Order-in-council creates new rent cap
The Yukon government has used an order-in-council to bring in rent controls for the territory.
The Yukon government has used an order-in-council to bring in rent controls for the territory.
The controls consist of limiting rent increases this year to one per cent and tying future hikes to one per cent until 2023.
They were part of the items adopted from the NDP platform in the accord signed by the two parties on April 28. The controls went into effect on Saturday.
A news release issued late Friday afternoon did not explain how the government would legislate the control, which needed some official paperwork to make it legitimate.
“Effective May 15, the Government of Yukon is temporarily indexing residential rent increases in the territory to inflation,” the news release stated.
“Indexing Yukon’s residential rent to inflation is a key policy initiative agreed to under the Confidence and Supply Agreement (the two parties’ accord), which runs until January 31, 2023.
“From May 15, 2021, through May 14, 2022, landlords may only increase residential rents by 1 per cent, which is the Consumer Price Index (CPI) for Whitehorse for 2020.
“If a landlord gave notice of a rental increase that takes effect after May 15, 2021, they may still increase their rent but the rental increase is limited to 1 per cent. If the landlord chooses to proceed with a rent increase after May 15, the landlord will have to give their tenant a separate notice of the one per cent rental increase.”
The government will review the rent increase percentage each year after the CPI is published.
François Picard, the NDP’s chief of staff, quickly provided a copy of the order-in-council to the Star this morning.
Unlike normal legislation, a government can use an order-in-council to bypass the vote of the legislative assembly and ask the commissioner to implement cabinet orders directly.
“Indexing residential rent increases to inflation is one initiative to support the housing needs of Yukoners,” the new release says.
“The Government of Yukon continues to take a multi-faceted approach to increasing housing options for Yukoners throughout the territory. These include launching the Canada-Yukon Housing Benefit, which provides financial support directly to renters in need, as well as initiatives designed to make more housing available in the territory, such as the development of new residential lots.”
Community Services Minister Richard Mostyn said in the release, “Stable, affordable housing contributes to the health and well-being of all Yukoners and it remains a priority for our government.
“This temporary residential rent index is one of many approaches to address the need for affordable housing in our territory.
“Over the next two years, our government will continue to work with both tenants and landlords to evaluate this initiative and look at further options to ensure Yukoners have access to housing they can afford.”
NDP Leader Kate White said “our economy isn’t working when people can’t afford their home.
“Tenants need protection now against hundreds of dollars in rent increase. This brings predictability to landlords and tenants and provides relief for tenants until more affordable rental units can be built.”
Yukon Party Leader Currie Dixon definitely wasn’t impressed with the move.
While he disagrees with the policy in general, saying it’s not “what the Yukon needs right now,” he is just as concerned about the lack of fair democratic process with the use of the order-in-council.
He said this morning it continues the pattern that the government isn’t providing any opportunity for debate and consultation, either with the public or in the legislature.
He also noted the accord between the Liberals and NDP doesn’t appear to be operating smoothly so far.
“The amount of finger-pointing between them in the last week has been breath-taking.”
Dixon noted Premier Sandy Silver pointed to White last Tuesday for an answer on how the rent control measure would work and when it would be implemented.
In response, White said she was waiting to hear something from the government.
Later in the week, Mostyn deflected all of the responsibility for the rent controls to the NDP.
He said it was a critical part of the agreement between the parties to form a stable government.
“It’s important to the NDP,” he told reporters.
He didn’t say it’s important to the Liberals.
Comments (28)
Up 0 Down 0
mywayorthehighway on Oct 18, 2021 at 3:27 pm
I don’t care about and I don’t follow the governments new rules. If my tenants don’t want to pay my rental increase I simply terminate the rental agreement with them and a new tenant who is willing to pay my rental price will fill the spot immediately… the government should find a real solution and not just stick a bandaid on the housing problem…what they are doing right now is a joke!
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Question guy on May 22, 2021 at 4:19 pm
I'm confused. I got a notice for a rent increase In April. Does that mean they can only raise it 1%?
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Jim on May 22, 2021 at 10:39 am
So where is Kate on freezing increases on property assessments, freezing insurance rates, freezing electricity and heating fuel, freezing lumber and building prices. These actions would help all home owners, business owners, renters and developers. But no, Kate’s looking for the low hanging fruit and easy votes. A result of an election promise without a cost study or consultation. And Sandy desperate to keep his premier title rolls belly up again.
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Juniper Jackson on May 20, 2021 at 4:01 pm
An "Order in Council" for this??? Being one of those people whose rent tripled, while my income went up 1.57 cents a month; I am in favor of some kind of control. But, not this way.
A few years ago, I couldn't buy food, medicine, heat, and rent, all at the same time. A stroke had prevented me from going back to work. I was griping here about it, and someone said.. "June, give the Star your information, and I will pay for your medicine." I never did, I cried a lot over that. And, I pretty much stopped belly aching. I ended up having to move to cheaper rent. So, yeah.. some kind of control. BUT, using an Order in Council???? This issue should have gone to debate and vote. Gone to public for more input. More stories about how rent hikes affect people. Make it real. Maybe Landlords could police their own? Most Landlords are pretty decent, but I didn't have one of those. Somewhere, there has to be a compromise that both Landlords and Tenants can live with. Landlords want to make money, Tenants need a place to live. Surely, they can find a way.
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pierre on May 18, 2021 at 8:05 pm
@Situation Not Normal...Cannot recall anybody saying it was going to be a YP Govie...some said it would be close...whats 100% clear is that nobody wanted an NDP government or its ideologies. So you should rename yourself to TARFU.
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Sweet leaf on May 18, 2021 at 6:57 pm
Wilf. Your cronies are in opposition. You literally have no say in anything. Just like when Currie tried to ram development in the Peel and the public and FN could only have a say in the Courts.
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Situation Normal on May 18, 2021 at 3:37 pm
I am sorry but this has to be pointed out. Before Election Day, the con clicker commenters were all predicting a con government, which we all know didn't happen. Now they are up in arms about rent controls because they are used to being able to take advantage of the poor. So now they are all trying to find ways to work around the rent controls, including waiting for the next election! Too funny.
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Anie on May 18, 2021 at 1:47 pm
I struggle to understand how the Commissioner can, in good conscience, sign this order in council. It flies against the very principles of good government and certainly does not comply with the intent of orders in council. The liberals and NDP are trodding on democracy and yukoners, whatever their political belief, should be appalled,
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Sheepchaser on May 18, 2021 at 11:40 am
Long story short, this measure couldn’t get majority support from the liberal caucus. Sandy’s own team wouldn’t pass it as legislation. The consequence of it’s failure would likely be another election. Sure, they think they are doing something ‘for the greater good’ and ‘stability’. As valid an excuse as any autocratic measure in history.
I’m not necessarily opposed to some well thought out measure to control rent increases, however:
a) current institutional assessments of inflation are fantastical at best
b) the method of implementation will spark significant backlash and loophole use making it useless in practice
c) enforcement is almost impossible - court orders brought to force by what exactly? property seizure? lawsuits? special tribunals?
At the end of the day, the most that will happen is a little more public shaming coming off the court records (probably right here on this website) and little impact for the vulnerable folks the NDP intend to uplift. The bad landlords will keep being bad and more of the good ones will go upside down on their mortgages.
Rent controlled housing specifically built and planned with a sliding scale based on income might actually work. It’s implementation would work to lower the regularly priced rental market by lowering overall demand.
What concerns me most is that an entire generational of leadership seems to make decisions based only on more regulation, more red tape, more restrictions. Where’s the vision, Kate? Very disappointing.
For the record, I donated to the NDP this round due to the quality of the human running for the seat in Kluane (Dave Weir) and the obviously unqualified incumbent. All to say that I’m not a diehard for any political tribe.
This is bubblegum and duct tape at a time when we need concrete and steel.
The Commissioner of the Yukon is going to need the Ombudsman up their backside if there’s much more of this. Signing orders at the beginning of a pandemic when little reliable data was available is one thing. This is entirely another.
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Cause and Effect on May 18, 2021 at 7:01 am
"NDP Leader Kate White said “our economy isn’t working when people can’t afford their home.
'Tenants need protection now against hundreds of dollars in rent increase. This brings predictability to landlords and tenants and provides relief for tenants until more affordable rental units can be built.' "
So says Kate White. The problem is, yet again, the problem is being addressed at the wrong point in the equation. The problem that needs to be addressed is affordability, PERIOD. Where does Kate White shop? Doesn't she notice prices going up everywhere, for everyone? It's not just tenants that are feeling the squeeze.
So in the case of housing, what's driving the cost up? Lack of housing inventory/supply. High labour costs. Government red tape. Isolated and distant location from large population. The government can "help" with a couple of those things, such as lot inventory and red tape. Perhaps we should study the effects of hiring hundreds of government staff from outside Yukon.
Except we already know the effects, because we're living that right now. My point is, the affordability issue has, in large part, been created by the government. Now they want to "fix the problem" by meddling even further. Don't get me wrong, I'm all for stopping landlords from jacking up rents. I've been a tenant for most of my life, and it can be a very vulnerable situation. The concept of a rent increase cap bears exploration, however, not in the way the current group is going about it.
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Max Mack on May 17, 2021 at 9:50 pm
@Al
Nowhere does the Landlord and Tenants Act give regulation-making ability regarding rental increases. The ONLY reference to a regulatory power in respect of rent increases is section 114(1)(m) which has to do with the "timing and notice of rent increases under section 36" . . . "in respect of fixed term tenancy agreements."
NOTHING in the Landlord and Tenants Act gives Council the authority to create regulations restricting rental rates or rent increases.
https://legislation.yukon.ca/acts/rlta_c.pdf
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At their mercy on May 17, 2021 at 9:48 pm
Average rental price about= $2000
Also, cough up your last months rent an additional =$2000...
Oh and please don’t forget the security deposit of at least half of a months rent =$1000...that you will never see again for interesting reasons ( lint in the corner of closet, a picture was hung on the wall, forgetting to pull the stove out to sweep under, lifting up the tank on the back of the toilet to check for mineral stains... the list goes on).
For a grand total of $ 7000 cash up front to get the key.
No wonder so many people are struggling.
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Salt on May 17, 2021 at 7:05 pm
This is a move to sustain housing prices and nothing more. If any of the governments in the last 15 years wanted reasonably priced housing we wouldn’t be where we are today. Government has been goosing the market from both sides, intentionally, for at least that long. I don’t know if Kate is a homeowner, but if she is, do you think she would swallow a +30% devaluation on her home for ‘the greater good’? I don’t. She has no intention of popping this bubble, but tinker around the edges/virtue signal where she is not impacted? You bet.
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Terrible policy on May 17, 2021 at 6:38 pm
Don’t sell your rentals, this will be a blip on the radar down the road. Other provinces have tried the same thing and it simply doesn’t work to slow down prices. Supply is the only way. There will be ways around the 1% increase that will unfortunately only hurt tenants and they’ll have to scrap it.
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Woodcutter on May 17, 2021 at 5:50 pm
Lol..omg now listen to the cry babies. Ibrian thinks he can make more selling his houses and park his money, meanwhile the value of real estate is gonna outgrow his investments. In the time it takes the cons to fool everyone up to the point they actually win an election, his money from the sales of his rental property will shrink to a down payment for a 40 years old mobile home. Talk about an example of ready fire aim.
Last month he was happy with his little rental business, this week he's ready to throw in the towel....lol
Poor baby ibrian
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BnR on May 17, 2021 at 5:48 pm
The Libs can sure draft up some legislation quick when it’s their political hides on the line.
How long have we been waiting for draft ATV legislation?
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beaker on May 17, 2021 at 5:29 pm
So if I'm a landlord and I'm charging 1800/mth plus utilities. Do I keep that the same and offload a portion of my property taxes, water sewer and garbage on top of that. So 1800 plus 50/mth for city expenses plus utilities.
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2023Liberalelectionplatform on May 17, 2021 at 5:17 pm
It was the NDP, their fault, we were in the middle of a pandemic and trying to help Yukoners. We wanted another election, but the NDP said if we combined our votes that's what the Yukoners wanted. Give us another chance, we will do it the right way, this time... u know 3rd times a charm. Bahahah
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bonanzajoe on May 17, 2021 at 4:50 pm
Snowball II. "With those kinds of rents, you know what kinds of tenants you'll get eh"? I don't think you would want that kind.
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Al on May 17, 2021 at 4:08 pm
@ Max Mack
It falls under The Landlords and Tenants Act
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Max Mack on May 17, 2021 at 3:59 pm
Orders-in-council must flow from legislative authority. The ability to regulate rental rates or rental increases must flow from a statute, which can only flow from the legislature. It does NOT exist out of thin air. It does not exist by way of an agreement, even one with such a high-and-mighty title as the "Confidence and Supply Agreement".
Under what statute does the authority to regulate rental rates or rental rate increases exist?
Without statutory authority, council has exceeded its authority and any judge worth their salt will strike this OIC down.
Up 49 Down 3
Little Change on May 17, 2021 at 3:25 pm
"A landlord may increase rent on a unit by more than the CPI after a tenancy ends. This is because under the new regulation, the rent index is a standard term in the tenancy agreement. This means that the rent index applies only to the tenancy and not the unit."
Landlords will switch to fixed tenancy agreements. Every renewal or change of tenant and rent can rise much as you want. This won't change much in practice.
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JustSayin' on May 17, 2021 at 3:14 pm
I understand the need for controls on rent, however, the "order in council" used is so slimy. Why not debate it, why not consult on it? Anything to stay in power, hey Liberndp...don't worry when the Yukon can travel again, perhaps Silver and White should head over to Cuba for more tips.
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When pigs fly! on May 17, 2021 at 3:06 pm
A rent cap is like putting lipstick on a pig... The pig is still there, you are still kissing the pig, and now the pig just looks silly.
With rent prices already soaring it’s too little too late. Maybe when the minimum wage is $45/hr and Social Assistance pays the full rent portion plus food and utilities... Then maybe!
This is the least they could... The very least without really addressing anything - But hey, it’s funny to see lipstick on a pig. Perhaps when pigs fly some government somewhere will do something meaningful about the real problem - Rent cap - FFS!
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Snowball II on May 17, 2021 at 3:05 pm
Going to buy a few places and put the rent around $500-$750 old 90'a rent prices see if I can bring old rent prices back to the Yukon.
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and now all votes are 8 - 11 (or 10) on May 17, 2021 at 2:52 pm
This isn't what Yukoners voted for. They voted for the Liberals to be kept in check. Thanks NDP for being the perfect get out of jail free card. You ruined the possibility of having a government that had to answer to EVERYONE to get the bills passed.
Moreover, your rent controls are ridiculous for one main reason. THE RENT IS TOO HIGH. No one was raising rents astronomically the problem was they were too high to begin with. All that happened now is that they can't go past 1% for a year. But it makes no difference when the buffer between inflation and the current rent market is HUGE. Speaking of huge, Kate White, do you understand what market value, inflation, and buffer is?
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iBrian on May 17, 2021 at 2:51 pm
Hahaha, talk about stupid. Their was 87 Houses/condos listed last week on Kijiji. Today, right now 157!!!!
I listed too.
Won’t be dictated on what to charge for my investment.
These clowns, I’ll just sit on my money till the next election.
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Wilf Carter on May 17, 2021 at 2:51 pm
Wow, can you believe any of this by Liberals and NDP? Dictatorships all the way. Our politics are gone and we do not have control of our governments in Yukon or Canada. They are so out of touch with reality - is no one home here???