Whats the impact on Housing Providers and on Service Managers?
The revised formula is designed to keep the financial operations of housing providers in a neutral state (i.e. where benchmark revenues equal benchmark costs). For providers under the revenue-based model its means a form of financial assurance knowing that when costs exceed rent revenues, will increase subsidies to mitigate the situation. But it does not mean that providers get whatever they want. Subsidies are still pegged to benchmark revenues and benchmark costs. Providers must still operate in as efficient a manner as possible by making sure proper rents are charged, non-rent revenues sources are explored, and costs efficiency strategies are in place. ONPHA can be of help in each of these areas. For all providers (both mixed project and 100% RGI) the cost indices will be tracked by the Consumer Price Index (CPI) which is produced by Statistics Canada and represents an independent data source that keeps up with current economic conditions. Each of the benchmark operating costs will
