Prepared for: Ontario Ministry of Municipal Affairs and Housing
By: R.A. Malatest & Associates Ltd.
May, 2008
Executive Summary
The Provincial Rent Bank program was established in 2004 to provide short-term assistance for rent arrears in order to avoid tenant household evictions. This overall purpose is in the interest of achieving two main objectives:
- promoting and maintaining housing stability; and
- achieving costs savings for the Province of Ontario through reducing the use of emergency shelters.
R.A. Malatest & Associates Ltd. was commissioned by the Ontario Ministry of Municipal Affairs & Housing (MMAH) to undertake the Evaluation of the Provincial Rent Bank in order to determine if the program has been successful in meeting these objectives. In addition, the evaluation set out to determine whether any improvements could be made to the Provincial Rent Bank.
Research issues were addressed by utilizing a mixed methodological approach including:
- a detailed review of all Rent Bank stability reports;
- key informant interviews with 25 Service Managers and third-party delivery agents;
- a group interview with five Municipal Services Office Managers at MMAH;
- an interview with an organization representing the interests of tenants;
- interviews with three landlords that participated in the program;
- interviews and a discussion with three tenants that participated in the program; and
- a cost-effectiveness analysis comparing Provincial Rent Bank expenditures with potential emergency shelter costs that could be incurred in the absence of the Provincial Rent Bank.
Below are the major conclusions and recommendations from the study.
Because of the limitations of available client outcomes data, this evaluation could only provide estimates on the extent to which the Provincial Rent Bank is meeting its two main objectives.
Based on Provincial Rent Bank client follow-up undertaken by Service Managers and Delivery Agents, the extent to which former clients were remaining at their same address after receiving Provincial Rent Bank assistance varied considerably by region. The proportion decreased from 56% after the initial six month follow-up to 33% after twenty-four months. Anecdotal evidence from Service Managers and from a small number of interviews with landlords and tenants has also indicated that the Provincial Rent Bank has helped clients with housing stability.
Because the extent to which clients of the Provincial Rent Bank would have had to use emergency shelters in the absence of the program is difficult to ascertain, it has been challenging to determine cost-savings to the Province. No related cost-savings to the Province have been estimated. It has been estimated, however, that spending $13 million through the Provincial Rent Bank has lowered emergency shelter costs to the Province by over $7 million.
Research suggests that programs such as rent banks can provide additional cost savings to tenants and landlords through reduced evictions. It has been estimated that evictions cost $2,234 per tenant and between $2,500 and $6,000 for landlords. Further, research also suggests that rent banks may also have other benefits for tenants, including reducing the strain on families and children who may have otherwise have had to relocate to new neighbourhoods and schools.
Other potential cost savings can include reduced costs to social assistance, social housing, and to the Landlord and Tenant Board.
There is a high level of satisfaction among Service Managers with the Provincial Rent Bank’s overall program parameters.
Ninety percent (90%) of Service Managers considered the current program parameters, including overall guidelines on client eligibility, to be either “appropriate” or “somewhat appropriate.” In addition, all staff felt that the ability of the program to be adapted to the needs and context of the local service area was a positive component of the Provincial Rent Bank.
The amount of funding assistance being provided to clients is generally seen by Service Managers to be sufficient.
Almost all Service Managers (88%) thought that the amount of funds being provided to clients was adequate. There was some support among Service Managers for expanding Rent Bank funding in order to provide additional months of rent (i.e., more than two). However, given that the focus of the Provincial Rent Bank is on short-term rental assistance, and there is no consistent dissatisfaction among Service Managers with the current funding amounts, no changes to the current funding assistance allocations to clients have been recommended.
There is interest in allowing the funding to cover short-term assistance for mortgages.
Some Service Managers noted that they would like to see funding available to provide short-term assistance for those with mortgage arrears.
There is a comparatively high degree of dissatisfaction among Service Managers with the method of allocating Provincial Rent Bank funding to the service areas.
Opinion was split among Service Managers on the appropriateness of the current model of allocating their funding to each service area, which most recently was based on spending to date. Further, a third of the Service Managers felt that the funding they did receive was insufficient to meet the need in their service area. Unpredictability was also a key complaint with the allocation of funding for the Provincial Rent Bank.
Data collected through housing stability reports do not effectively or efficiently capture client outcomes.
Numerous complaints were raised by Service Managers regarding the stability reports, including that their definition of housing “stability” does not fully capture the many different factors that may affect clients’ decisions to change housing.
The housing stability report process itself was often considered to be onerous for staff, largely because of difficulties reaching former clients. Indeed, Service Managers were unable to contact 36% of households and/or landlords across all follow-up benchmarks, and often reported spending considerable time and effort in reaching those they were eventually able to contact.
Recommendations
The following recommendations have been developed based on the findings and conclusions of this study.
- If the Provincial Rent Bank is to continue, future funding should be made more permanent and predictable through an annual funding allocation.
- Ensure that funding allocations to service areas are undertaken in an equitable manner. Future allocations should not continue to be based on spending-to-date.
- Consider whether short term assistance should be provided to clients to assist with mortgage arrears.
- The extent to which the program is meeting its objectives should be assessed in the future through a comprehensive summative program evaluation.
- An alternate approach to reporting on client outcomes should be considered.