Plan to help low-income tenants with short-term arrears part of plan for strong communities

TORONTO -The McGuinty government is delivering real, positive change by setting up a new Provincial Rent Bank program that will help low-income tenants with short-term arrears so they can stay in their homes.

"This fulfills a key campaign promise, part of our plan to build clean, safe communities that work by providing housing solutions," said John Gerretsen, Minister of Municipal Affairs and Housing. "Short-term arrears is the most common reason tenants lose their apartments and end up in shelters. Rent bank funding is intended to prevent eviction of low-income residents who, due to an unforeseen crisis, miss a rent payment."

The Provincial Rent Bank program was announced today by Ministers Gerretsen and Pupatello at the WoodGreen Community Centre.

As part of its comprehensive efforts to promote affordable housing, the province is committing $10 million in provincial grants to municipalities that currently operate, or wish to establish, rent banks, increasing overall rent bank funding ten-fold.

Under the guidelines for the Provincial Rent Bank program, the province will allocate funds to 47 municipal service managers province-wide. Service managers may deliver the program directly or they may flow funding to community agencies that operate local rent banks.

Supplementing the government's funding for rent banks is $2 million in additional funding for an energy emergency fund to help low-income households deal with energy-related emergencies.

"Our government understands that communities cannot thrive if they struggle to meet the basic needs of citizens," said Pupatello. "That's why we're working with our municipal partners to develop effective solutions that meet the needs of low-income households and help prevent homelessness."

"This means a great deal to the families we serve. The Provincial Rent Bank program will ensure the housing stability of low-income tenants who are at risk of homelessness," said Brian Smith, President of WoodGreen Community Centre, a Toronto agency that operates a rent bank on behalf of the city.

"The Provincial Rent Bank program is part of our comprehensive plan to give municipalities the tools to develop affordable housing solutions that are responsive to local community needs," said Gerretsen. "Our government and Ontario municipalities share goals of creating more affordable housing, supportive housing and transitional housing to meet a basic need — a place to live."