More on the story ( with sources ) here:
Layton and Chow were also the subject of some dispute when a June 14, 1990, Toronto Star article by Tom Kerr accused them of unfairly living in a housing cooperative subsidized by the federal government, despite their high income.[36] Layton and Chow had both lived in the Hazelburn co-op since 1985, and lived together in an $800 per month three-bedroom apartment after their marriage in 1988. By 1990, their combined annual income was $120,000, and in March of that year they began voluntarily paying an additional $325 per month to offset their share of the co-op's Canada Mortgage and Housing Corporation subsidy, the only members of the co-op to do so. In response to the article, the co-op's board argued that having mixed-income tenants was crucial to the success of co-ops, and that the laws deliberately set aside apartments for those willing to pay market rates, such as Layton and Chow.[37] During the late 1980s and early 1990s they maintained approximately 30% of their units as low income units and provided the rest at what they considered market rent. In June 1990, the city's solicitor cleared the couple of any wrongdoing,[38] and later that month, Layton and Chow left the co-op and bought a house in Toronto's Chinatown together with Chow's mother, a move they said had been planned for some time.[39] Former Toronto mayor John Sewell later wrote in NOW that rival Toronto city councillor Tom Jakobek had given the story to Tom Kerr.[40]
http://en.wikipedia.org/wiki/Jack_Layton#Toronto_City_Council