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Task force backs rent controls
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) p2 J0 n* O& K/ D8 r. I0 g+ j) VRules would be similar to B.C.'s) ~2 j( k1 o# R" Z+ |/ \
Kelly Cryderman, Calgary Herald
* l$ ]( m3 w* Q, G- YPublished: Tuesday, April 17, 2007: I! h. m ^1 x' Q
A deluge of steep rent increases and condominium conversions has prompted a Stelmach government committee charged with finding solutions to the housing crunch to call for a two-year period of rent controls, among other solutions, say government sources.
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- X( D: u( b# c4 {+ |4 TThis morning, Conservative government MLAs will review and debate the suggestions from the 16-member Alberta Affordable Housing Task Force, which was initiated by Premier Ed Stelmach earlier this year and toured the province in February and March.6 f; O5 o/ P: o! i7 \+ \
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If the recommendations are adopted, rent increases would temporarily be limited by mandatory "rent stability guidelines." This would cap rent hikes to inflation levels, plus two per cent -- similar to the rules in B.C.4 U- Y- J8 G1 P
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( y( }' Q0 h! r/ s/ I8 \If landlords have extraordinary costs such as renovations or high utility bills during those two years, they would have to apply for permission to a yet-to-be determined government body for a greater rent increase. New construction would be exempt from these rules.$ Y4 n7 y1 _6 Z: q9 y# T% \$ Q/ A2 N- s
$ c5 T1 `3 P) e0 Y: G( J1 L"The decision to recommend this protective measure was a very difficult one for the task force," the report says. "There was clear concern among many members about the impact of rent guidelines on overall new rent supply and on rental rates once guidelines are removed in two years./ x- o! Z# `0 P* |3 l: O2 H
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"At the same time, the task force was confronted everywhere with the plight of renters who are losing their homes right now. These people have few other affordable housing options in today's overheated market. The task force understood that keeping people in their current homes wherever possible is essential while dealing with the urgent situation Alberta is facing."
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& B4 |' ], j! x* n& I9 KWhile rent increases are now allowed twice per year, the task force recommends they be permitted only once annually.
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Sources told the Herald the report also includes a recommendation to force landlords to give tenants one-year's eviction notice, instead of the current six months, if they are going to convert an apartment building into condominiums -- a trend that has swept through the province's largest cities.8 M+ T8 u9 l# R( q) U0 A9 K
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No rent increases will be allowed during that period.
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Other recommendations are focused on homelessness -- an increasingly visible problem in Calgary -- including one calling for increased funding to temporary emergency shelters.& L I) w* U: n# W
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The recommendations are likely to win praise from housing activists and opposition parties, while frustrating landlords -- who have spoken out against rent controls in recent months, saying they distort the market, and discourage development and maintenance.' K2 O( X- I0 @- B" J
2 F8 M7 `$ ^! }% qThe rent controls will be a tough pill to swallow for MLAs with a strong belief in the free market, but is increasingly seen as a possible solution in light of the past year's changes to the market. For instance, Calgary-East MLA Moe Amery called for rent controls last week.3 H" S9 [( k" R6 d; k
$ L. @ G5 {0 U( G5 P/ o: O) u( xThe task force heard a number of worrying stories, including one from Calgarian Catherine Mitchell when the task force came to the city Feb. 28. She and her husband have lived in their home -- a rented two-bedroom apartment -- for 35 years, but live in fear that eviction is just one condo application or rent hike away. "It's the stuff nightmares are made of," the 75-year-old retired teacher said.
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The report went to Municipal Affairs and Housing Minister Ray Danyluk in March, and has been working its way through the government's private review process since then.
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7 X3 S" r0 Q! {! a1 p& @& b t, mThe fact it hasn't been released a month after being given to the minister has been a major bone of contention for opposition members.) k' d' g, }8 k. b" w; ?: d
# n a h9 S b( T4 C6 R; Y8 ^) gkcryderman@theherald.canwest.com |
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