The federal and provincial governments made a major housing announcement Thursday in Toronto. (Bryan Eneas/CBC)

Ottawa and Ontario sign deal to help low-income renters

Ontario is the first province to take advantage of a federal government program aimed at helping some 300,000 Canadians afford their rent by providing up to $2,500 a year to those who quality.

The $1.46 billion joint funding deal, which will be split 50-50 by Ottawa and Ontario, will take effect next spring and run for eight years.

Officials say up to 5,200 Ontario households will receive the benefit in the first year, and that the number of beneficiaries is expected to rise with time.

The benefit will be tied to the individual and not the social housing unit.

A new agreement between Ottawa and Ontario will help low-income people with their rent. (Chris Jonkind/Getty Images)

That means a tenant won’t lose the supplement should they move.

Ottawa hopes the agreement with Ontario will be the first of 13 funding agreements between Ottawa and Canada’s provinces and territories.

Agreements will be tailored to a jurisdiction’s needs and programs.

In Ontario, the money will be distributed to families who have been identified by the provincial government as being in need, including domestic violence survivors, seniors, people with disabilities and Indigenous communities.

Stephen Clark, Ontario’s minister of municipal affairs and housing, says families will decide how they use the money.

Currently, 283,000 households across the country are on a wait list for affordable housing. (Michael Wilson/CBC)

“We’re giving people more flexibility and more choice,” Clark said.

The $4-billion federal benefit program, known as the Canada Housing Benefit is a component of the National Housing Strategy announced in the fall of 2017.

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.

Macdonald told CTV News’ Kevin Gallagher 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.

With files from CBC, CP (Jordan Press), CTV (Kevin Gallagher)

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