Tories delay contentious rent-control legislation

WINNIPEG — The Progressive Conservatives have thrown a wrench into the government’s rent-control legislation that has irked landlords, partly over the thorny issue of recouping repair and renovation costs from tenants.

“This bill would irresponsibly put Manitobans at risk in their living conditions,” Tory Leader Obby Khan said Tuesday. “It would put rental units into disrepair.”

The Tories said this week they had decided to delay Bill 13 until the fall sitting. Under rules of the legislature, the Official Opposition has the ability to delay as many as five bills.

“It’s going to take away jobs from middle-class Manitobans that rely on working in the trades, the plumbers, the carpenters, the electricians,” Khan said.

Landlords can pass on the full cost of capital repairs by applying to the residential tenancies branch. Under the proposed change, rent increases would be capped. The property management industry said it’ll take twice as long to recover repair costs. As a result, some companies say they have shelved repairs and renovations to rental stock because they expect to lose money. Contractors have laid off staff.

The NDP said the measure can be implemented just by tweaking the regulations and without passing the bill.

“I only have to laugh. My understanding is they haven’t read the bill,” Public Service Delivery Minister Mintu Sandhu said. “I don’t see any controversial thing in this.”

The government launched an online survey to gather Manitobans’ feedback. Sandhu said his review of the submissions shows Manitobans think the changes are a “good step in the right direction.”

The bill would also expand the number of rental units subject to rent control. Another measure would ensure orders issued against tenants would be removed after seven years, unless the decision relates to safety or illegal activity.

Fines against landlords would double, to $10,000, and landlords would need to file more information about themselves, their property managers and rental units to the province.

Rent regulation reviews would be mandatory every five years, and landlords would be required to give at least 24 hours’ written notice before showing occupied rental suites to potential tenants.

The PCs want to give Manitobans a chance to talk about the legislation “before it goes anywhere,” MLA Carrie Hiebert said Thursday.

Meantime, landlords and contractors say they remain in limbo.

Globe Property Management said it has paused $10 million in capital spending. The firm applies for above-guideline rent increases to recoup costs of renovations that have been completed.

“I suspect most landlords are going to continue to be in a holding pattern until the decision has been made,” said Ron Penner, Globe’s chief operating officer.

Con-Restor Technologies has delayed four projects owing to the proposed changes, resulting in roughly a dozen staff being laid off.

“It’s just kind of kicking the can down the road right now,” owner Stephane Phaneuf said. “No one knows what actually is going to happen.”

Yutaka Dirks, a member of the Right to Housing Coalition, said he’ll call on government to implement the proposed changes “as soon as possible.”

“We all want more affordable housing and certainly don’t want an unfair process that … hits tenants so hard, in terms of their ability to stay in their homes,” Dirks said.

Average profits in the industry don’t exceed five per cent, according to the Professional Property Managers Association.

Avrom Charach, the association’s spokesman, said if the legislation is passed, it will push investment out of the province.

“When you make a decision like this, you have to be cognizant … of the hundreds of jobs that are being affected,” he said.

The association represents more than 70 property management companies that manage at least 75,000 apartment units in Manitoba.

Charach said it wasn’t told about the change involving repair costs beforehand.

He has requested a meeting with Sandhu before the fall legislative session.

The Progressive Conservatives have also delayed legislation related to drinking water and apprenticeships.

» Winnipeg Free Press