Editor:
An open letter to bank managers and landlords in New Westminster and Burnaby:
You may recall my open letter to you on March 31, asking you to offer a mortgage and rent deferral for your clients and tenants on April 1. It is unfortunate that I make the same request for May 1. It is due to the federal government's inaction to implement immediate and effective residential and commercial rent relief.
Despite the federal government’s inaction, I want to thank some financial institutions which have deferred mortgage payments to some of your clients for the month of April. I have also heard encouraging stories of landlords in my riding providing rent deferrals or even rent reductions for their tenants.
Bank managers, while I appreciate your effort to defer mortgage payments, interest, penalties and fees are still piling up on top of the mortgage principal payments. Please follow the example of credit unions like VanCity and Community Savings by eliminating interest fee charges and penalties on deferred mortgages, credit cards and personal lines of credit.
I have been pressing the federal government to provide rent relief for both renters and for small businesses. After many weeks of pressure, the government has announced some measure of commercial rent relief. The Canada Emergency Commercial Rent Assistance (CECRA) will be rolled out in the middle of May. I have not yet seen the legislation, but if the program is similar to the announcement, eligible commercial tenants will reduce their rent obligation to 25% of rent for April, May and June of this year. 50% of the rent cost will be subsidized by the federal and provincial governments and will be considered as a forgivable loan. The property owner will absorb the last 25% of the cost of rent. This is inferior to what I proposed to the government a few weeks ago, and is inferior to what other countries are doing, but it can help certain businesses to weather the storm and gives more certainty to property owners that they will still have commercial tenants to help them pay the mortgage when the pandemic crisis is over.
At the very least, the federal government needs to provide similar support to residential renters as they have just announced to commercial renters. In the meantime, I ask for patience and support for people in the community who are struggling to put food on the table, let alone pay rent.
This pandemic is a crisis that is probably the greatest since the Second World War. That’s why we need that same imperative of shared sacrifice. That means we have to focus on what is most important and we have to end the giveaways to the wealthiest citizens and the most profitable corporations. We must take care of everyone in our community so no one is left behind.
In New Westminster and Burnaby, we have a proud history of standing up for each other. Like Canadians everywhere, half of our families are $200 away from insolvency in any given month. The Coronavirus crisis has provoked deep hardship for so many families in our area. I ask for the kindness and compassion and shared sacrifice that has brought us through similar challenges in the past. I thank you in advance for your contribution to our collective efforts.
Peter Julian, MP, New Westminster-Burnaby
