Housing stability benefit cuts remove a critical lifeline, lawyer says/

If people can’t pay rent, a shelter or street is next stop

The Housing Stability Benefit (HSB) is a critical fund that low-income people in the city rely on to pay emergency costs to obtain or retain housing. In late November, the city announced that the HSB had run out of money. What followed was a series of cuts to the fund, slashing the benefits of hundreds of working poor, unemployed, single parents, newcomers and other low-income Hamiltonians.

This will have a devastating impact on low-income Hamiltonians and is a homelessness crisis in the making.

The HSB is an emergency fund available to low-income Hamiltonians who run into unforeseen housing crises, such as falling into rent arrears, needing to pay last month’s rent on a new place, replacing mattresses after a bedbug infestation, needing assistance in preparing for bedbug treatment, paying utility arrears, and paying moving costs. HSB recipients can receive up to $800 (single person) or $1,500 (family) every 24 months for these reasons.

As a result of the cuts, the HSB is no longer available to a person awaiting payment from employment insurance or does not qualify for employment insurance and has fallen into arrears on rent because of inadequate income. It is also no longer available to social assistance recipients whose benefits have been placed on hold, or refugees receiving private or government assistance.

The HSB is funded through the Community Homelessness Prevention Initiative (CHPI) which allocates funds to municipalities, who in turn distribute those funds according to their local needs. The annual HSB budget in Hamilton is $5.7 million.

The practical impact of this reduction is far reaching. Fewer people will be able to pay off their rent arrears to void eviction orders. Inability to access last month’s rent deposit will force people to enter the shelter system as they save up money to pay for a deposit on a new place. The shelter system is already bracing for increased demand as a result of this change. Hamilton’s bedbug epidemic will worsen. Hospitalizations for those suffering injury from the cold may increase. The working poor, who will not be eligible for HSB support, will further struggle to maintain their employment in the face of increased housing precarity and homelessness.

Falling into homelessness almost guarantees a perpetual state of housing insecurity and homelessness. These long-term consequences could easily be prevented when an individual has access to a safeguard of $800 or a family has access to a safeguard of $1,500. This is why reinstatement of the full HSB program is crucial to the wellness of our community. Evidence shows that it is far more cost effective to keep people housed than to deal with the costs and negative health effects of homelessness.

While it is necessary to immediately top up the HSB, it must be acknowledged that the program itself is a Band-Aid solution to a broader problem. Rent prices are skyrocketing, a national affordable housing strategy has been sidestepped, there is a lack of investment in affordable housing, the city has been plagued by a bedbug epidemic and Hydro costs have risen. Further, social assistance rates do not reflect the actual cost of living, causing social assistance recipients to over-rely on the HSB. Currently, a single person on Ontario Works is eligible for $376 in shelter allowance.

The working poor and social assistance recipients bear the burden of these broader issues while trying to meet basic needs. Removing the last benefit that can maintain a person’s security is cruel to a population already struggling.

On Monday Dec. 12, a call to action to restore the HSB will be taking place at 12:30 p.m. outside of City Hall and deputations to the community and emergency services committee will begin in council chambers at 1:30 p.m. All members of the community are encouraged to join the fight to restore the HSB.

If eliminating poverty is a priority, assisting people to maintain their housing is essential.

This will have a devastating impact on low-income Hamiltonians and is a ... crisis in the making.