CHO vs HWS Homes — What's the Difference?

Introduction

If you are new to the Residential Care Home sector in Ontario, the distinction between Community Homes for Opportunity (CHO) and Housing with Support (HWS) homes can be confusing. Both are smaller, community-based care homes. Both are government-supported. Both are operated by private homeowners. But they are different programs — and those differences matter significantly when it comes to buying, selling, or operating one.

After 17 years working exclusively in this sector, I have helped many people navigate exactly this question. Here is a clear breakdown of what sets these two home types apart.

The Origins of Each Program

The CHO program — Community Homes for Opportunity — is the modernised version of Ontario's Homes for Special Care program, which dates back to 1966. It was updated and rebranded in 2020 under the Ministry of Children, Community and Social Services (MCCSS). The program focuses specifically on adults living with serious mental illness.

The HWS program — Housing with Support — was formerly known as the Domiciliary Hostel program. It is administered through the Ministry of Municipal Affairs and Housing and delivered locally through regional municipalities, counties, and cities. It is part of Ontario's Community Homelessness Prevention Initiative (CHPI) and supports a broader range of adults at risk — including those dealing with mental health challenges, addiction recovery, or chronic homelessness.

Who They Serve

Feature	CHO	HWS
Primary residents	Adults with serious mental illness	Adults at risk of homelessness — mental health, addiction, other vulnerabilities
Placement managed by	Designated CHO service provider (typically CMHA branch)	Local municipal social service agencies
Focus	Recovery-oriented, community integration	Homelessness prevention, stable housing
Tenancy duration	Can be long-term; recovery-focused	Often long-term — the home becomes their home

How Funding and Payment Works

Feature	CHO	HWS
Funded by	Province of Ontario — MCCSS	Province via Ministry of Housing, administered by municipalities
Payment to homeowner	Monthly, directly from the CHO service provider	From the local municipality — per diem rate or lump sum contract depending on region
Rate variability	Set provincially; consistent across the province	Set locally; varies by municipality
Revenue predictability	Very high — government-guaranteed monthly payment	High — municipal payment is reliable; rate varies by region

Regulatory and Legal Differences

Both home types require a Vulnerable Sector Police Check (CPIC) and Basic First Aid and CPR certification for the owner and all staff. Neither type requires nursing qualifications.

One notable distinction: HWS homes are exempt from the Residential Tenancies Act (2006) and the Retirement Homes Act (2007). Where the home is also the owner's principal residence, it may also qualify for income tax exemption on a portion of the income. CHO homes do not carry the same exemptions.

What This Means for Buyers

From a buyer's perspective, both home types offer stable, government-backed revenue — which is a significant advantage over private-pay operations. The key differences to consider are the local rate structures (for HWS), the relationship with the designated service provider (for CHO), and the regulatory exemptions (for HWS).

A buyer who is new to this sector should understand both program types thoroughly before committing to either — because operational expectations, agency relationships, and financial structures differ meaningfully. I walk every first-time buyer through these distinctions in detail before we begin searching for a property.

What This Means for Sellers

If you own a CHO or HWS home and are considering selling, the program type will influence how your home is marketed and to whom. CHO homes attract buyers who are comfortable working within the provincial service provider framework; HWS homes may attract buyers who prefer the municipal relationship and appreciate the regulatory exemptions. Both types are actively sought in the market — I have buyers in my network looking for both.

In Summary

CHO and HWS homes are two distinct programs serving overlapping but different populations, funded through different government channels, and carrying different legal and regulatory profiles. Both represent compelling ownership and investment opportunities for the right operator. Understanding the difference is the starting point for making the right decision — whether you are buying or selling.