A rent bank is a predominantly Canadian service that provides interest-free loans to low-income households who have regular income but face eviction as a result of a short-term financial crisis.[1] Rent banks are a homelessness prevention strategy.[2] By providing tenants with an upfront loan that can be used to pay for rent, utilities, or other unexpected cost tenants, housing stability is guaranteed and evictions are reduced.[3] Loan repayment rate is roughly 67%, with loans usually a little under $1000.[1] [4]
The Toronto Rent Bank provides up to two-months of rent for tenants facing eviction due to unpaid rent or seeking to move into more suitable housing.[5] [6] The program is funded directly by the City of Toronto and administered by the non-profit Neighbourhood Information Post
The BC Rent Bank is funded by the Province of British Columbia, and managed by Vancity Community Foundation province-wide.[7] Various non-profits directly administer funds and provide loans direct to tenants.[8]
On March 29, 2021, the Government of Manitoba announced a $5.6 million-dollar rent bank. The goal of the program is to support stable housing for low-income to moderate-income families.
The rent bank will be administered by the Manitoba Non-Profit Housing Association with funds distributed by local rent banks.
The program will be piloted for two years then reevaluated.