Low-income Manitobans let down as government temporarily yanks rent top-up, housing advocates say

The Manitoba government has withdrawn the financial support that 400 people at risk of homelessness had counted on to pay their rent, a surprise move that came as a disappointment to advocates and people in search of affordable housing.

The province put what it says is a "temporary pause" on new applications to the youth and homelessness streams of the Canada-Manitoba Housing Benefit, owing to "unprecedented demand," according to a letter issued to some community organizations.

The benefit provided rent top-ups of up to $422 a month, a Tuesday news release from housing advocates said.

They say they were told the province received around 400 applications since the government stopped processing requests on Aug. 2. The stop was only communicated to the organizations on Aug. 30.

Codi Guenther, the executive director of New Journey Housing, said the letter from the province was a shock to her and, especially, the people her organization tries to help — newcomers trying to find housing.

"They're devastated. They're shocked. They didn't think this would happen," she said.

"We have told them about this benefit throughout the summer. We're like, 'Keep this in mind when you're looking for housing' — and now it's not there."

Tenants making tough choices

The pause only affects individuals looking to start receiving the benefit, not people who were already enrolled in the program, the province says.

But some recent applicants had just signed a lease because they thought the top-up was available, said Guenther.

"They've told us, 'Now I have to decide whether I'm going to pay rent with all of my monthly budget and not go grocery shopping, or not spend money on other things.'"

For a newcomer who arrived in Winnipeg after fleeing her home country, the loss of the Canada-Manitoba Housing Benefit will extend her stay in an emergency shelter.

"Not every people [in the shelter] is good," said the refugee claimant. CBC has agreed not to identify her because she fears it may jeopardize her chances of staying in Canada.

"Every day in there there's a problem with people.… Every day is fighting. Every day is screaming."

Guenther said many low-income people have no choice but to look for housing in the private market because of a dire shortage of social housing units.

Single individuals on Employment and Income Assistance only receive $638 a month to spend on their accommodations. That's why programs like the Canada-Manitoba Housing Benefit are critical, Guenther said.

"Having a top-up like this adds around $350 to their rental budget, which expands the rental universe for that person," she said. "They're able to find something around $900 to $1,000 a month, which is way more doable than $640."

Pause needed to help those 'most in need': NDP

The NDP government said the halt on new applications is necessary to ensure the "households most in need have access to limited funds."

Spokesperson Naline Rampersad said in an email that the province is reviewing applications to determine which are most affected by the pause, and will explore options to prevent homelessness. 

As of June 30, there were 3,088 people receiving the Canada-Manitoba Housing Benefit, she said. Over 400 people have applied to the benefit's homelessness stream since Aug. 2.

The housing benefit, jointly funded by the province and the federal government, had a budget of approximately $8.6 million for the 2024-25 fiscal year, she said.

The province also said the eligibility requirements for the benefit were revised in spring 2023, resulting in a nearly 500 per cent increase in applications from December 2022 until June 2024. The province didn't explain how the eligibility changed. 

"We are also connecting with our federal partners to ensure they understand the increasing demand for this benefit in Manitoba," the statement said.

Guenther said the fact the program is oversubscribed shows the extent that Manitobans are struggling with the rising cost of living.

"That tells me that the need is obvious and that this should be a priority for the governments to prioritize something like this that is helping so many people to exit shelters and to get out of transitional housing or to improve their housing."

She wants the government to honour the applications it's received since August.

In the meantime, Guenther anticipates the waitlist for social housing will grow and more people will apply for the Manitoba Rent Relief Fund, which provides interest-free loans to help low-income people avoid eviction due to arrears.

The Canada-Manitoba Housing Benefit is continuing to process applications for people with mental health and addiction issues living in designated housing buildings, and for people leaving a gender-based violence relationship who are staying in a shelter, the province said.