Illegal notices, demolition plans, and rent hikes at Sackville apartment building
A tenants advocacy group says New Brunswick’s renoviction laws are not working to protect tenants because they are not enforced, and rely on tenants for follow up. NB ACORN chair Nichola Taylor says that seems to be the case in a Sackville apartment building this summer.
Former tenants of 18 Weldon Street were surprised and shocked last week to see their former units up for rent at substantially higher prices, just one month after they were told their building was slated for demolition.
Karlie Rheaume says she was paying $825/month for her apartment at 18 Weldon Street before being told she needed to move out with just 30 days notice. She says her unit was then listed for $1500/month in an online ad, a price hike of more than 80%.
Rheaume’s neighbour Jesse Francis says he had been paying $850/month for his unit, a price that went up just under 50% to $1275/month after he moved out. Both have been in the building for less than a year, and Rheaume had just moved in in May.
But on July 2, two months into Rheaume’s year-long lease started, the building changed hands. Geneviève Savoie and her company G&K Properties bought the building for $215,000, from former owner, Barbara Beal, partner of the late Gordon Beal.
‘We know it’s needed’: Freshwinds Co-op plans for up to 60 households on Fairfield Road
The latest stats are in from the Canada Mortgage and Housing Corporation (CMHC), and the rental housing economy in New Brunswick continues to get worse for those renting. Average rents in the province were up 10.5% in October over the previous year, and the vacancy rate is down from 1.9% to just 1.5% according to the CMHC. At the same time, the price of buying a home in Tantramar is up over 86% since 2019, according to MLS data from local realtor Jamie Smith.
It’s a situation that makes finding affordable housing challenging, and one that Sabine Dietz and Eric Tusz-King have decided they can do something about.
Last week, Dietz and Tusz-King, and the rest of the members of the newly incorporated Freshwinds Eco-Village Housing Co-operative, announced plans for a major new village-style development in Sackville that could provide co-op housing for up to 60 households. Freshwinds has made the first step, purchasing 21 acres of land on Fairfield Road, the former farm of Bill and Inez Estabrooks, for $450,000.
“In order to afford this land, we are selling that house that’s at 64 Fairfield,” says Tusz-King, “and then we’re going to be selling some of the lots along the road.” The Freshwinds development will take place on the acreage behind the roadside lots, and if all goes well, Tusz-King says work on the property could start as early as this fall, with construction starting in spring 2025.… Continue
Housing Minister calls MLA Mitton’s comments ‘inflammatory’ as province limits debate on controversial bill
Controversial legislation affecting tenants and landlords is making its way through the Legislative Assembly, with opposition parties crying foul over time limits imposed on debate.
Discussions became heated Wednesday as Memramcook-Tantramar MLA Megan Mitton sparred with Jill Green, Minister of Service NB and Minister responsible for housing.
“The Minister of Housing has finally admitted that she won’t protect tenants by keeping the rent cap in place in the New Year,” Mitton said during Question Period on Wednesday. “Tenants are terrified of losing their housing if they haven’t already… how can the Minister of Housing justify denying renters the protection of a rent cap next year?”
Green, who took over the contentious housing portfolio in October, defended her government’s record and called Mitton’s remarks “inflammatory.”
“When I listen to the language that is used and the inflammatory way the question is asked, it doesn’t even make me want to answer her question,” Green said.
Mitton replied: “I do not appreciate the tone policing when I’m talking about people losing their housing.”
Last month, Green introduced Bill 25, An Act Respecting Residential Tenancies. Instead of extending rent control, the bill would create a “phase-in” mechanism for rent increases.
If a rent hike exceeded the Consumer Price Index, the Residential Tenancies Tribunal could choose to phase in the increase over the course of up to three years. … Continue
Big real estate deals will bring no immediate changes for tenants, say building owners
A number of apartment buildings in Sackville changed hands last week with multi-million dollar deals, and the new owners say no major changes are coming for tenants.
Sunset Investments purchased six buildings from Sackville landlord Charles Estabrooks for a total price of $13.3 million dollars. The purchase included four buildings on Main Street across from the Drew Nursing Home, as well as 55 Salem and 11 Lorne Street.
There’s a total of 82 rental units in all six buildings, according to investment marketing material produced by Sunset Investments before the deal was finalized.
Some residents have been concerned about the sale because of what happened to tenants in a neighbouring building at 15 King Street, which was purchased by Sunset this summer. In that case, tenants in all 16 units were evicted for the purposes of renovations, which included converting two-bedroom units to three-bedroom units by removing the living room. Months after the purchase and evictions, the units were up for rent, with converted three-bedroom units fetching $1600 per month, more than twice what some had been paying for two-bedroom units before the sale.
Sunset says it does not have a similar plan for the six Estabrooks buildings. In an emailed statement to CHMA, Sunset Investments says it, “aims to maintain the operation of these buildings as is.” The company says it has no plans to renovate the buildings, but for general maintenance and the addition of solar panels and low flow water fixtures.… Continue
Province dumps rent cap for complaint-driven, case-by-case rent increase protection system
On Thursday at the provincial legislature, Service NB Minister Jill Green effectively ruled out an extension of the current temporary rent cap in New Brunswick, which had limited rent increases in 2022 to 3.8%. Instead, Green introduced a bill to add a phase-in mechanism that could be used by the Residential Tenancies Tribunal on a case by case basis. If landlords raise rents by more than the Consumer Price Index in a given year, and if a tenant formally complains to the tribunal about that increase, the tribunal would then have the power to require a ‘phase-in’ of the increase over two to three years.
“The rent cap is off the table right now,” Green told reporters after the law was introduced Thursday. But she also left open the possibility that the government could react later if needed. “Last year, if we needed to make a change quickly, we did it and we will do it again,” she said. “We will not hesitate to do more should we find there’s a bigger problem than we understand.”
In the meantime, the new system will “requires everybody to be working together,” said Green. “We need the landlords to step up. And we need the tenants to talk to us and tell us when they have a rent increase that they think is inappropriate.”
One housing researcher says requiring tenants to complain about rental increases is not reasonable, given the power dynamics between tenants and landlords.… Continue
‘Disheartening to hear’: housing expert on REITs and why Sackville should be worried about the sale of 82 rental units to one
An investor group that says it is buying six Sackville buildings with a combined 82 units expects to close the deal today.
Some tenants in the buildings have received emails from a new property management company, K Squared Property Management, even though they have not yet been given notice of new ownership.
Local landlord Charles Estabrooks currently owns the six buildings and Sunset Investments is the investor group that claims to be buying them. DJC Properties has also posted on social media, advertising for investors for the deal.
A social media post late last week from DJC Properties says that the “82-unit acquisition is closing earlier at the Banks request.”
An earlier post by Sunset Investments says that building inspections have been completed, and Canada Mortgage and Housing Corporation financing has been approved. The post says all buildings are in excellent condition but for one older 4-unit building.
It’s not clear what the plans are for the buildings. CHMA has reached out to Estabrooks and Sunset Investments for further details on the deal. Estabrooks has not responded to a CHMA interview request, and Rachel Godbout of Sunset Investments says she has no comment since her company does not yet own the buildings.
Earlier this summer, Sunset Investments bought another Sackville building, and proceeded to evict all tenants in the 16-unit building in order to perform renovations. Among other things, Sunset converted 2-bedroom units to 3-bedroom units, and dramatically increased the total rent for each unit.… Continue
Sunset Investments says it’s back with another, bigger purchase of rental housing in Sackville
The investor group that terminated all the leases in a 16-unit apartment building on King Street this summer has its sights set on another, much larger real estate purchase in Sackville.
Sunset Investments has posted a video online advertising an investment opportunity to purchase six Sackville buildings totalling 82 units. All the buildings in the video appear to be owned by local landlord Charles Estabrooks.
CHMA has reached out to Estabrooks for confirmation and have not heard back as of publication time.
Although the text in the video mentions six buildings, there are five featured in drone footage, which appear to be 55 Salem, and four buildings on Main Street: 172A, 172B, 174, and 176.
Rogan Porter lives at one of the buildings featured. He says there were rumours over the winter that his building might be sold, but that he and his partner breathed easy in the summer when they heard it would not.
“We figured, okay, we’re off the hook. And then the video comes up out of nowhere,” says Porter, “and ruins our sense of peace, unfortunately.”
Porter recognized the investment group—Sunset Investments—from their purchase of 15 King Street this summer, and he was immediately worried.
“I was really upset with what they did to 15 King, even though it didn’t directly impact me,” says Porter. “It’s just a slap in the face to renters.”… Continue
BRRRRing arrives in Sackville as investors terminate leases on 16-unit building to up its value
A number of Sackville households are looking for new rental housing after a 16-unit apartment building on King Street in Sackville was purchased by an investment group.
Sunset Investments GP took ownership of 15 King Street at the end of June, and tenants in the building report receiving letters announcing the termination of their leases on Canada Day, July 1, 2022.
Tenants were offered “furnishing credits” along with their lease terminations, a payment designed to help them cover costs associated with finding a new place to live. But at least one tenant says they’d rather keep their home than have the payout.
According to reports on social media from those looking for rental housing, the market in Sackville is very tight, with almost no large units available for families. A King Street tenant who asked not to be named says losing their lease likely means moving out of Sackville, which was not in their plan.
“We don’t want to leave the town,” they told CHMA. “I mean, our life is here.”
Tenants who had a one year lease at 15 King Street have been given three months notice, as per the law in New Brunswick. That means apartments must be vacated by October 1, 2022. Others on month to month leases are required to receive just one month notice, and so some may have to leave by the end of July.… Continue
Lafford plans to ‘meet or eliminate’ housing need within two years
The rental housing market just keeps getting tighter in Sackville, and a local developer says it will be a year or two before his company is able to build new units to alleviate that.
John Lafford’s company is busy with a large project in downtown Moncton, but says that his next priority is a project in Sackville, at one of three properties he owns: a large parcel at the end of Wright St, the newly acquired historic building at 131 Main, or a newly vacant lot at 56 Main, beside the old fire hall and current Kookie Kutter.
On Thursday, an apartment building at 56 Main Street was torn down, with the previous tenants having been evicted earlier in the spring.
CHMA caught up with the site’s owner, John Lafford, to find out what the future holds for his properties.
Listen to that interview here:
Lafford says he has no immediate plans for the property at 56 Main.
“That building has been kind of in distress for a lot of years,” he says, adding that the timing worked out for the demolition to happen this week. “It’s going to be a great site for a mixed use apartment building, but just I don’t know when. We have nothing designed yet.”
The mixed use zoning of that portion of Main Street means the new building will include street level retail as well as residential apartments, says Lafford.
Another property recently acquired by Lafford is not zoned for residential development, even though the previous owner applied to have that changed.… Continue
Tenants’ advocate speaks out against rental discrimination
A Sackville man who is searching for affordable housing says he’s encountered roadblocks, including landlords who won’t accept him as a tenant because he has children.
But an advocate for the rights of tenants says that’s an example of rental discrimination, which is illegal under provincial human rights legislation.
“I think that it’s important to make [people aware] that is not legal, this kind of discrimination,” says Jael Duarte, a lawyer and tenants’ advocate for New Brunswick, employed by the Saint John-based Human Development Council.
The home rented by Reggie Beal, a father of three, is up for sale, and he’s been trying to find an affordable place to live with his three young children.
By Sunday, he was still searching for a home using online platforms like Kijiji and Facebook, and by word-of-mouth. So far, nothing’s worked.
“Basically, we’ve tried to find places that will accept, first of all, children,” he says. “And second of all, we’re trying to find places that is affordable.”
That means anywhere from $750 to $900 a month for the grocery store worker. He says the price of housing suitable for his family now tends to range from $1,100 to upwards of $2,500, not including utilities.
He’s a member of the Affordable Housing Initiative, which made a presentation at Monday’s public meeting of Sackville town council.
For more on this story, CHMA spoke to the Fredericton-based tenants’ advocate, asking her how widespread housing discrimination based on family status is in New Brunswick.… Continue