Low-income Nova Scotians now need to be paying 50% of income on housing to qualify for rent supplement - Action News
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Nova Scotia

Low-income Nova Scotians now need to be paying 50% of income on housing to qualify for rent supplement

In late January, the province quietly changed an eligibility requirement for the Canada-Nova Scotia Targeted Housing Benefit from renters paying more than 30 per cent of their gross household income on housing to those paying more than 50 per cent.

Community groups say they weren't consulted or informed about change

A woman looks at the camera
Leigh MacLean said the rental subsidy is a stopgap measure, and more non-market housing is the solution. (Brian MacKay/CBC)

When housing support worker Leigh MacLean noticed a change on Nova Scotia's rent supplement application form, she thought it was a misprint.

Thethreshold to qualify for the program had been hiked from 30 to 50 per cent of a person's pre-taxincome being spent on housing.

But it wasn't an error.

In lateJanuary, the province quietly changed the eligibility rules for the Canada-Nova Scotia Targeted Housing Benefit, known as the rent supplement program.

The definition of severehousing need was changed to only apply to those spending 50 per cent or more of their income on housing.

MacLean fills out the same form with clients dozens of times a week in her work as housing and homelessness team lead at Welcome Housing in Halifax. She saidshe and others in the sector weren't expecting a change.

"I think it's a drastic move and it'svery secretive," MacLean said.

"I wish there would have been a little more transparency, community consultation around it because it just showed up on the new application and it wasn't discussed."

MacLeanisconcerned about the impact this change will have on the hundreds of clients served by her organization.

"I thinkif we're targeting 50 per cent [of income spent on housing], that's a lot less subsidies that they'll have to give out, ultimately," she said.

"We're in a housing crisis, we're in a instability crisis. Wereally should be trying to help as many people as we can."

A man looks at the camera
Municipal Affairs and Housing Minister John Lohr said the change to the program was made by the Nova Scotia government as a matter of budgeting. (CBC)

On Friday, Housing Minister John Lohrechoed the idea that Nova Scotia is in a housing crisis, but said the change to the program was made for budgetary reasons.

"We could see that the demand for the program was exceeding what the budget would offer," Lohr said in an interview."So,we felt the need to prioritize ...this to those most in need, and that's why that decision was made."

Though the change was made in January, it just came to light publicly recently when Suzy Hansen, MLA for Halifax-Needham,asked Lohr about itin question period at Province House Tuesday.

Hansen told CBCshe found out about the change from a constituent.

"When you think about who this is going toaffect the most, it's going toaffect those that are on low income, those that are struggling seniors, and they didn't tell any of us," Hansen said."So, for me, it was really shocking."

A woman looks at the camera
Suzy Hansen said she fears the change to the rent supplement will leave more people homeless. (Robert Short/CBC)

Lohr said his department didn't consult community groups because a decision had to be made, butit wasn't done in secret.

"We put it right out there," he said."It's on the website. Anybody applying could see the change."

What is the rent supplement?

The Canada-Nova Scotia Targeted Housing Benefit is a joint provincial-federal program that provides monthly funding to renters or homeowners who are determined to be in core housing need.

In order to qualify, a person needs to meet multiple requirements and fall under income thresholds. They also must bein "severe housing need" the definition that was recently changed.

The 50 per cent of income spent on rentisn't calculated based on a person's actual rent, but based on the CMHC average rent for the area where they live.

For Halifax, this number was $1,449 for a two-bedroom unit. But MacLean said this number is usually much lower than actual rents in an area.

According to the Department of Municipal Affairs and Housing, the province isproviding 7,000 rent supplements across the province. In Halifax, the monthly paymentranges from$403 to $963.

Old applications grantedcontinued exemption

Just two weeks ago, the Houston government didn't increase income assistance rates in this fiscal's budget, but instead said it would focus on "targeted supports" like the rent supplement.

A spokesperson for thedepartment said in a statement that the Houston government has invested$21.6 million in this fiscal year'sbudget to create at least 1,000 new rent supplementsand "continue to support those we already have in place."

This means those who applied to the rent supplement program before the change took place on Jan. 27, 2023 will be granted a continuous exemptionif they meet the previous requirements.

"Recipients who continue to meet the eligibility criteria in place at the time they applied will continue to receive the benefit," spokesperson Krista Higdonsaid in an email.

A man looks at the camera
Brian Dauphinee worries he won't be able to afford a new apartment if he doesn't qualify for the rent supplement under the new requirements. (Paul Palmeter/CBC)

But those who spend 30 per cent of their income on housing and applied for the supplement after Jan. 27 are likely tobe out of luck.

Brian Dauphinee is one of them. He recently found out he and close to 80 other tenants in his building on Quinpool Road in Halifax are being renovicted.

Dauphinee had been living in the same studio apartment since 2015, paying $637.50 monthly. He fearshis pension won't be enough to pay the current rents in the city.

"It's going to impact me severely," Dauphinee said."It's going toforce me into making decisions about what kind of food I buy,what kind of medical service I can afford to get ... what clothes I can afford to buy."

Working with Welcome Housing, Dauphinee sent in an application for the rent supplement in March. But nowhe knows about the change to the eligibility requirements, he isn't confident his application will be accepted.

MacLean said application waiting times have slowed from around eight weeks to up to 14 weeks. For Dauphinee, thisjust means more time in limbo.

"I'll have to take it at that time," he said. "I'm so shocked, I can't plan beyond right now. I don't know what I'm going todo."

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