In Crisis

There is definitely a housing crisis in Newfoundland and Labrador that stretches from St. John's to Labrador West.

That is the situation, according to NDP Leader Lorraine Michael, who is calling on Government to take some serious action soon because it will only get worse, she says.

"The way rents are going up astronomically is very concerning," said the NDP leader in a telephone interview with the Aurora last Thursday. "We are seeing it here in St. John's, but it's not just on the Northeastern Avalon. We know that the same thing is happening in Labrador West. People having their monthly rent going up by $200, $300 or $400 and we've been told there's a problem in the Corner Brook area also. It is a provincial problem and there is a way to deal with this."

Legislate rent controls

Michaels insists the province must implement rent controls before the crisis escalates any further. Other provinces have that type of control and this province needs to follow the same practice.

The only rule the province currently has, she says, is a landlord may only legally raise the rent once each year.

"That is fine but, the amount a landlord can raise that rent is unlimited," she said. "A cap needs to be put on it."

Other provinces that have rent control laws, she explained, uses the consumer price index (or cost of living increases) to determine what is acceptable in rental rates.

"That's the way to go about it," said Michael. "We need a cap, but we need a cap that is also fair to the landlord and I think this cost of living amount is very reasonable."

Tenant vulnerable

In Newfoundland and Labrador, the current setup leaves tenants vulnerable, according to the NDP leader, who suggests ways of offering more security.

"The other thing needed-and provinces that have rent controls have this-is protection for the tenant when a landlord (for example) wants to upgrade a piece of property and the tenant is invited to leave while the upgrade is being done. The tenant who was in there should be given the first right to move back in. The other [policy] you will find in legislation that exists across the country in provinces that have this [control], the landlord just can't arbitrarily come up with the new rate because of the work that was done. They have to make and application for what the new rent is going to be if it is beyond the cap that exists."

Vacancy rates at all time low

The low vacancy rate (one per cent) the province is currently experiencing is what, she said, is prompting the rent hikes. The NDP leader said she fears this problem is going to lead to a significant amount homelessness and figures the ones hardest hit are younger families and seniors.

"We can't continue to allow markets to control the rental rates," she insisted. "Government doesn't want to admit there is a crisis, but there is a crisis. The vacancy rate in St. John's is 0.9 per cent and, in Labrador it's even less, very close to zero."

Small relief only

Michael did say she was pleased to see in the new provincial budget the new housing on campuses in St. John's and Corner Brook, as it will allow more out-of-town students to avail of housing.

"It's a good thing but it's still very small when you consider the shortages," she said. "Just here in the St. John's area there are over 600 names on the [waiting] list for NL Housing. That is scary when you think of it. Last year the government announced a two-year plan-and this is the second year of that plan- to build 230 units under the affordable housing program in the province. That does nothing in meeting the need, and that's not a new announcement."

Housing division

Michael pointed out this province does not have a body in government that looks into housing issues and polices. She wants government to install one as soon as possible in response to what's happening.

"NL Housing doesn't deal with policy, NL Housing is a body to build units," she explained. "If we had a housing division within government, what would also happen is you could have the Province communicating with municipalities and having the two working together in regard to meeting needs. Now here in St. John's some of that is happening and that is because, in the past, St. John's did get into social housing and did have units that were built by the city. And now they are hiring (again) a director of affordable housing for the city and they have a committee set up that involves the city, the community, as well as NL Housing or the province. I think that type of system should be throughout the province. That's where we need a housing division."

Michael says she realizes the Province has allotted more money for community supportive living and the special program for affordable housing, but that too has its challenges.

"The groups that are behind these projects are usually not-for-profit and the onus shouldn't be on the backs of not-for-profit groups," she said. "They have not got the resources. That is why I think we need to have a housing policy that would include municipalities with the Province. Definitely an assessment needs to be done because the way this government is dealing with this housing crisis, or they say they are dealing with it, is at a deadly snail's pace."