Community Start-Up and Maintenance Benefit (CSUMB), November, 2012 Page 1

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1 Cmmunity Start-Up and Maintenance Benefit (CSUMB) ends January, 2013 Gvernment will end the Cmmunity Start-Up and Maintenance Benefit (CSUMB) as f January 1, CSUMB helps peple n assistance with csts like first and last mnth s rent depsits, buying r replacing furniture, depsits fr utilities, verdue utility bills, and ther similar expenses. Currently, acrss the prvince there are abut 16,000 OW and ODSP recipients rely n CSUMB every mnth t pay fr csts like these. This mve will have a large negative impact n many peple fr example, n wmen trying t mve frm transitin shelters int permanent hmes after experiencing dmestic vilence, n men trying t mve frm hmelessness r the shelter system int permanent hmes, n peple dealing with bedbug infestatins and ther prblems assciated with pr quality husing, and many thers. The gvernment has said that half f the $110 millin ($55 millin) fr the prvince that currently ges t CSUMB will be mved t the Ministry f Husing and flded in with funding frm five ther prgrams, which were already slated t be cnslidated under the gvernment s Lng-Term Affrdable Husing Strategy. The new cnslidated mney will be given t municipalities t fund husing and hmelessness prgrams fr all lw-incme peple. New criteria fr the way municipalities will deliver these prgrams have nt yet been created. Hme Repairs Benefit ends Jan 2013 The Hme Repairs Benefit will als be cut as f January 1, The Hme Repairs Benefit helps peple pay fr things like emergency plumbing repairs, patching a leaky rf, r repairing damage frm fire r flds, but nly if there s n ther surce f funds that peple can use. The $3 millin fr this benefit is nt being mved int the Ministry f Husing. Lcally the implicatins t husing: In 2011, ttal expenditures fr Cmmunity Start-up in Peterbrugh were $1.9 M fr Ontari Wrks clients and $0.6 M fr ODSP clients. The prpsed 50% reductin will result in $1.25 M less t address husing related needs. This is als a significant lss f supprts t peple in Peterbrugh given that 50.43% f renters that Cmmunity Start-Up and Maintenance Benefit (CSUMB), Nvember, 2012 Page 1

2 are defined as having cre husing needs, the highest in Canada (accrding the Statistics Canada s definitin f Cre Husing need 30% and ver f incme spend n Husing Csts) Cuts t Cmmunity Start Up and Maintenance Benefits (CSUMB/Husing Benefits) & Discretinary Benefits (Surce: PPRN, Incme Security Wrkgrup, Nvember, 2012) The 2012 Ontari Budget cntained significant cuts t Prvincial funding f critical benefits fr Ontari Wrks (OW) & Ontari Disability Supprt Prgram (ODSP) recipients. A. Reductin in Funding fr Discretinary Benefits (DB) Funds paid by the Prvince t Municipalities in 2013 fr bth health and nn-health related benefits are capped at $10 per case lad per mnth. The percentage paid by the prvince will increase annually until 2018 when the Prvince will assume 100% f the capped amunt. DB Benefit Prvisins Health Related: Basic dental services, visin care / eyeglasses, dentures, prsthetic appliances, hearing aids, rthtic ftwear, basic funerals & mandated burials Nn Health Related: Baby supplies & equipment, emergency husing expenses (where ther funds are nt available, hme repair, transit subsidies, recreatinal subsidies fr children Current Status Reductin f $900,000 in prvincial funding lcally fr 2013 City Cuncil passed a reslutin that the City & Cunty s municipal cntributin fr DB in 2013 nt increase ver 2012 actual expended amunt f $280,000 (nte: the 2012 apprved Municipal share was $370,000, based n anticipated csts) Staff reprt (CSSSJSSC12-006) utlines ptins fr 2013 budget and ntes that nly the underlined items in the ppsite bx can be prvided at the required 2012 budget level. Cmmunity Start-Up and Maintenance Benefit (CSUMB), Nvember, 2012 Page 2

3 B. Eliminatin f Cmmunity Start Up & Maintenance Benefits (CSUMB/Husing Benefits) January 1, 2013 CSUMB Benefit Prvisins Current Status Entitlement f $799 fr singles, $1500 fr families Mandatry benefit - can be appealed if denied Payable nce every 2 years, pssibly nce every year in extreme emergency In 2012 the Prvincial share f OW and ODSP CSUMB was $2.53M and the Municipal share f OW CSUMB was $270,000 fr a ttal f $2.8M As f January 1, 2013 CSUMB is eliminated; the Prvince will give the Municipality $900,000 fr its Cnslidated Hmelessness Preventin Initiative Fund (CHPI) T help families btain husing r t prevent hmelessness r discnnectin f vital services Prtects health & well being Targeted fr peple n assistance Availability f this fund means that ther husing funds becme available t the wrking pr The Husing Department plans t use the $900,000 fr prgram funding, nt fr a husing benefit similar t CSUMB The Scial Services staff reprt (CSSSJSSC12-006) des nt include any funding fr a husing benefit in its cre prgram, and nly $200,000 fr a husing benefit as a pssible enhancement $2.8M in CSUMB/Husing Benefits was needed in the Peterbrugh area in What did this cver? The first 6 items accunt fr mst f the CSUMB dllars spent: Last mnth s rent depsit (paid directly t landlrd) Heat r hydr depsits and hk-up fees (paid directly t utility) Rent arrears t avid evictin (paid directly t landlrd) Heat r utility arrears t avid discnnectin (paid directly t utility) Recnnectin fees fr discnnected utilities (paid directly t utility) Purchase f heating fuel (e.g. il, wd) (paid directly t supplier) Cmmunity Start-Up and Maintenance Benefit (CSUMB), Nvember, 2012 Page 3

4 Clthing, furniture & husehld gds fr example in the case f fire, bedbugs, setting up a husehld fllwing dmestic vilence (usually paid directly t supplier) Mving expenses (benefits seldm used fr this, and nly at minimal amunts ie. $100) Strage f pssessins fr up t 3 mnths (seldm utilized fr this) Getting rid f bedbugs Buying smke alarms / batteries Items fr infants e.g. cribs Peterbrugh Pverty Reductin Netwrk WE NEED A TEMPORARY LOCAL SOLUTION UNTIL THE PROVINCE TAKES BACK RESPONSIBILITY FOR THESE CRITICAL BENEFITS Cuts t Prvincial funding f Discretinary and Husing benefits ttals apprximately $3.7M: $.9M cut t Discretinary Benefits funding $2.8M cut t Husing Benefits funding Finding the Slutin: In 2013: $1M frm the 2013 scial assistance uplad savings $1M frm scial services reserves that currently ttal $4M (Nte: the need fr a substantial reserve is declining due t the nging uplad, and given that the Municipal cst share will be 0% in 2018) $900,000 frm CHPI (the funds that the Prvince will pay t the Municipality frm the frmer CSUMB dllars; these funds are t be used fr hmelessness preventin) $270,000 (the Municipal share f CSUMB in 2012) $370,000 (the apprved Municipal share f DB fr 2012, in anticipatin f actual csts) 2013 Ttal: $3.54M** **this amunt is in additin t the prvincial dllars allcated t DB under the new DB funding frmula Next Steps: Cmmunity Start-Up and Maintenance Benefit (CSUMB), Nvember, 2012 Page 4

5 On December 3, 2012, Scial Services staff will be presenting a reprt t Jint Services Cmmittee regarding the Cmmunity Start Up & Maintenance Benefits amng ther husing issues. Pending results f the meeting, this reprt will be part f the budget 2013 discussins fr the City f Peterbrugh. Fr mre infrmatin abut ur InfNtes cntact: Dawn Berry Merriam at r dawnbm@pspc.n.ca. Cmmunity Start-Up and Maintenance Benefit (CSUMB), Nvember, 2012 Page 5