Ontario’s housing minister has vowed to deliver "substantive rent control reform" on the heels of a private member’s bill aimed at extending rent control to rental units built after 1991.
Chris Ballard announced members of his staff have undertaken a review of the Residential Tenancies Act are currently coming up with a plan to deal with rent hikes, in a statement released on Thursday morning.
This decision comes after NDP MPP Peter Tabuns announced he would be introducing a private member’s bill calling for an end to a 20-year-old exemption that eliminates rent control for rental units built after 1991.
"Our bill closes the loophole," Tabuns said at Queen’s Park on Thursday.
"It extends rent hike protection to all Ontarians by eliminating the 1991 loophole. It gives everyone the basic guarantee that rent increases will have to follow the annual guideline, which this year is about 1.5 per cent."
Tabuns said the bill is the “first step” in addressing housing affordability in Ontario.
"The NDP believes that much more can be done and needs to be done to make housing affordable in Ontario. And further measures on affordable homes are a priority for us," he said.
Recent spotlight has been given to the issue by tenants who didn’t know they weren’t covered by rent control and have spoken out.
Many have received “20, 30, 50 per cent” rent increases.
"For a lot of young people who are working hard, paying their rent on time, when they get an increase like that, suddenly they’re having to look at uprooting their home and moving out because they can’t afford it," he told CP24.
Tabuns went on to slam the Liberal government for not tackling the problem earlier.
"They’ve had 14 years. We’ve pressed them on this before. In 2013, we introduced an earlier version of this act to change the law," he added.
"I think the Liberals and Kathleen Wynne are looking out themselves and not looking out for people generally, who actually need some protection, some sort of system that will protect them from a doubling of their rent."
And he’s not the only one criticizing the province.
The Association of Community Organizations for Reform Now Canada is taking the issue into their own hands.
They say the 1991 loophole hurts Ontario’s “most vulnerable citizens.”
"Loopholes in the rent control rules are being exploited by landlords and forcing hard working Torontonians from their homes," ACORN said in a news release.
They plan to hold a rally outside MPP Mitzie Hunter’s office in Scarborough on March 21.
Ballard agrees something needs to be done.
In the minister’s written statement, he called the rise in housing costs “unacceptable.”
"Families on tight budgets are feeling the pinch of a rental market that is struggling," Ballard said in the press release.
"Our government is serious about reducing the pressure of housing costs felt by Ontarians, as well as providing more affordable options for people to choose from."
Tabuns has assured critics that his proposal won’t create a new problem by curbing new rental units from being built.
"People will build those buildings," he stated. "They’ll either sell the units, or rent them out at the market rate. The thing is they won’t make a killing later if the market gets super hot.
"That’s what’s happening now. The market is super hot and landlords are saying, 'man, I can make a lot more money here and they try to do that.'"
Ballard said more details about the new plan will be released in "the days ahead."
Tabuns will be introducing the private member’s bill on Monday.
If you’ve been impacted by dramatic rent increases, tell us your story. Send an email to breakingnews@cp24.com.
