End of federal funding for affordable housing worries N.B. non-profit group

MONCTON – Thirty new affordable housing units for non-elderly singles and persons with disabilities were officially opened Thursday in Moncton.

“We just signed an agreement, $78-million with the federal government and we’re putting in $39-million ourselves,” said Social Development Minister Madeleine Dubé. 

But there’s more work that needs to be done to combat the list of over 5,000 New Brunswickers still waiting for an affordable place to live.

The province has about 3,700 affordable housing units. Non-profit organizations also have about 6,000 units, where an operating subsidy is given so the owner can charge lower rent. In all, there are about 15,000 subsidized housing units throughout the province.

And while the New Brunswick Non Profit Housing Association supports future developments, they’re worried about the older units.

On Feb. 26, the federal government announced that once their current affordable housing agreements end, so will the funding.

“Over the next 20 years we’ll see a federal withdraw of federal funding for affordable housing that’s been developed and built here in New Brunswick,” said Timothy Ross, the association’s Executive Director. “And this withdraw of funding will cause viability issues for the housing operators.”

The funding came in the form of operating subsidies from the federal government allowing housing operators to break even after charging low rent based on the ability of what the tenant was able to pay. These were often 35 year agreements, but once those agreements end, they won’t be renewed.

Ross says it means over the next two decades, 5,400 units through out the province will no longer get that funding.