N.S. government's housing solutions come under fire from Halifax mayor, landlords

Landlords and Halifax Regional Municipality politicians each brought their concerns to Province House Monday night, drawing attention to problems with two pieces of legislation the Houston government has proposed to try to solve Nova Scotia's housing crisis.

The property owners all said the extension of the two per cent cap on rents would cause more harm than good, possibly forcing some apartment owners out of the business.

Mike Burgess, owner of 77 units in north-end Dartmouth, told committee members by capping rents at two per cent, he and other landlords wouldn't have enough money to cover increases in their expenses.

"I was one of the lucky ones that only got a 40 per cent increase in my insurance," Burgess told the committee. "So to put that in perspective, if every one of my tenants receive a two percent rent increase that almost covers my insurance cost.

"I haven't addressed taxes, heating expenses going up, water, power, all of the expenses that we all have for our own homes but multiply this by 77."

Amanda Knight, owner of five properties in Pictou and Colchester counties, said the cap would make it almost impossible for her to continue to buy, renovate and put back on the market apartments that are in a sad state of repair.

"I personally like to purchase run-down properties that need TLC," said Knight. "I can put my sweat equity into it. I can paint. I can clean. I can do these things and bring them back up to spec.

"With the two per cent rent cap, I have nothing left to put back into these homes."

Knight and Burgess both complained about politicians and others, including reporters, painting all landlords the same, suggesting they are quick to jack up rents and pocket the profits.

"With the current divisive environment, anger and frustration, I have, for the first time, actually felt unsafe working on my properties, let alone showing them to prospective tenants," said Knight.

Both would like to see the cap on rent increased but neither could say what percentage would be fair to tenants and landlords.

Premier sympathetic 

Premier Tim Houston told reporters Tuesday he was sympathetic to the plight of landlords, particularly smaller landlords, but he has no plans to increase the cap.

He agreed that rent caps would be detrimental to property owners if left in place for an extended period, but he does not believe two years is a long time.

"We have a crisis in this province, and when you're in a crisis, you have to take strong, decisive steps and that's what we've had to do here," Houston told reporters at Province House.

Criticism of Bill 63

Halifax Mayor Mike Savage and Dartmouth Coun. Sam Austin each took aim at another piece of PC government legislation, Bill 63. The proposed law creates a five-member panel on housing which would have sweeping powers to supercede existing municipal plans and strategies in specially designated zones.

Both municipal politicians called on the province to use existing municipal plans as a starting point for any discussion on new housing projects or fast-tracking existing ones.

Each also called on the work of the panel to be open to the public or allow public participation.

"I think any decisions that are made by government need to be made in public," Savage told CBC News after his testimony. "Decisions of this type that affect people, particularly in their community … you know, people have a right to be housed. They also have a right or expectation to be heard."

Austin worried about secrecy, too, and put it directly to the committee.

"It takes that public process and replaces it with a secret one," Austin told the all-party committee. "Instead of decisions on the future of our communities happening in public, they will instead happen behind closed doors.

"Unelected professionals and the minister will basically decide what's best."

No need for changes

Houston said he does not see the need to amend Bill 63 to accommodate concerns about the panel conducting its work behind closed doors.

"The decisions of that panel will absolutely be public," he said Tuesday. "The deliberations of that panel, I'm OK with them being made by the committee."

Houston also brushed aside the suggestion the panel isn't needed and that the city could resolve planning and zoning issues on its own.

"Pretty much every time I pick up the paper, I hear somebody saying housing is a provincial responsibility, the province should be doing this, the province should be doing that," said Houston.

"Well, the province is stepping up and most people that I'm talking to are very thankful that they are."