She was self-employed. A single mother with two kids and a monthly budget highly dependent on faith. Faith in a child-support payment that she expected to arrive in time to make the rent so she and the kids wouldn't have to move, again.

As life would have it, they moved a lot.

But there is help out there.

Calgary real estate investor Arden Dalik has been buying residential and commercial property for about two years. Her company, Raintree Real Estate Investments, holds seven properties, including single-family homes, condominiums and half a duplex.

Dave Olecko, Business Edge
Calgary Rent Bank financial literacy facilitator David Wilson calls the assistance program 'a kind of bank-in-training.'

Last month, a real estate investor group Dalik belongs to listened to a speaker from the Calgary Rent Bank, a division of the Mennonite Central Committee's (MCC) Employment Development program.

David Wilson was at the Women Investing in Real Estate (WIRE) meeting to talk about how landlords and the Rent Bank can team up to prevent some Calgarians from becoming homeless.

Dalik was intrigued. She remembers her own frustration at not being able to do more for the tenant described above. Even though the renter wasn't interested in Dalik's suggestions about how she could better manage her money, Dalik is convinced that rejection was based on the woman's basic lack of knowledge about budgets, spending and credit, all of which the Rent Bank tries to teach its clients through a financial counselling program offered alongside cheap loans.

"It would have been nice to help her fix her credit," says Dalik, who eventually let the renter break her lease so she could move to a place with cheaper rent.

That scenario is all too common, says Wilson, a financial literacy facilitator with Calgary Rent Bank, a housing and utility loan assistance program that mirrors the MCC's basic hand up (versus hand out) approach to social programs for the under- and unemployed.

Initially set up by the Calgary Housing Foundation, the Rent Bank moved to the MCC in 1999. It began as a security deposit loan program for people who needed help paying rent and utility deposits before they could move into a new home or apartment. This spring, the program expanded beyond rent and utility deposits to also cover rent and utility arrears.

Last year, before the change, the Rent Bank gave out 100 loans ranging from $600 for low-income singles to $1,200 for low income families. This year, it's on track to distribute 250 loans, a figure the bank expects to double for 2006, says Wilson.

Offered in partnership with the United Way of Calgary and Area, Calgary Homeless Foundation, Alberta Seniors and Community Supports and Human Resources and Skills Development Canada, the program aims for a 70-per-cent recovery rate on its loans, which are repayable over two years. (This year's recovery rate hovers around 75 per cent, up from 69 per cent in 2004.)

Typical clients are low-income families who get behind in rent or utility payments after an unexpected illness or injury leads to temporary job loss. "They don't have much room to move and when something unexpected happens, it's really difficult for them to come up with two months rent at one time," notes Wilson.

"Our goal is stable housing. We want (clients) to stay in that house and we want to do whatever's possible within reason."

According to his statistics, the wait list for Calgarians who seek affordable housing now spans three years. Keeping people in existing homes prevents that list from growing longer.

Acting as what Wilson calls, "a kind of bank-in-training," the Rent Bank charges clients an interest rate of prime plus 1.5 per cent.

By charging interest and tracking loan payments over the two-year loan period (which can be extended), the Rent Bank helps its clients establish - or clean up - a credit rating. As an added bonus, clients "own" the asset they've paid back, giving them a security deposit for the next time they move.

The program's value, as well as the larger issues of budgeting, saving, credit and banking, are key aspects of two workshops each client is asked to attend in return for getting the loan.

"Of all the topics we do, banking is the least understood," notes Wilson. Agencies working with Canada's poor estimate half a million adult Canadians don't access the banking system, a fact that leaves them even more vulnerable to cheque-cashing companies that take a percentage of each cheque cashed.

Wilson says the bank's clients are typically 24 to 40 years old. Single parents with children often qualify for a loan in the $700-$900 range.

All clients are 18 years or older and all must have some form of income, be it a pension, income supplement or employment insurance.

Referrals to the Rent Bank come from a host of agencies in the community, including shelters, Calgary Health Region, The Mustard Seed and the Calgary Homeless Foundation.

Direct applications to MCC Employment Development are not accepted, although people are welcome to call the Rent Bank information line (272-9310 ext. 229) for details about how the program works.

Wilson says he encourages landlords to help tenants contact the appropriate agencies to clear up any rent issues before the situation is more difficult to repair. "We won't be able to help all your tenants, but we will be able to help the ones who are trying their best."

Successful loan applications take seven to 10 days to process and cheques are issued directly to landlords.

Cindy Girard, a founding member of WIRE, told Wilson she appreciated knowing she could help tenants find financial assistance in times of trouble.

(Joy Gregory can be reached at joy@businessedge.ca)