Newsworthy Industry Hot Topics

Industry Hot Topics

Ontario passes controversial Bill 184

In late July, the Ontario government announced it had approved Bill 184 despite heated protests from tenant advocacy groups. Since the state of emergency in Ontario began, landlords have been banned from evicting nonpaying tenants. The new law will require tenants owing money to pay back their landlords in a scheduled repayment plan.

“We know tenants and landlords have struggled during COVID-19, and some households may be facing eviction due to unpaid rent during this crisis,” said Steve Clark, Minister of Municipal Affairs and Housing. “By making these changes we are trying to keep people in their homes, and at the same time, helping landlords receive payment through a mutual repayment agreement. It’s a better approach, especially during these difficult times.”

Other changes to the legislation include: requiring tenant compensation of one month’s rent for “no fault” evictions; allowing the Landlord and Tenant Board to order up to 12 months’ rent in compensation for eviction notices issued in bad faith or where the landlord does not allow the tenant to move back in after renovations or repairs; and doubling the maximum fine amounts for offences under the Act to $50,000 for an individual and $250,000 for a corporation. The new bill will also “modernize and streamline” the dispute resolution processes at the Landlord and Tenant Board and encourage the use of alternatives to formal hearings to resolve certain issues and encourage negotiated settlements.

In addition, amendments to the Housing Services Act of 2011 were made, giving housing providers with expiring operating agreements and mortgages ways to remain in the community housing system through a new service agreement with service managers.

Despite what the government is calling fair and balanced treatment, the new law continues to be met with heated opposition in early August. Up-to-date news on the ongoing matter can be found at www.reminetwork.com.

More adult Canadians are moving back home

Anew survey by Finder.com found that a significant number of adult Canadians are moving back home with their parents due to the financial pressures of COVID-19. While approximately 1.5 million Canadians have already completed the move, another 1 million (4 per cent) said they are considering it.

“Between the high cost of rent in Canada’s big cities and a recession with record levels of unemployment, young people trying to launch or grow careers while paying the bills are now faced with challenges that may seem insurmountable, making returning home to their parents the most attractive option for many of Canada’s young adults,” said Scott Birke, Publisher at Finder.com. “Our data reveals about a million Canadians who haven’t yet moved home with their parents are still seriously considering it, which tells us this trend is not just confined to the pandemic and could be a longer-term setback when it comes to young Canadian adults building wealth and establishing their careers.”

The provinces hardest hit by COVID-19—Ontario, B.C. and Quebec— saw the most moves among young adults, with Finder.com calling Ontario the epicentre of Canada’s ‘Generation Boomerang’. But the reverse scenario is also quite common: 278,532 older Canadians have moved in with their adult children and another 455,780 are seriously considering it.

“It is safe to assume that many of the parents who moved in with their adult children are also grandparents who are helping to provide childcare for exhausted working parents of young children, who have limited or no childcare options until school begins,” Birke said.

Vancouver approves new plans for Birch Street rental tower

The City of Vancouver has approved plans for the controversial Birch Street rental tower, a 28-storey development located at the corner of West Broadway. While the height of the new building had many residents in opposition, ultimately the need for more affordable rental housing won the City Council’s vote.

When complete, the 280-foot tower by Jameson Development Corp. will deliver 200 market rental homes and 58 units geared to households earning between $30,000 and $80,000 per year. Mayor Kennedy Stewart described the vote as a necessary step toward achieving Vancouver’s 10-year goal of approving 72,000 new homes for construction by 2027.

The unit mix is comprised of 30 studios, 121 one-bedroom, 70 two-bedroom, and 27 three-bedroom units. Rents for the 58 moderate-income units will be between $950 per month for a studio and $2,000 for a three-bedroom unit — roughly half of the market rental rates. Within the first two levels, there will also be roughly 30,000 sq. ft. of retail and office space. All units will be pet-friendly.

The Birch Street rental tower project falls under the city’s Moderate Income Rental Housing Pilot Program (MIRP), which was designed to provide homes for households that are not eligible for or do not want to live in social housing, but cannot afford a market rental home.

Though the majority was in favour of the project moving forward given the city’s need for more rental housing, those opposed expressed concerns about the tower’s height, shadowing, and the impact on neighbourhood character. A previous design, approved in January 2018, had the tower rising just 17 storeys, but the plans were since revised.

B.C. announces rent repayment framework

With the ban on evictions poised to lift September 1, 2020, the B.C. government announced several planned residential tenancy changes, including a rent repayment framework for tenants owing money due to COVID-related income loss.

At a press conference on July 17th, B.C. Minister of Municipal Affairs and Housing Selina Robinson said the framework gives renters advance notice to plan ahead for upcoming payments so they may continue to live in their current housing after the moratorium lifts. All back-payments are to be paid to landlords in structured installments by July 2021, while the ban on rent increases will continue until December.

LandlordBC, a member-driven association and BC’s top resource for owners and managers of rental housing, supports the new plan, calling the repayment framework a workable solution.

“It is our view that the Province has navigated the COVID-19 crisis extremely well under very challenging circumstances,” said David Hutniak, CEO. “Renters are being provided a very fair and reasonable process to amortize the repayment of their unpaid balances, without any fees or interest being applied. Our approach has always been to work with government to find balanced solutions, and we feel that this repayment framework achieves this.”

That said, not all B.C. landlords are on side with the government’s pandemic measures to date, but fortunately, numerous surveys show that most renters paid all or a significant portion of their rent throughout the state of emergency.

“As a sector, we understood that we were in the midst of an unprecedented health crisis,” Hutniak said. “We immediately encouraged our members to work collaboratively with their tenants to accommodate them as much as possible and to demonstrate appropriate sensitivity and compassion during the crisis. We are pleased to say that they answered the call.”

B.C. renters and landlords impacted by COVID-19 can anticipate the following changes to residential tenancies as Phase 3 of the reopening continues: • Renters will need to pay their monthly rent in full beginning September 2020 • A landlord whose tenant has unpaid rent or utilities during the emergency period would be required to enter into a repayment plan for those arrears • A landlord would not be able to issue a

Notice to End Tenancy for unpaid rent or utilities during this period unless the tenant has defaulted on their repayment plan • A landlord would be able to issue a

Notice of Rent Increase, but it will not come into effect until December 1, 2020