MPs spar over housing and affordability | Power & Politics
N.B. tenants facing large rent increases lose automatic right to get them phased in
Minister's 'no exceptions' policy granting tenants access to phase-in of big rent hikes is no longer the rule
A key protection for New Brunswick tenants in 2023 required rent increases above the inflation rate to be spread over multiple years — with "no exceptions" — if a tenant asked, but that won't happen this year, according to a new interpretation of the policy quietly adopted by the province.
The protection against excessively high increases is no longer automatic.
In an email to CBC News explaining how disputed rent increases will be adjudicated this year, a government spokesperson said tenancy officers will take a case-by-case approach to deciding whether tenants faced with rent increases that exceed inflation qualify to have them phased in.
"It is at the discretion of the Residential Tenancies Officer whether the phased-in approach is deemed acceptable," according to the email.
- Rent in New Brunswick surges another 9 per cent in past year
- No exceptions to tenant protections against large rent increases, minister says
There are no listed reasons why a tenant might not qualify to have a large rent increase implemented gradually. On the Tenant and Landlord Relations Office website it says only that phased-in awards will be made "if contributing factors warrant it.'
That is a change from last year, when New Brunswick Housing Minister Jill Green intervened with tenancy officers who were not phasing in large increases for tenants in all cases. She told the officers there was no room in the policy to decline a tenant's request.
Killam
Real Estate Investment Trust reported last fall that its rents in Saint
John, including on its 153-unit Fort Howe building, increased an
average of 7.5 per cent over 12 months. (Robert Jones/CBC)
"There aren't exceptions built into the rules around the rent increases," Green said last April about whether the protection for tenants was to be automatic or discretionary
"If it's over [inflation] then it will be phased in over two to three years."
Green created the phase-in policy in 2023 as a replacement for a hard cap on rent increases that New Brunswick used for one year, in 2022.
Nichola Taylor, chair of the New Brunswick branch of national housing rights group ACORN, said the phase-in policy has been a less effective and overly bureaucratic substitute for the rent cap.
But the policy will be weaker still if its protection ceases to be automatic, she said.
"The only thing to stop all this is to put a rent cap back into place like they had," Taylor said.
According to legislation, the annual rate of inflation in New Brunswick each year is used to measure whether an approved rent increase the following year can be implemented all at once by a landlord or should be phased in to give tenants who ask for help time to adjust to a big increase.
In 2023, any rent increase above 7.3 per cent, which was the annual inflation rate in New Brunswick in 2022, was eligible to be phased in.
Linda
Patterson got a three-year phase-in of a $150 rent increase on her
Oromocto apartment under last year's protections for tenants. (Mike Heenan/CBC)
In 2024, a rent increase above 3.6 per cent, which was last year's inflation rate, is the new level at which phased-in rent increases will begin, depending on the decision of a tenancy officer.
Increases that are up to double the rate of inflation are meant to be implemented over two years with increases more than double the rate of inflation taking effect over three years.
The policy has been effective for many tenants but still gets mixed reviews from those who used it because rulings can take weeks and the process forces tenants into an openly adversarial relationship with their landlord.
Linda Patterson of Oromocto applied for help last year after learning her rent was going up 20 per cent, or $150. She was successful in having it broken up into three separate $50 increases over three years.
But Patterson said many of her neighbours were intimidated by the idea of opposing their landlord and declined to seek help.
- Landlords escaping requirement to impose large rent hikes gradually
- N.B. tenants not being told rent hikes as low as 4% in 2024 may qualify for phase-in protection
"I told them that they should be applying," she said. "Some of them did. Some of them didn't."
New Brunswick remains one of only four provinces without a hard limit on annual rent increases.
This year, British Columbia, Manitoba, Ontario, Quebec, Prince Edward Island and Nova Scotia have all set maximum rent increase limits, with some allowed adjustments, of between 2.5 and five per cent.
Nichola
Taylor of the housing rights group ACORN says the automatic right to
phased-in rent increases if they exceeded inflation wasn't much
protection for tenants, but the new approach is even weaker. (Shane Fowler/CBC)
In his state of the province address last week, New Brunswick Premier Blaine Higgs said his government has a goal of limiting rent hikes to below three per cent per year but wants to do it indirectly, through market forces, by encouraging the construction of more housing.
"Our goals are clear … create the market conditions to hold annual rent increases to 2.5 per cent," he said.
It's been a slow process so far.
New housing starts in New Brunswick in 2023 were down from 2022 and ended the year both below the national average per capita and in last place among the three Maritime provinces.
In the meantime, rents have continued to escalate.
In its latest financial filings, New Brunswick's largest landlord, Killam Real Estate Investment Trust, reported that rent on its 997 apartment units in Saint John climbed an average of 7.5 per cent over 12 months ending on Sept. 30.
That was the largest rent increase recorded by Killam on properties it owned over the full year, covering more than 200 buildings in 12 Canadian metropolitan areas.
Rents in more than 2,000 apartments in Killam buildings in Moncton and 1,500 apartments in Fredericton increased an average of 5.1 and 6.3 per cent respectively during the same period, both above the company's average national increase of 4.7 per cent.
ABOUT THE AUTHOR
AKA Only if Higgy says OK
Jack Bell
By next year my house will have tripled in value.
Over half of that increase occurred in the last 4 years.
How is this sustainable with current pay rates in this province?
Ronald Miller
Reply to Jack Bell
Same question people across the country are asking.
Robert Tangence
Reply to Ronald Miller
Except for those Canadians who can afford to bid up those home prices.
Ronald Miller
Reply to Robert Tangence
The Canadian housing market is a beast for sure.
Jack Bell
Reply to Ronald Miller
Anyone who lives west of NB can move to NB and buy a house for a fraction of what it would cost them in their current location.
Where do the people of NB go to buy a house for a fraction of what current market condition have pushed them to?
Ronald Miller
Reply to Jack Bell
Good question, maybe ask the feds who have helped create this environment, it is out of the control of our premier, he can't control the Canadian Housing market.
Robert Tangence
Reply to Ronald Miller
You want the feds to take control over the housing market? How about a ban on interprovincial travel? That way those WFH millionaires in the GTA salivating over those low housing prices will be forced to stay home? I think China used to have a law like this under Mao. If it worked there, I'm sure it would work in Canada. /s
Ronald Miller
Reply to Robert Tangence
Maybe read up on the Canadian Housing market and the issues the feds have failed to address, this is not new and there are several articles out there that detail it. HOusing has doubled under JT, no other PM can make the claim.
Sarah Brown
Reply to Robert Tangence
The difference is that Canada is a democracy and China is not.
Robert Tangence
Reply to Sarah Brown
Oh yeah, plus provinces may feel that the feds taking over their housing policies might be overstepping.
Alison Jackson
Reply to Ronald Miller
Higgs apology # 23,588 - submitted into the record by 'Ronald Miller' Jan 29, 2024.
Dennis Woodman
Reply to Jack Bell
Compared to most of Canada NB housing is very cheap.
Dennis Woodman
Reply to Jack Bell
These are still dirt cheap
https://www.pine.ca/blog/the-cheapest-places-to-live-in-new-brunswick
Bobby Richards
Reply to Alison Jackson
Can I get an Amen!
Bobby Richards
Reply to Dennis Woodman
So isn't the side of route 1 in SJ.
Don Corey
Reply to Jack Bell
You are aware there is a Canada-wide housing crisis that has been fueled by the uncontrolled immigration policies of the Trudeau government? As a result, the supply/demand equation become far more obvious to all of us. Property valuations are up across the country, and (unfortunately) the same applies to rents.
David Amos
Comment Section Suddenly Closed
Reply to Bobby Richards
Amen!
Kevin Murphy
Is it wrong to suggest that Canadian tax dollars should be used to help struggle Canadians instead of sending the money overseas? How about we start focusing on our issues here at home first?
Mike Barkman
Reply to Kevin Murphy
Most of our issues at home stem from issues happening overseas. Global inflation started when Russia invaded Ukraine and OPEC speculators decided that they could create an artificial shortage of fossil fuels from it, which of course drives up costs. Basic math.
David Amos
Reply to Mike Barkman
Bingo
Wilbur Ross
Killam owns 1 in 7 apartments in NB ... Higgs is just protecting a friend who needs help.
Al Clark
Reply to Wilbur Ross
He IS a very good friend!
Ronald Miller
Reply to Al Clark
I hear they play pool at Doolys every Friday night.
David Amos
Reply to Wilbur Ross
I concur
Al Clark
"The 41st New Brunswick general election is scheduled to take place on or before October 21, 2024, according to the Legislative Assembly Act of 2017 which states that an election should be held every four years on the third Monday in October."
Tick! TOCK!
Don Corey
Reply to Al Clark
We'll be having a spring election.
David Amos
Reply to Don Corey
I agree
William Peters
If you're a large enough corporation the rate increase goes through no questions asked. If it's a mom and pop rental the increase will be phased in. It's really about protecting the banks who put up the money
that is used to float the biggest commercial players. Got to protect the REITs too.
Roger devry
Reply to William Peters
the banks are well protected either way
David Amos
Reply to Roger devry
Oh so true
William Peters
Reply to Roger devry
Never enough for the investor classes.
Roger devry
great time to be a homeowner and not a renter
Wilbur Ross
Reply to Roger devry
Great time to be a CFA landlord from BC buying up properties in NB and gouging tenants without ever leaving Vancouver.
Roger devry
Reply to Wilbur Ross
charging market rent is not gouging sir....
Akimbo Alogo
Reply to Roger devry
There's nothing stopping anyone from buying a home....but they'd rather complain and play victim.
MR Cain
Reply to Akimbo Alogo
Except a decent income.
Al Clark
Reply to Akimbo Alogo
"There's nothing stopping anyone from buying a home"
Hilariously, there some that believe that. Let them eat cake she said.
David Amos
Content Deactivated
Reply to Al Clark
What about butter tarts?
Al Clark
Where is our supposed hard working 'opposition' when these things are being 'quietly' adopted? Asleep? At the beach? Complicit?
Don Corey
Reply to Al Clark
Good question.
David Amos
Reply to Al Clark
Survey Says???
Al Clark
I guess outhouse has figured out that voting tenants outnumber 'land' lords at least 100 to one?
Al Clark
Reply to Al Clark
Has NOT that is. Time is short boys.
David Amos
Reply to Al Clark
Outhouse is clued in
Graham McCormack
In his state of the province address last week, New Brunswick Premier Blaine Higgs said his government has a goal of limiting rent hikes to below three per cent per year but wants to do it indirectly, through market forces, by encouraging the construction of more housing.
Comedy gold!
William Peters
Reply to Graham McCormack
They will control the rents on the poor by encouraging the construction of high end rentals. That way the average price will creep up fastest.
David Amos
Reply to Graham McCormack
Welcome back to the circus
Looks like NB is getting exactly what it voted for.. just like Ontario. Just like Alberta etc etc etc...
When one simply flips a coin to decide who to vote for, one shouldn't expect much from that chosen government
Allan Marven
Reply to Tim Knight
Just like Canada.
Jim O Neill
Reply to Allan Marven
Caveat Emptor.
David Amos.
Reply to Jim O Neill
C'est Vrai
Don't meet all the criteria? Try the rent bank anyway, says housing minister
Grant program to help struggling tenants has given out $22K since launch
People who aren't sure whether they're eligible to receive a grant from New Brunswick's rent bank should still apply, said Housing Minister Jill Green.
The rent bank, first announced as a loan program last summer, launched in December — three weeks ahead of schedule. With $3 million in funding for two years, New Brunswickers can receive as much as $2,750 in grants from the rent bank to pay for utilities, rental arrears or security deposits on new apartments.
People can only apply once per year and can't receive more than $2,750 over a two-year period. Those who receive social assistance or live in public housing or are part of the program that provides rental assistance to rural and Indigenous households in communities with less than 2,500 people, are not eligible to receive grants for rent payments, but can use the rent bank to pay for utilities or security deposits.
The provincial government is the landlord of public housing and says it can't distribute rent grants to its own tenants. Manitoba's rent bank operates the same way.
Green said applications, which rushed in at first, have subsided. Still, Green said the program has received approximately 600 applications and has distributed $22,000 in grants.
The program isn't without criticism. While pleased it changed from loans to grants, Tobin LeBlanc Haley, an assistant professor at the University of New Brunswick who leads a national study on rent banks and is also a member of the New Brunswick Coalition of Tenants Rights, said the grants should go up to $4,000.
"The amount needs to be higher, and as I've said time and time again, rent banks are most effective within the context of a rent-control regime, and we don't have one," she said.
Green said $2,750 reflects two months' rent for a middle-market unit, and the province will assess the program as it continues to determine whether more funding is needed.
Tobin
LeBlanc Haley of the New Brunswick Coalition of Tenants Rights says
people in public housing should be able to fully access the rent bank. (Toronto Metropolitan University)
Some parts of the application process also concern Haley, such as the requirement to provide a photo identification with a current address. She said that can be challenging for some people, especially if they're in a financial crisis.
"If you're moving, especially if you're couch surfing, let's say, because of housing precarity, or you've had to move a couple of times," she said. "And it costs money, of course, to change your address."
Green said there's "absolutely" a chance someone's application can be approved without an accurate photo identification, and it's the role of the interview to figure out what someone's individual needs are.
"Even if somebody's in trouble or precariously housed and they're worried about their future and they don't meet every single thing on that criteria list, I still want them to apply, because it's still possible they could receive some funding assistance," Green said, in an interview.
Distribute funds via non-profits, coalition says
Haley said New Brunswick should consider running the rent-bank grants through not-for-profits instead, allowing public housing tenants to take full advantage of the benefit. Just because someone lives in government-subsidized housing, she said, doesn't mean that person couldn't also experience a financial emergency.
"You could still experience something that required a grant," she said. "What if your car broke down and you couldn't get to work, what if you had to take time off work because your kid was sick, what if you were sick?"
Green said the province is exploring more partnerships with not-for-profits to operate the rent bank, pointing to Partners for Youth in Fredericton as an example.
"There are definitely thoughts of running it through not-for-profits," she said.
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