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Government raises ARV limit for rent control

Government passed a bill that increased the annual rental value of rent control properties by over $8,000 on Friday night.

Increases in the amount of properties under rent control are a temporary band-Aid protecting tenants until a balance can be found between housing demand and supply, Housing Minister Ashfield DeVent said.

However, the United Bermuda Party declared, rent control discriminates against the black landlords who form the majority of landlords owning properties which come under rent control.

The psychological effect of a Government dictating rents to a landlord will also result in fewer landlords willing to rent their properties, the UBP said.

Presently, Mr. DeVent said on Friday, properties with an annual rental value (ARV) exceeding $16,200 were exempted from rent control.

However, under new ARVs, some 5,400 premises formerly under rent control would see their ARVs increased to beyond that amount, leaving Bermuda?s tenants of limited means with 5,400 less options for housing.

The amendment to the Rent Increases (Domestic Premises) Control Act passed last night increases the ARV necessary to fall under rent control to $24,600. ?It keeps rental rates reasonable,? Mr. DeVent said.

Shadow Works and Engineering Minister Patricia Gordon-Pamplin declared the psychological impact of a dictatorial Government merely resulted in landlords striking back by leaving their properties empty or renting them only to family members.

The move also created a disincentive for developers, she said. Though Government is asking developers to construct affordable rental properties, the developers will be disinclined to do so if the profits are not there. ?It?s human nature to want to maximise your return.?

Rent control curbs development, she said, in turn decreasing the amount of housing available for certain incomes and therefore making the housing problem worse.

Shadow Seniors Minister Louise Jackson agreed that rent control does not work ? especially for seniors.

Many seniors rely on rent from properties they own to supplement pensions in order to survive, she said. ?Would Government consider seniors being exempt from this??

However, Ms Jackson?s comments drew fire from Government Minister without Portfolio Walter Lister. ?We can?t do that,? he said, declaring such a move would be ?discriminatory?.

The bill is to protect people seeking housing from exorbitant rents, he said ? families in particular. Exempting seniors ?would make a mockery of this bill?.

Shadow Home Affairs Minister Maxwell Burgess declared the bill itself was discriminatory. ?Under my rule, we were trying to get rid of it,? he said.

Black landlords are the ones who are affected by rent control, he said. ?It?s reality.?

If rent control is to be temporary, he added, there ought to be a time limit on it.

Mr. DeVent replied he was looking to get empty units back into the market.

?This is another plank in the plan towards housing in keeping with the Social Agenda. We are going to protect those who have less.?

John Barritt suggested another subsection that would read: ?This Act binds the Crown.? He wanted Government properties to also be part of the new increase.

But the amendment failed and the bill passed as it was.

More stories fromParliament on Pages 7, 8 and 9.