New rules for tenants paying fixed rent in public housing in Nova Scotia

HALIFAX — Nova Scotia is changing its rules for people paying a fixed amount of rent for public housing in a move the government says is aimed at achieving fairness and consistency.

Housing Minister John Lohr made the announcement on Thursday, saying that over the next four years, 1,445 public housing tenants – or about 13 percent of the total – would start paying rent based on household income, meaning they could pay more or less than they are. Now.

Lohr said the remaining 87 percent of tenants already pay income-based rent. This model is used by public housing agencies across the country. These tenants pay rent of no more than 30 per cent of their household income, which is considered affordable by the Canada Mortgage and Housing Corporation.

Pamela Menchenton, director of client services for the Nova Scotia Provincial Housing Agency, said fixed-rent leases are a holdover from previous programs dating back 30 years. Fixed rents range from $400 to $680 per month.

“There is no good rhyme or reason to this,” Menchenton said at a news conference. “These are legacy rental models that were put in place because we inherited some of the programs from the federal government…. Moreover, we used fixed rates to fill vacancies (in the 1990s).”

Nova Scotia’s 17,500 public housing tenants – about 70 per cent of whom are seniors – currently earn an average of $22,000 a year. But authorities know that tenants of 15 to 20 apartment units earn more than $100,000 a year.

“We strive to provide equal opportunities for all residents of our apartments,” Menchenton said, adding that there are about 7,300 people on the waiting list for public housing.

“We have people in the same community, maybe in the same building or on the same floor, paying five percent of their income when most of our tenants would pay 30 percent. We want a fair approach.”

It said about 75 percent of fixed-rent tenants would see their rent increase by an average of $96 per month after four years of gradual increases, while the remaining renters would see their rent decrease.

Government officials have confirmed that the province is expected to collect an additional $400,000 in rent, but that amount will be offset by an additional $3 million spent on heating costs for those who switch to an income-adjusted rent system – a standard feature of this model .

The changes will be introduced gradually starting from November 13.

“We know this will be an adjustment for tenants,” Lohr said in a statement. “We are taking significant steps to build more public housing and modernize the public housing program to respond to the changing economic landscape and the diverse needs of our growing population.”

Higher-income tenants will be able to count on a rent increase of five percent per year for the first three years. In the fourth year, their rent will increase to a ceiling level of 30 percent of gross income for singles and 25 percent for families.

People receiving income assistance will not see a change in the rent model. They will continue to pay rent rates based on the number of dependents in the household.

The Nova Scotia Provincial Housing Agency is also introducing new rental rules that will require all tenants to report their household income annually to remain eligible for public housing.

The changes are based on recommendations from the province’s 2022 auditor general’s report, which found that rental rules are outdated and the eligibility assessment process is inconsistent.

This report by The Canadian Press was first published June 20, 2024.

Michael MacDonald, Canadian Press