Housing Minister Fontana Announces New Option for Affordable Housing

Wednesday, March 23, 2005

TORONTO, March 23 /CNW Telbec/ - Rent supplement programs will now be eligible for funding under the Affordable Housing Initiative, announced the Honourable Joe Fontana, Minister of Labour and Housing today. He made the announcement, accompanied by the Honourable Tony Ianno, Minister of State (Families and Caregivers), during a visit to an innovative affordable housing project in downtown Toronto.

"I have been working with provinces and territories in recent months to implement new flexibilities that improve the delivery of affordable housing. Today's announcement builds on the flexibilities announced last fall and responds to those provinces who have communities with high vacancy rates," said the Minister. "In the short term, this new tool will enable provinces and territories to offer another solution to address housing needs, on an interim basis, in those markets."

"The Nova Scotian experience has shown rent supplements to be an effective and efficient means to deliver affordable housing, especially for low income families," said the Honourable David Morse, Nova Scotia Minister of Community Services and co-chair of the Federal-Provincial-Territorial Ministers of Housing. "This is an important addition to the Provincial and Territorial menu of federal tools to address our affordable housing challenges."

A rent supplement pays the difference between the market rent for a unit and rent which is affordable for the low income household that live in that unit.

"Our cities and communities are engines of growth, employment and innovation and shelter is the foundation upon which healthy communities and individual dignity are built," said Minister Fontana. "This change will help those most in need, including low-income seniors, persons with disabilities and new Canadians who live in cities with high vacancy rates. It also demonstrates the clear commitment of the Government of Canada to ensure that Canadians have access to affordable housing solutions."

These supplements will enable low income households or those currently on social housing waiting lists to move into existing vacant units, thereby utilizing current rental housing available in the market. These include vacant units in existing social housing, non-profit housing or co-operative housing projects. The units must be modest and meet basic health and safety standards in order to be considered eligible for the program.

Provinces and territories will be able to allocate a portion of the federal contribution remaining under the Affordable Housing agreements to rent supplements and will be required to match the federal contribution. The remainder of funding under the agreements will be available for the creation of new affordable housing units including community-based housing and housing for people with special needs.

As part of its commitment to meeting the housing needs of Canadians, the Government of Canada is investing $1.8 billion by 2008 to address the increased need for affordable housing, housing services for the homeless and renovation of the existing housing stock.

In addition, the Government of Canada, through Canada Mortgage and Housing Corporation, spends approximately $2 billion annually primarily to support some 636,000 housing units across Canada. This amount is used to support low-income households in existing social housing stock, through long term agreements.

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