T.O. loses millions in rent subsidies
Tory to push committee to fix issues in wake of auditor general’s report
Lax oversight of hundreds of millions of dollars annually distributed by the city of Toronto in rent subsidies is “incredibly troubling,” says Mayor John Tory, who is promising to get the problem fixed.
“I know I speak for all Toronto residents in saying that I am absolutely shocked by the examples identified by the auditor general that flagged potential ineligibility” of people receiving subsidies to help house low-income Torontonians, Tory said in a statement Friday after release of an audit.
“These examples are deeply disappointing and frustrating to every hardworking Torontonian — many who themselves are struggling with the high cost of housing.”
Auditor general Beverly Romeo-Beehler’s probe of the rent subsidy system revealed major oversight problems and evidence some households may be incorrectly receiving assistance or getting more funds than entitled.
Called rent-geared-to-income (RGI) subsidies, the payments are administered through social housing providers including Toronto Community Housing.
“Based on our file reviews, there was limited evidence to support that providers are exercising sufficient due diligence in verifying eligibility,” the auditor’s report says.
“The city also does not maintain a centralized database or records of past and current RGI recipients.
“Consequently, at any given time, the city is spending nearly $385 million a year on subsidized housing without knowing who specifically is benefiting or whether they continue to be eligible to receive assistance.”
The report stressed that in a city where there is a long waiting list for subsidized housing, staff has a responsibility to ensure those who are most in need are being helped and that there is public confidence in the system.
As part of her13 recommendations, the auditor has said the city should review all households flagged by her office for eligibility concerns — including that about five per cent of the files they reviewed revealed documents that may have been falsified — and to put in place an improved process for ongoing reviews as of March 31, 2020.
Ontario’s Housing Ministry, as part of a broader plan, has proposed replacing the existing RGI rules with a simple calculation based on income tax information.
Tory wrote a letter to audit committee chair Councillor
Stephen Holyday urging him to order action when the audit, along with several others released Friday, go to committee next Friday. “The mayor and Deputy Mayor Holyday will be focusing city officials on fixing this issue immediately,” the statement from Tory’s office states.
Among the findings of Romeo-Beehler’s other new audits:
Toronto city staff have not fully implemented any of the auditor general’s 2016 recommendations to make city computer systems less vulnerable to a hacker attack.
Romeo-Beehler issued a new and elevated warning that the systems, governing everything from recreation registrations to tax bills and emergency communications, remain inadequately protected.
The city’s vehicle fleet is mismanaged in ways that, if corrected, could save taxpayers significant money.
Delays in dropping off rented vehicles costs the city $79,000 a year. Also, the city is sometimes paying for repairs that should be covered under warranty.
The auditor also flagged $2.8 million in repairs due to operator error or unreported accidents over 18 months.