Differences Between the On-Reserve Non Profit Housing Program pre-1997 and post-1996

In 1997 changes were made to the On-Reserve Non Profit Housing Program (Section 95) which resulted in some First Nation communities having subsidized housing units under two differing programs. The points below outline the key differences between the pre-97 and post-96 programs:

• Subsidy Calculation
• Rental Calculation
• Replacement Reserve Contribution
• Replacement Reserve Expenditures and
• Operating Surplus

In the Pre-97 Program, the maximum Section 95 assistance is determined based on the difference between the eligible capital cost at the mortgage interest rate and 2% over 35 years; actual assistance provided (up to maximum) depends on project need;

• maximum assistance changes when there is a mortgage renewal due to the change in mortgage interest rate
• a portion of this assistance is predetermined (to assist in operating costs) and the remainder is for income testing; the split will fluctuate according to the operating needs of the project.
• assistance bridges the gap between the amount the tenant can pay according to the Rent Geared to Income (RGI) scale and the Lower End of Market (LEM) rent (provided sufficient assistance is available).

Under the Post 1996 Program the assistance available is determined at commitment based on eligible operating costs less revenue.