Changes to N.S. Rent Supplement Program aim to cut down on ‘over-subsidization’

CITYnews halifax / By Mark Hodgins

The provincial government says changes to a program aimed at supporting low-income Nova Scotians with their rent will make more people eligible and cute down on “over-subsidization”.

Starting Friday, low-income Nova Scotians spending at least 40 per cent of their income on rent are eligible for the Rent Supplement Program, down from 50 per cent previously.

“The Province is also implementing the Canadian Mortgage and Housing Corporation’s new household income levels and average market rents for determining eligibility and supports,” read a news release.

Another change will see supplements determined using the actual rent of an applicant, as opposed to average market rents for the area. Government said the previous method led to some 860 people getting more from the supplement than they actually paid in rent.

“The new formula ensures no one receives a rent supplement that is greater than their actual monthly rent,” said housing minister John Lohr. “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.”

The changes for people who do get more back than they pay in rent right now will come into effect December 1, according to the province. It plans to phase in the new formula over three years “to give recipients time to adjust”.

Savings made through the new formula will be directed back into the program to support more people, government said.