QUEBEC, CANADA) – Amid a housing crisis, C$37 million (about US$26.6 million / £19.6 million / €22.9 million) intended to help tenants under the Rent Supplement Programme (PSL) remains unspent in Quebec government coffers. Community groups and private landlords criticise poor management of the funds even as the programme was modified three years ago to improve its effectiveness.
The PSL is designed to assist 51300 tenants by subsidising part of their rent, yet only 44300 households currently benefit. This leaves capacity to support an extra 7000 households, or 14 percent more, at a further cost of C$37 million that has not been allocated.
Aid distributed under the scheme totals C$235 million (about US$169 million / £124.5 million / €145.7 million) in government funding, according to the Société d’habitation du Québec (SHQ), which administers the programme.
“We have the impression that government programmes do not ultimately help the tenants with the most urgent needs,” said Véronique Laflamme, spokesperson for the Front d’action populaire en réaménagement urbain (FRAPRU).
Under the PSL, low income households pay only 25 percent of their income in rent while the government pays the difference to the landlord. The subsidy operates similarly to that for social housing tenants but applies to private rentals, housing cooperatives or non profit organisations.
The programme sets strict eligibility rules for dwellings. Rents must stay below set limits and landlords must sign contracts before tenants can receive the subsidy.
Available units exist on the market but rents are often too high. “There are more and more people who cannot find housing and we need to intervene to help those people,” said Éric Sansoucy, spokesperson for the Corporation des propriétaires immobiliers du Québec (CORPIQ). “As private landlords there is a part we can play.”
More landlords would take part if the programme were simpler, Mr Sansoucy said. “We can reassure and encourage more landlords.”
Three years ago the government paid an average of C$4428 a year per PSL unit. With higher rents the figure now stands at about C$5403. Extending the scheme to 7000 extra households would require an additional C$37 million in funding.
Previously a rent could not exceed the median for its area to qualify for the PSL. It may now be accepted if it reaches between 120 percent and 150 percent of the market median rent, with the exact threshold varying by programme stream.
Landlords can also receive up to C$20000 in compensation for damage caused by a tenant without first going through the Tribunal administratif du logement.
In 2023 La Presse reported that 20 percent of PSL units remained unallocated, largely because of limited private market apartments and landlord reluctance to take part.
“It is a heavy, complex programme that is not easy for either the landlord or the tenant,” Mr Sansoucy said.
Housing availability has risen in recent years, particularly at higher rent levels.
The PSL remains an important tool for keeping rental stock accessible and preventing residential insecurity during the housing crisis, CORPIQ stated in its 2025-2026 report. It also makes better use of existing rental units without the costs and delays of new construction. CORPIQ urges the government to invest more in the programme and to distribute its funds more effectively.
To improve results Mr Sansoucy suggested that housing agents help tenants with applications or that the financial aid be linked directly to the tenant rather than the dwelling so the subsidy travels with the household.
Ms Laflamme warned that linking the aid to the tenant could channel public money toward “housing at exorbitant prices.” She said private dwellings eligible for the PSL must be limited. “When we look at private market rents we see that the PSL can quickly become a bottomless pit,” she observed.
The government had counted on building affordable housing rather than subsidising tenants in private units, she noted. Yet the Programme d’habitation abordable Québec (PHAQ), launched in 2022, has not delivered affordable homes quickly enough.
Latest figures show 1765 PHAQ units in operation, 4297 under construction and 3108 in development.
The SHQ said some units are being assigned by the Ministry of Health and Social Services to specific groups such as people experiencing homelessness or women who are victims of domestic violence, which requires extra associated services. This accounts for part of the unspent PSL funds, according to the agency.
Other units are held for emergencies involving households without housing or at risk of losing it, while the remainder reflects normal turnover such as household changes or units undergoing renovation.
The office of Housing Minister Karine Boivin Roy declined a request for an interview on the matter.