Many N.B. tenants excluded from phased-in approach to large rent increases
CBC
A Fredericton woman has discovered another "loophole" in legislation that was supposed to protect tenants like her who are facing rent increases above inflation.
Meaghan Macquarrie received a notice from her landlord last month, informing her that rent for her two-bedroom apartment would be going up in September to $1,700 from $1,550 — an increase of almost 10 per cent.
Since that amount is above inflation, Macquarrie asked the landlord to phase the increase in over two years, according to the new rules introduced by the New Brunswick government in December to replace its expiring one-year experiment with a rent cap.
That's when Macquarrie's landlord told her the provision does not apply to fixed-term leases like hers.
A government spokesperson confirms this is the case.
Jennifer Vienneau of Service New Brunswick, which includes much of the housing portfolio and the Residential Tenancies Tribunal, said legislative "amendments are expected to be brought forward soon to address this."
With the current sitting of the legislature, that could mean a bill between Tuesday and June 16, she said.
Housing Minister Jill Green was not available for an interview but has repeatedly said the new rules to protect tenants were never meant to have exceptions.
She told CBC News recently that the Residential Tenancies Tribunal has been interpreting the new rules more flexibly than she intended.
Although the rules say the tribunal "may" spread large increases over two or three year, Green said the decision to phase in large increases was never meant to be discretionary in any way. She said if increases are above inflation, which is currently 7.3 per cent, "they will be" spread over two or three years.
Macquarrie heard Green's explanation on Information Morning Fredericton last week.
"She was very adamant, defensive, and I would say aggressive, in her interview that there were no exceptions to this rule," Macquarrie said.
Excluding fixed-term leases, "seems like a bit of a loophole because Minister Green made no mention of fixed-term leases in her interview," said Macquarrie.
Since there are only two types of leases — a fixed-term lease with an end date and an open-ended one without a termination date — Macquarrie believes there are a lot of people in the same position as she is.