OTTAWA -- Ontario is the first province to agree to a $1.4-billion deal with the federal government to help low-income renters afford a place to live, CTV News has learned.
The Canada Housing Benefit agreement will be announced Thursday in Toronto, by Minister of Families, Children and Social Development Ahmed Hussen, and Ontario's Minister of Municipal Affairs and Housing Steve Clark.
A government source with knowledge of the agreement says the costs will be split "50/50" between the province and Ottawa, over eight years.
The government first announced the $4-billion Canada Housing Benefit as part of its National Housing Strategy back in November 2017.
The government said the program will help 300,000 families afford their rent by providing up to $2,500 a year to those who qualify.
In Ontario, this rental subsidy will be available to those on, or eligible to be on, a social housing waiting list, and may include survivors of domestic violence and human trafficking.
The Trudeau government hopes to strike similar deals with the other provinces and territories in 2020.
In July, Canadian Centre for Policy Alternatives Senior Economist David Macdonald published a bleak picture of Canada's rental market that showed 2.5 million families were paying more than 30 per cent of their income on rent.
He told CTV News Wednesday the Canada Housing Benefit will make an impact for many low income families, but called it "a Band-Aid fix," saying the Liberals’ promise to build 125,000 new affordable housing units over the next decade falls short of the growing need.
"Yes, you've created this supplement, but you're not really building enough affordable housing." said Macdonald. "So you've created this bridge to nowhere."
Macdonald says the construction shortfall started back in the 1990s, when Prime Minister Brian Mulroney cut the federal program.
The CCPA study found the average wage needed to afford a two-bedroom apartment is $22.40 an hour, or $20.20 an hour for an average one-bedroom.
"There are no neighbourhoods in Toronto where you can earn minimum wage and still afford a one-bedroom, or a two-bedroom apartment," Macdonald added.
