Low-income housing hit by federal program end
The head of a national housing association warns rents for low-income housing on P.E.I. could double as federal subsidies for co-operatives come to an end.
As agreements with CMHC expire, so do thousands of dollars a month in financial support. Nicholas Gazzard, executive director of the Co-operative Housing Federation of Canada, said in the next decade 13 federally-funded P.E.I. co-ops, with around 100 units, will no longer get federal help.
"The impact is going to be huge, because there was already a shortage of affordable housing out there," said Gazzard.
"What this is going to mean is we're going to see the carpet rolling up behind us even as we try to find solutions to house more people affordably going forward."
Gazzard said subsidies have already expired for three co-ops on P.E.I., leading to higher rent.
The co-ops pay off the mortgage at the end of the agreement, but Gazzard says there are still on-going repair costs. He hopes federal and provincial governments can reach a cost-sharing agreement under the new Canada Social Transfer agreement in 2014 to cover this lost money.