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Jul 6, 2020

CECRA update - extension of CECRA Rent Relief program to include July, 2020

By: Darrell Gold and Rachel Puma

Further to our prior advisories regarding the CECRA program, on June 30, 2020 the Federal government announced that the rent relief program will be extended to include the month of July.

Terms of the extension are being finalized but the government has indicated as follows:

·         Participation in the July extension is voluntary. If a landlord has already applied or has yet to apply and is eligible they can obtain the July extension. An important point to note is that a Landlord does not have to let all eligible tenants who receive the 3 month rent benefit, also receive the July rent benefit. That is up to the landlord to decide.

·         There is no requirement for a tenant to show that its July revenues fell 70% in order to qualify for the July rent relief, provided that it qualified for the prior 3 month period rent relief.

·         Landlords who have already applied to the CECRA program have until September 14, 2020 to apply for the July extension. The opt-in for July will hopefully be available on-line at CMHC in the next few days.

·         A new change: If the eligible landlord or tenant has received non-repayable proceeds from other programs or other governmental abatements, there will no longer be a claw-back in the forgivable loan amount for both existing and new applicants. Applicants who have already applied and are affected by this change will be notified and will have any previously clawed-back amounts restored to their forgivable loan.

We will update you further when further information is provided by the government.


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