On February 7, 2014, the Canada Revenue Agency ("CRA") released Guidance CG-022 – "Housing and charitable registration", which discusses the CRA's administrative views on the provision of housing that: (1) relieves poverty; or (2) includes specially adapted facilities or services that assist eligible beneficiaries to overcome or manage conditions associated with disabilities or with the aged. The new guidance touches on, among other things:
- charitable purposes with respect to housing that relieves poverty and housing that includes specially adapted facilities, services or other amenities;
- what is required when a registered charity rents housing to individuals who are not eligible beneficiaries of charitable relief; and
- what organizations that provide housing to charitable beneficiaries need to do to obtain registered charity status.
Guidance CG-022 updates and replaces the CRA's former
administrative statements contained in Policy Statement CPS-020
– "Applicants that are Established to Relieve Poverty by
Providing Rental Housing for Low-Income Tenants". The
CRA expressly notes in the guidance that it is developing more
comprehensive guidance to address additional issues relating to the
provision of housing by registered charities. To view the
guidance, check out the Charity Directorate's webpage at: http://www.cra-arc.gc.ca/chrts-gvng/chrts/plcy/cgd/hsng-eng.html.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.