Ottawa Tenants Organizing Against Rent Hikes

Author

Denis Lanouette
May 01, 2023

Image Credit: ACORN

My name is Denis Lanouette, and I am an ACORN member and a tenant of Vista Local, a new rental building in southeast Ottawa's Alta Vista Ward that opened in 2019 and is owned and administrated by Timbercreek Communities, currently known as Hazelview. This development comprises three multi-residential structures containing 348 residential units. Myself and my neighbours have been issued a massive rent increase by Hazelview, a Real Estatement Investment Trust (REIT), and are organizing with Ottawa ACORN to protect the affordability of our homes.

"As a tenant of Vista Local, I got an increase for 12% which works out to $208 in extra rent each month! With ACORN we fought back and forced Hazelview to lower the increases but it’s still way too high. I’m not working right now and I’m waiting to be called back into work so I’m dipping into my savings a lot right now. I have had to reduce my food budget because that’s just what I have to do, just like everybody else. This is why the Vista Local ACORN Tenant Union is demanding Hazelview drop the rent increases to the allowable provincial guideline for rent controlled units (2.5%) and that the Doug Ford government reinstate rent control for ALL buildings."

- Denis Lanouette, Tenant Leader in the Vista Local ACORN Tenant Union

Background on Timbercreek/ Hazelview

Timbercreek, now Hazelview, is a financialized landlord that uses housing as an investment tool. Founded in 1999, Timbercreek/Hazelview is an active investor, owner and manager of global real estate and related assets (Financial Post, 2015). Timbercreek operates in major urban centers across Canada and the United States, with a portfolio of properties, according to the company, focused on providing residents with “quality, affordable housing options” (Timbercreek, n.d.).

Hazelview has been at the centre of various controversies, including mass evictions, displacements, and demolitions in the primarily working class, immigrant neighbourhood of Herongate. This includes demolitions of affordable housing units, which have raised concerns about the loss of affordable housing stock in communities: gentrification and affordability concerns, transparency and community engagement (The Globe and Mail, 2018). Some stakeholders have expressed concerns about the need for meaningful community consultation, limited communication with residents, and a lack of transparency in decision-making processes. Moreover, many residents, tenants and ACORN members living in the neighbourhood have raised concerns about the maintenance and management of Hazelview properties, including issues related to property conditions, management style, chronic disrepair, and responsiveness to tenant complaints or concerns (CBC, 2017; Ottawa Citizen, 2018).

In 2016, Timbercreek (now Hazelview) evicted and forced out Herongate residents and demolished 80 townhomes to make way for the development of HG7 in Ottawa, which currently consists of three 6-7 story apartment buildings known as Vista Local (ACORN, 2015). In 2018, Timbercreek also evicted and forced out residents to demolish another 105 townhomes for the development of HG5. These demolitions in 2016 and 2018 generated significant controversy and media attention within the Herongate Community and beyond due to ACORN’s tenant organizing and their implications for the affected residents and the broader Ottawa city (ACORN, 2018).

Image Credit: ACORN

Major Rent Increases at Vista Local

At the beginning of March 2023, Vista Local residents received a letter from Hazelview, the Landlord, communicating a rent increase that ranged from 7% to nearly 20% in some cases. The letter indicated that this increase was based on the market value of similar units. There were no specifications about those marketing indicators and variables or any reference about the marketing research performed by Hazelview to execute those increases. Moreover, the letter indicated that the rent would decrease by a couple of percentages if residents signed a year contract because of being “valuable customers.” These increases would result in hundreds of dollars in added monthly rent for tenants.

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“Vista Local is the tip of the iceberg of an urgent issue in Ottawa.”

Around 100 Vista Local residents met on March 6, 2023, requesting a meeting with the company executive team to adjust this increase to 2.5 % per the Residential Tenant Act guidelines for rent controlled apartments. After this request, adjustments were made by the landlord, still far from 2.5%. The proposal to sign a contract for one year was removed. However, residents met again on March 16th , 2023, to request further decrease matching the 2.5 % provincial guideline. Moreover, tenants formed a tenant union through the Association of Community Organizations for Reform Now (ACORN), a community union of low- and moderate-income people with a long history of fighting corporate landlord’s predatory tactics (including Hazelview’s). The Landlord rejected this last request and responded that the rent increase adjustments between 2.85 % to 6.8% were reasonable based on the Canadian Price Index (CPI) and cost increases associated with operating a property. They refused to meet with the residents.

Why We Need Real Rent Control

In 2018, Ontario’s Ministry of Housing announced that rent control rules would no longer protect tenants moving into new residential units coming on the market. For apartments built or rented out for the first time after November 15, 2018, there will be no legal limit on how much the landlord can raise the rent (ACORN, 2018). Proponents like ACORN and tenants argue that rent control is necessary to protect tenants from excessive rent increases and to maintain affordable housing options, particularly in urban areas with skyrocketing housing costs. The lack of real rent control is igniting deceitful rent increases like the one we, the residents at Vista Local, are experiencing, as these buildings were built after 2018.

On April 15th , Vista Local residents rallied with other Herongate ACORN members on Vista Local property. We delivered another letter to Hazelview demanding the rent adjustment to 2.5 % and a meeting with the regional executive team. We were joined by local media outlets.

The Vista Local demographic comprises new families, small business owners, health care workers, and retired people. Women make up the majority of tenants at Vista Local. Because of this rent increase, many residents are moving from Vista Local, leaving the city or going to other provinces, taking their talents to other locations. Because of the pay gap associated with gender in Canada, this rent increase puts women in further financial vulnerabilities at Vista Local.

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“Proponents like ACORN and tenants argue that rent control is necessary to protect tenants from excessive rent increases and to maintain affordable housing options, particularly in urban areas with skyrocketing housing costs.”

The affordable housing and cost of the living crisis continue to leave more people struggling to afford necessities, particularly after the COVID-19 pandemic. Those living on the margins, such as 2SLGBTQ+, Indigenous, Black, women, newcomer and refugee, and disabled communities, are at a higher risk of being precariously housed.

In 2019, Parliament passed the National Housing Strategy Act. The Act recognizes housing as a human right and commits organizations and governments to reform housing laws, policies and programs from a human rights perspective; and to involve communities in meaningful ways. It also means priority must be given to vulnerable groups and those in greatest need of housing. Doug Ford’s removal of rent control on new buildings is a direct contradiction to the realization of housing as a human right. ACORN members across Ontario are calling for full rent control. This means:

  1. Applying rent control to all apartment buildings

  2. Introducing vacancy control in order to cap rent increases in between tenancies and;

  3. Banning above guideline rent increases (ACORN, 2023).

Vista Local is the tip of the iceberg of an urgent issue in Ottawa.

How You Can Help

You can show your support for Vista Local tenants by adding your name to our online action, sign up for the ACORN newsletter to stay up to date on next steps and becoming an ACORN member.

Become an ACORN Member here: https://acorncanada.org/join-us/

Image Credit: ACORN

Denis Lanouette is an ACORN member and a tenant of Vista Local.

References

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