NDP promises higher tax credit for Manitoba renters, stricter rules for landlords looking to raise rent

Manitoba New Democrats are promising to increase a tax credit for renters and make it harder for landlords to raise rents above the province's annual guideline.

NDP Leader Wab Kinew says party would boost maximum renters credit to $700 a year if elected

The Canadian Press Posted: Aug 25, 2023 1:53 PM EDT | Last Updated: August 26, 2023

A man stands at a podium, backed by several of his party's candidates. An apartment complex is visible in the background. — Manitoba NDP Leader Wab Kinew says his party will reduce exemptions to provincial rent guidelines if it wins the election scheduled for Oct. 3. (Ian Froese/CBC)

Manitoba New Democrats are promising to increase a tax credit for renters and make it harder for landlords to raise rents above the province's annual guideline.

The province currently offers renters a tax credit of up to $525 a year, and NDP Leader Wab Kinew says his party will boost the credit back to $700 if it wins the election slated for Oct. 3.

The PCs reduced the tax credit for renters when it started giving property owners rebates on their education property tax.

Kinew also said anNDP government would limit landlords' ability to apply for a rental increase above the maximum cap.

Landlords can currently seek an increase from the Residential Tenancies Branch, providedthey provethe material improvements they made to the propertyare significant enough that they need higher rents.

In the past, the oversight body has tended toapproverate hikes, giving the OK toevery request made in the 2019-20 fiscal year.

Even a year's worth of rent can't get recent immigrants into decent housing in Winnipeg, they say

Low-income renters can get a one-off $500 federal payment. How much will it help struggling tenants?

"Right now, the balance is tipped entirely in favour of the landlord, and we need to tip the scales back towards the renter," Kinew said Friday.

"When the average person hears about rent going up 30 per cent, and the justification for that is a new coat of paint, I think the average person thinks well, maybe we could do better than that in Manitoba."

An NDP government would propose a law to ensure above-guidelinerent increasesare tied to real capital improvements, he said.

"You still have to have respect for the landlords who want to maintain properties and invest in them, but we also need to at least have some semblance of balance for people who are struggling to get by."

Kinew said the new law would be similar to a 2021 private members' bill from the party, which statedlandlords could only make an application to the tenancies branch if it incurred "eligible capital expenditures" or an "extraordinary increase in taxes, utilities or security service costs." The PC government didn'tsupport the bill.

Regulation to protect non-profit affordable housing

As well, Kinew committed Friday to developa regulatory process toensureaffordability is maintained when anon-profit or co-operativetries to divest of buildings that were designed to be affordable housing.

The system could save buildings like the publicly-funded Lions Place from being sold.

After residents and family members raised an uproar over the sale, the provincial government promised $1.2 million in subsidiesso residents wouldn't have to pay more in rent over the next two years.

Two men in winter jackets stand outside, speaking to members of the media. — Gerald Brown and Tom Simms are part of the seniors action committee that fought to stop the sale of Lions Place. The facility was eventually sold to a private company, and the province offered subsidies in order to keep rents the same for two years. (Randall McKenzie/CBC)

The NDP estimates its new promises for renterswould cost $26.7 million annually.

The Progressive Conservatives say they have a record of helping renters.

They froze tenant rents in 2022 and 2023, which was some financial relief for renters after giving allproperty owners a rebate on their education property tax.

The party also extended its renters' tax credit to the 45,000 Manitobans who are recipients ofRent Assist and not Employment and Income Assistance, as well as those living in social housing.