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New Brunswick

N.B. tenants, landlords wait weeks for decisions as record number of disputes clog system

A growing backlogof cases at New Brunswick's Residential Tenancies Tribunal has left people who are challenging their 2023 rent increases mired in lengthy waits for a decision on what they will have to pay for housing this year.

Officials missing their own deadlines to rule on disputed rent increases

A woman stands in front of a New Brunswick flag, left, and a Canadian flag.
Housing Minister Jill Green, who oversees the Residential Tenancies Tribunal, told the legislature the department's own internal 'standard of service' requires landlords and tenants receive rulings on rent disputes within 45 days. (Shane Fowler/CBC News)

A growing backlogof cases at New Brunswick's Residential Tenancies Tribunal has left people who are challenging their 2023 rent increases mired in lengthy waits for decisionson what they will have to pay for housing this year.

That is despite pledges by government as recently as this month that reviews and judgments on rent increases will come quickly.

"We have a standard of service that we set for ourselves that our team needs to meet," Housing Minister Jill Green said in the legislature last week.

"For disputedclaims where the landlord and tenant don't agree and rent increases would be one of themour standard case is to make a decision in 45 days."

A grey apartment complex with wooden balconies and parking lot filled with cars on the left.
Tenants in this Quispamsis apartment complex received notices of $200 rent increase notices in March to take effect later this year. Janice Percy moved out but says neighbours who called the Residential Tenancies Tribunal to challenge the increase were told to expect a long wait for a review. (Graham Thompson/CBC)

But figures the province supplied to CBC News show that the 45-day standard is regularly being exceeded by tribunalofficers as they copewith stacks of applications from tenants unhappy with their rent hikes.

As of March 31, data compiled by the tribunal shows it had 94 rent increase challenges under investigation, including 18 that had been filed back in January. Those cases would have been opened between 59 and 89 days earlier.

A further 28 cases started in February were also still being worked on,many close to or already past the 45-day deadline.

Green is the minister responsible for the Residential Tenancies Tribunal, which decides on the reasonableness of rent increases.

She was being questioned about workloads facing tribunal officers since the province announced the end of a cap on rent increases in the province for 2023.

Green said everything is beingdone to keep rulings on a schedule.

"We will continue to work with [tribunal officers] to ensure they can continue to make decisions in a timely manner so there is no impact on tenants or landlords," she said

Three people wearing red holding signs and flags
Affordable housing has been an especially controversial issue in New Brunswick for the last three years. Glen Harris, Nichola Taylor and Lore Ingersoll of the community group ACORN staged a protest in Fredericton on Wednesday against escalating rents. (Pat Richard/CBC)
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But that's not been everyone's experience.

Janice Percyreceived notice in March of a $200-per-month increasefrom her Quispamsis landlord and decided to move rather than fight it.Neighbours who did approach the tribunal for help with their increases told her they had been warned about long delays, she said.

"Apparently, they have so many appeals on file that it's going to be months before they ever hear back," Percy said.

In late November, Green announced that a rent cap limiting the increases that landlords could charge in 2022 to 3.8 per cent would not continue in 2023.

Instead, landlords could ask for any increase to bring an apartment up to current market rents.

That triggered a wave of rent increase notices from landlords to tenants and a record number of appeals to the Tribunal by tenants for help.

In January, February and March of thisyear, 189 applications arrived at the Tribunal from renters looking for assistance with a rent increase notice. It's more than the entire number of applications receivedin 2021 and a 43 per cent increase over the same three months in 2022.

That has been a problem for a body that struggled last year to keep up with its workload, even when it was significantly lighter.

A man smiling in front of a New Brunswick flag with two Canadian flags on either side of it
Finance Minister Ernie Steeves included a 13 per cent increase for Residential Tenancies Tribunal operations in his latest budget, although requests for the tribunal to resolve rent disputes between landlords and tenants are up 43 per cent so far in 2023. (Jacques Poitras/CBC)

Green told the legislature last week that the tribunal took an average of 47 days to deal with rent-increase-type cases that came forward in 2022, more than its own target for the year.

Angus Fletcher, with the New Brunswick Coalition for Tenants Rights, said tenants dealing with notices of large rent increases need as much time as possible to make housing arrangements for themselves given the scarcity of vacant and affordable alternatives.

"It's vital to get a timely response," Fletcher said.

"If you're contesting an increase, you're probably not going to start looking for a new place until you're certain that things have concluded one way or another."

The tenancies tribunal has the power to decide whether a proposed rent increase from a landlord is too much given rents on comparable apartments in a given neighbourhood. It is also in charge of deciding if an increase above inflation should be implemented over multiple years.

Green told the legislature the tenancies tribunal had been given a $200,000 (13 per cent) increase in its operational budget this year to do its work, but she was prepared to allocate more resources if required.