Rent bank, St. Stephen solution on the way soon, says housing minister

The Higgs government says two measures to address the province's housing crunch will take effect within days.

Housing Minister Jill Green told the legislature Thursday afternoon that a new "rent bank," initially due to launch in the new year, will instead be operating by next Wednesday,Dec. 13.

People facing sudden, unexpected costs that put them at risk of eviction will be eligible for grants up to $2,750 to help them get by, she announced.

Green also said a response to a homelessness crisis in St. Stephen, where a man died on the weekend, will start taking shape as early as Friday morning.

"The community has rallied. They have come up with a solution. They have come up with an immediate solution, they have come up with a short-term solution and a long-term solution," Green said.

She said she would give the town time "to work out the last few details" and hoped to have more to say on Friday.

Green later told reporters that the short-term fix would probably be in effect Friday morning.

St. Stephen declared a state of emergency this week after the death of a man who was found in a park.

Public Safety Minister Kris Austin responded by accusing the town of making a "frivolous" political statement with the declaration.

He terminated the declaration, saying the situation didn't meet the definition of an emergency.

Mayor Allan MacEachern says between 70 and 100 people are without homes in the town, with about 30 rotating through a temporary shelter.

Austin then blamed what he called the "leftist agendas" of the federal Trudeau government for creating the issues that led to the homelessness crisis.

Green wouldn't comment on Austin's remarks Thursday except to say the province and the town had been working hard on solutions throughout the week, "in this time when fingers are being pointed, not just from this side."

Austin softened his tone in the legislature Thursday, calling the man's death tragic and heartbreaking.

He again did not speak to reporters about his remarks, but said in the house that Green was addressing the situation and "we're going to solve it without a state of emergency."

The rent bank was one element of the province's housing plan released in June.

It budgets $3 million over two years to help up to 750 households faced with unexpected costs that put their housing at risk.

Single people earning below $50,500 and families with incomes below $85,000 will be eligible to apply for the grants.

If someone doesn't use up the $2,750 all at once, they can apply again later for the rest.

The bank was supposed to start in January but instead it will be available next week.

Several non-profit community groups have signed on to help the province ensure that people on low incomes and in precarious housing are able to use it.

Opposition Liberal Leader Susan Holt said with 24,000 renters considered vulnerable because more than 30 per cent of their income goes to rent the $3 million for 750 households does not appear to be enough to meet their needs.

"That's actually low," Holt said. "Let's see the volume of applications but that seems a little low to me."

Green said if the $3 million isn't enough to meet all the needs, "then it's up to me to find more money to put in the rent bank."

Green MLA Megan Mitton called the announcement "a positive thing" but said it doesn't address the lack of affordable housing.

The money from the rent bank may just "funnel through" tenants to landlords, including real estate investment trusts, she said, arguing a rent cap would be a better way to address housing affordability.

The minister said she is not considering a rent cap now and that the rent bank money can be used for a variety of emergency expenses, not just rent.