HALIFAX: More low-income Nova Scotians will qualify for a rent supplement through changes the Province is making to the program with the support of the Canadian Mortgage and Housing Corporation (CMHC).
The calculation of the supplement amount is also changing to ensure no one receives more than they are paying for rent.
“We have a duty to ensure that our rent supplement program is working as it should and the benefits are equitable for participants,” said John Lohr, Minister of Municipal Affairs and Housing. “The new formula ensures no one receives a rent supplement that is greater than their actual monthly rent.
“These changes will enhance the equity and fairness of the program and lower the eligibility requirements so more people will be able to qualify for support.”
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Effective August 23, low-income Nova Scotians who are spending 40 per cent or more of their household income on rent may be eligible for a rent supplement, down from the previously required 50 per cent.
The province is also implementing CMHC’s new household income levels and average market rents for determining eligibility and supports.
For new clients, the benefit amount will now be calculated based on the applicant’s actual rent, without exceeding the average monthly rent for the area, minus 30 per cent of the total household income.
Previously, the formula was based on the average monthly rent for the area and did not consider the actual rent, so recipients could receive more in a rent supplement than they were paying.
The new formula will eliminate this over-subsidization and ensure all participants are responsible for a portion of their rent based on their income, as the program intends.
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Starting December 1, existing clients who are receiving more in rent supplements than they are paying for rent will see the benefit adjusted to match their actual rent.
The move to the new formula will be phased over three years to give recipients time to adjust. Their rent supplements will be reviewed and adjusted annually.
Provincial savings from the changes will be directed back into the program, creating up to 1,000 more rent supplements for eligible Nova Scotians.
Quick Facts:
– about 860 clients currently receive a rent supplement that is higher than their actual rent
– about 2,500 clients will see their benefits increase with the new household income levels and average monthly rates in place
– in 2024-25, Nova Scotia is investing more than $69 million in rent supplements, benefiting about 8,500 households, up from 5,000 in 2021
– the new formula will be in place for all clients by August 1, 2027
