VANCOUVER—Councillors voted to adopt a new policy that significantly increases the compensation available to renters who are evicted so their buildings can be redeveloped.

While Mayor Kennedy Stewart called the new policy the most extensive in the country when it comes to compensation, tenants and advocates said it fell far short of preventing renovictions or lessening stress for vulnerable renters who have to fight eviction attempts.

That’s because the new policy only applies to buildings where owners have applied for a development permit; it does not apply when the owner has obtained a building permit to renovate.

David Hutniak, CEO of landlord industry group LandlordBC, warned that the policy could stymie much-needed development of new rental buildings or the renovation of aging buildings.

Councillor Melissa De Genova said she was concerned that the new policy could impact in-process applications for new rental, but city manager Sadhu Johnston said staff are seeing applications every day that affect tenants and staff can work with any applicant whose project might be affected.

The policy comes as tenants in older buildings continue to be evicted or offered financial incentives to move out so their landlord can renovate their unit and charge much higher rents.

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“There is simply no place to go if renters are displaced, and there is very little supply in the lower rent ranges,” said Edna Cho, a housing planner with the city.

“When renters are displaced, they’re leaving the city, losing community, in some cases becoming homeless. Relocation is very stressful, especially when it’s not your choice.”

Under the city’s current tenant relocation policy, renters who are evicted so their landlord can redevelop their building are entitled to compensation and relocation assistance. That compensation currently tops out at six months’ rent for tenants who have lived in their units for 20 years.

The new policy increases that compensation to four months’ rent for tenants who have lived in their unit for one to five years, all the way to 24 months’ rent for tenants who have occupied their suite for 40 years.

Carol Korm has lived under the threat of eviction for nearly a year. The owner of her West End building has applied to redevelop the building, but Korm and her neighbours have pushed back.

Korm recalled the motion council passed last December, pledging to “ban renovictions” after hearing from over 50 speakers. She said the proposed policy falls far short of that promise.

“We shouldn’t need the tenant relocation policy anymore,” Korm said. “We shouldn’t be evicted for building maintenance anymore.”

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To fight renovictions, the city is proposing to help tenants access the provincial Residential Tenancy Branch system. Creating a renter’s resource hub is part of that approach.

A staff report also suggests creating an information booklet for both tenants and landlords, with guidelines on common renovations and whether tenants need to vacate in order for the landlord to complete the work.

Hutniak said he appreciated that city staff had not gone the route of other municipalities in passing “unfair” policies. Earlier this year, New Westminster and Port Coquitlam passed bylaws that use the cities’ business licensing powers to prevent renovictions. Landlords in these cities who attempt to evict tenants in order to do renovations could face daily fines or, in extreme cases, the loss of their business licence.

“We appreciate that staff did not demonize rental housing providers as we have seen in other municipalities of late,” Hutniak told council.

He warned that many older apartment buildings require significant upgrades, while the cost of running the buildings keeps going up because of factors like rising property tax. While some landlords have budgeted and planned for large maintenance projects, Hutniak said, some smaller “mom and pop” owners failed to plan for renovations.

As for finding the extra money in rent revenue, B.C.’s rent-control rules restrict annual increases to around two per cent a year, Hutniak said. There is little opportunity to raise rents at turnover because, with such low rental supply, tenants tend to stay put, he said.

But David Hendry, a tenant advocate with the Vancouver Tenants Union, said he had seen first-hand how New Westminster’s business licence bylaw had helped tenants. Hendry said the Residential Tenancy Branch arbitration system is stressful for tenants, and many more vulnerable renters can’t deal with the stress and uncertainty of the RTB process.

In a case that started last January, Hendry said, New Westminster’s new bylaw made a difference in getting a better settlement for tenants.

“As the landlord approached the $500 daily fine, buyout offers started at $2,000, then went up to $10,000, then $15,000. Finally, after three brave tenants persisted, they went to $25,000 and then $30,000 on the day of the arbitration,” Hendry said.

“But here’s the thing: they didn’t want the buyouts, because they’re smart. What they wanted was sustainable, affordable housing in their communities, close to their friends and families and their jobs. They bargained for relocation at the same rent and a small cash settlement.”

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