Explainer: BC Rent Bank
The province's latest solution to the housing crisis is home to praise and scrutiny
With the housing crisis continuing to squeeze British Columbians, the rent bank is a tool the government is offering to try to help people afford a roof over their head. (Unsplash/Sigmund)
The Government of British Columbia announced in January it will provide an extra $11 million on top of their initial $10 million fund to further support the province’s rent bank.
BC Rent Bank is a housing project started by the Vancity Community Foundation in 2019. The purpose of this initiative is to assist renters with low and moderate incomes in meeting the rising living costs of their homes. It’s the province’s recent attempt to curb the economic hardships of the current housing crisis.
Rent banks are designed to prevent evictions, homelessness, and stabilize housing for renters faced with adversities affecting their ability to pay rent on time.
These financial resources provide interest-free loans to cover not only rent, but essential utilities and services, such as deposits, landlord mediation, debt relief, along with food and clothing.
A 2021 housing stability survey by BC Rent Bank showed Vancity’s project was instrumental in making the lives of renters easier. Of the 236 households consulted for the survey, 94 per cent reported their housing situation improved and 61 per cent said they were able to avoid homelessness.
The shared consensus in a 2022 provincial government news release was due to this program allowing people to keep their homes, renters saw progress in their personal welfare regarding child custody, addiction recovery, and maintaining their jobs.
Renters can access rent bank loans by applying through a four-step application process found on the BC Rent Bank website.
To be eligible, applicants must meet minimum criteria, such as being at least 19 years of age, proving they can cover monthly expenses with regular income, and aren’t currently experiencing bankruptcy.
If required, renters are to submit three kinds of documents — two to three months of bank statements, a copy of the tenancy agreement, and two pieces of ID. Once approved, households can receive a loan of up to $3,500 with repayment periods varying from six months to three years.
When the organization first began, monthly applications received ranged from 80 to 100, Melissa Giles, the managing director of BC Rent Bank, said in an interview with CTV News, adding that as of this year, this rate has now reached nearly 500.
The growing success of the rent bank resulted in its expansion from seven to 18 B.C. locations since its creation. With the province’s recent $11 million investment, the rent bank can produce rental relief for an expected projection of 20,000 renters.
“We’re incredibly grateful for the continued financial support by the Government of B.C. This funding will further strengthen and enhance the provincewide network that was established as a result of the funding provided in 2019,” Giles said in a news release statement.
While renters and local leaders have been praising the rent bank, criticism has been levied towards this initiative as to whether it’s effective enough to address the housing crisis.
BC United housing critic Karin Kirkpatrick said in an interview with Vancouver Sun that although she agrees with the economic value of rent banks, they’re doing nothing to resolve the cause of rental hikes, which is the need for more homes for renters.
More housing for the province has been a pressing concern reflected in a report from the Canada Mortgage and Housing Corporation. The CMHC said the rise of rental costs is due to the province’s housing supply still being unable to keep up with rental demand.
However, Vancity has continued collaborating with community-based agencies and non-profit organizations to maintain rent banks in their areas. Consequently, B.C. achieved an unprecedented feat as the first province to employ this initiative in Canada.
