The gap between what low-income tenants can afford to pay for their housing and private market rents has caused the number of households on the active waiting list for rent-geared-to-income housing to soar to over 170,000. We understand that a federal housing benefit is being considered that could provide income support to tenants to bridge the gap between an affordable rent and the actual rent. We certainly support an initiative that would provide greater income to low-income tenants. However, any housing benefit policy must be carefully examined in order to prevent such potential downsides as the possibility of rent inflation, the lack of housing choices for tenants when there are low vacancy rates, and the fact that tenants in social housing could end up paying more for their housing if the benefit replacement of the rent-geared-to-income subsidy is at a lower rate.
Ontario is currently conducting a two-year pilot housing benefit program for victims of domestic violence. Housing benefits may be best used in such cases where assistance is needed quickly, and this type of program could be expanded to people experiencing short-term income loss.