Housing Benefit Claims Skyrocket As July 1 Starts

Housing Benefit Claims Skyrocket As July 1 Starts

In June 2023 alone, 180 people had asked OMHQ for housing assistance, bringing the total number of requests received since January to 656.

This is a significant increase of 25.75% over the total number of inquiries for 2022. The frequency of inquiries has also increased in recent weeks.

As July 1st approaches, our organization is making every effort to assist citizens in finding suitable housing that respects their financial capabilities, OMHQ explains in its latest update.

The organization’s program helps prospective renters find listings that meet their needs, directs them to specialized resources, and in particular, educates them about how the rental market works and best practices.

As of June 26, 108 housing assistance service files were still active; This is a 13% increase compared to 2022. These ongoing files are not aimed solely at finding accommodation for July 1st.

Get to work quickly

Quebec Mayor Bruno Marchand knows the numbers from OMHQ and admits that we need to get to work to solve Quebec’s housing crisis quickly.

The solution to the housing issue will take a long time. “All the time we lose by not coming up with an ambitious, bold plan is time we lose,” Mayor Marchand said Tuesday.

“This year, OMHQ is working to help people in need. The prime minister had said no one would be on the streets. We will work for that. We will need his help. What we are working on is not to see it again next year, in two years, in three years.”

– A quote from Bruno Marchand, Mayor of Quebec

Without strong measures to speed up the construction of social housing, applications for housing assistance will continue to increase. As a city, we have to do better. We can’t work like before. […] The government cannot part with it, it has to be as proactive as we are. If we don’t get to work, a year from now we’ll still be talking about it, still in the same situation.

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This situation comes as no surprise to Nicole Dionne, coordinator at BAIL, an organization that defends tenants’ rights in Quebec. In her opinion, the government’s silence on this issue has led to the current situation: there are measures that can be taken by the various levels of government.

In particular, she cites a check on rent increases: the increases are currently clearly abusive. This is the first hurdle in accessing housing.

A mandatory rental register in Quebec could be a control tool. When registering by municipality, we see that it is a voluntary registration. It does not have the necessary effect for a rental price brake, she warns.

Municipalities can also limit the conversion of certain accommodations into Airbnb-style tourist accommodations, resulting in lower rents.

The vacancy rate is lowest for affordable housing

The situation is representative of the real estate context in Quebec and the glaring lack of affordable housing.

Against the backdrop of a tight rental market, characterized by a very low vacancy rate for affordable housing in Quebec City in 2023 (0.7%), the SARL is receiving a high number of requests for assistance from households, the OMHQ notes.

This is an even more troublesome situation than in October 2022, when the Canada Mortgage and Housing Corporation of Canada (CMHC) said the vacancy rate in Greater Quebec City was 1.5%, the lowest since 2010.

Units with rents under $1,000 per month are even rarer, and the vacancy rate is less than 1%.