Section 19 - Shelter, Utilities And Fuel

19.1.1 RENTAL GUIDELINES

General Guideline

Rental rates in the following table apply to all EIA participants residing in private rental accommodation. The director and designate have the authority to exceed the maximum rent guidelines under exceptional circumstances.

Family Size	Basic Rent	Rent Including Fuel and Utilities
1 Person	$ 243.00	$ 285.00
- general assistance	Rent up to $285.00
2 Persons	285.00	387.00
3 Persons	310.00	430.00
4 Persons	351.00	471.00
5 Persons	371.00	488.00
6 Persons	387.00	513.00

19.1.2 RENT INCREASES IN EXCESS OF RESIDENTIAL TENANCIES GUIDELINES

If landlords have notified Residential Tenancies that they would like to increase a tenant's rent in excess of the maximum rent increase set by Residential Tenancies, the tenant is required to pay the higher rent requested until Residential Tenancies have reviewed the request and approved a specific rent increase. The landlord must give the tenant three months notice prior to any increase in rent.

Participants must provide EIA with a copy of the decision of the Residential Tenancies Branch. If the decision results in a rent refund, the participant should provide confirmation from the landlord regarding how the refund will be paid. If the agreement is to reduce the rent for a subsequent month(s), the participant's shelter assistance should be adjusted accordingly. If the money is to be returned to the tenant in a lump sum payment, the money is to be considered a financial resource and applied as unearned income affecting the following month's financial assistance.

19.1.3 PUBLIC HOUSING

The rental rates for public housing includes Manitoba Housing direct-managed units (previously known as the Manitoba Housing Authority) and the Rural and Native Housing (RNH) Program units:

Family Size	Basic Rent	Water Incld.	Lights Incld.	Water/ Lights Incld.	Water/ Heat Incld.	Water/ Heat/ Light Incld.
1 person	$243	$253	$258	$268	$270	$285
2 persons	285	303	325	343	347	387
3 persons	310	333	343	366	395	430
4 persons	351	373	384	406	438	471
5 persons	371	393	404	426	455	488
6 persons	387	412	422	447	478	513

NOTE: In households where a mother, father and adult child are EIA participants, the three person family rate will apply. If the adult child is self-supporting, then EIA should pay the two person rate and the Manitoba Housing Authority will charge the self-supporting child an additional amount.

See also section 19.1.23 for rates in the "Rural and Native Housing Program" for home ownership units.

Participants who reside in units that have the FAST system installed (an emergency response system) should be advised that they will not be required to pay the $4.00 monthly cost of the system if they identify themselves as EIA participants. An exception to this agreement is residents of Women in Second Stage Housing (WISH) who are required to pay the $4.00 monthly charge. The director or designate may authorize payment of the fee applying the same criteria used when approving a telephone as a health need.

See also section 22.3.9 for a description of the criteria for approving telephone costs.

19.1.4 RENT INDIRECTLY SUBSIDIZED BY GOVERNMENT

Some rental subsidy programs do not make subsidy payments directly to low-income renters. Instead, they subsidize the rent in relation to renters' income. The final rent paid by, or on behalf of, EIA participants should not exceed the schedule of rates negotiated with the Manitoba Housing Authority.

EIA participants residing in subsidized shelter units should be advised that there are items other than rent, fuel and utilities associated with the costs of such units, which EIA will not always pay. Extras such as carpeting, drapes, balcony, air conditioning and washer/dryer can often be covered. Extras such as cable television, parking, sauna or pool will not normally be paid for by EIA. Participants should be advised that they might have to pay for the costs of these extras themselves without any reimbursement through EIA.

19.1.5 RENT DIRECTLY SUBSIDIZED BY GOVERNMENT

Some provincial programs make rent subsidy payments directly to low-income renters rather than subsidizing them through the cost of rent. SAFER and SAFFR are examples of such programs. EIA participants cannot be enrolled in direct rental subsidy programs. If participants want to enrol in either SAFER or SAFFR, they must first leave EIA. However, participants whose cash assistance has stopped and are enrolled only in the EIA Health Services program may be enrolled in SAFER or SAFFR.

19.1.6 CONFIRMING RENTAL INFORMATION

Tenancy information should be obtained from the standard Residential Tenancy Lease Agreement Form obtained by the applicant or participant from the landlord.

Where a standard lease agreement is not available, staff should confirm the amount of monthly rental by obtaining rent receipts from the participant. Any additional details may be obtained by specific request to the participant or landlord. All relevant information pertaining to landlords should be entered into SAMIN with adequate case notes explaining the rental arrangements. Providing this information is entered, there is no further need for a rental agreement or rental form to be placed on the hardcopy file.

When EIA is advised that the legal owner of a property has changed, EIA is responsible for confirming that the property transfer has occurred, prior to making any changes in SAMIN. EIA staff must obtain a copy of the "Certified Status of Title"' document, or a letter from the new owners' lawyer, which includes that the lawyer is acting on the new owner's behalf and that the lawyer has registered a transfer of land. The letter must also include the date and registration number of the transfer of land. Confirmation of the new landlord's full name and address, and the name and address that the landlord wants the rent cheques mailed to (if different from above) must also be received.

19.1.7 RENT PAID DIRECTLY TO LANDLORDS

The EIA program may pay rent directly to a landlord:

1. upon written request of the participant;
2. upon the request of a landlord if the participant agrees in writing; or
3. with the participant's written approval, if he or she is two or more weeks in arrears.

It is important that third party numbers, which are created for direct payments to landlords, include accurate information. Any requests for corrections to landlord information, or, for the creation of new third party numbers, must be sent to Central Accounts.

19.1.8 SECURITY DEPOSITS

A security deposit of up to half of one month's guideline rent may be required where there is a written tenancy agreement between tenant and landlord. The security deposit can be paid as a shelter benefit under Schedule A, section 2(b)(ii) of the Regulation. This payment is to be allowed once per case.

The security deposit is refunded at the termination of the rental agreement and applied to the next rental agreement. Participants are expected to recover the initial security deposit from the first landlord within the 14 day prescribed time frame established by the Residential Tenancies Branch.

The following principles apply when administering security deposits:

Security Deposits Issued by the Department

1. All participants are allowed one security deposit per case.
2. When a participant moves and requires another security deposit while waiting for the landlord to return the previous deposit, a new security deposit may be advanced. The previous security deposit is to be considered a financial resource and deducted from the next benefit month’s budget.

   If, after 14 days, the landlord does not return the security deposit or returns only a portion of it, and the participant indicates that they do not have sufficient funds to meet their needs for the month, the director may approve additional funds as recoverable duplicate assistance, up to the amount of the previous security deposit which was not returned.

   The participant is to be referred to the Residential Tenancies Branch if they do not receive their security deposit within 14 days of vacating their previous accommodation.

3. If a security deposit is returned in full or in part and the participant does not require an additional security deposit, the amount returned is to be considered a financial resource and deducted from the next benefit month’s budget.

4. If a security deposit was not returned by the landlord in the past and the participant requests another security deposit for new accommodations, staff must determine if:
   1. the past security deposit was previously considered to be a financial resource and deducted from the participant’s budget. In this case any new security deposits issued become the first security deposit.
   2. the security deposit is still outstanding on the participant’s file. In this case, when a new security deposit is issued, the value of the lesser of the two security deposits is to be recovered as duplicate assistance.
   3. only a portion of the security deposit is/was returned by the landlord. In this case, the duplicated portion of the security deposit is to be entered as an overpayment. For example, a participant was issued a damage deposit of $200.00 and the landlord returns only $100.00. The participant requires $250.00 for a security deposit for new accommodations leaving a shortfall of $150.00. The Department issues the participant $150.00 of which $100.00 is considered duplicated assistance and must be recovered as an overpayment. The additional $50.00 is considered to be new money and not recoverable at this time. The existing security deposit now stands at $250.00.

Security Deposits Paid by the Participant

The following policies apply to security deposits that were paid by the participant, whether before or during their enrolment.

1. If a security deposit is returned to the participant by the landlord and another deposit is not required, the returned deposit:
   1. Is to be applied to the allowable liquid asset exemption level for the family and is not to be deducted from the next benefit month’s budget as a resource unless the allowable liquid asset exemption level is already at it’s maximum;
   2. if the liquid asset exemption level is at it’s maximum the returned security deposit is to be considered an available financial resource and deducted from the next benefit month’s budget; or
   3. if the liquid asset exemption level only allows for a portion of the returned security deposit to be applied, the remaining amount is to be considered an available resource and deducted from the next benefit month’s budget.
2. If a security deposit is returned to the participant in full or in part by the landlord, and the participant requires a deposit for new accommodations, a new security deposit is to be issued as a first security deposit by the Department.
3. If a security deposit is not returned by the landlord and the participant requires a new deposit, the deposit is not to be entered as an overpayment as it is the first security deposit issued by the Department.

The Director may approve financial assistance for participant relocation and issue funds for security deposits where there is reasonable justification for the move (e.g., present residence uninhabitable, change in family size, lower rent at the new location, closer proximity to confirmed employment or training).

19.1.9 SHARED RENT

Rent Sharing

Rent sharing is defined as two units of people (two singles, a single and a family or two families) living together who share rental costs. Each adult who shares an accommodation is considered to be a separate unit, unless he or she is either legally married or living in a common-law relationship. This policy applies regardless of the co-tenants' source of income.

Authorization of Rent Sharing Agreements

Rent sharing agreements may be authorized where staff are satisfied that the arrangements are stable.

Shelter Costs

Actual shelter costs, not exceeding current shelter cost guidelines, are to be applied to each separate unit, proportionately to the size of the unit. The shelter guidelines are considered to be the maximum rate payable. Assistance in excess of the guideline may not be approved. The amount of rent and utilities paid by each party is to be divided in an equitable manner and the names of all tenants must appear on the lease or rental agreement.

Agreement Breakdown

Participants must be advised that they will have to find alternate living arrangements should the arrangement break down and the total rent is in excess of the rental guideline. EIA will not pay additional shelter costs, in excess of the guideline, because of the failure of a shared rent arrangement.

More Than Two Units of People Sharing Accommodation

Where more than two units of people are proposing to share accommodations, the case will be referred to the director or designate for consideration.

19.1.10 CO-OPERATIVE SHARE PURCHASES

EIA participants who require assistance to purchase share equity in housing co-operatives are eligible to receive one-half of the regular monthly housing charge, within the permitted rental guideline or approved excess, for the purchase of shares in a housing co-operative. This assistance is to be provided in lieu of a security deposit.

19.1.11 MORTGAGE PAYMENTS

Under Schedule A, section 2(c)(i) of the Regulation, the director or designate may approve mortgage payments for new or re-enrolled participants where the combined principal, interest and current net taxes are comparable to the relevant rent guideline amount.

The participant must be advised upon enrolment of the shelter guideline amount and that each case involving homeowners is reviewed to determine the amount of financial assistance to be provided. Staff should obtain the necessary background information relating to both the mortgage and the participant's situation. Special attention should be given to situations where the aggregate of the payments exceed the rental guideline amount, there is little or no equity involved, or bank foreclosure is likely or in process.

The director or designate may approve:

1. full mortgage costs for a reasonable period of time (normally four months) in order to allow the participant time to make alternate arrangements; or
2. less than the full mortgage costs on a permanent basis; or,
3. the full mortgage costs on a permanent basis; or
4. mortgage payments in excess of the relevant guideline.

Financial assistance, which covers the cost of the principal portion of a mortgage payment and tax arrears, is lien refundable.

See also section 24.1.2 for a description of lien registration.

19.1.12 NET PROPERTY TAXES AS A BASIC NEED

Shelter costs for participants who are homeowners are provided under Schedule A, Section 2(c) of the Regulation which states that:

3. home upkeep in lieu of rent for recipients who own or who are purchasing their own home may be paid as follows:
   1. the total cost of current taxes on the home and principal and interest on a mortgage or agreement for sale, up to the maximum amount that would otherwise be allowed for rent under clause (a), or an amount up to the total actual cost of taxes, principal and interest, at the discretion of the minister or any person authorized by the minister, in accordance with terms and conditions that may be prescribed by the minister,

EIA will consider net property taxes as part of the monthly shelter needs:

1. at all times for participants whose taxes are included in the mortgage payment (e.g., principal, interest, taxes)
2. only when taxes are determined to be a need for participants whose taxes are not included in the mortgage payment (e.g., principal, interest only). Need is determined to be effective from:
   • the date of enrolment on assistance, if taxes have not been paid by the applicant for that calendar year; or,
   • January 1^st of the year following enrolment, if taxes have been paid for the year of enrolment.

NOTE: Municipalities assess property taxes based on the calendar year. The due date for taxes varies with individual municipalities.

19.1.13 PROPERTY TAXES INCLUDED IN MORTGAGE PAYMENT

When the property tax amount is included in the mortgage payment, only 1/12 of the net tax amount is to be allowed in the PIT payment. Lending institutions/mortgagees use various methods to determine the tax portion of the PIT payment. For example, the mortgagee may determine the tax payment based on gross taxes for the first year and based on the net tax amount for subsequent years. The lending institution may place any balance (gross minus net taxes) in the participant's/mortgagor's tax account. Staff must ensure that the lending body uses the amount accumulated in the tax account towards taxes for the next year and not towards payment of the principal and interest. Staff will:

1. Upon enrolment, verify with the applicant/mortgagor whether the mortgage payment consists of PIT.
2. If taxes are included in the payment, determine how the applicant/mortgagor calculates the amount of taxes (i.e., whether based on net or gross taxes) and advise the participant that net property taxes will be allowed as a shelter need.
3. At enrolment and on a yearly basis, obtain a copy of the most recent property tax statement and a copy of the lending institution's/mortgagee's statement to the participant/mortgagor. The latter statement will detail the monthly portion of principal, interest and taxes, plus any other amounts (e.g., insurance).

19.1.14 PROPERTY TAXES NOT INCLUDED IN MORTGAGE PAYMENT

Net property taxes are to be prorated commencing the first day of the month in which taxes are determined to be a need (1/12 of the net taxes allocated to each month).

Taxes are to be disbursed on a monthly basis as a budgeted item either directly to the participant or to the municipality for participants unable to manage their own affairs.

19.1.15 SAVINGS INCURRED FROM PRE-PAYMENT OF TAXES

Some municipalities may allow credits for early payment of taxes. These credits may be used to offset any existing tax penalties incurred by the participant. Participants should be encouraged to pre-pay taxes, where possible to maximize saving and tax credits.

19.1.16 ANNUAL TAX RECONCILIATION AND CASE CLOSURE

Net taxes must be reconciled once a year, at the due date, in December, or at case closure. As part of the Annual Review, the method and amount of property taxes disbursed must be examined to ensure that proper reconciliation has occurred.

Reconciliation must ensure that property taxes are disbursed on a monthly basis when determined to be a need. The monthly assistance is equal to 1/12 of the annual net property tax amount for the period of enrolment, excluding any pre-payment credits or late payment penalties.

If the budgeted amount of net taxes is insufficient, a deficit payment may be issued as a non-continuous need.

19.1.17 TAX ARREARS

Payment of Arrears

Payment of tax arrears should be considered only when payment will protect the participant from losing his or her shelter and if it is considered to be practical to retain the shelter (e.g., shelter is of value or does not require extensive repairs).

The EIA office must verify the final notice of tax sale of the property with the municipality, prior to requesting authorization from the Minister or Minister's designate to pay tax arrears.

Accrued tax arrears on property owned by a participant may only be paid in a lump sum only on authorization of the Minister or the Minister's designate. If granted, the total amount shall be secured for recovery by lien in accordance with Schedule A, section 2(d) of the Regulation.

19.1.18 TAX PENALTIES

With the exception of payment of tax arrears as previously described, penalties incurred by the participant prior to application or while enrolled on income assistance is the responsibility of the participant.

19.1.19 MINOR REPAIRS

"Minor repairs" are those which do not exceed $200.00 per fiscal year. Such costs are not recoverable by lien. Assistance is provided for such expenses necessary to the upkeep and maintenance of a participant's home (e.g., furnace cleaning, sewer pipe cleaning, furnace safety checks and eaves trough cleaning).

19.1.20 MAJOR REPAIRS

"Major repairs" are those which exceed $200.00 per fiscal year as defined by section 1(1) of the Regulation. Where major repairs or alterations to housing owned or in process of purchase are essential, a recommendation will be submitted to the Minister or the Minister's designate for consideration. The director or designate may approve major repairs in excess of $200.00 and up to $3,000.00 per fiscal year for the cost of essential major repairs to the applicant's or participant's home. Amounts in excess of $3,000.00 per fiscal year continue to require approval of the Program Specialist.

Participants who request essential home improvement repairs are to provide three cost estimates containing sufficient detail about the cost of the repairs (e.g., material and labour). Less than three cost estimates may be provided in regions with few suppliers.

If approved, such costs are to be secured for refund by lien in accordance with Schedule A, section 2(d) of the Regulation. The lien amount may be reduced by some unused portion or all of the $200.00 minor repair assistance.

Typical projects under this provision include:

1. Repairs to roof or foundation.
2. Repair or replacement of heating system.
3. Repair or improvement of electrical or plumbing system to comply with municipal regulations.
4. Alteration, addition to, or reconstruction of original housing where current structure is inadequate and moving is not feasible.

Directors, designates and the program specialists are to maintain a log or print of the Maintain Non-Continuous Needs (MNNS) screen to identify the case number and amount approved for major repairs for periodic review by Central Office.

19.1.21 REMOTE HOUSING PROGRAM (RHP)

Rental-Purchase Agreements

Where a participant is a tenant in a house provided through Canada Mortgage and Housing Corporation's Remote Housing Program, shelter costs shall be granted as to any renting participant. Exceptional requests for major or minor repairs in these cases are to be submitted to the Program Specialist.

19.1.22 HOUSE INSURANCE

Schedule A, section 2(c)(iii) of the Regulation makes provisions for payment of insurance at actual cost for homeowners.

Assistance granted to homeowners for insurance purposes shall not exceed premiums payable on a "house only" policy. Assistance may be granted for a "house and contents" policy if the premiums are equivalent or lower than a "house only" policy.

19.1.23 RURAL AND NATIVE HOUSING PROGRAM

The Rural and Native Housing (RNH) Program is a joint federal-provincial program responsible for providing low-cost housing, both rental and privately owned in designated areas of the province. Manitoba Housing assumed the responsibility for the Canada Mortgage and Housing Corporation (CMHC) property management agreements. Under the terms of the Property Management Agreement, Community Housing Managers of Manitoba (CHMM), the property management arm of the Manitoba Métis Federation, manages the majority of the RNH units. Manitoba Housing collects rent payments or arrears on behalf of CHMM. Sagemace Housing Incorporated and Wabowden Housing Board Incorporated manage the balance of the RNH units and collect all rent payments in their respective communities.

Rental

As of July 1, 2009, the monthly shelter rates for the RNH Program have been standardized to be the same as public housing shelter rate guidelines. (See: Section 19.1.3 public housing shelter rates). Rent payments are due on or before the first day of each month and are to be made payable to the agency that is responsible for collecting the rent payments in approximately 170 communities:

Community of Camperville	Community of Wabowden	All Other Communities *
Sagemace Housing Inc.	Wabowden Housing Board Inc.	Manitoba Housing
Box 11	Box 279	#202-280 Broadway Ave.
Winnipeg, MB   R0L 0J0	Wabowden, MB   R0B 0R8	Winnipeg, MB   R3C 0R8
(204) 524-2507	(204) 689-2306	1-866-377-0372

*Manitoba Housing is responsible for rent/mortgage and arrears collection while CHMM/MMF is responsible for the remaining daily property management functions.

The lease agreement determines whether or not the tenant is responsible for payment of the utilities as it may vary by each unit.

The RNH program has grandfathered only a few leases with the option to purchase. In these instances the unit is considered as a rental and Manitoba Housing continues to provide the necessary maintenance and repairs to the unit. When the occupant is prepared to pay Manitoba Housing the outstanding balance, a mortgage is obtained with a private lender before the ownership is transferred with the Land Titles Office. Once the unit is transferred to their names, the maintenance becomes the responsibility of the owner.

Homeowner

All RNH homeowners will have their properties registered in their names with the Land Titles Office. Although their mortgages are held with either CMHC or MHRC, Manitoba Housing is responsible for the administration and collection of all mortgages and/or arrears. In addition, the property taxes are paid by Manitoba Housing.

Down Payments

EIA does not provide down payments for home ownership. The RNH Program is responsible for providing housing to eligible persons and is responsible for their down payment policy.

19.2.1 RECONCILIATION OF ESTIMATED UTILITY COSTS

Schedule A, section 3 of the Regulation provides authority for the estimated monthly cost of utilities (i.e., water, light, fuel and rental or instalment payments on essential appliances) to be paid based on actual expenditures for the previous 12 months. Where circumstances have changed such that this estimate is no longer valid, the estimated costs for the next 12 months may be used.

Estimated billings should be reconciled to the actual billings during the Annual Review process, or more often if necessary. Overpayments should be recovered in the usual manner and underpayments reimbursed to the participant through a deficit payment. The estimate should be readjusted at this time to reflect actual expenditures.

Every reconciliation should encompass no more than the previous 12 months. Any overpayments which occurred over a year ago and were not detected during a previous Annual Review should not be recovered unless there is sufficient evidence to indicate that the overpayment was not detected previously due to an act of omission (e.g., not submitting utility bills) or commission (e.g., fraud or misrepresentation) on the part of the participant. Similarly, any underpayments, which were not reconciled in a previous Annual Report, should not be reimbursed unless the underpayment was not reconciled previously as a result of staff error.

When utility costs are based on estimated expenditures for the next 12 months, staff should ensure that the participant is actively involved in determining the estimate. Participants should be advised that estimated utility costs will be reconciled to the actual billings as part of the Annual Review process, with overpayments being recovered and underpayments being reimbursed with deficit payments. In order to avoid large overpayments or deficit payments after the Annual Review, participants should be encouraged to monitor their utility billings and to advise staff if the estimate appears to be inaccurate so that the estimate can be adjusted to avoid these situations. Staff may also choose to monitor the estimated utility costs by reconciling actual expenditures and payments for a period of less than 12 months.

19.2.2 RENTAL AND PURCHASE OF ESSENTIAL UTILITY APPLIANCES

Utility rentals may be allowed as part of the monthly utility costs.

Payments for the purchase of items such as furnaces, hot water tanks and rewiring costs are subject to minor or major repair provisions and must not be considered as monthly utility costs.

19.2.3 HOME INSULATION PROGRAM

Outstanding loans acquired through the Home Insulation Program by home-owning participants may be repaid as part of the monthly utility costs.

Loan payments are not to exceed $9.33 per month and will be exempt from all income assistance repair lien provisions.

19.2.4 CRITICAL HOME REPAIR PROGRAM

Loans obtained under the former Critical Home Repair Program may still be outstanding and should be considered as a legitimate expense.

Loan payments may have been included in the monthly budget or may have been paid in one lump sum depending on circumstances. If paid in the monthly budget, any principal repayment is lien refundable. If paid in a lump sum, the approval of the Minister or the Minister's designate as a major repair is required, and the amount is lien refundable. In both cases, the amount refundable is exclusive of the $200.00 allowed for minor repairs. See section 19.1.20 for a description of the "Major Repairs" policy.

19.2.5 COIN-OPERATED LAUNDRY RATES

Where the use of alternative laundry facilities is not feasible, assistance to cover the cost of using coin-operated laundry facilities may be included in the monthly budget as a utility cost, under Schedule A, section 3 of the Regulation, for households with disabilities, aged, crisis facility and special dependant care households.

Effective May 1, 1996, assistance for laundry costs will no longer be provided to households not enrolled under one of these categories, unless this cost was included in their budget for April 1996. These latter households may continue to receive laundry assistance for the duration of their current enrolment.

Households, enrolled under a category that is not eligible for laundry assistance, may receive assistance for laundry as a health need when warranted by special circumstances, such as a medical condition or a child with a disability.

The actual cost of using coin-operated laundry facilities may be authorized, within the following guidelines:

Household Size	Maximum Assistance
1 Person	$ 12.00
2 Persons	15.00
3 Persons	18.00
4 Persons	24.00
5 Persons or more	30.00

These guidelines represent the upper limit of monthly coin-operated laundry rates by household size. Directors or designates may exceed these limits in exceptional cases.

Back to Table of Contents