High demand puts crimp on Manitoba’s housing benefit

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This article was published 10/09/2024 (361 days ago), so information in it may no longer be current.

The NDP government, which promised to tackle chronic homelessness during last year’s election, has halted its rent top-up benefits, meaning hundreds of homeless people and new Canadians who stay in shelters as they look for a rental apartment will be stuck there longer.

The Canada-Manitoba Housing Benefit, which tops up monthly rent for eligible low-income renters — by up to $422 per month for a private apartment — was put on a temporary hold last week due to high demand.

A letter sent to housing organizations by Carolyn Ryan, an assistant deputy minister and chief executive officer of Manitoba Housing, said “due to unprecedented demand,” the department was “initiating a temporary pause of new intake to the program.”

It said applications received after Aug. 2 wouldn’t be processed until further notice. “We understand this is disappointing news for those that were relying on (the housing benefit) to help cover housing costs,” she wrote.

The pause does not affect renters who currently receive benefits.

“I don’t know how I will find an apartment with this rent. I feel very bad.”–Idris

Idris, who came here from Sudan two months ago and didn’t want her first name used, said she has spent every one of those nights in a temporary shelter.

She said the province’s social assistance program allots her $638 for housing, but because she hasn’t been able to find an apartment for that amount, she was counting on the housing benefit to pick up the difference.

“A one-bedroom with a bathroom is $750 to $850,” said Idris on Tuesday.

“But now (the benefit) has been cut. This help, we were promised, has now been cut. I’m hoping the government starts it again. I don’t want to stay in a shelter.

“I don’t know how I will find an apartment with this rent. I feel very bad.”

Codi Guenther, executive director of New Journey Housing, said more than 400 low-income households have been put at risk of being evicted and becoming homeless.

“Without it, folks will either be in emergency shelters longer, couch surfing longer, or forced to leave monthly bills unpaid,” said Guenther.

“People have signed leases thinking they will get this extra money and now it puts them being turned out at extra risk because they don’t have the money to pay for it.”

Shauna MacKinnon, a member of the Right to Housing Coalition, said governments need to do more to help low-income renters get housing.

“This is just another example of why we need more… social housing,” said MacKinnon.

“Such investments not only better ensure low-income renters can access affordable housing in the long term, compared to market-driven solutions, they also build valuable public assets rather than subsidize private landlords with little accountability or ongoing public benefit.”

“Without it, folks will either be in emergency shelters longer, couch surfing longer, or forced to leave monthly bills unpaid.”–Codi Guenther, executive director of New Journey Housing

A ministerial spokeswoman said they are still committed to ending chronic homelessness and will work with people affected the most by the pause.

“The previous government slashed the housing budget and did not create any social housing units in over seven years,” the spokeswoman said.

“The unprecedented increase in demand for the Canada-Manitoba Housing Benefit illustrates that Manitobans are struggling with the cost of living. We are carefully reviewing applications received to determine those most impacted by the pause and exploring solutions to prevent homelessness.”

The government wouldn’t say how many people use the program, how many had applied or how many applications are on hold. It refused to say how much the program costs.

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The spokeswoman would only the number of applicants to the top-up program increased by almost 500 per cent from December 2022 to June 2024.

“The pause on applications is necessary to ensure that households most in need have access to limited funds,” she said. “We are also connecting with our federal partners to ensure they understand the increasing demand for this benefit in Manitoba.”

kevin.rollason@freepress.mb.ca

CMHB Pause Letter

Kevin Rollason
Reporter

Kevin Rollason is a general assignment reporter at the Free Press. He graduated from Western University with a Masters of Journalism in 1985 and worked at the Winnipeg Sun until 1988, when he joined the Free Press. He has served as the Free Press’s city hall and law courts reporter and has won several awards, including a National Newspaper Award. Read more about Kevin.

Every piece of reporting Kevin produces is reviewed by an editing team before it is posted online or published in print — part of the Free Press‘s tradition, since 1872, of producing reliable independent journalism. Read more about Free Press’s history and mandate, and learn how our newsroom operates.