Province extends Lions Place subsidy after seniors concerned over rent increase

Manitoba Housing will extend a 35-year subsidy agreement with a Winnipeg seniors building to stave off rent increases for some residents anticipated to start this summer.

In January, residents at Lions Place seniors building near downtown told CBC News they were worried about paying rent come Aug. 1, when a long-standing agreement tied to the building's mortgage was scheduled to end and some tenants would see their costs jump by $169.

On Tuesday, the province said Manitoba Housing and Families Minister Scott Fielding reached an agreement with the Lions board to prolong the agreement another two years.

"As this is a private property, not a Manitoba Housing property, we do not have a mechanism to subsidize tenants ourselves," the statement reads. "What we do have, however, is a conscience and concern for low-income tenants."

The province says Lions Place entered the deal with Ottawa and the provincial government when it took out a 35-year mortgage to build the housing complex.

Under the agreement, the province provided money to Lions that was used to subsidize some of the units, but the deal was linked to the amortization of the mortgage and will effectively end when the mortgage ends — that is, Aug. 1 of this year.

"We too were upset to hear of their situation and approached management to find ways to maintain the subsidies," the province wrote in its statement.

The two-year extension will top up provincial rent assistance for affected residents, and will allow for "further discussions with the province and CMHC on how to go forward," the province said.

"As our agreement continues to wind down, we want to ensure Lions Place continues to fulfil its mandate to serve seniors," the statement reads.

"Our goal, and the way the program is designed, is for the organization to be self-sufficient and wisely use extra cash flow that comes from being free of mortgage debt."