Ontario’s plan to reopen the economy coming next week, Ford asks for residential rent relief

Ontarians will get a glimpse soon into when parks, restaurants and golf courses will begin opening their doors. Premier Doug Ford says they will announce a framework next week to re-open the Ontario economy.

Federal, provincial gov’t lower commercial rent by 75% for small businesses

Ford also said Friday he plans to ask the federal government about residential rent relief. Ford’s plea to Prime Minister Trudeau comes after the PM’s announcement that the provincial and federal governments agreed on a deal for commercial rent relief.

“I want to thank the federal government for partnering with us to help our small businesses and commercial landlords. I look forward to working together to also provide much-needed support to residential renters ahead of May 1,” said Ford.

 provincial and federal governments agreed on a deal for commercial rent relief.
Provincial and Federal governments agreed on a deal for commercial rent relief.

During Friday’s media briefing, Ford said the province is committing $241-million through the new Ontario-Canada Emergency Commercial Rent Assistance Program (OCECRA). The total amount of provincial-federal relief that would be provided is more than $900-million.

The OCECRA will provide forgivable loans to eligible commercial property owners experiencing potential rent shortfalls. To receive the loan, property owners will be required to reduce the rental costs of small business tenants for April to June 2020 by at least 75 per cent and commit to a moratorium on evictions for three months.

Related: Commercial rent lowered by 75% for small businesses

This provincial announcement comes after the federal government said a deal was reached that applies to businesses that are paying $50,000 in rent or less. Under the deal. those businesses will only have to pay 25% of their rent in April, May and June. The landlord will absorb the other 25% of rent and the Federal government and Provincial government will absorb the other 50% of rent.

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“We’ve reached agreements with all provinces and territories to lower rent by 75% for small businesses that have been affected by COVID-19 for April, May, and June. The government will cover 50% of that reduction, with the property owner covering the rest,” said Prime Minister Trudeau Friday.