Manitoba landlords may have to compensate tenants displaced by unsafe living conditions

The Manitoba government wants landlords to support tenants who are forced to vacate their buildings because of safety reasons.

Public Service Delivery Minister Mintu Sandhu introduced a bill last Thursday that would require landlords to compensate tenants if they're ordered to leave their residential complex because it doesn't comply with the province's health, building or maintenance and occupancy standards.

The proposed legislation comes almost a year after the Birchwood Terrace apartment building in Winnipeg's St. James neighbourhood had to be evacuated after inspectors detected a deterioration of the building's steel columns.

Roughly 250 tenants were forced out of their apartments, with the city only giving them the green light to return in mid-December — more than half a year after the evacuation.

"Lots of people were vacated from the building," Sandhu said Tuesday. "We feel for those people and we want to make sure there's a way and mechanism that we can protect those people."

The province stepped in to support and help relocate displaced tenants. Premier Wab Kinew said back in June he believed the owner — Ladco Company — should pay for some of the costs.

The government had spent about $216,000 to support 136 residents as of Sept. 30.

'This is their obligation': minister

Sandhu said his department has been in contact with Ladco and that the Birchwood Terrace incident influenced the government's situation, but that the legislation will protect all renters by spelling out requirements for landlords.

"We are … also making clear to everyone out here in Manitoba that you know what? This is their obligation," the minister said.

Landlords "should be keeping their buildings up to date, up to code," Sandhu said, adding the province shouldn't have to cover expenses for displaced tenants.

Under the legislation, landlords would have to refund advance rent payments and other charges for the period the evacuation order is in effect within 72 hours, as well as covering reasonable moving expenses and any additional compensation set out in the regulations.

The landlords may also be required to pay an administrative penalty.

Owners would also be barred from applying to hike the rent over the maximum annual increase — which is currently 1.7 per cent — for two years after an evacuation order is lifted.

Landlords who have taken reasonable steps to prevent the circumstances that lead to an evacuation, or who were impacted by situations beyond their control such as natural disasters, would be exempted under the legislation.

The onus will be on landlords to prove the exemption should apply.