Landlords removing units from rent subsidy program, citing increased operating costs
N.B. Housing looking into growing trend
A senior civil servant in the New Brunswick Housing Corporation says his office is looking into an increased trend in landlords taking units off the corporation's rent subsidy program.
Gregory Forestell, the corporation's vice-president of housing programs, says landlords are opting out of the rent subsidy program as early as five years after entering into agreements with the provincial body.
"They're seeing the opportunity to see a better return on their investment. They're paying off their loan to us and then taking those units out of the program.
"So, not every landlord, but some landlords are doing that, and so it's significant enough that we've noticed it."
Forestell made those comments in an interview Wednesday following a panel discussion at the Canadian Housing and Renewal Association's National Congress on Housing and Homelessness, happening this week in Fredericton.
N.B.
Housing's Gregory Forestell says his office is looking at the program's
criteria to encourage landlords to keep their units in the rent subsidy
program. (Aidan Cox/CBC)
The panel included Perry Kendall, CEO of Habitat for Humanity New Brunswick, who pointed out the trend as one that's concerning to him.
"There are more and more landlords opting out of the provincially subsidized program knowing the demand is there, and they're able to get higher rents," Kendall said.
"So that's a concern. We're losing more affordable units than we're building."
Recent data from the Department of Social Development shows the wait list for an N.B. Housing unit in the province doubled in the past five years, going from about 5,000 households at the end of 2019 to 10,733, as of Feb. 1.
Forestell said he didn't have statistics on the number of units that have been removed from the rent subsidy program in recent years.
He also couldn't say for sure whether the increase in N.B. Housing's wait list is related to the loss of subsidized rental units.
Forestell said the N.B. Housing program helps developers fund the construction of apartment buildings by offering loans of $70,000 to $80,000 for each unit that's to be subsidized.
Landlords will then typically agree to pay off the loan over a 16- to 20-year period, over which time the tenant of the unit will only have to pay the landlord 30 per cent of their income, while N.B. Housing pays the difference.
Forestell's office is looking at the program's criteria to find "a sweet spot" to encourage landlords to keep their units in the program.
It used to be that landlords turned to N.B. Housing to fill vacant units using the program, but with supply of rental units low and demand high, he said that tide has turned.
"As supply increases, the demand will go down, and we'll be able to come back and entice more landlords into into our program.
"But it really comes down to a financial return on their investment," Forestell said.
"And as their expenses rise, they need to raise their rents, and sometimes we can't get those rents up to that to that level and save those units."
Province not recognizing rise in costs to landlords, says rep
Willy Scholten, president of the New Brunswick Apartment Owners Association, said he's aware some landlords have taken their units off the rent subsidy program.
He said many of those units were pulled out of the program in 2021 and 2022, when inflation in Canada started rising to historic levels, as high as 6.8 per cent.
Willy
Scholten is president of the New Brunswick Apartment Owners
Association. He says it's been frustrating for some rental housing
providers. (Submitted by Willy Scholten)
He said those higher inflation levels resulted in higher operating costs, which N.B. Housing in some cases wasn't willing to make up for.
"So I think some rental housing providers got very frustrated with that and decided that if they [N.B. Housing] couldn't keep up with their costs with the contracts, they would no longer be able to do [the program]," Scholten said.
Proof private sector can't be relied on, says researcher
Government, non-profit and the co-operative sectors do a better job at running subsidized housing than the private sector because they're not focused on generating a profit, said Julia Woodhall-Melnik, co-director of the housing, mobilization and engagement research lab at the University of New Brunswick.
"The for-profit sector will always try to increase profit," she said.
"And if there's requirements ... that impinge on their convenience, their profit, their time, etcetera, they're just not going to do it."
Landlords
pulling out of the rent subsidy program shows that government
incentives to create more affordable housing should be directed at the
non-profit sector, says UNB researcher Julia Woodhall-Melnik. (Aidan Cox/CBC)
Woodhall-Melnik said the trend mentioned by Forestell isn't surprising and shows more government incentives should be directed to the non-profit housing sector.
"Our research shows that the for-profit sector has never been designed to provide affordability. Their impetus is capital accumulation and growth of wealth."
ABOUT THE AUTHOR
Complete BS, the gov’t should never be giving private developers money, these crooks are taking money from both sides and still complaining. The fact that there is an apartment owners union is disgusting and shows how strong the lobby effect is compared to the needs of the public. The developers need to build better business plans/cases of they think some high inflation is enough to justify screwing over their fellow humans. That gov’t money is our money, we paid it in taxes, there is no “gov’t money”, it’s all ours and we need to hold politicians accountable for it.
Reply to SW Home
My property taxes went up $200 a year, My insurance went up $50 a month, power bill is going up $25-$30 a month. Water remains the same.
Inflation has barely affected my house. Inflation has affected my other necessities of life.
Get owned landlord.
Wanting a place to live where they afford heat...and food?
The nerve of some people.
About the organization
The New Brunswick Housing Corporation (NBHC) is a Crown Corporation led by a minister responsible for housing and a board of directors. The corporation has over 100 staff across the province who oversee and maintain provincial housing facilities, housing programs and initiatives, a housing strategy and residential tenancy services.
Meet the Minister
Hon. Jill Green
Minister (Minister's Office)
Housing New Brunswick
| Contact Information | Phone | Location | |
|---|---|---|---|
|
GREEN, JILL (Minister)
|
P: (833) 355-3262
|
Fredericton
|
|
|
WRIGHT, KATE (Communications Manager)
|
P: (506) 453-2012
|
FRANCOIS BOUTOT
Contact Information
Phone : (833) 230-2097
Fax : (506)
Email : francois.boutot@gnb.ca
GREGORY J. FORESTELL
Contact Information
Phone : (506) 453-7450
Fax : (506) 444-5768
Email : Greg.Forestell@gnb.ca
Mailing Address
Sartain MacDonald Building
P. O. Box 6000
Fredericton, NB
E3B 5H1
Canada
Contact housing navigators
Information on housing programs and support
Phone: 1-833-355-3262
Email: assistance@gnb.ca
Tenant and Landlord Relations Office
Information for tenants and landlords with questions or concerns regarding a tenancy
Phone: 1-888-762-8600
Email: irent@snb.ca
More volunteers needed to help solve housing crisis, N.B. non-profit groups say
There are 40-50 per cent fewer volunteers than pre-pandemic, says non-profit builder
More volunteers are going to be needed to help solve the housing crisis in New Brunswick, according to non-profit organizations that build and manage homes in the province.
Habitat for Humanity New Brunswick has drawn on volunteer board directors, tradespeople and donors to build 88 homes in the province over the past 20 years.
But in the years since the COVID-19 pandemic began, its ability to build new homes has been hurt by a reduction in the number of people willing to volunteer their time, said Perry Kendall, the organization's CEO.
"I respect the fact that there's more stresses on people today, whether that be financial stresses or work stress and all of the other demands of of life," Kendall said.
"But it really has been a challenge for non-profits to continue to do the work that we're doing and in our case ... to increase the impact, because the need has increased."
Perry
Kendall, CEO of Habitat for Humanity New Brunswick, says the non-profit
organization has about 40 to 50 per cent fewer volunteers compared to
before the pandemic. (Submitted by Perry Kendall)
Habitat for Humanity builds affordable homes for low-income families based on a series of criteria that must be met.
For each home, Kendall said the organization will usually rely on a team of 100 to 200 volunteers to get the job done.
But since the pandemic, the number of volunteers has dropped by 40 to 50 per cent, resulting in delays to some of the organization's projects.
"I'm very concerned because the need has never been greater and ... it's absolutely frightening to hear the stories of the situations that families are living in here in New Brunswick."
Campaign to recruit volunteers
Having enough volunteers is a big issue facing not-for-profit housing organizations in New Brunswick said Peter Corbyn, executive director of the New Brunswick Non-profit Housing Association.
"Oddly, no, [the issue is] not funding. It's the person power," said Corbyn.
"It's just people getting involved to play a role, whether it's a skilled tradesperson, a board member, property managers — the entire sector is, for the most part, [at] short capacity."
Peter
Corbyn says the New Brunswick Non-profit Housing Association is trying
to encourage the public to help support local housing organizations
through volunteering or donations. (Aidan Cox/CBC)
Corbyn said his organization represents about 170 non-profit housing organizations, which operate about 6,500 units across the province.
Making the volunteer shortage worse is that there are about 1,000 board positions across those organizations, filled by members who are set to retire soon.
"We need to start bringing on more board members, especially from a succession planning and sustainability perspective."
On Tuesday, Corbyn was busy setting up for an event that night at the Fredericton Playhouse titled Let's Solve the Housing Crisis.
It's one of a list of events that are part of the Canadian Housing and Renewal Association's National Congress on Housing and Homelessness, happening this week in Fredericton.
Corbyn said the hour-long Tuesday event was a call to action, showing data related to the housing crisis, as well as recorded interviews with people who've gone from being homeless to being housed through the work of non-profits.
He said from 400 to 500 people had signed up for the event, which was geared toward encouraging anyone to get involved as a volunteer or a donor for a non-profit housing organization.
"What we plan on doing here is to start a process to educate ... the general public about what they can do to play a role ... either professionally, or as a volunteer, or through donations."
Corbyn said anyone who couldn't attend the event but wanted to learn more about how they could get involved could do so by visiting housingaction.ca.
ABOUT THE AUTHOR
- Description
- Affordable housing constructed by volunteers and discount renovation centre
- Programs / Services
- Sites
- Fredericton
101-800 Mary's St, Fredericton
- Fredericton
- Legal Status
- (51) Registered Charity
- Web Site
- Visit Website
- info@habitatfredericton.com
- Office
- 506-462-4881
- Fax
- 506-474-1510
- Hours of Operation
- Mon-Sat 10 am-4:30 pm
- Chief Executive Officer
- Perry Kendall
Email: perry@habitatfredericton.com
Phone: 506-474-1520
CEO, Habitat for Humanity Fredericton
C: 506-461-6529
E: perry@habitatfredericton.com
Peter Corbyn
Executive Director
- Phone: (506) 461-8578
- Send an Email
- 83 Rue Gorveatte Street, Unit C Dieppe NB E1A 2E5
MESSAGE FROM THE EXECUTIVE DIRECTOR
Spring is just around the corner, which means another series of regional
meetings in early April, our annual conference in May, and another year of
working together towards strengthening the non-profit and co-op housing
community in New Brunswick.
Several activities are happening now, and others will be announced at the
conference on May 23rd to 25th to help us improve and grow affordable
housing in the province.
I would like to thank the Tenant and Landlord Relations Office for providing
two officers for our members. We are aware the number of challenges has increased in the last few
years and look forward to continuing this important collaboration.
LET’S SOLVE THE HOUSING CRISIS is a
special presentation I will be hosting on
April 9 th at the Fredericton Playhouse
focused on raising awareness of the
community housing sector and encouraging
audience members to get engaged through volunteering, donating, career choices, and investing.
Admission is by voluntary donation to Habitat for Humanity New Brunswick at the door. Ticket and
event information is available at www.housingaction.ca.
I also look forward to our next annual conference and AGM from May 23 rd to 25th in Moncton. The
conference focuses on governance, operations, development, and succession planning along with
entertainment and celebrating leaders in our association. We will share the results of other projects
we have worked on over the last few months, including the sustainability and succession planning
research project with UNB, energy efficiency, financial project, and new developments.
Please share this newsletter with fellow board members and staff and ask them to register to receive
it directly at www.nbnonprofithousing.ca/newsletter.
Feel free to contact me anytime to share concerns,
comments, or ideas on how to improve and grow non-
profit and co-op housing in New Brunswick. The province
needs thousands of new affordable housing units, we can
be a part of that solution by working together and with
other stakeholders to make that happen. Contact me at
506.461.8578 or peter@nbnpha-alsblnb.ca.
Mark your calendars! The 2024 CHRA National Congress on Housing and Homelessness is taking place in in Fredericton April 9-11!
Join us at the Fredericton Convention Centre for three days of learning, networking, and engaging with leaders from across the Canadian community housing sector. Have your say on key issues, learn about the latest developments in the sector, and get inspired for the future!
Register for this year’s Congress to:
- enjoy information sessions and workshops on topics of critical importance for the community housing sector
- hear from leaders in the Canadian housing sector
- engage with Indigenous housing leaders and learn about urban, rural, and northern Indigenous housing issues at the Indigenous Innovation Forum– back for 2024!
- hear about the newest innovations and transformations in the sector
- make new connections and catch up with your colleagues
- connect with businesses and suppliers at the CHRA Tradeshow
- check out the Indigenous makers market – new for 2024!
- have a chance to win prizes, and more!
Concurrent Workshops
This year’s Congress sessions are designed to challenge the way you think about housing. We’ll examine cutting edge initiatives, partnerships, and programs that are bringing the community housing sector into the future. Join our expert speakers as we explore topics including:
- Housing development
- Inclusive housing solutions
- Initiatives that are addressing discrimination, colonialism, ableism, and other inequities
- Enlisting data in the fight against homelessness and housing precarity
- Innovative partnerships
- Supportive housing
- Advocacy, and more
Keynote Speakers
CHRA Congress features the leaders of the community housing and homelessness sector from across the country and abroad. You
won’t want to miss our line-up of keynote presenters, guest speakers
and political leaders who are eager to share their thoughts, opinions,
and expertise from varying perspectives within the sector.
We’re proud to announce that this year’s Keynote Speaker is Economist; Energy, Trade, and Financial Markets Expert; and Bestselling Author Jeff Rubin.
Indigenous Caucus Social & Networking | Monday April 8, 7:00-9:00pm
This event is sponsored by Ontario Aboriginal Housing Services 
and presented in partnership with NICHI 
The Indigenous Caucus and NICHI invite you to an evening of socializing and networking. Browse the Indigenous Maker's Market while enjoying refreshments, catching up with colleagues, and making new connections. This event is open to all who purchase a ticket upon registration.
Indigenous Makers Market | Monday April 8, 7:00-9:00pm, Tuesday April 9, 8:30am-2:00pm
New for 2024! Enjoy the Indigenous Maker’s Market, taking place during the Indigenous Innovation Forum and the Pre-Congress courses on April 9. Bring home some unique arts and crafts and support local Indigenous artists and craftspeople!
Are you an Indigenous Maker? Would you like to participate? Sign up to reserve your booth.
Let’s Solve the Housing Crisis: HOUSINGACTION.CA | Tuesday April 9, 5:00-6:30pm | The Playhouse
The housing crisis demands the collective effort of millions of Canadians and diverse organizations, uniting volunteers, tradespeople, non-profits, and governments at all levels.
Embark on a transformative journey at HOUSINGACTION.CA, spanning a century of Canadian housing from 1944 to 2044. Discover the roots of our current crisis and the crucial steps needed for a solution, exploring non-market housing, homelessness, YIMBYISM, and public funding.
This immersive experience invites students, professionals, seniors, and housing experts to join an interactive presentation. Brace yourself for a powerful call to action, urging each audience member to pledge at least one impactful act, from donating items to volunteering, or pursuing a career in the non-market housing sector. Together, let's reshape the future of housing in Canada!
Welcome Party – brought to you by the Housing School | Tuesday April 9, 7:30-10:00pm | Beaverbrook Art Gallery
We’re taking you back to high school for the Congress Welcome Party! Come together with your colleagues for a mix-and-mingle cocktail reception to celebrate beginning of Congress 2024. Take the chance to dress up like you did in high school and recapture the excitement of going back to school, in honour of the Community Housing Transformation Centre’s soon-to-be-launched Housing School! Dress-up is strongly encouraged; we can’t wait to see all the different eras of our Congress attendees’ high school years represented!
Sponsored by the Community Housing Transformation Centre 
Congress Kick-Off | Wednesday, April 10, 9:00-10:30am
French translation will be available.
Join us to start Congress off right with special guests and speakers.
Speakers to be announced.
CMHC’s Houser’s Den Challenge | Wednesday, April 10, 3:45pm-5:15pm
Sponsored by Canada Mortgage and Housing Corporation 
French translation will be available.
Houser's Den is a dynamic and interactive event designed to support and encourage innovative housing featuring projects that were submitted to Round 5 of the CMHC Housing Supply Challenge.
Hosted by Julie McNamara, CHRA’s Director of Programs, Partnerships and Events, and Mel Willerth, CHRA's Senior Manager of Education, Houser's Den takes inspiration from the popular TV show, Dragons' Den and will feature a live presentation of innovative housing projects. Our event will focus on community-driven initiatives that align with CMHC's objectives related to fostering affordable and sustainable housing solutions. Judges and the crowd will select awards for the projects.
President’s Kitchen Party | Wednesday, April 10, 7:00-10:00pm | Delta Fredericton
Sponsored by The Aboriginal Housing Management Association 
Join us at the CHRA President’s Kitchen Party! We’re taking advantage of our location in Fredericton to enjoy a truly unique local event: a kitchen party with an Indigenous twist. Catch up with your colleagues, make new friends, and celebrate our sector with food and drinks in a casual setting.
Keynote Address | Thursday, April 11, 9:00-10:30am
Jeff Rubin
Economist; Energy, Trade, and Financial Markets Expert; Bestselling Author
Sponsored by Ontario Aboriginal Housing Services
French translation will be available
Jeff Rubin is an award-winning economist and author. He spent two decades as the chief economist at CIBC World Markets where he
received 10 citations as Canada’s top ranked financial market
economist. Rubin was one of the first economists in the world to predict
triple digit oil prices back in 2005. Considered one of the world’s
leading energy experts at the time, his insights have made the front
pages of the New York Times and the Wall Street Journal, and he has been cited in several high-profile publications including Newsweek and The Economist.
Since resigning from CIBC World Markets in 2008, Rubin has pursued an independent career as an author and public speaker. His first book, Why Your World Is About to Get a Whole Lot Smaller, was an international bestseller, translated into eight languages. It was the number one bestselling non-fiction book in Canada and won the National Business Book Award. It was also longlisted for the Financial Times and Goldman Sachs Business Book of the Year Award in the United Kingdom.
Rubin has gone on to write three more bestselling books: The End of Growth, The Carbon Bubble, and The Expendables. In May 2024, he’ll release his fifth book, The New Normal: How Inflation, Sanctions and War will Change Your Lives Forever. In addition, Rubin wrote a widely read column in the Globe and Mail for several years called “Ahead of the Curve”. His recent work has focused on the demise of globalization and the fracturing of the world economy into competing geopolitical blocks.
Congress Send-Off | Thursday, April 11, 3:45pm-5:15pm
Our final Congress session will bring attendees together for a cultivated improv performance from Solo Chicken Productions, a professional performing arts company located on the traditional territory of the Wolastoqiyik / Wəlastəkewiyik (Fredericton).
Solo Chicken fosters the creative arts through the creation and development of new works of physical theatre, the facilitation of community collaborations, and by offering accessible arts-based programming. Founded in 2004, the company is built on the philosophy that a healthy arts ecology and society should create space for everyone to create and share their voice. Engaging in the act of cultural production offers communities the opportunity to foster a sense of belonging and to share their voice, all of which lead to, and promote a healthy, connected community.
This will be a fun, joyful way to wrap up Congress 2024 - don't miss it!
Closing Party | Thursday, April 11, 5:30-7:30pm | The Picaroons Roundhouse
Sponsored by Homeward Trust Edmonton 
and The Canadian Real Estate Association 
Join us to wrap up the 2024 Congress and enjoy snacks and networking with your friends and colleagues in a casual atmosphere.
Questions?
Contact Chloe Martin, CHRA's Coordinator of Programs and Membership at:
(343) 882-3390
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