Operating budget
We review and approve operating budgets to
determine the amount of subsidy and assistance provided by BC
Housing. Other housing programs, such as rent supplement programs
and federally funded housing programs, don’t require BC
Housing approval, but still need to develop operating budgets.
Why an Operating Budget Is Important
a) PLANNING
The operating budget helps you plan the amount of money required for each cost category for a specific time period, based on past experience, current information and assumptions about the future.
The operating budget helps you plan the amount of money required for each cost category for a specific time period, based on past experience, current information and assumptions about the future.
The operating budget, including the provision for the
replacement reserve, is used to calculate your economic rents. The
economic rent is the estimated break-even rent required
per month to cover the projected operating costs of the
shelter component of the development.
b) DETERMINING SUBSIDY
The amount of the subsidy and repayable assistance you receive from BC Housing is based on the economic rent set out in the operating budget, less the total rents/housing charges collected from residents and co-op members.
The amount of the subsidy and repayable assistance you receive from BC Housing is based on the economic rent set out in the operating budget, less the total rents/housing charges collected from residents and co-op members.
c) MONITORING PERFORMANCE
The approved budget provides a benchmark to measure financial performance during the course of the fiscal year. The budget can be an effective tool to control spending and avoid deficits, by monitoring actual income and expenses against the budgeted amounts.
Click here for more information about operating budgets.
The approved budget provides a benchmark to measure financial performance during the course of the fiscal year. The budget can be an effective tool to control spending and avoid deficits, by monitoring actual income and expenses against the budgeted amounts.
Click here for more information about operating budgets.