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2.
Poverty Issues Advisory
Committee - Two Year Rent Freeze Comité consultatif sur questions liées à la
pauvreté - |
Committee
Recommendations as amended
1. That Council approve
the following:
Whereas between 1995 and
2001 the average rent for all units in the City of Ottawa has increased by 25%:
and
Whereas little or no
affordable rental housing has been built in the City of Ottawa since the
implementation of the Tenant Protection Act in 1998: and
Whereas there are nearly 300
landlords in the City of Ottawa who have applied for Above Guideline Increases:
and
Whereas there are more than
13,000 applications on the Registry list for social housing, leaving families,
seniors and the disabled facing waiting lists of several years or more: and
Whereas Ottawa has one of
the lowest vacancy rates in the country and tenants have faced some of the
highest rent increases in Ontario: and
Whereas people on social
assistance have either had their income reduced by 22% or frozen while rents
have escalated beyond their ability to pay: and
Whereas the majority of
tenants especially low income earners low income earners are spending up to and
over 50% of their income on rent and consequently are forced to maintain an
inadequate diet that will result in bad health and an increase of cost in
health care. In additions cut education
for their children which will leave the New City of Ottawa and the Province
with uneducated minds and consequently an increase in poverty and
Whereas 83% of the evictions
at the Ontario Rental Housing Tribunal involve families and individuals who are
forced to choose between rent and food: and
Whereas tenants cannot
afford to wait for the restoration of rent control while rents spiral out
of control and beyond their ability to pay leaving our citizens, including
children in shelters or on the street:
Now therefore be it resolved
that the City of Ottawa on behalf of its citizens petition the Provincial
Government to freeze rents for two years until there has been a fair review of
the Tenant Protection Act and the fall out on tenants and
Be it further resolved that
the City of Ottawa continue to lobby the Provincial Government and opposition parties to adopt and endorse a two-year
freeze immediately and
Be it further
resolved that the City of Ottawa acting with concern for its citizens demand
that the Provincial Government give a projected date as to the commencement of
work towards the adoption of a rent control program that will relieve stress
and give hope to the citizens of Ottawa, who are also people of Ontario, and
are burdened by paying rents that are not affordable or for accommodations that
are inappropriate and also put a stop at the landlords misuse of the Ontario
Tribunal and the Tenant Protection Act as a means to increase profits.
2. Whereas
42% of Ottawa’s population (some 327,000 people) live in rental housing;
Whereas
since 1998 Ontario Rental Housing Tribunal rent increase guidelines have
allowed rents to increase by nearly 20%;
Whereas
there are currently 12,910 apartment units in Ottawa (over 10%) before the
Ontario Rental Housing Tribunal for above-guideline rent increases;
Whereas
most tenants are unfamiliar with the Ontario Rental Tribunal procedures, and
lack both resources and expertise to effectively use their rights to contest
above-guideline rent increase applications;
Whereas
the City of Toronto provides assistance to tenants to help them through the
Ontario Rental Housing Tribunal procedures in order to exercise their rights in
dealing with above-guideline rent increase applications;
Therefore
be it resolved that staff examine the City of Toronto tenant assistance model
and appropriate sources of funding to assist Ottawa tenants in exercising their
rights at the Ontario Rental Housing Tribunal, and report back to HRSS
Committee with recommendations by April 2003.
Que le Conseil
municipal approuve ce qui suit :
1. Attendu que,
de 1995 à 2001, les loyers ont augmenté de 25 % en moyenne à Ottawa.
Attendu
que peu ou point de logements locatifs abordables ont été construits à
Ottawa depuis la mise en œuvre de la Loi sur la protection des locataires, en
1998.
Attendu
que près de 300 propriétaires d’Ottawa ont demandé des hausses de loyer
supérieures à celles prévues par les lignes directrices.
Attendu
que la liste des demandeurs de logement social compte plus de 13 000 noms, ce
qui signifie que des familles, des personnes âgées et des personnes handicapées
risquent de demeurer sur la liste d’attente pendant plusieurs années.
Attendu
qu’Ottawa enregistre un des taux d’inoccupation les plus faibles au pays et que
les locataires font face à des hausses de loyer parmi les plus élevées en
Ontario.
Attendu
que les bénéficiaires de l’aide sociale ont vu leur revenu amputé de 22 %
ou bloqué, alors que le rythme d’augmentation des loyers dépasse leur capacité
de payer.
Attendu
que la majorité des locataires, spécialement les personnes à faible revenu,
consacrent plus de 50 % de leur revenu à leur loyer et qu’un nombre de
plus en plus grand doivent compter sur les banques d’alimentation et ont un
régime alimentaire inadéquat, ce qui causera des problèmes de santé et une
augmentation du coût des soins de santé, sans compter le fait que ces personnes
doivent réduire l’éducation de leurs enfants, ce qui privera la Ville d’Ottawa
et l’Ontario de personnes scolarisées et aggravera le phénomène de la pauvreté.
Attendu
que 83 % des évictions décidées par le Tribunal du logement de l’Ontario
impliquent des familles et des particuliers forcés de choisir entre se loger et
se nourrir;
Attendu
que les locataires ne peuvent pas se permettre d’attendre le
rétablissement du contrôle des loyers, alors que ceux-ci échappent à tout
contrôle et dépassent leur capacité de payer, ce qui force certains de nos
concitoyens, y compris des enfants, à vivre dans des refuges ou dans la rue.
Il est
résolu que, au nom de ses citoyens, la Ville d’Ottawa demande au gouvernement
de l’Ontario de geler les loyers pour deux ans, soit jusqu’à ce qu’il y ait eu
un examen équitable de la Loi sur la protection des locataires et de ses effets
sur ces derniers.
Il est en
outre résolu que la Ville d’Ottawa continuera de faire pression sur le
gouvernement provincial et sur les partis d’opposition, afin qu’ils appuient et
adoptent immédiatement un gel pour deux ans.
Il est en
outre résolu que la Ville d’Ottawa, par souci pour ses citoyens, exige que le
gouvernement provincial indique la date projetée de début des travaux devant
mener à l’adoption d’un programme de contrôle des loyers qui soulagera le
stress et donnera espoir aux citoyens d’Ottawa, qui sont aussi des citoyens de
l’Ontario et qui doivent assumer le fardeau de loyers non abordables ou vivre
dans des logements inadéquats, tout en mettant un terme à l’utilisation abusive
que font les propriétaires du Tribunal du logement de l’Ontario et de la Loi
sur la protection des locataires, dans le but d’accroître leurs profits
2. Attendu que 42 pour cent de la population
d’Ottawa (quelque 327 000 personnes) habite un logement à loyer;
Attendu que, depuis 1998, les directives concernant les hausses de loyer
du Tribunal du logement de l’Ontario ont autorisé des hausses de loyer de près
de 20 pour cent ;
Attendu que 12 910 unités de logement à Ottawa (plus de 10 pour
cent ) font actuellement l’objet de causes portées devant le Tribunal du
logement de l’Ontario pour des hausses de loyer liées aux directives
susmentionnées;
Attendu que la plupart des locataires connaissent peu les procédures du
Tribunal du logement de l’Ontario, et manquent à la fois de ressources et
d’expertise pour faire valoir correctement leurs droits de contester
l’application des hausses susmentionnées;
Attendu que la Ville de Toronto offre aux locataires de l’assistance en
ce qui a trait aux procédures du Tribunal du logement de l’Ontario, afin qu’ils
puissent exercer leurs droits face à l’application des hausses susmentionnées;
Par conséquent, il est résolu
que le personnel municipal examine le modèle d’assistance aux locataires de la
Ville de Toronto et les sources de financement appropriées pour aider les
locataires d’Ottawa à exercer leurs droits devant le Tribunal du logement de
l’Ontario, et qu’il fasse part de ses recommandations au Comité de la santé,
des loisirs et des services sociaux d’ici avril 2003.
Documentation
1. Co-Chairs, Poverty Issues Advisory
Committee report dated 5 December 2002 is immediately attached
(ACS2003-CCV-POI-0012)
2. Extract of Draft Minutes, 16 January 2003, follows the report and includes the voting record for all items.
Report to/Rapport au :
and
Council/et au Conseil
Submitted
by: Co-Chairs, Poverty Issues Advisory Committee
Soumis par
: Coprésidents, Comité consultatif sur les
questions liées à la pauvreté
Contact
Person/Personne-ressource : Brenda
Emond,
Advisory Committee
Coordinator, Corporate Services Department
Coordonnatrice de
Comités consultatifs, Services généraux
580-2424 x21801,
Brenda.Emond@ottawa.ca
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Ref No:
ACS2003-CCV-POI-0012 |
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SUBJECT: |
Poverty issues
advisory committee – Two year Rent
Freeze |
|
OBJET: |
comitÉ consultatif sur les questions liÉes À la
pauvretÉ – GEL DES LOYERS POUR DEUX ANS |
REPORT
RECOMMENDATION
That the Health Recreation and Social Services Committee recommend Council approve
the following:
Whereas between 1995 and
2001 the average rent for all units in the City of Ottawa has increased by 25%:
and
Whereas little or no
affordable rental housing has been built in the City of Ottawa since the
implementation of the Tenant Protection Act in 1998: and
Whereas there are nearly
300 landlords in the City of Ottawa who have applied for Above Guideline
Increases: and
Whereas there are more
than 13,000 applications on the Registry list for social housing, leaving
families, seniors and the disabled facing waiting lists of several years or
more: and
Whereas Ottawa has one of
the lowest vacancy rates in the country and tenants have faced some of the
highest rent increases in Ontario: and
Whereas people on social
assistance have either had their income reduced by 22% or frozen while rents
have escalated beyond their ability to pay: and
Whereas the majority of
tenants especially low income earners low income earners are spending up to and
over 50% of their income on rent and consequently are forced to maintain an
inadequate diet that will result in bad health and an increase of cost in
health care. In additions cut education
for their children which will leave the New City of Ottawa and the Province
with uneducated minds and consequently an increase in poverty and
Whereas 83% of the
evictions at the Ontario Rental Housing Tribunal involve families and
individuals who are forced to choose between rent and food: and
Whereas tenants cannot
afford to wait for the restoration of rent control while rents spiral out
of control and beyond their ability to pay leaving our citizens, including
children in shelters or on the street:
Now therefore be it
resolved that the City of Ottawa on behalf of its citizens petition the
Provincial Government to freeze rents for two years until there has been a fair
review of the Tenant Protection Act and the fall out on tenants and
Be it further resolved
that the City of Ottawa continue to lobby the Provincial Government and
opposition parties to adopt and endorse a two-year freeze immediately and
Be it further resolved that
the City of Ottawa acting with concern for its citizens demand that the
Provincial Government give a projected date as to the commencement of work
towards the adoption of a rent control program that will relieve stress and
give hope to the citizens of Ottawa, who are also people of Ontario, and are
burdened by paying rents that are not affordable or for accommodations that are
inappropriate and also put a stop at the landlords misuse of the Ontario
Tribunal and the Tenant Protection Act as a means to increase profits.
Que le Comité de la santé, des loisirs et des
services sociaux recommande au Conseil d’approuver ce qui suit :
Attendu que, de 1995
à 2001, les loyers ont augmenté de 25 % en moyenne à Ottawa.
Attendu que peu ou
point de logements locatifs abordables ont été construits à Ottawa depuis
la mise en œuvre de la Loi sur la protection des locataires, en 1998.
Attendu que près de
300 propriétaires d’Ottawa ont demandé des hausses de loyer supérieures à
celles prévues par les lignes directrices.
Attendu que la liste
des demandeurs de logement social compte plus de 13 000 noms, ce qui signifie
que des familles, des personnes âgées et des personnes handicapées risquent de
demeurer sur la liste d’attente pendant plusieurs années.
Attendu qu’Ottawa
enregistre un des taux d’inoccupation les plus faibles au pays et que les
locataires font face à des hausses de loyer parmi les plus élevées en Ontario.
Attendu que les
bénéficiaires de l’aide sociale ont vu leur revenu amputé de 22 % ou
bloqué, alors que le rythme d’augmentation des loyers dépasse leur capacité de
payer.
Attendu que la
majorité des locataires, spécialement les personnes à faible revenu, consacrent
plus de 50 % de leur revenu à leur loyer et qu’un nombre de plus en plus
grand doivent compter sur les banques d’alimentation et ont un régime
alimentaire inadéquat, ce qui causera des problèmes de santé et une
augmentation du coût des soins de santé, sans compter le fait que ces personnes
doivent réduire l’éducation de leurs enfants, ce qui privera la Ville d’Ottawa
et l’Ontario de personnes scolarisées et aggravera le phénomène de la pauvreté.
Attendu que 83 % des
évictions décidées par le Tribunal du logement de l’Ontario impliquent des
familles et des particuliers forcés de choisir entre se loger et se nourrir;
Attendu que les
locataires ne peuvent pas se permettre d’attendre le rétablissement du
contrôle des loyers, alors que ceux-ci échappent à tout contrôle et dépassent
leur capacité de payer, ce qui force certains de nos concitoyens, y compris des
enfants, à vivre dans des refuges ou dans la rue.
Il est résolu que, au
nom de ses citoyens, la Ville d’Ottawa demande au gouvernement de l’Ontario de
geler les loyers pour deux ans, soit jusqu’à ce qu’il y ait eu un examen
équitable de la Loi sur la protection des locataires et de ses effets sur ces
derniers.
Il est en outre
résolu que la Ville d’Ottawa continuera de faire pression sur le gouvernement
provincial et sur les partis d’opposition, afin qu’ils appuient et adoptent
immédiatement un gel pour deux ans.
Il est en outre
résolu que la Ville d’Ottawa, par souci pour ses citoyens, exige que le
gouvernement provincial indique la date projetée de début des travaux devant
mener à l’adoption d’un programme de contrôle des loyers qui soulagera le
stress et donnera espoir aux citoyens d’Ottawa, qui sont aussi des citoyens de
l’Ontario et qui doivent assumer le fardeau de loyers non abordables ou vivre
dans des logements inadéquats, tout en mettant un terme à l’utilisation abusive
que font les propriétaires du Tribunal du logement de l’Ontario et de la Loi
sur la protection des locataires, dans le but d’accroître leurs profits.
At the 2 December 2002 meeting of the Poverty Issues Advisory Committee the above-noted motion was unanimously carried.
Through PIAC’s motion, several key issues have been identified which impact on rental costs. In particular, the above-guideline rental increases which landlords are requesting and the freezing of shelter allowance components for those on social assistance are real concerns for low-income tenants.
Those accessing vacant units in the private market place are subject to rents dictated by the market place, which we all recognize are higher. As part of the City's Affordable Housing Strategy, staff are reviewing the impacts associated with addressing shelter allowance adequacy.
However, the fundamental issue precipitating rental increases in Ottawa is a supply problem; more demand than available supply and continued lack of new production. To this end, the City has stressed increasing the supply of new affordable housing stock as a prime vehicle for helping to resolve this issue. Over the last three years, over 330 units of affordable housing have been developed to address this need. Through the Action Ottawa program, the City hopes to foster the development of 1,000 affordable housing units over the next four years in conjunction with the federal housing grant program.
People Services recognizes the severity of the affordable housing challenge faced by Ottawa residents and supports the recommendations of PIAC.
Dependant upon the final disposition
of this item, Secretariat Services will forward any resolution to the Minister
of Community and Social Services.
Health,
recreation and Social Services Committee Report
38 Extract
of Draft Minute 38 16 January
2003 |
|
Comité de la santé, des loisirs
et des services sociaux Rapport 38 Extrait de l’ébauche du procès-verbal 38 – le 16
janvier 2003 |
2.
TETWO YEAR RENT
FREEZE
GEL
DES LOYERS POUR DEUX ANS
ACS2003-CCV-POI-0012
The Committee
heard from Judy Halla, a member of the Poverty Issues Advisory Committee,
who outlined PIAC’s Motion calling for the City to petition the Province for a
two-year rent freeze until a review of the Tenant Protection Act is completed
and to lobby the Province to adopt a rent control program.
Mr. Daniel Hull,
a resident of Ottawa, and an Ontario Disability Support Program (ODSP)
recipient, spoke in support of the Motion.
He described his situation, noting he has rent arrears he is unable to
pay and has been given notice of a rent increase for 2003. There is a lack of affordable housing in
Ottawa while the Province is sitting on money provided for this purpose by the
federal government.
Sean Fordyce, a
practitioner with Justice Matters, an organization that helps tenants fight some of
the above-guideline increases (“aggies”), said the agency is swamped with pro
bono work for people with little or no resources who can’t be turned away and
the agency has no resources other than what it can bill its clients. He posited that the current Rent Control Act
is skewed in favour of approving rental increases and badly adjudicated by
individuals who are political appointees.
The speaker gave a number of examples illustrating that the Ontario
Rental Housing Tribunal (the Tribunal) is working directly with landlords and
he indicated he would be pleased to provide additional information to support
this contention. In response to a
question from Councillor A. Cullen, Mr. Fordyce said that his services cost
between $500 and $800 dollars depending on the complexity of the problem.
Bonnie Keef,
President of a tenant’s association, said that many low to
middle income persons and families on assistance, disability and other pensions
who do not live in subsidized units use up to 90% of their pensions to pay
their rents. She said the city needs
more affordable housing and more shelters.
She said that rent increases are spreading through the Province like a
disease that must be stopped.
Colin Chalk,
representing the Ottawa Food Bank, said that the Ontario Association of Food Banks
undertook a survey to determine why there was a 10% increase in food bank
usage. The main point he wanted to
highlight is that rent was the biggest challenge to persons on fixed incomes or
pensions. Every year as costs increase
these individuals get left further and further behind and this is why food bank
usage will continue to increase over the years. Mr. Chalk posited that the proposed rent freeze would maintain
people in the same situation. Another
survey finding was that the average food bank recipient has an average of five
dollars per day to cover all other expenses after he/she has paid their rent.
Bob MacDonald,
Housing Help, said the Tribunal asked Housing Help if it was prepared
to assist tenants who want to appeal above guideline increases. Housing Help responded by saying that in
2002, it received 25,000 requests for assistance from people who are homeless
or at risk of becoming homeless: it does not have the resources to organize
tenants or help them in this manner.
Mr. McDonald alluded to the fact that the City of Toronto has a $300,000
Tenant Defence Fund to help tenants organize around “aggies” and to ensure they
have adequate representation at Tribunal hearings. He made a comparison between the help provided to landlords by
the Tribunal to that provided to tenants and he posited the latter are not
getting much assistance. He added that,
consequently, many tenants are making submissions that are not related to the
application and many applications are dismissed because of this fact. In 1999, more than 40% of tenants were
defined as having an affordability problem and this is not a small segment of
people. Mr. McDonald said tenants need
help. Resources should be allocated to
help them get organized and to help redress the imbalance in the system. He concluded his presentation by saying that
support for the proposed Motion would be consistent with approaches taken by
the City of Ottawa in the past.
Mr. John Dickie,
Chair, Eastern Ontario Landlord Organization, made a submission[1]
on behalf of the owners and managers of more than 20,000 rental units in Ottawa
and Eastern Ontario, including most of the largest landlords and
multi-residential developers and many medium and small landlords in
Ottawa. He presented information on
past rent increase rates, housing availability and current and future vacancy
rates. Mr. Dickie called a rent freeze
a draconian measure that would, in the long term, hurt tenants by discouraging
investment by raising the rate of return required to make properties attractive
thus interfering with the increasing supply of housing. The speaker averred
that the problem is income, not rents and that the proposed remedy is badly
targeted and unfair. He felt the
solution would be for the City to recommend that the Province raise the shelter
allowance portion of social assistance. Mr. Dickie also posited that funding
tenants to oppose “aggies” would be a waste of taxpayer money, since the
Tribunal carefully checks files to determine the correct utility and capital
expenditure calculations of the landlords and the latter are frequently asked
to clarify the figures they provide: frequently many landlords do not receive
as high an increase as they requested.
Chair Munter
pointed out that the City has already requested that the Province increase the
shelter allowance portion for benefit recipients. He noted that the City also has a subsidy to top-up income for
people who are not on assistance so they can afford to pay their rent but, at
the moment, three hundred and fifty of these subsidies have not been taken
up. Chair Munter asked why the City
would expand a program that is not working to full capacity.
Ms. G. Horn,
representing the Ottawa Regional Landlords Association, said she had
never heard of this program and she assured the Committee she could find the
required number of “takers” if she had the information. The Chair asked staff from the Housing
Branch to provide this information to the speaker.
Replying to a
question from Councillor R. Chiarelli, Mr. Dickie indicated that his
association focuses its lobbying efforts at the Province. He said there are concerns when the public
voice of the Ottawa community recommends something to the Province that
interest groups believe would not be good policy. Ms. Horn said her association got the impression that the
Province wants to pass on more responsibility for these issues to
municipalities and if this happens, local solutions will need to be found.
Councillor
Chiarelli asked for a comment on what impact the proposed rent freeze would
have on an application to build a modest income, multi-residential nine-storey
rental building in the Centrepointe area.
Mr. Dickie posited that builders and developers might think they are
going back into rent controls that will affect their bottom line and lending
institutions would be seriously impacted: the people the Committee is trying to
help would also be affected.
Councillor A.
Cullen pointed out that, from 1993 to 2002, rents increased by 29% whereas the
current guidelines allow for a 20% increase: this shows that, from a tenant’s
perspective, there are problems with the current system. The Councillor also referred to the City’s
Annual Development Report for 2001, which shows that the rental stock has
decreased and he asked whether the speaker would comment on these two
points. Mr. Dickie brought forward a
third point, namely that, according to Canada Mortgage and Housing, the number
of tenants is decreasing because many are taking advantage of favourable
mortgage rates and purchasing homes.
Councillor Cullen indicated that, for some of the low-income tenants he
represents, this is not a possibility
Councillor P.
McNeely alluded to the Annual Housing Starts referred to in the presentation,
and he asked what impact the proposed freeze could have on multiple housing
starts. Mr. Dickie said he thought
there would be no impact on the 2002 numbers but the 2004 and 2005 starts might
be negatively impacted should the Province approve a rent freeze.
Councillor E.
Arnold asked whether Mr. Dickie could estimate the cost of a province-wide
shelter allowance program. She
clarified that she was looking for information on what it would cost to make
sure that the affordability goals stated in public policy, i.e., to that nobody
pays more than 30% of their income in rent, continue to be met year after year.
Mr. Dickie advanced the view it would cost one-fifth as much to do this
through a shelter allowance as opposed to doing it through building new
units. He said he did not know the cost
but undertook to report back with a reasonably up-to-date figure.
Sherrie Tingley,
Centre for Equality Rights in Accommodation (CERA), Manager of Eviction
Prevention Program, said the quickest way for landlords to increase rents on
units is to evict existing tenants. Given
this fact, she was shocked and dismayed when the Housing Branch did not see
CERA’s Eviction Prevention Early Intervention Program as a priority in the
homelessness prevention system under provincial funding. Ms. Tingley said she is bracing for an increase
in evictions in June, July and August, when landlords take advantage of the
housing crunch created by the “double cohort” effect. For these reasons, she would like to see the Eviction Prevention
Program brought back into the provincial funding and she presented three
recommendations for the Committee’s consideration. Ms. Tingley concluded by stating that almost all the
applications for rental increases are lawful under the law; the adjudicators
are operating fairly and under the law; the law is the problem and it has to be
changed.
Maura Volante,
Alliance to End Homelessness, said she is in daily contact with people
experiencing homelessness and the risk of homelessness and frustration is
mounting. People are stuck in shelters,
trying to find somewhere affordable to live, paying more and more for rent and
suffering enormous stress. The speaker
highlighted the situation of families, the fastest growing segment of the
homeless population. She said the
Committee is aware of the long-term cost implications of the lack of affordable
housing. She stressed the need for a
national housing strategy that works, and investment by all levels of
governments in housing, adequate shelter allowances for people on ODSP and Ontario
Works. Ms. Volante expressed her support
for the Motion calling for a two year rent freeze.
Chrystal
Desilets, Youth Advisory Council for the Youth Services Bureau, said the
proposed rent freeze would really benefit low-income earners and people
struggling with financial obstacles.
She spoke about the high rent increases of the past few years, noting
these would be slightly more acceptable if the money went to improve rental
units, however this is not the case.
Ms. Desilets averred that people should not have to choose between
paying their rent or feeding their families.
She said youth are also struggling to find affordable housing, and the
available supports are not as well publicized as they should be.
Mr. Al Sullivan,
a resident of Ottawa, said he did not believe a rent freeze was the
solution. He pointed out that some
rents have dropped and some landlords are offering free rent periods to attract
tenants. He posited that the freeze
would protect the wrong kind of tenant, citing himself as example and stating
that he doesn’t require help. Another
consequence is that it might deter people from buying homes. Mr. Sullivan indicated that small property
owners and managers of small buildings are not making money.
Committee
Discussion
Speaking to the
PIAC Motion, Councillor A. Cullen said it calls for a “time out” to begin to
address Ottawa’s six-year crisis in affordable housing. Another issue to be addressed is the
establishment of a tenant assistance fund, to help those tenants who come before
the Tribunal: the Councillor put forward a Motion asking for staff to examine
the Toronto program and report back to Committee in April. There are federal funds to support the
prevention of evictions and staff should ascertain whether the City could access
the second round of this funding to create a level playing field for
tenants. Councillor Cullen averred that
many of the 327,000 residents of Ottawa who pay rent are struggling and the
City cannot stand idly by.
Councillor E.
Arnold expressed the belief that a tenant assistance fund is absolutely
required and CERA’s point about the law needing to be changed is correct. The current Tenant Protection Act has
instituted vacancy de-control and other measures that have worked in the
interest of landlords and to the detriment of tenants and this needs to be
turned around. The Councillor said she
did not think the PIAC Motion would result in a rent freeze, but it is one
tactic: it is also a way to draw attention to the issue as the Province moves
towards the next election. The Motion
flags the fact that in Ottawa, as in other cities across the Province, the
rents are out of control and unreachable and Province needs to make it a
priority. Councillor Arnold looked
forward to receiving the information about how much it would cost the
provincial government to implement a program that would bring every household
to a maximum of 30% expenditure of their income for housing. She posited the annual cost of such a
program would go way beyond the investment by the Province of a $2000 per door
P.S.T. rebate in the federal-provincial program. Councillor Arnold noted that, in the absence of aggressively
building long lasting, affordable housing, the PIAC Motion asks what the
Province is prepared to do to ensure people don’t have to chose between paying
their rent and buying food for their families.
Councillor D.
Deans agreed that the issue needs to be flagged but she did not believe this
was the correct way to address it. She
said she agreed with Mr, Dickie when he said the burden was being shifted from
the tenant to the landlord and some of them might not be able to absorb it
either. The Councillor felt the burden
should be shifted to the Province, because it has not been dealing with the
issue of affordable housing. She
pointed out that the Province absorbs rent increases adjudged by the Tribunal
as being unjustified, because people in the communities can no longer afford
runaway rents. Councillor Deans called
housing a basic human need and it is the responsibility of all levels of
government to ensure everyone has a home.
Councillor C.
Doucet pointed out that de-regulating the rental market has not worked and he
asked whether society would have to wait until there is no more affordable
housing before acting. He noted that
while the PIAC Motion is not perfect, and will cause some inequities, it is a
wonderful lever to get the Province’s attention. The Councillor added that forcing the Province to go back to the
old model would cause hardships for landlords, and if the landlords start to
scream, the Province will pay attention.
Councillor P.
McNeely said he believed there should be a level playing field for tenants and
that the number of multi-residential units being built should be
maximized. Calling for a rent freeze
will put the burden on landlords and this should not be done. The Councillor felt that rent supplements
were a more honest and fair way of reaching the goal. He stressed the importance of keeping construction going, because
the more vacancies there are, the more rent levels will be kept manageable.
Councillor R.
Chiarelli said he could not support the PIAC Motion. He felt that City Council should only be telling the Province
what to do in an area that is its responsibility firstly if it is an exception
and secondly if its intervention will have any persuasive value at all. In the area of housing, virtually all the
policy making, infrastructure and resources are vested at the provincial level
and it is unlikely that any intervention will be persuasive. Councillor Chiarelli said it has been well
over ten years that the former City of Nepean, and now the new City, have been
trying to get a builder to put something in and he did not want anything to
jeopardize proposed new housing geared towards renters of modest means in the
Centrepointe community, as this Motion would do.
The Committee
Chair, A. Munter, thanked everybody for participating in the debate. He said the presentations and the discussion
would send an important message to the development industry, and that is that
you reap what you sow. The industry was
successful in getting rid of rent control, of restricting development charges,
getting lower property taxation in terms of the education mil rate. Society was told this would generate a lot
of affordable housing development but this has not been the case. Chair Munter said there is less rental
housing and certainly less affordable housing.
While the rent freeze is not a solution, it addresses the fact that
public policy over the last eight years has dramatically and catastrophically
failed and that something else needs to be done.
The Committee
then considered the following Motions:
Moved by
A. Cullen
Whereas
42% of Ottawa’s population (some 327,000 people) live in rental housing;
Whereas
since 1998 Ontario Rental Housing Tribunal rent increase guidelines have
allowed rents to increase by nearly 20%;
Whereas
there are currently 12,910 apartment units in Ottawa (over 10%) before the
Ontario Rental Housing Tribunal for above-guideline rent increases;
Whereas
most tenants are unfamiliar with the Ontario Rental Tribunal procedures, and
lack both resources and expertise to effectively use their rights to contest
above-guideline rent increase applications;
Whereas
the City of Toronto provides assistance to tenants to help them through the
Ontario Rental Housing Tribunal procedures in order to exercise their rights in
dealing with above-guideline rent increase applications;
Therefore
be it resolved that staff examine the City of Toronto tenant assistance model
and appropriate sources of funding to assist Ottawa tenants in exercising their
rights at the Ontario Rental Housing Tribunal, and report back to HRSS
Committee with recommendations by April 2003.
CARRIED
(S. Little dissented)
Moved by
C. Doucet
That staff review the need for
continued funding for the Centre for Equality Rights in Accommodation’s
existing program.
CARRIED
YEAS
(5): A. Cullen, D. Deans, E. Arnold, C. Doucet, A. Munter
NAYS
(3): R. Chiarelli, S. Little, P. McNeely
Moved by
A. Cullen
That
the Health Recreation and Social Services Committee recommend Council approve
the following:
Whereas
between 1995 and 2001 the average rent for all units in the City of Ottawa has
increased by 25%: and
Whereas
little or no affordable rental housing has been built in the City of
Ottawa since the implementation of the Tenant Protection Act in 1998: and
Whereas
there are nearly 300 landlords in the City of Ottawa who have applied for Above
Guideline Increases: and
Whereas
there are more than 13,000 applications on the Registry list for social
housing, leaving families, seniors and the disabled facing waiting lists of
several years or more: and
Whereas
Ottawa has one of the lowest vacancy rates in the country and tenants have
faced some of the highest rent increases in Ontario: and
Whereas
people on social assistance have either had their income reduced by 22% or
frozen while rents have escalated beyond their ability to pay: and
Whereas
the majority of tenants especially low income earners low income earners are
spending up to and over 50% of their income on rent and consequently are forced
to maintain an inadequate diet that will result in bad health and an increase
of cost in health care. In additions
cut education for their children which will leave the New City of Ottawa and
the Province with uneducated minds and consequently an increase in poverty and
Whereas
83% of the evictions at the Ontario Rental Housing Tribunal involve families
and individuals who are forced to choose between rent and food: and
Whereas
tenants cannot afford to wait for the restoration of rent control while
rents spiral out of control and beyond their ability to pay leaving our
citizens, including children in shelters or on the street:
Now
therefore be it resolved that the City of Ottawa on behalf of its citizens
petition the Provincial Government to freeze rents for two years until there
has been a fair review of the Tenant Protection Act and the fall out on tenants
and
Be
it further resolved that the City of Ottawa continue to lobby the Provincial
Government and opposition parties to adopt and endorse a two-year freeze
immediately and
Be
it further resolved that the City of Ottawa acting with concern for its
citizens demand that the Provincial Government give a projected date as to the commencement
of work towards the adoption of a rent control program that will relieve stress
and give hope to the citizens of Ottawa, who are also people of Ontario, and
are burdened by paying rents that are not affordable or for accommodations that
are inappropriate and also put a stop at the landlords misuse of the Ontario
Tribunal and the Tenant Protection Act as a means to increase profits.
CARRIED, as amended