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Terence Kernaghan

  • MPP
  • Member of Provincial Parliament
  • London North Centre
  • New Democratic Party of Ontario
  • Ontario
  • Unit 105 400 York St. London, ON N6B 3N2 TKernaghan-CO@ndp.on.ca
  • tel: 519-432-7339
  • fax: 519-432-0613
  • TKernaghan-QP@ndp.on.ca

  • Government Page
  • Jun/1/23 9:20:00 a.m.
  • Re: Bill 97 

It’s always an honour for me to rise and add the voices of the great people of London North Centre, especially on a topic that I know my community is passionate about and one that I am passionate about as well, which is housing. I believe strongly that the government needs to take a leading role. They need to lead from the front. The government needs to make sure that they are fulfilling their historic responsibility for providing an adequate supply of affordable housing in the province.

You see, housing is a human right. But housing is even so many more things. Housing is also health care. Housing is a social determinant of health. Housing is foundational for every single person in this province in order to enjoy their life.

We also need to see a government that is concerned with the creation, the building of non-market homes instead of a private, market-based approach that focuses on tax cuts, deregulation, sprawl across our treasured greenbelt. Their solutions are ones that simply make it harder for people to pay the bills and to put food on the table. There are also no guarantees of enough new affordable homes within this province’s flawed plan.

I would also like to take a look at some proactive measures that the NDP has brought forward to this government, ones that are sitting on the table right now that this government could pass to protect tenants immediately, ones that would be supported by the official opposition, ones that we could get through this House in record time. Those include Bill 25, the Rent Stabilization Act, one that I was proud to co-sponsor to make sure that we are plugging the hole of vacancy decontrol that was brought forward during the last Liberal government.

You see, this Conservative government has continued a system of exploitation on tenants. They’ve made a system of unaffordability even worse by removing rent control from buildings first occupied after November 2018. It’s a system where people are paying more and more and more every year with no signs of relief, and that is on this government. They have chosen to allow unethical corporate landlords to exploit people for something that is a basic human right, which is housing.

We also have introduced other measures, such as Bill 48, to plug that vacancy decontrol hole, to have rent control for all tenants. There’s also Bill 58, which is currently on the table, the Protecting Renters from Illegal Evictions Act. These are proactive steps, Speaker, that would effectively safeguard and protect tenants. But yet we see a government that isn’t concerned about proactive measures; instead, they have looked towards reactive measures through Bill 97.

What is deeply concerning, Speaker, is that only this government could turn a Human Rights Tribunal ruling into a rent hike. What they have allowed is landlords to increase rent on people for having the right of air conditioning. How is that right? At a time of unprecedented unaffordability, they want to let unethical landlords reach deep into people’s pockets and take their hard-earned money. That’s on this government. They want to reach into people’s pockets by this decision. People who have had air conditioning units in the past will now have to pay for them; that’s on this government. That is a choice.

We have proposed so many solutions to problems of unaffordability and the problems facing tenants, but this government has said no every single time. We’ve brought forward opposition day motions. We’ve dedicated entire days to debating this within the Legislature, and this government shuts their ears and doesn’t want to listen to the voices of people who are struggling. They don’t want to listen to the voices of tenants.

They have this ironically titled legislation which does little to help homebuyers and protect tenants. It does so little. They are talking about increasing fines, but we know that fines are not levied in many cases at the Landlord and Tenant Board. The Ombudsman has even called the Landlord and Tenant Board “moribund.” My goodness.

This government has defended rent increases as high as 57%. In London, in my community, they were hit by the biggest average rent increase in all of Canada last year, 33%. And now, this year, it’s 27%. People cannot afford that. They have continued the Liberal loophole of vacancy decontrol, keeping that incentive for unethical corporate landlords to kick good people out, who have been there for many years, so that they can jack up the rent because the market will allow it.

I’ve travelled to 1270 and 1280 Webster Street, where I heard from seniors, people who were in their golden years who just want to enjoy some time in their home. And yet, this building has been sold, Speaker, and because this government does not stand up for tenants and did not plug vacancy decontrol and that loophole, these people have been served with eviction notices. Those are eviction notices that have not gone through the Landlord and Tenant Board; they’re deliberately misleading and threatening. These people are concerned about where they’re going to go. They’re concerned about possibly living in their car. It’s unconscionable, Speaker, that this government has the opportunity to stand up for tenants and chooses not to.

And if that weren’t bad enough, these people—and I’m very thankful for the leadership of the MPP for London–Fanshawe, who has canvassed these buildings; she has told people about their rights, making sure they’re informed, letting them know that these notices are ones that are not correct and an eviction order can only be ordered by the Landlord and Tenant Board. But now, Speaker, this landlord has tried to deliver a charge for parking spaces. They want to charge these residents $200 per month for a parking space—absolutely unbelievable. This government wants to open up people’s pockets so that unethical landlords can jam their hand in as far as they can.

Now, this government briefing on this bill and their ironic title—they say it’s going to make life easier for renters, help homebuyers, streamline policies to build more homes, but there’s no guarantee that their plan is actually going to create the affordable homes that people need. What is concerning is that they can raise fines all they want, but unethical landlords are not afraid of these fines, because it has failed to deter this illegal behaviour. The example at 1270 and 1280 Webster Street is an example of that. NDP legislation would protect them; Conservative legislation does not.

Many tenants are simply unaware of their rights. If this government truly wanted to stand up for tenants and wanted to protect them, they would make sure that the vacancy decontrol hole was plugged. I have heard from so many tenants who have repeatedly reported serious maintenance issues with their units—pests, lack of heat, basic services. At 1270 Webster Street and 1280 Webster Street, residents were telling me just a week ago that they’re responsible for cleaning their own lobby, their hallways and their laundry room because the landlord doesn’t do it. But they care for their place, they love their home, they love their neighbours and they look after one another.

I’d like to also add the voice of the Advocacy Centre for Tenants Ontario, who says, Bill 97 “does not go far enough to protect renters and fix the dysfunction at the Landlord and Tenant Board.” This is just “a band-aid solution.” This bill is only as good as—it’s simply not good enough. It’s just a band-aid solution.

It falls short because it fails to mandate a maximum temperature in the summer, similar to the mandated minimum temperature in the winter. This is something that our housing critic, the MPP for University–Rosedale, has called for. Last summer, I was canvassing on this very issue before it came before the Human Rights Tribunal. I canvassed an east London apartment complex where people who are busy, who are seniors, single parents, people working multiple jobs, were saddled with the choice: They were told that they could not install air conditioning units, which they had done for years. They were told that that was not allowed, that they would have to purchase an air conditioning unit from the landlord and they could have a payment plan to then pay it off. People were told that this was a must, this was the law, and many people made that choice. I shudder to think about the price that the landlord charged for these air conditioning units. It’s unconscionable.

Now, this government in their wisdom has seen fit to let people who have had air conditioners, people who even have the sleeves that are in their units because the builder understood that there would be a necessity to have air conditioning units—those people now have to pay. They’ve never had to pay before, but this government wants them to pay. This government wants to reach into their pockets and take their money.

This government also has really done a disservice to local councils by their removal of development charges—$5 billion, as has been estimated by the Association of Municipalities of Ontario.

They’ve also opened up large swaths of the greenbelt, auctioning it off to the highest donor and their insider friends, the people who actually pull the government strings in the backrooms. That is not something that is going to create the affordable housing that Ontario needs.

What is also really quite shocking is the systems that this government has in place that are supposed to protect homebuyers. For many years, when this government was in opposition, they railed against Tarion. They said how it was a system that was unacceptable. The Premier himself said that it was a monopoly, which it is, and they said that they would repair it. But now, since they’ve gone over to the government side, suddenly the song they’re singing has changed. Instead of overhauling and reforming Tarion, they’ve actually created yet another bureaucratic nightmare.

What is disturbing about this is that the information—when homebuyers have concerns with a builder, they report that, and it should be information that is posted on the Ontario Builder Directory. Unfortunately, that information is not being posted, so consumers are not being protected. Consumers don’t know when a builder who they may be seeking to invest in—it’s the biggest investment of their entire life. They don’t have accurate information provided on the Ontario Builder Directory. It’s deeply, deeply concerning.

It’s something as well that people are forced to pay for. Homebuyers are obliged to pay provincially mandated warranty fees, and it’s factored into the price for new home buyers. They’re stuck paying for it. For a long time, the entire composition of the Tarion board has been suspect. It has been one that has been controlled by the Ontario Home Builders’ Association. There are no consumer advocates on it. There is just a deep, huge concern. The official opposition has brought forward legislation again to help protect people who are making the largest investment of their life, with our consumer watchdog. But this government chooses not to stand up for homebuyers at all.

I think as well of so many people who have had absolutely horrendous stories. I think of Earl Shuman, who lost his life after making the biggest investment of his life and battling with Tarion for years and years and years.

I think of Daniel Browne-Emery, who, again, had mould in his basement the size of pizzas. Finally, after battling for years and years and years, he succumbed to cancer. He took a paltry amount of money as a buyout so that he could at least give something to his family, so that he could leave some sort of legacy.

I think as well of Gayle and Gary Dudeck, who have reached out to every single member in this House. I know you’ve received the letter—every single MPP did. They are from Oshawa. They described how their daughter and partner were fighting with a home builder who was engaged in some really disturbing behaviour. They said there was a weasel clause in the contract that stated that all of the lots had to be serviced by January 13 and if not the builder could cancel. The lots weren’t serviced by January 13—no surprise there; that was probably their intention the entire time—they were serviced on the 28th, 15 days later. That allowed them to renegotiate the contract with the purchaser. They added $200,000 to the purchase price.

Now, through HCRA, this government claims that renegotiations are illegal, but there’s been no enforcement. HCRA took 15 months reviewing the Dudecks’ complaint and they emphasized in their code of ethics that price renegotiations are unacceptable. They still did nothing. In their summary, they said that the builder could have communicated better, but there were no penalties and no negative repercussions for the builder. How is this government, through HCRA, standing up for homebuyers? They are not.

Typically, as well, when people enter into these issues with an unethical home builder, they are subject to having to sign non-disclosure agreements. It silences people. They’re stuck in a situation where their only option, after making the biggest investment of their lives and having their rights taken away and being subject to these massive increases—they then have to sign an NDA.

Whenever the minister for MGCS is questioned on this, there’s always a repeated, canned response. There’s been no positive action for purchasers. This government has known about this for many years. They’ve known about it for 15 years while they were in opposition. They promised to do something and they chose not to. It’s heartbreaking that people are stuck with this.

Many folks have reached out from the Ottawa area who had concerns with Greatwise Developments, which engaged in that very same sort of renegotiation of price. They said, “Well, the market has changed. The cost of materials is up.” That does not change the contract that they legally committed to.

I’d like this government, if indeed they want to stand up for homebuyers and protect tenants, to consider the proactive measures that they need to do. Increasing fines after someone’s rights have been taken away is not enough. That is not getting ahead of the problem. In fact, they ought to know, with the Ombudsman’s report and the backlog of cases at the Landlord and Tenant Board and all of the voices of people across Ontario who have struggled with that system, that Bill 97 is nowhere near enough.

In this bill, as well, they could end exclusionary zoning, a measure that their own Housing Affordability Task Force Report has called for. Their own budget shows that they are not on track to meet the 1.5 million homes they are pretending they’re going to reach.

Instead, this government really needs to focus on adequate housing as a human right. They need to make sure young people have an affordable, safe place to call home. They need to make sure that there’s a rights-based approach to housing, that there’s a variety of public policy tools to make sure that these housing units are being created.

There needs to be investment from this province. There needs to be a focus on non-market housing. Too often, we see a government that is overly reliant on the private market. They believe they can simply make a policy change and that the private market will magically create affordable housing. That is not the case. There is no way that a private, profit-motivated organization is going to create the affordable housing that Ontario needs. Their motive is profit. They have to deliver value to their shareholders between 10% and 15% of investment. Their motive is not going to be creating the affordable housing that Ontarians need.

You see, the NDP has always been and will always be the party of housing. Despite all of the flaws of the Rae government in the 1990s, that government created the greatest amount of social and affordable housing of any government before it. Much of that housing still exists to this day, Speaker, despite the attempts of the Liberal government to redevelop some of that housing into luxury condos.

We see also this government allowing huge holes through Bill 23, allowing these real estate investment trusts to snap up rental buildings to redevelop them into luxury housing. That is backwards. The Non-Resident Speculation Tax has loopholes big enough to drive a truck through.

If this government wants to truly focus on affordable housing, they need to build and provide that affordable housing. Don’t expect someone else to do the heavy lifting for you. The official opposition is here to work with you. Use us, and we will build it together.

2887 words
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