Canada plans to give an extra $500 to some low-income renters, including students

To combat inflation and the national housing crisis, the federal government of Canada is offering a so-called “one-time top-up” to the Canada Housing Benefit: a one-time, tax-free $500 payment for low-income tenants .

The proposed federal initiative is currently awaiting parliamentary approval and Royal Assent.

If the measure passes, the Canada Revenue Agency (CRA) will set up an application process to disburse the money.

“For many Canadians, it is becoming increasingly difficult to find a safe and affordable place to call home, and the high cost of living makes affordable housing even harder to achieve for the most vulnerable Canadians,” wrote the Department of Finance Canada in a press release. Release.

To determine eligibility, the CRA should verify the applicant’s income, age, and residency status.

This one-time “top-up” will be available to families with a net income of less than $35,000 who rent accommodation in Canada, or $20,000 for individual renters.

Successful applicants should have given their consent to the CRA to conduct audits, file their 2021 tax return and prove that they are paying “at least” 30% of their net income for housing.

They will also need to provide proof, including their home address and a landlord’s contact information, that they pay rent for their own principal residence in Canada.

The department estimates that 1.8 million tenants would be eligible for payments under the measure if it passes.

Further information on eligibility and the proposed application process is available in a September 13 press release posted online.

The cover image of this article was used for illustrative purposes only.