A for lease sign hangs in the window as a cyclist walks past a commercial store, Monday August 31, 2020 in Ottawa. nbsp; THE CANADIAN PRESS/Adrian Wyld

A for lease sign hangs in the window as a cyclist walks past a commercial store, Monday August 31, 2020 in Ottawa. nbsp; THE CANADIAN PRESS/Adrian Wyld

As feds audit landlords over rent aid, businesses fall through cracks of new program

The CMHC said in a statement the reviews are being done as needed to make sure tenants benefited

Documents given to parliamentarians show federal officials audited at least 127 landlords who received aid through a program designed to ease rent costs for small businesses during the COVID-19 pandemic.

That was the figure as of Dec. 10, at which time the Canada Mortgage and Housing Corporation said just over one-quarter of those cases had been “resolved.”

The federal housing agency didn’t say how many more audits have been conducted since.

The CMHC said in a statement the reviews are being done as needed to make sure tenants benefited from the Liberals’ first try at the commercial rent-relief program and that landlords complied with the terms of the program.

The original program provided landlords with forgivable loans that covered half of rent for eligible small businesses, but required property owners to waive a further one-quarter of what they were otherwise owed.

In the end, just over $2 billion in federal aid flowed through the program as many landlords didn’t apply.

Federal figures tabled in the House of Commons show 51,404 distinct property-owners applied to the program, with some submitting requests for multiple properties.

The Liberals revamped the program because of the low take-up, allowing tenants to apply directly and creating a sliding scale of relief, based on revenue declines, of up to 65 per cent of rent or commercial mortgage interest.

The program now includes a lockdown top-up of an added 25 per cent for businesses ordered to close due to COVID-19 restrictions.

Since late September, there have been nearly 112,000 unique applicants for the program, amounting to $986.8 million in aid. Within that, 37,320 applicants received the lockdown top-up, which adds $127 million in spending for a grand total of over $1.1 billion.

A group representing thousands of small businesses across the country said the new version still isn’t living up to expectations because it suffers from a lack of visibility and eligibility issues.

The Canadian Federation of Independent Business said only one-quarter of its members have used the revamped rent subsidy program, compared to two-thirds that have used a popular loan program that can be used for costs like rent.

President Dan Kelly said some small and medium-sized businesses that would be eligible for rent relief are likely avoiding it because of struggles with the first iteration of the program, or other issues they faced in applying for pandemic aid.

“They moved on,” he said.

“A lot of business owners who are eligible for the program have just not yet applied, because they’re unaware that there is substantive support available in a new program. So the visibility of it is, I think, one of the struggles.”

He also said the association has raised concerns to the government that eligibility requirements may be excluding some businesses that own their own properties.

Often, a company like a restaurant or drycleaner will have a holding company that owns a property and to which it pays rent. Under the rent-relief program, that setup makes a business ineligible because the landlord isn’t at arm’s-length from the business owner.

Federal rules say that a holding company may be able to claim some expenses, such as property taxes and insurance.

The previous program had a fix for this potential issue that Kelly said could make either party eligible for relief.

A fix like that would likely need legislative approval.

A bill to enact aid measures from November’s economic statement remains at second reading in the House of Commons. Bill C-14 would allow the government to put money into regional relief packages and create a top-up to child benefit payments.

Earlier Monday, Finance Minister Chrystia Freeland spoke with her U.K. counterpart in advance of a G7 meeting of finance ministers and central bankers.

“We remain committed to supporting people and small businesses so we can make it through this pandemic,” Freeland said in a tweet.

Jordan Press, The Canadian Press

Coronavirus

Just Posted

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Alberta reports 100 new cases of COVID-19

The Central zone sits at 218 active cases

The Government of Alberta identified 115 new COVID-19 cases Sunday, bringing the provincial total to 3,089.
(Black Press file photo)
Red Deer drops to 71 active cases of COVID-19

Province adds 127 new cases of the virus

Police officers and their dogs undergo training at the RCMP Police Dog Services training centre in Innisfail, Alta., on Wednesday, July 15, 2015. Mounties say they are searching for an armed and dangerous man near a provincial park in northern Alberta who is believed to have shot and killed a service dog during a police chase. THE CANADIAN PRESS/Jeff McIntosh
RCMP search for armed man in northern Alberta after police dog shot and killed

Cpl. Deanna Fontaine says a police service dog named Jago was shot during the pursuit

Alberta now has 2,336 active cases of COVID-19, with 237 people in hospital, including 58 in intensive care. (Black Press file photo)
Red Deer down to 73 active cases of COVID-19, lowest since early November

The Central zone has 253 active cases of the virus

Marco Mendicino, Minister of Immigration, Refugees and Citizenship during a press conference in Ottawa on Thursday, May 13, 2021. THE CANADIAN PRESS/Sean Kilpatrick
Canada to welcome 45,000 refugees this year, says immigration minister

Canada plans to increase persons admitted from 23,500 to 45,000 and expedite permanent residency applications

FILE – Most lanes remain closed at the Peace Arch border crossing into the U.S. from Canada, where the shared border has been closed for nonessential travel in an effort to prevent the spread of the coronavirus, Thursday, May 7, 2020, in Blaine, Wash. The restrictions at the border took effect March 21, while allowing trade and other travel deemed essential to continue. (AP Photo/Elaine Thompson)
Feds to issue update on border measures for fully vaccinated Canadians, permanent residents

Border with U.S. to remain closed to most until at least July 21

Blair Lebsack, owner of RGE RD restaurant, poses for a portrait in the dining room, in Edmonton, Friday, June 18, 2021. Canadian restaurants are having to find ways to deal with the rising cost of food. THE CANADIAN PRESS/Jason Franson
Canadian restaurateurs grapple with rising food costs, menu prices expected to rise

Restaurants are a low margin industry, so there’s not a lot of room to work in additional costs

Orange shirts, shoes, flowers and messages are displayed on the steps outside the legislature in Victoria, B.C., on Tuesday, June 8, 2021 following a ceremony hosted by the Songhees and Esquimalt First Nations in honour of the 215 residential school children whose remains have been discovered buried near the facility in Kamloops, B.C. THE CANADIAN PRESS/Chad Hipolito
Alberta city cancels Canada Day fireworks at site of former residential school

City of St. Albert says that the are where the display was planned, is the site of the former Youville Residential School

Barbara Violo, pharmacist and owner of The Junction Chemist Pharmacy, draws up a dose behind vials of both Pfizer-BioNTech and Oxford-AstraZeneca COVID-19 vaccines on the counter, in Toronto, Friday, June 18, 2021. An independent vaccine tracker website founded by a University of Saskatchewan student says just over 20 per cent of eligible Canadians — those 12 years old and above — are now fully vaccinated. THE CANADIAN PRESS/Nathan Denette
At least 20% of eligible Canadians fully vaccinated, 75% with one dose: data

Earlier projections for reopening at this milestone didn’t include Delta variant

This undated file photo provided by Ernie Carswell & Partners shows the home featured in the opening and closing scenes of The Brady Bunch in Los Angeles. Do you know the occupation of Mike Brady, the father in this show about a blended family? (Anthony Barcelo/Ernie Carswell & Partners via AP, File)
QUIZ: A celebration of dad on Father’s Day

How much do you know about famous fathers?

A dose of the Pfizer-BioNTech COVID-19 vaccine is pictured at a vaccination site in Vancouver Thursday, March 11, 2021. THE CANADIAN PRESS/Jonathan Hayward
NACI advice to mix vaccines gets varied reaction from AstraZeneca double-dosers

NACI recommends an mRNA vaccine for all Canadians receiving a second dose of a COVID-19 vaccine

Bruce Springsteen performs at the 13th annual Stand Up For Heroes benefit concert in support of the Bob Woodruff Foundation in New York on Nov. 4, 2019. (Greg Allen/Invision/AP)
Canadians who got AstraZeneca shot can now see ‘Springsteen on Broadway’

B.C. mayor David Screech who received his second AstraZeneca dose last week can now attend the show

Most Read