$1M to subsidize Yukon landlords is misguided, opposition parties say

A plan to subsidize Yukon landlords through a new $1-million pot of money proves the territorial government is out of touch and won't help the people who need money the most, say opposition MLAs.

On Thursday, the Yukon Liberal government rolled out a program that would give landlords one-time payments of $338 per unit they own. It's meant to offset the effects of a cap on rental increases, which limits such increases to five per cent nearly two per cent lower than the inflation rate this year and the $1 million should be enough to subsidize every unit in the territory.

The announcement prompted blowback from Yukon Party Leader Currie Dixon, who said it was the Liberal government who brought in that rental cap in the first place.NDP housing critic Lane Tredgersaid the government should instead use that money to top up rent support programs.

Dixon said the subsidy is proof of the government's own failed policies and won't solve any of the issues the rental market is currently experiencing. The real problem, he said, is that rents are going up and availability is going down and there aren't enough new units coming on the market to keep up with the Yukon's growing population.

"It's an admission that they've destabilized the rental market and are now trying their best to stabilize it with cash handouts," he said of the program.

"I know landlords in this community that own 100 units. I don'tthink writing them a cheque for $30,000 is going to solve anything in the market."

He added he believes some of his party's MLAs are landlords, though he isn't. He plans to talk about the program with his caucus to decide whether to bar his MLAs from applying for it.

Tredger said the territory needs more housing supply, but it needs to be affordable and that's why the rent cap was important. With a lengthy housing waitlist, a lot of people are "really pretty desperate for housing," they said.

This latest program, though, doesn't target the right people, Tredger said.

"Ultimately, I think the people we need to be prioritizing are the people who are struggling to make their rent, who are struggling to put food on the table," said Tredger. "If we have a million dollars to spend, why not put it in the hands of renters?"

Tredger is a landlord but said they will not be applying for the subsidy.

For his part, Premier Ranj Pillai defended the rent cap as something that has given renters "some security". He said his government is now trying to help landlords who are investing in their units, and hopes some of those landlords will take it as incentive to build more housing units in the future.

There's no requirement for the subsidy to be put toward units, though.

Pillaialso said though it's open to all landlords, he sees it as particularly helping small-time landlords who are trying to make ends meet.

"What we're hoping is if there's been any extra costs over this year ... [the subsidy] can help offset any of that extra burden," he said.

He also strongly discouraged MLAs from taking advantage of the program. Pillai, who is a landlord, said he won't apply for it.

"I don't think it's appropriate," he said.