Tiny Homes Developer Seeks Court Exemption from Landlord Rules

A charity operating nearly 100 tiny homes for individuals facing chronic homelessness in Fredericton is contesting its classification under provincial landlord regulations. 12 Neighbours Community Inc. filed for a judicial review on July 4, 2023, challenging the province’s decision to subject it to the jurisdiction of the Tenant and Landlord Relations Office, which enforces the Residential Tenancies Act.

The organization argues that it should be exempt from these rules due to its financing and operational framework, which it claims falls under a government-backed clause. 12 Neighbours maintains that because its housing units were developed under the National Housing Act and administered on behalf of the province, it should not be held to the same standards as traditional landlords.

In a response to the application, Housing New Brunswick contends that 12 Neighbours is indeed subject to the Residential Tenancies Act, similar to other non-profit housing providers with government ties. This conflict highlights the complexities surrounding the governance of non-profit housing initiatives.

Judicial Review and Administrative Challenges

The hearing for the judicial review was scheduled for Tuesday but was unexpectedly adjourned, leaving stakeholders seeking clarity on the reasons behind the postponement. Marcel Lebrun, the founder of 12 Neighbours, did not respond to inquiries regarding the motivations for seeking the review, and Housing New Brunswick declined to comment due to the ongoing legal situation.

Since its inception in 2022, 12 Neighbours has transitioned from a small project to a significant provider of supportive housing, now managing 96 tiny homes. The organization aims to assist individuals grappling with chronic homelessness and related challenges.

In an affidavit, Lebrun expressed his confusion over the office’s jurisdiction and the eviction process. He cited a recent case involving a tenant charged with battery against another resident, asserting that the eviction process was unclear. In September, Steve Patterson, a community director for 12 Neighbours, reached out to the office for guidance after experiencing multiple instances where the safety of the community was compromised.

Initially, the Tenant and Landlord Relations Office indicated it did not have jurisdiction over 12 Neighbours. However, approximately a year later, the office revisited this stance, leading to further discussions with Lebrun. In May 2024, Paul Steeves, the deputy chief residential tenancies officer, affirmed the office’s position that 12 Neighbours must adhere to the Residential Tenancies Act.

Potential Implications of the Ruling

According to documents related to the judicial review, the Tenant and Landlord Relations Office has already taken regulatory action against 12 Neighbours. In one instance, the office ruled that the organization violated the act by improperly terminating a month-to-month tenancy. The office found that 12 Neighbours had not provided valid reasoning for eviction, which is required under the act.

The implications of a ruling in favor of 12 Neighbours could extend beyond its operations. Tobin LeBlanc Haley, an associate professor and housing researcher at the University of New Brunswick, cautioned that exempting the organization from the Residential Tenancies Act could undermine tenant protections. She emphasized that all renters, especially those in vulnerable situations, should have access to the same legal safeguards.

LeBlanc Haley pointed out that while New Brunswick Public Housing is exempt from the act, extending such exemptions to non-profit organizations could further diminish tenant rights. “If a judge found that 12 Neighbours or similar models are exempt, it would widen the group of tenants lacking protections,” she stated, underscoring the potential consequences of the case.

As the judicial review progresses, the debate over the governance of non-profit housing and the protection of vulnerable tenants remains a critical topic in New Brunswick’s housing landscape. With the outcome still pending, both sides are preparing for what could be a landmark decision affecting the future of community-supported housing in the province.