May 24, 2011

Manitoba to change rules on rent increases for apartment construction projects, condo conversions

The province of Manitoba last week announced a “tenant protection package” that would reduce the rent increases that landlords could impose to pay for building upgrades.

The package also includes tenure rights, which would protect tenants who are evicted for renovations in cases where units are re-rented after conversion to condominiums.

The New Democratic Party provincial government said with these changes, it aims to “better protect tenants” from what it called “excessive rent increases” and from what it characterized as “uncontrolled condo conversions.”

The policy on rent increases will change with the tenant protection package. When landlords apply for a rent increase above the guideline, they would recover the cost of some major repairs over eight years instead of six, thereby reducing the allowable monthly rent increase. Before landlords could get a rent exemption under the whole-building renovation program, they would be required to upgrade two major components, instead of one. They would also have to spend 50 per cent more on a per-unit basis.

The changes were announced by Gord Mackintosh, the minister of family services and consumer affairs, and Kerri Irvin-Ross, the minister of housing and community development.

The protection package also places additional restrictions on conversions of apartments to condominiums. The notice required would increase from three to six months, and no condo conversions would be allowed for four years after a whole-building rehabilitation exemption is approved.

DCN DIGITAL MEDIA

Print | Comment