Nova Scotia has expanded a program that will allow hundreds of additional low income residents to qualify for rent subsidies.

The program is aimed at people who are struggling to pay rent whether or not they receive social assistance. The supplement fills the gap between what they can afford and the rent charged by landlords.

Joanne Bernard, the Minister of Community Services, said the province will spend $9 million over the next decade to increase the number of rent subsidies available to low income Nova Scotians. Nova Scotia is contributing $4.7 million of that, while the rest is coming from the federal government and the province's landlords.

Bernard said it will reduce the current waiting list for affordable housing by a third.

"We are creating a minimum of 300 units of affordable rental housing who are on a waiting list today," she said. "These units will become available almost immediately."

Landlords have agreed to lower rents for those receiving the subsidy, as part of a pledge to contribute 50 cents for every dollar subsidized by the government.

Mark Bergman, with the Investment Property Owners Association of Nova Scotia, said it's a win-win situation.

"Obviously, it takes some vacant units that are not serving residents and puts them to work," he said.

Bergman said the vacancy rate in Halifax has climbed to four per cent. There are approximately 900 vacant units where the rent is $850 a month and less.

The federal portion of the program's funding will come from a pool of money created in the 1990s when the federal government stopped funding social housing. There is $42 million available in that account.

Premier Stephen McNeil said his government will spend that money on this program and other projects yet to be announced. Tuesday's announcement is part of a $50-million investment promised by the Liberals for social housing projects involving seniors, co-ops and public housing.