CRA indicates that a subsidized charity providing rent-geared-to-income housing units in a larger housing project could qualify for the municipal GST/HST PSB rebate

Municipalities generally are entitled to enhanced rebates for their non-creditable GST/HST costs. Their definition includes a person designated as such by CRA in respect of activities involving the making of non-taxable municipal supplies.

CRA issued an interpretation indicating that the rebate generally would be available respecting a registered charity that received subsidies from a government organization to lease housing units scattered within a housing project that were mostly sub-let by it to tenants (with verified low incomes) on a “rent-geared-to-income” basis, although it was permitted to rent a portion of the units to tenants with a modest (rather than quite low) income on a market-rent basis.

Neal Armstrong. Summary of 25 May 2021 GST/HST Interpretation 209926 under ETA s. 259(1) – municipality.