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Faced with what supporters say is a growing housing crisis that includes rising rental costs forcing people to leave their homes, the Nova Scotia government is stepping in with a ceiling on increases and a ban on so-called renovations. .
“Too many New Scots are struggling to afford a place they call home,” Housing Minister Chuck Porter said Wednesday.
“Now is not the time for people to worry about keeping a roof over their heads or being forced to find a new home for their family, but unfortunately that’s exactly the situation many people find themselves in.”
Effective immediately, rent increases are limited to 2% per annum, without exception. The change is retroactive to September 2020 and will remain in effect until February 1, 2022 or whenever the COVID-19 state of emergency is lifted. Porter said anyone whose rent has already increased within the defined time period will receive the difference as a future credit.
Landlords will be prohibited from evicting tenants for the purpose of renovating their buildings. Porter said that unless an eviction order has been issued by the residential lease council, it will not be enforceable and that includes notices already provided.
Marites Sumat was thrilled with the news.
“I’m so thankful,” she said.
Sumat recently received a six-month notice that the Clayton Park apartment she shares with her husband, three children and mother would see the monthly rent rise from $ 850 to $ 1,250, a 47% increase that would discount the family away from home. .
The new limit is “a great help for renters,” he said.
COVID-19 has taken a heavy toll on many people, Sumat said. Although he was fortunate enough not to have reduced his working hours, he said the pandemic made what was already difficult for many people even more difficult.
He is still waiting to speak to his landlord, but according to the rules announced today, the increase scheduled for March 2021 would not be allowed.
Change of tune
The rent cap is a stark departure from Premier Stephen McNeil and his government’s earlier claims that rent control is not an effective tool to combat housing challenges.
For months there have been a litany of stories of people being forced to leave their homes due to renovations or rent increases of up to 90%. Porter admitted it took some time to get to Wednesday’s announcement, but said the government is trying to find the most effective way to deal with the situation.
Although he said that the main problem is that of supply, the minister noted that it cannot be addressed quickly.
“It is up to us as a government to do something in the meantime,” Porter said.
Two of the candidates vying to be the new liberal leader and premier recently proposed forms of rent control. Porter, who endorsed candidate Iain Rankin, said those plans had no impact on Wednesday’s announcement.
The Affordable Housing Commission has hit
Wednesday’s announcement also included the creation of the Nova Scotia Affordable Housing Commission, which is tasked with making recommendations on strategies and actions for affordable housing. Their first list of recommendations is expected in six months.
The commission includes:
- Catherine Berliner, Department of Municipal Affairs and Housing (co-chair)
- Ren Thomas, Dalhousie University (co-chair)
- Chief Sidney Peters, Tawaak Housing Association
- Karen Brodeur, Cooperative Housing Federation of Canada
- Fred Deveaux, Cape Breton Community Housing Association
- Jim Graham, Affordable Housing Association of Nova Scotia
- Mike Dolter, Nova Scotia Association of Municipal Administrators
- Jeremy Jackson, Nova Scotia Investment Property Owners Association
- Alex Halef, Institute for Urban Development
- Gordon Laing, Southwestern Property
- Kelly Denty, Halifax Regional Municipality
- Michelle MacFarlane, Nova Scotia Service and Internal Services
- Joy Knight, Department of Community Services
The representation will also include individuals who will be nominated by the Cape Breton regional municipality and the departments of justice and health.
Another measure announced by Porter is $ 1.7 million to replace 30 beds removed from the homeless reception system as a result of changes required by public health protocols for physical distancing.
The minister said meetings with service providers are imminent to determine how to get as many people off the streets as soon as possible. Advocates estimate the number of homeless people in Halifax Regional Municipality has more than doubled in the past year, and Porter said the government is committed to finding ways to address the problem.
He should have arrived earlier
Officials from the ACORN housing advocacy group released a press release calling the government’s decision “a delayed first step” following prolonged pressure.
“We would not have seen any rent control movement were it not for the tireless work of our members, tenants across Nova Scotia and activists who have been fighting for our communities for years – organizing jobs,” the statement said.
Lisa Roberts, a critic of the NDP for housing, said her party in recent years has presented several pieces of legislation intended to address the issue, none of which have received the support of the liberals in the government.
“This is good, but frankly, a global pandemic shouldn’t have been needed to recognize the housing crisis,” he said.
Roberts said she hopes the new commission will spend some time looking into long-term rent control and help introduce some sort of permanent control, either through new legislative proposals or the use of the current rent control law. approved in the 90s.
Industry concerns
Kevin Russell, executive director of the Investment Property Owners Association of Nova Scotia, said the size of the limit is a concern because it is “well below” the operating cost of rental buildings.
He predicted it would have the greatest effect on people renting out older buildings, which make up the bulk of Halifax’s real estate holdings and are nearing “the end of their life cycle.”
“It will have an impact on operations,” he said. “To what extent will depend on each individual owner. It may postpone some repairs and maintenance, it may affect other areas of operation.”
Russell said he was optimistic about the Affordable Housing Commission and what it could do. Any changes that take place must be long-term, he said.
“We tried to talk [about] affordable housing with the government for over 10 years and now it takes a crisis for everyone to get to the table. I guess that’s how it works. “
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