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Home Housing

Demanding a rent cap feels like Groundhog Day for New Brunswick tenants

by Amy Floyd
February 6, 2023
Reading Time: 5min read
Demanding a rent cap feels like Groundhog Day for New Brunswick tenants

Members of ACORN NB are shown outside Jill Green's office in Fredericton on Thursday, Feb. 2, 2023, demanding the reinstatement of rent control. Photo: ACORN NB

On February 2, some of us waited to see how long winter might last, while others wondered how long they could keep paying their high and increasing rents.

Nicola Taylor, spokesperson for ACORN NB, says they are picketing because, “Just like the movie Groundhog Day, renters have woken up everyday since January 1 and asked for the same thing over and over again: bring back the rent cap.”

The New Brunswick Chapter of ACORN Canada and supporters met outside of Jill Green’s office. Green is the MLA for Fredericton North, and as of October 2022, she is the Minister of Service New Brunswick and Minister of Housing. Neither Green nor a representative were present to speak with the group.

When asked what people are doing when they are not able to pay rent increases, Taylor responded, “The government is telling people that they should go to the RTT (Residential Tenancies Tribunal), but still not many people know about it. What we are doing now is to make sure that when people get a rent increase, that they protest it by making a complaint to the RTT. That is the only way that people can fight it since the rent cap was removed on January 1, 2023.”

You can find out more about the Residential Tenancies Tribunal, tenant rights and get access to complaint applications at the ‘Renting in New Brunswick’ website. If you are unable to access online resources, you can speak with someone at Service New Brunswick by phoning 1-888-762-8600.

In 2020, despite a global pandemic and massive economic uncertainty, the Higgs government opted to not implement rent controls. The government eventually backtracked on the decision in 2022 (as Bank of Canada interest rates soared), with the caveat of having a hard cap at 3.8 per cent, tied to the inflation rate and an expiry date of January 1, 2023.

Instead of extending the much-needed rent cap, the government made changes to the Residential Tenancies Act creating a “phase-in” mechanism for rent increases. If a landlord raises the rent by more than the Consumer Price Index, the Tribunal can phase in the increase over the course of up to three years. The system is complaint-driven, meaning that a tenant would have to formally complain to the tribunal before the tribunal would consider using the phase-in mechanism.

In a CBC interview, Matthew Hayes, a spokesperson for the New Brunswick Coalition for Tenants Rights, said the new amendments to the act are “solutions to problems that no one has articulated.” Hayes has written several pieces for the NB Media Co-op detailing the recent history of the issue and the responses of the Higgs Government. He cites a lack of consultation with tenants, tax cuts for landlords, a botched legal process, use of incorrect data and heavy lobbying from rental corporations as scenes on the current housing landscape.

What does an end to the rent cap mean for renters? Taylor says that, “People who are on fixed-incomes like seniors, people living with disabilities and people with low to moderate incomes, they are struggling because landlords now have free rein to put rents up so high. We are seeing rent increases of 20, 30, 50, up to as high as 85 per cent. It is a lot for people to bear especially with the current cost of living.”

People live in a variety of situations and will use a variety of solutions to get by. When asked what kinds of things people are doing to survive, Taylor mentions, “We had one case recently where a working person with a young family couldn’t pay rent. He had to go and live with his parents and his wife and children had to go and live with her parents for a time. They were in a situation where they were able to do that, but not everyone can”.

A Global News article, published in January, states, “The Residential Tenancies Tribunal, who responds to applicants, sets a target of 48 hours to respond to applicants, with issues resolved on average in 2022 within 18 days.” When asked how that stacks up to the experiences of people that she has worked with, Taylor says, “I’ve just dealt with a case that took 2.5 months to process. That was a lease problem where the landlord had not applied the rent cap in 2022. By the time the decision was made it was January and the rent cap had ended.”

The picket in front of Green’s office was a small but vocal group and was well represented by New Brunswickers and national trade unions, who came out to support workers and tenants.

Cars passing on Main Street honked a chorus of solidarity. I heard a conversation around me discussing that some landlords really are doing the right thing and have been quite flexible in keeping rents steady and even lowering them in some cases. The group is not anti-landlord at all but seeking fairness and safety for tenants.  This was not the first housing picket at this site, and it likely won’t be the last.

Folks who are facing rent increases already have their resources stretched to their limits. Solidarity across all demographics will be important to show the Higgs government that housing is a human right and should not be a commodity or a vehicle for the investment of the wealthy. While the rent cap is a very important tactic in the fight for affordable housing, it is just one of several. ACORN is also demanding an end to evictions and a comprehensive reform of the Residential Tenancies Act.

Anyone can support the movement by joining ACORN meetings on the second Tuesday of every month at 6:30 p.m., and keeping up-to-date on housing and anti-poverty issues by signing onto the ACORN newsletter. If you would like to offer financial support, you can do so online, with an option to give directly to the New Brunswick Chapter. For meeting locations see NB@ACORNCanada.org, New Brunswick ACORN on Facebook or phone 1-866-991-0025.

ACORN Canada is an independent national organization of low- and moderate-income people with more than 160,000 members in upwards of 20 neighbourhood chapters across nine cities. They advocate for a variety of issues, including regulation of predatory lenders, tenant health and safety, housing affordability and universal access to internet.

Amy Floyd is a regular contributor to the NB Media Co-op and works as the Housing Justice Coordinator with the Madhu Verma Migrant Justice Centre.

Tags: ACORN NBAmy Floydhousingrent caprent controltenants rights
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