Provincially delivered NHS programs

Ontario has committed to meet its rent-assisted expansion target by March 31, 2028, and has dedicated funding to this specific objective (see Table 1). To further bolster target achievement, MMAH is also working closely across government to ensure that provincial initiatives under development will align with requirements to contribute to the NHS 15% expansion target for rent-assisted units.

Canada-Ontario Community Housing Initiative (COCHI)

COCHI helps maintain Ontario’s social housing supply (for example, repair funding for existing stock), including Urban Native Housing (UNH) units, and is expanding the supply of rent-assisted units. The initiative helps to protect tenants living in projects with expiring operating agreements/mortgages and promotes the long-term sustainability of non-profit and co-operative housing providers.

Ontario is implementing a plan to work with SMs to ensure that its expansion of rent-assisted units target is met. In addition to focusing on the expansion of these units, COCHI funding will continue to protect tenants and preserve the existing social housing supply. Under COCHI, funding is directed to social housing providers that demonstrate their potential for long-term sustainability. For providers whose original obligations have expired, or mortgages have matured, funding will only be accessible if they remain in the community housing system.

Funding priorities for the third Action Plan period include:

• Using COCHI funding to create new community housing units that will help MMAH meet its expansion target of rent-assisted units (as shown in Table 1)
  • Ontario is making a concerted effort to direct NHS funding to support projects that lead to the expansion of these units.
• Protecting RGI tenants in non-profit and co-operative housing projects with expiring operating agreements/mortgages through ongoing geared-to-income rent, where the provider continues to receive an operating subsidy or enters into a rent supplement agreement (a rent supplement is a subsidy paid to the landlord on behalf of a household in need of rental assistance).
• Assisting community housing providers to remain viable and continue to provide community housing. This can take the form of one or more of the following:
  • a transitional operating subsidy agreement associated with achieving housing provider financial independence and sustainability
  • access to repair funding to support the maintenance of existing stock and provide ongoing financial independence and sustainability
  • a rent supplement agreement for a set number of rental units
• Maintaining the number of UNH units through repair, capital replacement, household affordability support and/or operating subsidies to achieve provider sustainability.
  • Addressing the housing needs of Indigenous Ontarians is also a critical priority. Ensuring that the number of UNH units is maintained, and that the retained units are repaired to good condition, will benefit the vulnerable populations that live there. Tenants will benefit from better living conditions and extended life of the stock.
• Supporting effective transitions for non-profit, co-operative, and municipally owned community housing into the new regulatory framework for community housing.

The preservation of social housing through COCHI will help to maintain existing housing in areas that are often already accessible to services, employment opportunities and transit. SMs can use funding to increase the supply of community housing, which addresses local needs and priorities that are consistent with local housing and homelessness plans. This supports the creation of more livable and inclusive communities.

Repairs to social housing under this initiative also provide employment through local companies in municipalities across Ontario. Local employment benefits will continue into the future as the installed building systems, such as heating and cooling, would need local companies to provide ongoing maintenance.

Results to date

Ontario has made significant progress against most of its COCHI-related targets. In some cases, the province has exceeded 9-year targets that were to be achieved by 2027–2028. For example, Ontario’s inaugural 3-year NHS Action Plan set a target for the number of units that continue to be offered in social housing with a maintained rent subsidy (131,063) as well as the number of these units that were to be repaired (20% of this total, or 26,213). As of March 31, 2024 Ontario has already achieved these targets.

While this overachievement has helped to ensure that the broader social housing stock continues to be maintained in a state of good repair, additional ongoing investments to address the repair backlog will be necessary to mitigate medium to long-term supply-side pressures that may result from a deteriorating stock. Ontario will continue to explore opportunities to address other areas of housing need, including repairs and the maintenance of existing social housing stock, while prioritizing the target to expand rent-assisted units.

Ontario Priorities Housing Initiative (OPHI)

OPHI provides funding to address local housing priorities and improve access to affordable housing options. The initiative will help to increase affordable housing supply, increase housing affordability, and improve the state of repair of the affordable and social housing stock. Eligible funding activities include:

• increasing community housing supply (for example, construction of housing or conversion to housing)
• preserving affordable and community housing, which can include repair, renovation, or adaptation of housing
• providing affordability support such as housing allowances, rent supplements and homeowner down payment assistance
• providing support services to affordable and social housing tenants

Ontario will prioritize the NHS expansion target with OPHI funding, while providing flexibility, where possible, so that SMs can also address local program needs. SMs and IPAs are required to prioritize funding to address the housing needs of the identified vulnerable populations. Up to 20% of cost-matching funding can also be used to provide support services to ensure housing retention, greater self-reliance and social inclusion, for tenants/occupants. IPAs also deliver an Off-Reserve Indigenous Housing component.

A key objective of OPHI is to incorporate energy efficiency into new affordable housing units and building design. Through the program guidelines, SMs and IPAs are encouraged to prioritize projects that include the use of energy efficient features.

Under the Rental Housing component, recommended projects are expected to maximize achievable reductions in energy consumption and greenhouse gas emissions that either meet or exceed the current Ontario Building Code requirements.

Under the Ontario Renovates component, eligible activities include repairs and rehabilitation required to bring a home/unit to an acceptable standard while improving energy efficiency. The Home Repair sub-component includes assistance for low and moderate-income homeowner households to increase accessibility of their home through modifications and adaptations. The Multi-Unit Rehabilitation sub-component includes assistance for landlords of eligible rental buildings and community housing providers to rehabilitate units that require essential repairs and/or modify units to increase accessibility.

SMs and IPAs are required to prioritize and track community employment benefits for large rental projects. SMs/IPAs are also encouraged to give priority consideration to projects that provide community employment benefits, including work contracts for small and medium-sized businesses and job creation for apprentices, Indigenous peoples, women in construction, veterans and newcomers to Canada.

Between 2021–2022 and 2027–2028 OPHI funding declines on a year-over-year basis from a high of $99.9M in 2021–2022 (joint federal provincial funding) to a low of $22.0M in 2027–2028 (provincial funding only). Recognizing the decline in funding over the remainder of the current NHS agreement, Ontario plans to prioritize its investments during the final three-year action plan to address local housing need and achieve its 9-year OPHI related targets.

Results to date

Ontario has made substantive progress with respect to its OPHI targets, again exceeding several 9-year targets that were to be achieved by 2027–2028. For example, Ontario’s first 3-year NHS Action Plan set a 9-year target for the number of affordable rental units to be renovated/repaired (3,248) as well as the households in receipt of housing-related supports (3,949).

As of March 31, 2024, Ontario had made renovations/repairs to over 35,245 affordable rental units. This outcome exceeds the existing repair target by 31,997. In addition, as of March 31, 2024, 21,620 households are in receipt of housing-related supports. More recently, Ontario’s second 3-year NHS Action Plan targeted rental affordability assistance for 15,834 households. As of March 31, 2024, the Province has already exceeded this target.

Ontario's 15% expansion of rent-assisted units target

Ontario is currently on track to meet the NHS Rent-Assisted Expansion Target and is now forecasting over 12,400 units (63% of final target) by 2024–2025 with 3 years remaining and funding continuing to ramp up under COCHI, the highest funded NHS program.

As a demonstration of Ontario’s commitment to meeting this target, in December 2024, the Ministry received approval for additional 2024–2025 COCHI funding to be designated for ready-to-build affordable housing projects across the province. This funding is being used to create additional long-term affordable housing supply quickly, targeting areas of high need.

Ontario’s plan dedicates significant funding to the creation of rent-assisted units over the remaining 3 years of the NHS to achieve its overall expansion target by March 31, 2028 (see Table 1). Ontario’s approach takes into consideration the feedback received during regional sessions with all 47 of Ontario’s SMs and its 2 IPAs, as noted above, and builds on existing budgetary planning processes.

As part of SMs NHS budgetary planning process, SMs submit annual investment plans, which are subject to Ministry approval. These plans detail how SMs propose to use their NHS funding allocation. In the final 3 years of the NHS, approval of investment plans will be contingent on SMs forecasting the creation of a minimum number of new rent-assisted units that, taken together with other provincial initiatives, will ensure Ontario meets its Expansion Target. The Ministry will continue to monitor progress against SM investment plans throughout the year, with additional measures to be implemented, as necessary, where risks to the target are observed (for example, potential use of an applications-based funding process).

Based on this monitoring, MMAH will also identify any potential year-end COCHI and OPHI savings, as applicable, over the next 3 years to ensure this funding is directed towards the creation of new rent-assisted units eligible to count towards the expansion target.

The ministry will also continue to engage with SMs to highlight what additional programs outside of NHS (for example, Homelessness Prevention Program) could support the creation of eligible rent-assisted units and would also encourage SMs to use all tools available (including municipal initiatives) to create these units.

This work will take place alongside the implementation of more robust data collection and reporting mechanisms, bringing greater transparency to Ontario’s current and future affordable housing commitments (see NHS Reporting Enhancements section). This work includes:

• Ongoing work with ministerial partners for example, Ministry of Health (MOH) to identify units that could be counted towards the expansion target (such as supportive housing units that serve vulnerable populations).
• Implementing reporting enhancements with SMs/IPAs that better capture other potentially eligible units, including the expansion of rent supplements to units that support low-income households.
• Continuing to work closely with CMHC to confirm unit eligibility towards the expansion target and validate related data while identifying opportunities for joint funding of new supply initiatives (for example, Housing Accelerator Fund).
• Reviewing other provincially-delivered programming to identify units that potentially align with federal NHS eligibility requirements for counting towards the expansion target.

This work is in addition to recent policy changes to enhance the supply of affordable housing, including:

• Eliminating and reducing municipal development-related charges (development charges, parkland dedication fees and community benefit charges) for eligible affordable housing units and non-profit housing developments.
• Implementing an inclusionary zoning framework to require new affordable housing units, some of which may be affordable rental units, as part of market housing development near transit.

MMAH has also been working closely across government to ensure that provincial initiatives under development will align with requirements to contribute to the 15% expansion target. For example, the province’s MOH has recently announced funding for the creation of Homelessness and Addiction Recovery Treatment (HART) hubs which will include a supportive housing component. MMAH has worked with MOH to identify eligibility requirements that will allow supportive housing units created under these initiatives to be counted towards the expansion target.

Beyond NHS programs, MMAH is also considering options to incentivize or direct the creation of rent-assisted units through other ministry policies and programs.

Results to date

Ontario’s first 3-year NHS Action Plan set a target for the construction of 19,660 new rent-assisted units by the end of the 2027–2028 fiscal year. This target is equal to 15% of the baseline for the number of social housing units that continue to be offered with a maintained rent subsidy (15% of 131,063 units) over the duration of the NHS. Both NHS (COCHI and OPHI) and non-NHS programs (for example, Homelessness Prevention Program, or HPP) that support the creation of new rent-assisted units (below market) can be counted towards the target provided that certain eligibility criteria have been met.

As of September 30, 2024, Ontario has added 10,771 units against this target (55% of the target). This includes new rent-assisted units delivered under COCHI, OPHI, the Social Services Relief Fund (SSRF), the Rapid Housing Initiative (RHI) and the Affordable Housing Fund (AHF) (with the latter two federal initiatives supported with ongoing HPP funding), and supportive housing units delivered by the Ontario MOH. Ontario’s second 3-year Action Plan forecast an additional 1,657 units in 2024–2025, which would bring the total number of units to 12,428 (63% of the target) by March 31, 2025.

Based on current information, 510 additional units are now being forecast to be created in 2024–2025 (2,167 total for the year), resulting in an anticipated total of 12,938 units (66% of target) by March 31, 2025. The current Action Plan continues to forecast the creation of an additional 7,232 (37% of target) rent-assisted units over the final 3 years of the NHS in alignment with the province’s second 3-year Action Plan.

Following Ontario’s submission of its 2024–2025 Year-end NHS Progress Report in Spring 2025, and subsequent validation by CMHC, Ontario will revisit its expansion target planning, as appropriate.

Canada-Ontario Housing Benefit (COHB)

COHB increases affordability of rental housing in Ontario by providing portable housing benefits directly to households in need that are on, or eligible to be on, a social housing waiting list and to households in financial need living in community housing. Unlike other forms of housing assistance such as rent-geared-to-income (RGI) assistance, the COHB benefit is tied to the household and not to a physical housing unit, allowing the benefit to move with the household to any SM area in Ontario. As a result, recipients have more flexibility to choose where they live to be closer to family, social support networks, schools, and employment opportunities.

Priority for COHB is given to survivors of domestic violence and human trafficking, persons experiencing or at risk of homelessness, Indigenous persons, seniors, persons with disabilities and households that will no longer receive housing assistance due to expiring social housing operating agreements/mortgages and/or federal/provincial programs.

Eligible applicants receive a monthly COHB benefit that is calculated based on the difference between the greater of 80% Average Market Rent (AMR) within the SMs area or the applicant’s Shelter Costs (rent plus utilities), up to a maximum of 100% AMR and 30% of their Adjusted Family Net Income (AFNI). The benefit calculation also assumes a minimum contribution towards rent by the household.

From 2024–2025 to 2028–2029, Ontario will cost match the additional federal COHB commitment of $97.4M for the Survivors of Gender Based Violence (SGBV) stream. Funding under this stream will support 5,479 additional COHB households, including a minimum of 2,477 SGBV households.

As part of the MMAH’s efforts to support SGBV households, beginning in the 2024–2025 fiscal year, the ministry provided SMs with a waiver that exempts them from the requirement to remove households from RGI assistance waitlists once they accept COHB. The exemption will apply for Special Priority Policy (SPP) applicants (for example, SGBV) only. This change will help contribute to Ontario meeting its revised NHS targets for SGBV.

In 2023–2024 approximately 1,855 new SGBV households were assisted through COHB. On average, survivors receive a monthly COHB benefit of approximately $900. Since the start of the program, approximately 2,483 survivor households have been assisted, which represents approximately 10% of all households assisted.

Due to the program’s historical focus on survivors, the SGBV stream is integrated with the existing COHB program, noting that the COHB currently provides a monthly subsidy directly to low-income households to assist with housing costs.

For households, including survivor households, this approach has multiple benefits:

• It gives people on a social housing waiting list a potential option to receive a housing benefit that would give them more flexibility and choice about where they live, so they could choose to live closer to employment, childcare, schools, or family; and
• It may help applicants who like where they are living but face affordability challenges to remain where they live.

Local municipal SMs assist households to complete COHB applications which are sent to the Ontario Ministry of Finance (MOF) to determine eligibility. The eligible applicants receive a monthly PHB based on the AMR of the SM area in which they reside, their rental cost, and the AFNI. Eligible households may also receive first and last month’s rent assistance directly from SMs.

Results to date

As of March 31, 2024, over 44,100 households have been supported with housing allowances provided through COHB as well as the OPHI Housing Allowance initiative. By the end of 2027–2028, the federal government and Ontario plan to work together to provide housing allowances to over 59,438 households, which includes a minimum of 2,477 individuals and families identifying as SGBV, as noted above.

Due to high ongoing demand from new and existing households, the total number of COHB beneficiaries increases year over year. Given this demand, Ontario remains confident in its ability to achieve the overall COHB target of approximately 43,000 households by the end of the NHS in 2027–2028.

However, without a long-term federal-provincial funding commitment beyond March 31, 2028, it will be challenging to maintain the program and by extension, support for a significant number of vulnerable households. As such, the provincial and federal governments will need to work together around next steps, including support for households enrolled in the program as of March 31, 2028, the number of which is likely to be higher than at any other point in the program at that point.

NHS reporting enhancements

Ontario has worked to develop new data collection mechanisms to address existing data gaps and improve tracking towards NHS targets, particularly accounting for rent-assisted units which are eligible to count towards the 15% expansion target. These changes have been instrumental to enable Ontario to demonstrate improved progress towards expansion targets to date. The province will continue to explore how best to consolidate and simplify reporting to reduce reporting burden among SMs and IPAs.

Moving forward

The NHS bilateral agreement expires on March 31, 2028. With the end of the NHS approaching and in the absence of federal commitments for longer-term funding beyond this date, Ontario, along with its provincial and territorial partners will continue to work closely with the federal government to determine next steps. This includes multilateral federal-provincial-territorial (FPT) discussions around a future funding commitment and the establishment of a strategic framework to achieve better housing outcomes across the housing continuum. Starting in 2026, Ontario will continue to lead these discussions on behalf of PTs, as the provincial co-chair of the FPT Housing Ministers Forum.