REMI
New approval criteria coming for NB renovations

New approval criteria coming for NB renovations

Friday, May 26, 2023

New Brunswick’s Residential Tenancy Tribunal will soon assume responsibility for authorizing renovations that require tenants to vacate their dwellings. New approval criteria for landlords are part of a package of recently tabled amendments to the provincial Residential Tenancies Act, currently progressing toward adoption.

In introducing the proposed legislation earlier in May, Jill Green, New Brunswick’s minister responsible for housing, characterized it as an effort to “streamline and strengthen” existing rental housing regulations. This follows steps taken in 2022 to: limit allowable rent increases to once annually; double the time — from 30 to 60 days — available for tenants to appeal rent increases to the Tribunal; and enable the Tribunal to prescribe a phase-in of rent increases in some circumstances.

“We will continue to monitor the effectiveness of our measures and introduce more if required,” Green said.

Under the proposed new rules, landlords will have to apply to the Tribunal, prove that renovations or repairs are necessary, and demonstrate the validity of their construction plans by securing building permits and other required legal sign-offs before they can issue an eviction notice. Displaced tenants will be able to apply for compensation if the proposed construction is not underway within two months of when they’ve vacated the premises.

In cases where tenants are evicted so that owners’ family members can move in or because the space is being converted to a non-residential use, another new rule would stipulate that the new use or tenants must remain in place for three consecutive months. As well, the amendments set out rules for the disposal and/or sale of belongings tenants leave behind when they vacate a dwelling.

The legislation would also clarify that rules related to rent increases apply to fixed-term leases — thus closing an avenue that Green suggests landlords in neighbouring Nova Scotia have used to evade that province’s cap on rent increases. In response to questioning in the New Brunswick legislative assembly, she confirmed that the government is considering imposing a cap on rent increases, but noted that rent escalation has been greater in some provinces with rent controls than in New Brunswick.

Green hinted more initiatives will come with the new housing strategy slated to be revealed in June. That will incorporate guidance from a consultation process, including two summits with stakeholders in the housing sector.

“The Premier and I have both said that the rent cap is still under consideration. Everything related to the housing strategy is still on the table,” she reiterated. “It would not be a genuine consultation if one piece was taken off the table. It is still on the table, as is every other item that was brought forward by stakeholders.”

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