Housing help for working New Brunswickers expanded to include people making under $50K

A rental assistance program has been expanded to include more people in hopes of addressing unaffordable housing, but a rent increase cap is still off the table.

The Canada-New Brunswick Housing Benefit program, launched in June, initially provided short-term rental assistance to people who work, have children and make between  $14,000 and $38,000. 

Social Development Minister Bruce Fitch said Wednesday that applications came from 1,000 households initially, which brought help to about 2,700 adults and children. 

But the program is capped at helping 6,700 households, Fitch said, so the criteria needed to be widened.

 "We know there's more people out there that need help," he said.

"As you cast your net on the seas, you tend to get more fish, so that's why we've expanded the program."

The new eligibility rules now include people with children under 19 years of age who rent and make between $12,500 and $50,000. 

People approved for the benefit will receive help for three years and the benefit will move with them if they move, Fredericton MP Jenica Atwin said at the virtual announcement.

"It can travel with them," she said. "It's not going to solve all of the problems that exist, but it's certainly ... a great step in the right direction." 

The program will run over the next seven years and cost a total of about $98.3 million, equally shared by the provincial and federal governments.

Fitch said the wider income range was chosen to target working people who are considered low-income, and whose incomes are not so high that applications would overload the program.

"We want to concentrate on a segment of the population that is considered low-income-working," he said. "We'll see how the response goes and if it needs to be adjusted, will be looked at that in the future."

The size of the benefit one household can receive depends on income, location and the number of people in the household.

The average monthly benefit for a household living in a rural two-bedroom is $300, and the average benefit for a household living in an urban three-bedroom is $475. 

Goal is shorter provincial housing wait list

There are currently 6,000 households on the provincial housing waiting list, said Fitch. This program is meant to reduce this list, but the benefit won't apply to everyone on it.

"There are folks on that list that possibly are singles, seniors, retired," he said. "This particular program is for the working families."

He said there are other programs, such as the City Motel project in Fredericton and the Rising Tides project in Moncton that are meant to address homelessness and provide affordable housing.

No rent cap

In New Brunswick, there is no rent-increase caps imposed on landlords.

Fitch said after a 90-day study, it was not recommended that a rent cap be applied.

"We're not moving to a rent cap," he said.

"But programs such as this and increases in [social assistance] reforms … are the ways we're moving forward."