Ottawa, Alberta set to clash over cash for new rent supplement

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Ottawa, Alberta set to clash over cash for new rent supplement
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Alberta hopes to finalize a funding arrangement with Ottawa to streamline provincial rental assistance programs

Alberta's housing minister hopes to finalize a funding arrangement with Prime Minister Justin Trudeau's government.Alberta is pushing back against the Trudeau Liberals’ expectation that provinces and territories pick up half the cost of a new rent supplement, asking instead to substitute federal funding for their own.

What has housing advocates concerned is that the new supplement may have limited effects if spending doesn’t increase as originally envisioned. “This will reduce duplication in the application process and ensure Albertans in need of housing can access the supports they need quickly and efficiently.” Cost-matching provisions could lead lower levels of government to shift existing funds to meet federal demands without an overall increase in spending, the budget watchdog warned in a report earlier this year.

At an event in Ottawa announcing the agreement, a Liberal point man on the housing file said different provinces are challenged by different economic constraints, but argued spending a little more on housing could save governments money in the long-term from things like reduced health care costs.

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