Up to 20,000 British Columbians short on cash for rent could benefit from an additional $11 million from the provincial government.
But government officials also said this immediate support is part of a larger response as the province deals with some of the highest rents in North America.
Spencer Chandra Herbert, MLA for Vancouver West-End and premier’s liasion for renters, Wednesday (Jan. 31) announced that the funds will go toward BC Rent Bank, a Vancity Community Foundation project.
BC Rent Bank will extend funds to 18 regional rent banks run by 14 organizations that work with renters offering them direct and indirect financial help.
Herbert said rent banks stop people from falling into homelessness in the first place.
“This is a proactive approach,” he said. “We don’t want to wait too long until somebody already ended up on the streets if we can avoid it,” he said. “It’s much better to act early when we can and that’s what the rent bank does.”
He added the money announced today also becomes available to eligible British Columbians today.
Melissa Giles, BC Rent Bank’s managing director, said rent banks offer an essential service for moderate income earners who are facing a crisis.
“It’s there to help people at a time of need and to make sure they stay housed,” she said, adding renters can apply online or approach rent banks in person. “Last year, we helped over 1,100 households to stay housed by providing financial support.”
RELATED: B.C. leads Canada as average rents skyrocket 30 per cent in five years
But rent banks do more than just offer direct financial support, she added. “(Case) managers are incredibly connected in communities,” she said. “(They) will do things like referring (individuals) to foods banks or vocational support. They are aware of other subsidies or grants from the community. It’s never our desire to apply a loan if it is not needed. We want to make sure that people are getting the right kinds of support.”
The rent bank program started in 2019 with seven rent banks, handling about 100 applications per month, Giles said. The figure is now closer to 500 applications, she added.
According to Giles, the average loan amount is $1,800 with the maximum amount being $3,500, or the equivalent of two months of rent. Situations, she added, differ from person to person.
“We work with renters one-on-one, if they need to extend the length of the loan,” she said. “We will work with them. The goal here is keeping people housed while they can make manageable repayment rates.”
Giles said contributions from the provincial government coupled with funding from other sources will help tens of thousands of renters in the coming years.
RELATED: B.C. recorded 30% increase in new rental homes in 2023
While B.C. has a homeownership rate of 66.5 per cent, the numbers of British Columbians, who are renting is rising, especially among younger cohorts. Socially disadvantaged groups are also over-represented among renters.
According to the 2021 census, more 660,000 households were rental households and almost 38 per cent of rental households spend more than 30 per cent of their respective incomes on shelter, the second-highest rate in Canada. Experts say that households that spend more than 30 per cent of their income on housing extend themselves past the affordability threshold. Almost 25 per cent of rent households in B.C. find themselves living in homes that not only exceed the 30 per cent threshold, but are also unsuitable for their needs.
The rent bank program helps British Columbians meet the demand for affordable housing. But something also needs to be done on the supply side, Herbert said, pointing to his government’s suite of housing legislation announced last year.
“So we got to build way more than we have,” Herbert said, adding that a record-breaking number of new rental units came online last year. “But we also had a huge increase in population, so a lot of work to do, no question.”
Herbert also deferred questions about any future supports for renters in the budget to Finance Minister Katrine Conroy.
“But I’m always battling for renters, always looking for new ways to support renters.”
@wolfgangdepner
wolfgang.depner@blackpress.ca
Like us on Facebook and follow us on Twitter.
