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But for Zelaya, it’s too little too late.
“I have lost at least $10,000 in equipment and merchandise that was in the property because I was locked out by the landlord,” Zelaya said. “On top of not having an income for months, I have lost assets, too.”
Laura Jones, chief strategic officer of Canadian Federation of Independent Business, is concerned that the biggest deterrent for landlords is how tedious the CECRA application is.
“One landlord we heard from had been on hold for four hours with CMHC,” she said. “They are being asked to ask tenants for detailed financial information like projecting June’s revenues. That’s really difficult to do given that we’re in a state flux here with the economy reopening. I’m just going to use plain language and say providing rent relief this way is dumb.”
Recipe Unlimited’s Hennessey is calling for the federal government to impose a one-year moratorium on evicting restaurants and small business retailers, and allow tenants to walk away from their leases without penalty if they do not receive abatement support.
Providing rent relief this way is dumb
Laura Jones, CFIB
“The voluntary nature of the (CECRA) program is its greatest weakness,” he said.
But First Capital’s Robins cautions against judging the program too soon. He said it will take time for landlords to submit applications, and for the CMHC to process them.
“The process has to be extensive,” he said. “The government has put vigilance and vigour into ensuring that money is going into the right hands.”
Meanwhile, Zelaya is in the process of filing a lawsuit against his landlord, a process he said will cost additional time and money.
“The last three months have just been a complete nightmare, and I have tried to stay positive, but, at this point, I just need more help,” he said.
Financial Post
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