Manitoba’s housing minister has apologized for not telling housing organizations sooner her government was pausing a rent top-up program that allowed people who live in shelters and encampments to afford an apartment.
“We want to take full responsibility and apologize that organizations weren’t told this sooner,” Bernadette Smith told the Free Press in a phone interview Wednesday.
Non-profit organizations and housing advocates were stunned last week when they were informed, in a letter by Manitoba Housing CEO Carolyn Ryan, that applications for the Canada-Manitoba Housing Benefit which were received after Aug. 2, won’t be processed.
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Provincial Housing, Addictions and Homelessness Minister Bernadette Smith apologized for the abrupt pause of a rent top-up program, saying the government didn’t forsee such high demand.
“It’s been a super-hard decision,” said Smith. The program, which is jointly funded by the two senior levels of government, was “oversubscribed” and has been paused. It provided up to $422 a month for eligible low-income renters.
The program’s budget is $8.64 million for the 2024-25 fiscal year. Smith said monthly payments will continue for renters who’ve been receiving it.
Initially, the program that was launched in 2020 was “under-subscribed,” with just 570 Manitobans receiving it in December 2022, the minister said.
In 2023, with an election on the horizon and a growing homeless crisis, the Progressive Conservative government increased the maximum top-up available to $350 from $250, plus $72 for utilities. In June 2023, 923 people subscribed to the monthly benefit. A year later, 3,088 Manitobans were receiving it.
When the NDP formed government in late 2023, Smith said they got the word out to organizations about the benefit being available so they could help to secure housing for more people.
“We didn’t foresee that there would be such a high demand for it,” she said. “That’s put us in a position where we’ve had to pause the program.”
Smith wouldn’t say how long the pause will last or how much funding would’ve been required to keep it going. Since Aug. 2, more than 400 people have applied for the benefit.
“We’re pausing it to do a review just to make sure that those who need the benefit, get it.”
She said her government is focused on “standing up” more affordable housing and has budgeted $116 million this year to build 350 units of social and affordable housing, and to renovate and repair 3,000 units.
Smith said the former PC government sold Manitoba Housing units and allowed others to fall into disrepair. Since November, 1,000 Manitoba Housing units have been repaired and occupied with more units becoming available, she said.
“We know there are people in encampments who can’t access housing because we don’t have enough in this province,” the minister said.
Marion Willis, executive director St. Boniface Street Links, said pausing the program is “catastrophic” for those who want to get out of shelters and encampments and into their own place.
“Without the rent top-up, it is impossible to house people,” said Willis, noting that monthly social assistance for a single adult doesn’t come close to covering rent for the most modest bachelor suite.
On Wednesday she said she received a “frantic” email from a member of their housing team, saying a landlord had not received the rent top-up for a client in August or September, and was concerned it won’t arrive in October.
“We want to take full responsibility and apologize that organizations weren’t told this sooner.”–Housing, Addictions and Homelessness Minister Bernadette Smith
“A lot of other clients are in the same predicament,” said Willis, who is concerned about evictions. “Now our clients are in arrears and at extreme risk of being made homeless.”
Smith said those who submitted applications for the benefit in August will be reviewed.
“We want to make sure that no one loses their housing and becomes homeless because of this,” the minister said.
She said the government is still committed to ending chronic homelessness in two terms (eight years), and that it is part of her mandate.
For his part, the interim leader of the PCs questioned the priorities of the NDP premier and his government.
“Wab Kinew and the NDP promised to end homelessness in eight years and make life more affordable for Manitobans,” Wayne Ewasko said in an email. “Instead, they have put 400 Manitobans at risk of living on our streets.”
Having to pause a program that helped house homeless Manitobans is “extremely unfortunate” and a “little puzzling,” said Brandon University political science Prof. Kelly Saunders.
“This seems to be a bit of a step back from that very definitive promise ‘we’re going to end chronic homelessness within eight years,’” she said.
The NDP is likely feeling the pressure to balance the budget in their first term as promised, Saunders said. At the same time, the one-year anniversary of the NDP government approaches.
“They have to show movement on some of what they have identified to be their absolute top priorities,” the veteran observer of Manitoba politics said.
“This is going to come back to hurt them a bit, as people sit back and reflect on what has changed as we’ve had this new administration in power.”
carol.sanders@freepress.mb.ca
Carol Sanders
Legislature reporter
Carol Sanders is a reporter at the Free Press legislature bureau. The former general assignment reporter and copy editor joined the paper in 1997. Read more about Carol.
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