The newly released 2024 New Brunswick budget confirms funds to assist tenants in the private rental housing market. That includes: $22 million to launch the direct-to-tenant rental benefit, which was promised in a provincial housing strategy released last year; an $8.9 million top-up for the existing rent supplement program; and $3 million for the rent bank, which provides qualifying recipients with grants to help cover damage deposits and/or overdue rent and utility bills.
As outlined in the housing strategy, approximately 3,000 households are to receive the direct-to-tenant rental benefit to subsidize their rents in the private market, keep them “affordably housed” and off New Brunswick’s extensive waiting list for subsidized public housing. Families, seniors and people with disabilities who qualify as being in “core housing need” will be eligible.
The strategy indicates there will be an ongoing funding commitment, with $22 million annually earmarked for the next three years. As of year-end 2023, rollout of the program was reported to still be in progress, whereas the rent bank was one of the strategy’s first enacted measures.
The latter provides up $2,750 or the equivalent of two months’ rent, whichever is the lower amount, per eligible recipient. Through the rent bank, these funds are paid directly to creditor landlords or utilities on owing tenants’ behalf. Childless households with a total yearly income no greater than $50,500 or tenant families with annual incomes of no more than $85,000 are eligible for assistance one time per year, although they can receive the maximum $2,750 amount only once in a 24-month period.
In announcing a $3 million funding allocation for 2024-25, New Brunswick’s Finance Minister, Ernie Steeves, noted: “This support will help up to 750 rental households avoid eviction or retain new rental accommodations annually.” However, $3 million parcelled out in maximum allotments of $2,750 should stretch out to at least 1,090 recipients.
Steeves also reported that the $8.9 million additional injection towards 5,000 existing rent supplements for private sector housing is “in recognition of rising rents around the province”.
