Tribunal says notice of eviction ‘not valid,’ as Moncton landlord accused of illegal renovictions, harassment

When a Dieppe-based holding company bought an apartment building in central Moncton earlier this year, low-income tenants learned that the new owner was no longer accepting rent subsidies from NB Housing.

That meant those low-income residents at 320 St. George Street would either have to pay market prices or leave. The new landlord cleared out about half of the tenants and began renovations.

Now, the same landlord is trying to remove the remaining tenants in order to renovate their homes — and convert them into subsidized housing units.

By Friday, authorities had rejected at least one of those termination notices, saying it violated the Residential Tenancies Act.

A government spokesperson didn’t respond to a request for an interview with Minister responsible for NB Housing David Hickey, but provided a statement on Monday confirming that the notice of eviction was “not valid” and saying that “the situation is evolving.”

It’s a bizarre story that raises questions about subsidized housing in New Brunswick and loopholes in the legislation meant to protect renters.

Subsidized tenants removed

The 28-unit apartment building at 320 St. George Street was purchased by Dieppe-based Johnsky Holdings Ltd. for $3.64 million in early April, according to records from Service NB.

Renters living in subsidized units at the apartment building soon learned that they would have to pay full market rent or get out, according to NB ACORN, a group that campaigns for tenants’ rights.

The new owner advised NB Housing “that they no longer wish to participate in the rent supplement program, effective June 30,” according to a letter from the agency addressed to one tenant, dated April 24.

The letter explained that the landlord “will not be accepting rent subsidy payments from Housing NB, beginning July 1,” and that market rent would be $1,050 per month.

“If you decide that you would like to continue living in a subsidized unit, we will do our best to find you another unit.”

The renter, who spoke to the NB Media Co-op on conditions of anonymity, landed on his feet: NB Housing soon relocated him to another subsidized unit, where he pays around $120 per month.

But he was surprised that the landlord was allowed to give him the boot so suddenly, only a few months after he’d moved in — and with only two months notice.

“My lease said that I had three months notice… but they didn’t honour that,” he said. “I thought that there was laws against that.”

There were 14 subsidized units in the building at the time, he said.

Termination notices

On Sept. 1, notices of termination appeared on the doors of the remaining tenants, giving them three months to clear out, and indicating that their units “will be renovated significantly requiring vacant possession.”

Sara Verburgh and Seraphim Chase have been living in the one-bedroom apartment since the start of 2022.

Verburgh said they’ve been looking for a new apartment since receiving the notice, but everything is about 50 per cent more than what they currently pay. “It is definitely a bit of a difficult situation to be in,” Verburgh said.

But several notices of termination included faulty information, according to NB ACORN.

Examples include incorrect contact information for the property management firm. Verburgh and Chase said it has been virtually impossible to reach anyone at the company.

On Friday, the Tenant and Landlord Relations Office rejected the couple’s termination notice, saying in a letter to the tenants that “the Landlord didn’t receive pre-authorization from our office” before serving the notice.

Under the Residential Tenancies Act, landlords must receive “written approval” from the Tenant and Landlord Relations Office before terminating a lease for renovations or repairs.

NB ACORN held a protest outside the building on Wednesday. The group said the termination notices were “fake” and that serving them without approval from authorities amounted to harassment.

“Fake notices — using official-looking government logos — were posted on every occupied door of the building, in order to scare away tenants who are paying ‘below market rent,'” the group said in a Facebook post. NB ACORN is campainging for stronger protections for renters, including anti-renoviction rules.

Subsidized units planned

Jeffrey Cosman, director of 4 Rent Solutions, said he was aware of the protest. He declined to comment on allegations of harassment levelled by NB ACORN.

He said the apartments that received termination notices in September will be converted to subsidized housing units.

But he couldn’t explain why the landlord was now participating in the subsidized housing program just months after eliminating all subsidized units from the same building. Nor could he explain what kinds of renovations would be required.

He said the company had only recently taken over property management for the owner.

Kyle Stephane Johnson is listed in government records as the director of Johnsky Holdings Ltd., which owns the building. Johnson declined to comment for this story

His business practices have attracted scrunity a number of times in recent years.

Johnsky Holdings and K2 Property Management were previously in the news when tenants spoke out about major rent hikes and evictions at the height of the COVID-19 pandemic.

Renovictions?

Renters in the building on St. George Street believe that minor renovations are being used as a pretext to kick out residents and increase the rent, a strategy known as renovictions.

Verburgh and Chase said that renovations in their unit began last month. New appliances were installed in their apartment, including a mini-split.

They doubt that further renovations will justify the removal of the building’s remaining tenants, judging by what they’ve observed in the months since the others were removed earlier this year.

Most of those renovations seem limited to things like new countertops, appliances, and toilets, and some new flooring in certain units, according to Chase.

Jeannette Savoie, a lawyer and director of the UNB Legal Clinic, said she can’t comment on specific cases, but that renovations must be significant to legally justify removing a tenant.

“Let’s say you had to do something major, like you had to tear down all the walls to change all of the electrical,” she said. “That could be a reason.”

She added that renters can also claim expenses such as the cost of moving if renovations haven’t begun within two months of their termination.

Questions remain about the landlord’s decision to stop accepting rental subsidies earlier this year. “The general rule is when somebody sells the building, the tenants go with the building,” Savoie said.

“I think from the tenant’s perspective, to be kicked out of your unit because of where your money is coming from, even if you’re able to pay the rent, then I think that’s discrimination based on social condition.”

NB Housing spokesperson Adam Bowie provided an emailed statement Monday confirming that the Tenant and Landlord Relations Office had received a complaint about the situation.

“The TLRO informed both the landlord and the tenant that this notice of eviction is not valid, and the landlord was reminded that they would need to apply for authorization before they could serve notice of termination for renovations,” he said. “The situation is still evolving.”

He noted that tenants or landlords can contact the TLRO by calling 1-888-762-8600, or by emailing renting@gnb.ca.

This report was updated on Sept. 22, 2025 at 3:55 p.m. to include a response from NB Housing. 

David Gordon Koch is a journalist with the NB Media Co-op. This reporting has been made possible in part by the Government of Canada, administered by the Canadian Association of Community Television Stations and Users (CACTUS).