The Government Announces Rental Assistance and Relocation Assistance Programs

The good news is that the Government of Quebec will provide a $1500 interest-free loan to tenants and will pay compensation to those who will have to temporarily relocate because their new home is not ready on time.

These two measures, announced yesterday, are welcomed news for CORPIQ and respond in large part to the requests for assistance to landlords that it had recently sent to the Minister of Housing, Andrée Laforest.

It is particularly interesting to learn that, as CORPIQ wished, the money will be paid directly to the landlord of the dwelling. The amount of $1500 corresponds to about two months for an average rent. The tenant will have until August 1, 2021 to reimburse it.

The Société d'habitation du Québec (SHQ) will run the program. The loan application must be made by July 15. The SHQ will provide a form and more details shortly. CORPIQ will put the link on its Q&A page on COVID-19 as soon as it is available.

This program offers a solution to a large proportion of tenants in a situation of non-payment of rent caused by various effects of the pandemic, including loss of employment. With this loan combined with the Canada Emergency Benefit of $2,000 per month, which is 2.5 times the average rent in Quebec (compared to 1.5 times in Ontario), Quebec tenants now have the best protection in the country. 

It should be noted that the landlord retains the right to obtain termination of the lease after three weeks, even if the tenant claims that the financial assistance received is less than the rent.

There is therefore no longer any possible excuse. Of course, landlords have no way to force a tenant to apply for the loan, nor do they have any guarantee that the Canada Emergency Benefit will be used to pay the rent. It is clear that there will be tenants who will act in bad faith and continue to take advantage of the crisis to get free housing. Some of them are even on social assistance, so their income has not changed.

This is why CORPIQ intends to continue to insist that the Government of Quebec reopen the courts so that justice can take its course, as long as the health risks are under control. Hearings are still pending, as are evicton orders that cannot be enforced because of the emergency measures. Compensation should be paid to landlords penalized by this ruling decreed by the government, CORPIQ asked the Minister of Housing.

As of April 6, 14% of tenants had not paid their monthly rent, according to a CORPIQ survey of 2,500 landlords totalling more than 50,000 units across Quebec. Another survey will be conducted this week to see what effect the Canada Emergency Benefit will have had.

A temporary accommodation program that meets expectations

CORPIQ also welcomes the announcement of the payment of an indemnity of up to $2,000 per month for households that would have to find temporary accommodation because their next residence has not been completed or renovated. To this amount will be added $1,000 for storage.

It must be a principal residence that construction started before March 25, 2020, for delivery between April 1, 2020, and August 31, 2020, and cannot be completed in that time frame due to circumstances. The following residences are included:

• a future new home or future new residential property (examples: house, condo);
• a residential property or a substantially renovated dwelling that has required relocation.

The measure will also apply to households that due to circumstances related to COVID-19 cannot:

• take possession of their principal residence;
• move into their future residential property or housing unit. 

This measure will reassure landlords who, in one out of two cases, will be welcoming one or more new tenants in the coming months. If the current tenant does not leave at the end of his lease (notably because his or her future residence is not ready), this can cause problems for 86% of them, reveals CORPIQ survey of its members. Some landlords also have dwellings under construction or renovation. With the paralysis of the construction industry for more than a month now, it is not certain that they will all be ready on time. This assistance will therefore allow the tenant to leave the dwelling and find adequate housing in the meantime. 

Still according to the CORPIQ survey, 10% of landlords must give keys to at least one new tenant in May, 8% in June and 31% in July.