Low-income Vancouverites facing eviction due to an inability to pay their rent will soon be able to get a loan from a new rent bank.
The City of Vancouver has committed $148,800 over three years to the operating costs of the Vancouver Rent Bank, which will offer up to 180 interest-free loans per year. The average loan would be $835, according to a city hall report.
The city’s contribution will help leverage $551,500 over three years from various non-profit organizations, including the Streetohome Foundation, Vancity Community Foundation and Network of Inner City Community Services Society (NICCSS).
“Far too many families are forced to live paycheque to paycheque in this very challenging economic climate, and the Vancouver Rent Bank will be a crucial new line of support,” said Mayor Gregor Robertson.
“We know that many low-income residents live perilously close to the threshold of becoming homeless. These small one-time loans will help those residents regain their financial footing so they can continue to be strong contributors to our community and our economy.”
The Vancouver Rent Bank is based on similar programs in Surrey, Prince George and Toronto.
Loans will be available to citizens at risk of eviction or having utilities cut off due to arrears. Applicants must not be more than two months in arrears, must be deemed able to replay the loan, and have a good rental history.
Vancouver has the second highest rents in Canada, according to Statistics Canada. Montreal has the highest. Nearly 40% of renters here pay more than 30% of their income in rent and 15% pay more than 50%. Canadians who spend 30% or more of their income in housing are considered to be at risk of homelessness.
