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CHARLOTTETOWN, P.E.I. — P.E.I. MLAs passed a motion May 31 in support of the notion of ensuring the province is guaranteed to be first in line as a potential buyer of apartments or multi-unit rental housing put up for sale.
The provision, known as the first right of refusal, has been adopted in Montreal.
However, the motion, introduced by Green MLA Karla Bernard, was altered after Housing Minister Rob Lantz introduced an amendment that watered down a provision urging the province to establish this right of refusal.
Instead, the motion that passed urged the province to review such a measure.
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Speaking before the legislature, Bernard said the province is seeing a reduction in the number of affordable rental housing units. Bernard said census data suggests the province has lost more than 1,800 units with rent lower than $1,000 per month while the number of units priced at $1,500 or more increased by 2,100.
“At the rates at which we’re losing it, we need to be proactive in keeping it because that’s the only way we’re going to keep it,” Bernard said, referring to affordable rental housing.
Bernard noted many tenants at Summerside’s Causeway Bay Hotel were evicted last November after the sale of the property to a new owner. Former housing minister Matt MacKay later confirmed the province made an offer to purchase the hotel but only after it had been sold.
The province abandoned efforts to purchase the hotel after an offer by the new owner was deemed too high.
Bernard said a right of first refusal provision could have allowed the province to add the motel to its stock of publicly owned affordable housing.
“There were 106 units in this building – gone!” Bernard said. “This was devastating for residents, whose housing was placed at risk, and they suffered greatly as a result.”
“This was devastating for residents, whose housing was placed at risk, and they suffered greatly as a result.” – Green MLA Karla Bernard
‘Review’ vs. ‘establish’
PC MLA Brad Trivers supported the motion but also said the province’s rent control provisions, including a freeze on rent increases this year, are resulting in a loss of affordable housing.
He said landlords are often selling properties or have stopped building new housing as a result.
“Some of those units are occupied by people who need that affordable housing. And, indeed, if they didn’t have those rent controls, they couldn’t find a place to live. Some of those low rental units are occupied by people who can more than afford them,” Trivers said.
Trivers suggested some renters who make $150,000 a year are renting apartments for $800 a month, which limits the availability of these lower-rent units for tenants with lower incomes.
Trivers added the province is seeing the loss of multi-unit buildings because landlords cannot make a profit or cannot recoup their costs due to rent control provisions.
Lantz confirmed the province is willing to purchase properties to add to its roster of public housing units. But he said he wanted to see “due diligence” before adopting a first-refusal provision.
Lantz also noted that Montreal is a municipality.
“What, if any, implications would apply by doing this at a provincial level?” Lantz asked. “While it would add new affordable housing units or preserve existing ones, it does not increase our supply of housing overall.”
Lantz then introduced the amendment to “review” a right of first refusal, as opposed to the wording of the motion, which called for the province to “establish” this provision.
“It feels a little silly to amend something that’s already not binding,” Bernard said in response.
Bernard also noted that a right of first refusal was about preserving existing affordable housing, not building new housing.
The amended motion passed.
Speaking to SaltWire after the vote, Bernard said she does not expect a change in government policy. Motions are non-binding but are often introduced to raise awareness about specific policy issues.
But Bernard said she hopes the motion puts pressure on the government to act to preserve existing rental units.
“This is just a very easy way. This is a like a slam dunk for government if they want to take it,” she said.
Stu Neatby is a political reporter with SaltWire in Prince Edward Island. He can be reached by email at [email protected] and followed on Twitter @stu_neatby.