Housing Statutes (Housing Security) Amendment Act, 2023

Summary#

• This bill sets annual targets for affordable and social housing and adds public reporting. It also limits how much landlords can raise rent each year and stops big rent jumps between tenants for a set time.
• Key changes:
  • The housing minister must set and publish minimum numbers of affordable and social housing to add each year, by housing type (like single-family, apartments, seniors’ lodges).
  • The minister must report yearly on progress, including new and removed affordable units, rent supplements given, and wait-list numbers.
  • Rent increases for most rentals would be capped by inflation, with a temporary 2% cap until the end of 2025.
  • From when the law takes effect until December 31, 2028, landlords could not reset the rent much higher between tenants (“vacancy control”).
  • Similar rent caps and vacancy control rules would apply to mobile home sites.

What it means for you#

• Renters (apartments, houses, suites)

  • Until December 31, 2025, your landlord could raise rent by up to 2% per increase, with the usual notice (3 months for monthly leases; different for weekly/other periodic).
  • After that, yearly increases would be tied to Alberta inflation: up to 2% if inflation is low; up to the inflation rate if it’s between 2% and 5%; and up to 5% if inflation is 5% or higher.
  • If you move during the vacancy control period (from when the law starts through 2028), the starting rent for the same unit could not jump more than the allowed increase over the last rent paid.
  • If you were already told about a larger increase that takes effect after the law starts, it would be reduced to the allowed amount.
  • Some homes are excluded from these caps, like social housing, government-designated affordable housing, subsidized public housing, and non-profit co-ops.

• Mobile home owners who rent a site

  • Rent increases would need 180 days’ written notice.
  • The same cap and 2025 temporary 2% limit would apply, with an option for landlords to apply for a higher amount through the government’s dispute service.
  • Vacancy control would apply through December 31, 2028, so site rent between tenants could not jump beyond the allowed increase.

• Landlords and park operators

  • You could apply to the Residential Tenancy Dispute Resolution Service to ask for a rent increase above the cap. The government would set rules for how this works.
  • If you serve a notice for an increase that exceeds the cap and it takes effect after the law starts, it would be automatically lowered to the permitted amount.
  • Normal notice rules still apply for rent increases.
  • Caps do not apply to social housing, designated affordable housing, subsidized public housing, or non-profit co-ops.

• Seniors and people in social or affordable housing

  • Your rent is not covered by these new caps because your housing already has its own rent rules.
  • The minister would set yearly minimums for adding social and affordable homes, including seniors’ lodges and seniors’ self-contained units, and report results publicly.

• Households seeking help paying rent

  • The government’s annual report would show how many direct rent supplements (help paying rent) were given out and how many applications were still waiting for a decision by April 30.
  • It would also report on approved rent supplement units and pending approvals.

• Housing providers and builders

  • There would be clearer government targets for adding affordable and social homes, including whether units are new builds or conversions of existing buildings.
  • The minister must make sure set minimums are met or exceeded each year and publish the targets online.

Expenses#

No publicly available information.

Proponents' View#

• Rent caps and vacancy control help stop sudden, large rent hikes that can push families and seniors out of their homes.
• Tying rent growth to inflation is simple and predictable, so renters can budget.
• The temporary 2% cap through 2025 gives immediate relief while inflation is high.
• An appeal path for landlords (through the dispute service) keeps the system fair when costs are unusual.
• Annual housing targets and public reporting increase transparency and keep government accountable for adding affordable and social homes.
• Tracking rent supplements and wait lists shines a light on demand and gaps in support.

Opponents' View#

• Rent caps and vacancy control could discourage new rental construction or upgrades, which may limit supply over time.
• Landlords say capped increases may not cover rising costs (repairs, insurance, taxes), which could affect maintenance quality.
• Vacancy control can reduce flexibility to reset rents to market between tenants, which some argue may lead to fewer available units.
• More rules and applications (to exceed the cap) could add administrative burden and delays.
• Setting minimum numbers of new affordable and social homes without clear funding details may be hard to deliver.