The Honourable Jim Watson
Minister of Municipal Affairs and Housing
777 Bay Street, 17th Floor
Toronto, ON M5G 2E5

Re: Continued funding for rent banks

Dear Minister:

Thank you for your reassurance expressed on Wednesday, April 30th in the legislature about the government's commitment to Ontario's rent bank program.

Many rent bank programs across the province continue to express concern about ongoing funding of this critical program. We are writing to request that you make an announcement about annualized funding as soon as possible to ensure that the various programs across the province can continue to function and serve low-income households in need of short-term assistance.

As you know, the rent bank programs form a comprehensive and integrated program that prevents eviction and homelessness for low-income households by providing loans and/or grants. The short-term assistance enables vulnerable families and individuals to remain in stable housing when they face the risk of losing their homes as a result of a sudden, short-term financial crisis. This project also offers a variety of supports, such as negotiation and mediation with landlords, case co-ordination, advocacy and counselling to stabilize or improve the life situations of our clients.

In Simcoe County in 2007, rent bank funds of $268,011 helped 194 households to remain housed. The average amount of assistance was $1,381. The funds were exhausted by early November and six community-based organizations that deliver the rent bank program are now struggling to cope with the families that are facing eviction. Vacancy rates are low and rents are high. Trying to find new accommodation for these families is very difficult. The cost of placing one person in an emergency shelter for 30 days cost $1,200. The long term cost associated with the trauma that families go through when dealing with homelessness is even higher.

The majority of the recipients are hard-working families who make slightly too much to qualify for social assistance but did not qualify for any other type of financial assistance from banking institutions when their income was interrupted due to a short-term crisis (e.g. family illness, reduction of work hours, car problems, a death in the family). As a result, they face a very real and imminent threat of being evicted. Other recipients include vulnerable seniors with limited income and need the assistance to maintain their tenancies as unexpected expenses - such as an accident, the cost of medication, burglary or funeral for a spouse arise.

The six community-based organizations that deliver the rent bank program each has very limited staff that now expends a great deal more time assisting families in a more serious crisis because they must be relocated or placed in emergency shelters. In all of Simcoe County, there is one family shelter unit. Families who become homeless must be placed in a motel room that does not have proper cooking facilities.

The rent bank has proven to be highly effective in preventing homelessness in our communities. Our follow-up indicates that the majority of the clients who have been assisted remain in stable housing after receiving Rent Bank assistance. This proactive approach to preventing homelessness not only helps to stabilize the life situations of the highly vulnerable individuals and families involved, it also reduces the strain on other components of the social service system, such as temporary shelters, community supports and social assistance.

As you are aware, once families become dependent on the shelter system, they are further away from stability and self-sufficiency. From an economics standpoint, it has been well documented that the cost of preventing a family from becoming homeless is significantly less than the cost of resources that are required to provide support after they become homeless. Funding for the rent bank has far-reaching effects on an individual and community level.

We applaud your government's dedication and commitment to addressing the housing needs of the low-income population in Ontario. We strongly urge that this very important project not be disrupted but rather be increased and extended, as it is now a vital homelessness prevention tool - one of the very few available. It is a unique resource available to help households when they are faced with eviction as a result of rental arrears. Funding from the provincial government has been crucial in sustaining the rent bank, and we strongly urge you to continue your funding support in this very important project as you continue developing a long-term affordable housing strategy.

We sincerely thank the Ontario government and your Ministry in particular for the generous and significant part it has played in helping to sustain and expand this key homelessness prevention program. We look forward to continuing our partnership with you in our shared battle against homelessness.

Yours sincerely,

Barrie Housing Support Services
Simcoe Community Services
320 Bayfield Street, Unit 9
Barrie, ON L4M 3C1

Community Link North Simcoe
67 Fourth Street
Midland, ON L4R 3S9

David Busby Centre
24 Collier Street, P. O. 641
Barrie, On L4M 4V1

Georgian Triangle Housing Resource
P.O. Box 683, 275 First Street
Collingwood, ON L9Y 4E8

CONTACT South Simcoe Community Information Centre
46 Wellington Street, W., Unit #1
Alliston, ON L9R 2B8

Orillia Housing Resource Centre
33 Mississaga Street, East
Orillia, ON L3V 1V4

TORONTO, Aug. 10 /CNW/ - The McGuinty government is launching an innovative housing program that will provide a monthly housing allowance to low-income working families struggling with housing affordability in Ontario, Minister of Municipal Affairs and Housing John Gerretsen announced today.

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