If you have charitable status, your society is governed by the Income Tax Act, which contains specific rules for accumulating surpluses. There’s a formula for determining the amount of surplus funds you can retain, although some exceptions are granted for longer-term fundraising efforts. Contact your local Canada Customs and Revenue Agency office, or call 1-800-267-2384 for details.

Under the terms of HOMES BC operating agreements, you can spend surplus accumulated operating funds on the shelter component of the building for:

Capital renovations such as new kitchen cupboards, balconies, elevator upgrades, etc.
Housing related programs such as a gardening program for tenants or training youth how to respond to emergencies.
Loans to tenants paying non-Rent-Geared-to-Income rents who need help paying the rent, because their incomes have dropped below the Core Need Income Threshold.

The operating agreement also allows “other payments approved by the Commission.” This clause gives us the flexibility to support ideas that may not fit into these categories, but serve the needs of the housing community.

Surplus funds can also be used to initiate resident participation and community building programs, such as a residents’ association, resident/management advisory committees or resident employment opportunities.