The McGuinty government is delivering on its promise to help low-income tenants keep their homes with a Provincial Rent Bank program. The announcement was made today by John Gerretsen, Minister of Municipal Affairs and Housing.
A rent bank promotes housing stability by assisting low-income tenants. Short-term rent arrears is the most common reason tenants lose their apartments and end up in shelters. Low-income tenants may apply to a rent bank to receive short-term financial assistance to address short-term rent arrears. If a tenant's application to a rent bank is approved, the outstanding rent is paid directly to the landlord on behalf of the tenant.
The Provincial Rent Bank program represents a one-time funding commitment of $10 million, which will flow to municipal service managers who administer, or wish to establish, rent banks. Providing grants to municipal service managers will enable them to administer rent bank funding in ways that best meet the needs of their communities.
Consolidated Municipal Service Managers (CMSMs)
Municipal service managers are municipalities, agencies, boards or commissions as designated by provincial regulations under the Social Housing Reform Act, 2000. Service managers are responsible for administering a number of services, including social assistance, social housing and child care.
Rent Banks in Ontario
About half of Ontario's 47 CMSMs have a rent bank in their jurisdiction. By providing funding through the Provincial Rent Bank program, the government is encouraging all these service managers to establish rent banks.
Currently, about $1 million is disbursed annually through municipal rent banks across the province. The Provincial Rent Bank program will represent a 10-fold increase in rent bank funding.
Eligibility Criteria
According to a survey of service managers that currently operate rent banks, the average amount of a rent bank loan is $1,500 per household.
Under the guidelines of the Provincial Rent Bank program, tenants can apply for assistance no more than once in two years, for a maximum amount of two months’ rental arrears.
Within the Provincial Rent Bank parameters, it is up to each service manager to determine the eligibility requirements for their local rent banks.
Tenants can contact their municipality for more information on their local rent bank.