As rents rise, program that helps low-income Londoners sees soaring need

For the first time since its inception in 2005, a program that helps low-income Londoners keep a roof over their heads and the lights on is asking for more money from city hall because demand for its services has increased 35 per cent. 

The Housing Stability Bank gets $1.3-million from the city to help people pay for first-and-last month's rent, rent arrears and utility bills. It's run by the Salvation Army Centre of Hope and is asking for a one-time top up of $465,000 because of soaring need. 

"COVID has had a huge impact on everybody, but I think particularly for the folks that were already living below the poverty line or were kind of on that cusp, it has definitely created some unique challenges," said program manager Melissa Jeffrey.

"There were certain mechanisms put in place to provide some relief for people but now we're seeing those go away and people are feeling the trickle of that. We're seeing households facing eviction and accumulated arrears that are much higher than they were prior to COVID." 

Rents across the country have gone up recently, including about 30 per cent from 2021 to 2022 in London, according to some reports. The Housing Stability Bank says it needs the one-time funding to deal with: 

• An increase in households accessing services, from 1,466 households in 2021 to 2,309 households in 2022; 
• A decrease in the number of loan repayments, from 15,533 repayments in 2021 to 9,283 repayments in 2022;
• More grants than loans being given out, so less money coming back and
• Increased rent and living costs in general creating the need for more money to be paid to each household to cover expenses. 

Social assistance rates too low

The bulk of people who use the Housing Stability Bank are on social assistance, whether Ontario Works or Ontario Disability Services Program, said Jeffrey.

One person who has used the program is Diane Devine, 54.

"Without it, I would have been without a home come Jan. 14," Devine told CBC News. 

There was a time when Devine was getting by just fine on the money she got from ODSP, raising three kids and never having to consider going to a food bank or asking for financial support to make the rent. She and her daughter would cook extra meals and join a group of volunteers handing out food to people going without. 

These days, there's not enough left over to cook for others, and Devine wonders if she'll have to join the lineup of those getting help.  

"The cost of living has increased exponentially. ODSP gives me $1,200 total (per month) for rent and living expenses and my rent is $1,250. So how am I supposed to pay rent from that?" 

Devine is now getting a rent top-up from the Canada-Ontario Housing Benefit, for which she is eligible because she gets ODSP. She applied with help from the Housing Stability Bank, which has also helped her get an interest-free loan to get rid of some rent arrears and to help pay for first-and-last month's rent. 

Recently, The Housing Stability Bank has been helping clients who are accessing its services for the first time, Jeffrey said. 

"Rent in London increased something like 33 per cent, the biggest increase in Canada. It's just simply requiring more money to either keep somebody from being evicted or to allow them to obtain new housing," Jeffrey said. 

"What's been unique in the last little while — and I think it has a lot to do with COVID — is we're seeing some folks that have never touched the system before, people who were gainfully employed and COVID changed that and they're coming through the door for the first time to access this program and saying 'I never thought that I would be here.'" 

City hall's community and protective services committee will consider whether to give the extra money to the Housing Stability Bank at a meeting on Wednesday.