and basic groceries are a few examples of zero rates goods and services.