The newly launched Rental Bank received mixed reviews from housing advocates, who welcomed the new program but raised concerns about its implementation, including the exclusion of several groups of marginalized residents.
Advocates have pushed for a charter bank since the height of the COVID-19 pandemic. Now they are dealing with provisions they call “welfare” for struggling renters amid the ongoing housing crisis.
They also suggested that the program has too many barriers that might prevent people from applying, such as proof of income and photo ID.
“I worry that it won’t reach the people who need it most,” said Tobin LeBlanc-Healey, a sociologist at UNB.
Approved applicants will receive grants worth two months’ rent or up to $2,750 — whichever is less — over the course of the two-year program, according to the government. Media release. Money is Sent directly To the owner or companion.
Jill Green, Minister for Social Development and Minister responsible for Housing, announced the program in June as one of the Government’s highlights. Housing strategy (PDF), which attracted Cash Due to the lack of any new rent control measures.
At that time the government advertiser The $3 million program would provide microloans to help renters, but the county ultimately chose to provide grants instead of loans, a policy change welcomed by advocates.
“We are pleased that the government listened to nonprofits and tenant advocates in choosing the grant instead of the loan model,” Haley was quoted as saying in the government press release.
But she was among several advocates who also expressed disappointment about the program in a separate statement.
The program specifically excludes “tenants in public housing, tenants who take advantage of some existing rental support programs, the undocumented, and those without legal identification,” they said.
“Due to their precarious situation, these individuals are most vulnerable to needing the services of the Rental Bank,” the statement issued by the bank said. NB Tenants’ Rights Coalition and the Housing, Mobilization, Participation and Resilience Laboratory of the Union National Bank (Home-RL).
NB Media Co-op has reached out to the provincial government for comment.
The statement also objected to what it called a “condescending tone” toward people accessing the service. For example, a rent bank would “consult with landlords to determine the sustainability of rent” for tenants in arrears, according to advocates.
This gives landlords “too much power,” said Matthew Hayes, a sociologist at the University of St. Thomas and a spokesman for the coalition. He said the rental bank should only ask landlords for a letter “confirming that they will not vacate if payment is received from the rental bank.”
Advocates also opposed language threatening to deny funding for “any form” of “verbal abuse of employees.” Mistreatment by anyone is unacceptable, but it is unreasonable to expect distressed tenants to remain calm as they face homelessness, the advocates said in their statement.
The Madhu Verma Center for Immigrant Justice also issued a statement welcoming the program but called on the government to “Reconsider its decision to exclude temporary foreign workers, who are among the most vulnerable people in the province.
The statement cited reports of “overcrowding, mold, pest infestations, and inadequate heating in the winter and cooling in the summer” among temporary foreign workers.
A study published earlier this year titled Unfree labour (PDF) Documented inadequate, expensive, and overcrowded housing for migrant workers in New Brunswick’s seafood industry.
“The rent bank is yet another example of vital social support being denied to migrant workers simply because of their temporary residency status,” said Amy Floyd, housing justice coordinator at the Madhu Verma Center for Immigrant Justice.
“Many workers want permanent residency status on arrival. We want permanent residency status on arrival for temporary foreign workers, and even then, they should definitely be eligible for rent bank support.
Editor’s Note: Tobin LeBlanc Haley is a member of the NB Media Co-op Board of Directors.
The new rent bank has been met with criticism from supporters who argue that it is riddled with exclusions and uses stigmatizing language likened to “welfare.” The rent bank, intended to provide financial assistance to low-income individuals struggling to cover their rent, has drawn ire for its limitations and potentially harmful messaging to those in need. As advocates and allies continue to voice their concerns, the debate over the rent bank’s approach and language shows no signs of abating.