Residents at one of the largest non-profit housing complexes in Manitoba aren't going to see their rent increase any time soon.

Lions Place residents are set to receive $1.2 million in rent subsidies from the provincial government, Families Minister Rochelle Squires announced on Thursday.

The subsidies cover a two-year rent supplement agreement between Manitoba Housing and the building's new owners.

"We know that there's a new transfer of ownership coming in, and I wanted to ensure the residents that they would not be experiencing rent increases or at risk of the so-called 'renoviction' in advance of any news that they will receive about the transfer of ownership of Lions Place," Squires said.

Squires said the move has plenty of precedent, with about 20 per cent of all rent supplements in the province going to private sector landlords in Manitoba.

Squires was asked about who the new building owner is, but she did not reveal that information.

"I certainly wanted ... to provide that certainty and assurance to the residents that we've negotiated this agreement up front, so that on the day that they learn about a new owner coming in that there is no uncertainty that they will be experiencing a rent increase," she said.

The agreement provides a top-up between the rent charged by the landlord and the rent a tenant can afford to pay.

That doesn't mean the new owner of Lions Place can't ask for a rent increase in the future.

"The owner certainly could. Any landlord can apply for above-guideline rent increase," Squires said.

However, all rent increases are subject to approval from the province's residential tenancies branch.

But for the next two years, residents will not see their rent rise, and part of the subsidy will be allocated toward deferred maintenance in the building.

A new funding model is expected to be developed that will ensure vulnerable tenants are protected from unaffordable rent increases, and Squires vows to continue to negotiate for the betterment of seniors.

The model will also provide the non-profit sector the ability to protect and preserve assets.

Lions Place, a 287-suite building on Portage Avenue between Furby and Langside streets, has been in existence since 1982. It provides rent-geared-to-income housing for those age 55 and over and is currently owned by Lions Housing Centres.

The building was put on the market last July, and later purchased by an Alberta firm, fuelling concerns that residents might have to move out of the building.

CBC reached out to the Lions Place seniors action committee, but they could not be reached for comment.