Click this link to read the full news story:- https://www.ctvnews.ca/politics/budget-2023-liberals-follow-through-on-big-promises-in-deal-with-ndp-1.6332753?fbclid=IwAR21gT97hSSb4yqKf_EvYIKsX7CQXAsYc2Sib8ofD4aWcbnthg2ewEPSCfo
A Vancouver NDP MP is sounding the alarm when it comes to rent-geared-to-income housing units, saying incoming changes by the federal government will lead to a severe shortage within the affordable housing market in this country.
Vancouver East MP Jenny Kwan says she’s learned that as of March 31, 2028, Ottawa will be cutting subsidy funding to non-profits that operate buildings that include units for those on a fixed income. Once those suites are vacated, she says the price of those units will be bumped to market rates.
For example, a rental suite that’s going for $650 right now could be increased to $1,800 or more.
Kwan adds these changes are happening right now at some buildings in Metro Vancouver as non-profits try to bank money to prepare for their funding to be slashed in the future.
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Recently non-profits have been advised an Amending Agreement for some of those projects would come into effect on June 29, 2024, whereby Rent-Geared-Income (RGI) units will need to revert to market rent as soon as turnover of the existing tenant occurs as the subsidies for those units will not be renewed beyond 2028. It further stipulates that this conversion will be permanent. What this means is that Canada will permanently lose thousands of RGI units for low-income residents. This is in addition to the loss of 370,000 affordable units under the Liberal government’s watch and another 800,000 units under the Conservative’s watch.
This poses a significant risk to thousands of Canadians, especially Indigenous communities which are already overrepresented in homelessness and housing need. The non-market housing sector plays a crucial role in communities across Canada, offering not just shelter but stability, security, and a sense of community for its residents. Canada is already faced with a housing crisis. It is widely recognized that for every affordable housing unit built, 11 will be lost. Without the continuation of these subsidies, homelessness will be further exacerbated.
