Rent bank could help tenants stay in their homes

Seen as a measure to help prevent homelessness, provincially funded rent banks would help tenants who face financial crises

Tenants in the Central Okanagan facing eviction for non-payment of rent could soon get a loan to keep a roof over their head.

The idea of establishing a so-called ‘rent bank’ in the greater Kelowna area will be discussed Thursday by local politicians.

“Rent banks are an established practice in B.C. for assisting households facing a financial crisis that threatens their housing security, and have proven to be an effective homelessness prevention strategy for some populations,” regional district administrator Brian Reardon writes in a report to the regional board.

The bank, funded primarily by the NDP government but possibly including local contributions of one kind or another, would provide low-interest or no-interest loans to people who are unable to pay their rent. People in the process of moving could also get a loan to help pay a damage deposit.

Workers, families, seniors, and low-income households in greater Kelowna could access such a loan, Reardon writes in his report.

The regional board will decide at a Thursday morning meeting if it wants more information with a view to possibly establishing a rent bank in the Central Okanagan.

But employees of the City of Kelowna, regional district, and 29 people representing various non-profit agencies have already met, on March 3, to discuss the idea of establishing a local rent bank.

Virtually everyone who attended that meeting, 93 per cent of them, “agreed or strongly agreed” that a rent bank should be established in the great Kelowna area, Reardon’s report states.

Eight organizations are already interested in managing such an agency.

Last June, the NDP government gave $10 million to the Vancity Community Foundation to develop a province-wide rent bank program that funds local initiatives such as the one being proposed for the Central Okanagan.

“Preventing homelessness by helping people avoid eviction is key and rent banks play an important role,” Shane Simpson, minister of social development and poverty reduction, said in a government press release.

“We know how expensive, disruptive, and stressful evictions can be for everyone,” NDP

MLA Spencer Chandra Herbert, a founder of the Vancouver Rent Bank, said in the same release.

“Rent banks help keep people in their homes and get back on their feet while ensuring the rent gets paid,” he said.

As of Tuesday, VanCity’s website says the BC Rent Bank has provided 171 loans, helping a total of 379 people. Those who get a loan from a rent bank typically do not qualify for traditional loans because of poor credit scores, unstable work history, or not having collateral, the website says.

Outside the Lower Mainland, rent banks currently operate in Kamloops and Prince George.

The Kamloops rent bank, run by the Elizabeth Fry Society, has given out 158 loans totalling about $25,000, in amounts ranging from $150-$1,500. The default rate is about 25 per cent.