New Westminster has agreed to increase its contribution to the rent bank, but wants the province to create a sustainable way of funding the program.
Council approved motions to increase the city’s contribution to the New Westminster Rent Bank program from $20,000 to $35,000 per year in order to support an expanded scope of work and to direct staff to discuss the issue of new and sustainable funding for the rent bank with the province’s Ministry of Social Development and Poverty Reduction.
A staff report stated the program has provided 29 loans and dispersed $23,446 since it started operating in June 2017. Its mandate is to provide low-cost loans of up to $1,000 to residents who are at risk of eviction and/or essential utility disconnection.
“After more than one year of operation, the program has demonstrated a high degree of success in supporting families and individuals facing eviction and potential homelessness,” said the staff report.
According to the report, the rent bank is currently funded to provide two days of staff time per week, which has made it difficult to provide housing maintenance and support services, particularly for families and individuals who don’t meet the eligibility criteria for a loan. By increasing the city’s contribution, the program would be able to provide one additional day of work and expand its scope of work.
Coun. Patrick Johnstone said he’s pleased the city helped set up the rent bank, but is reluctant to see the city putting a lot of money into the administration of this program without having some sort of financial commitment from the provincial government.
“The rent bank is ultimately keeping people from becoming homeless. That is the success of it. It is saving the provincial government so much money,” he said. “If we have stopped two dozen people from becoming homeless because of this, we save the provincial government so much money.”
While Coun. Nadine Nakagawa supports the recommendation, she said she would like to see the rent bank’s funding moved away from the city and to a funding source that is more appropriate, like the provincial government. She’d also like senior levels of government to restore funding that’s been cut to outreach services dealing with homelessness and poverty.
Mayor Jonathan Cote said his biggest concern is about the sustainability of the rent bank and making sure it has funds to help people who are struggling.
John Stark, the city’s senior social planner, said local services providers have faced funding cuts in recent years to homeless outreach, referral and advocacy programs. He said the city has written a number of letters to senior levels of government about the restoration of those funds.
“With regard to this particular report and the request that’s in the report, it does recognize that right now a lot of the people who actually apply for a loan from the rent bank don’t receive a loan,” he said. “In those cases, the actual case manager from the Lower Mainland Purpose Society stated that there is limited capacity to assist those individuals.”
Stark said the rent bank has been a success in its first year of operation. He said the plan is to report back to council after its second year of operation and look at various options for the rent bank.
“Part of this was looking at potentially expanding the scope of the program through having one extra day, coming back to council after that second year and then talking about how has the rent bank diversified its funding,” he said. “This funding, this extra day, will also allow the case manager to do more outreach into the community, increase awareness about the program and also work with other rent banks, because there are several other rent banks in British Columbia, and advocate for sustainable funding.”
