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Tenant rent strike in Toronto community picks up steam as more groups join in

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The tenant rent strike in Toronto’s York South-Weston community first gained traction in June, when approximately 200 residents at 33 King St. — located near Weston Road and Lawrence Avenue West — refused to pay rent in protest of their corporate landlord, Dream.

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On July 1, tenants of another Dream-owned high-rise building in the community, 22 John St., joined their neighbours in the strike.

Now, a coalition of climate groups is gearing up to deliver an open letter to Dream Unlimited’s downtown Toronto headquarters to support tenants at both buildings who are rent-striking against what they call “excessive rent increases.”

According to the York South-Weston Tenant Union, the corporate landlord has attributed the double-digit rent increases to “decarbonization” renovations to reduce emissions.

However, the coalition of climate groups has now come forward to reaffirm and support the tenants’ demands. In a press release, the coalition condemned the “greenwashing of rent increases” and stood against “green retrofitting that displaces tenants.”

Tenants in both buildings, which together house over 300 units, gathered to protest “years of rent increases and mismanagement” in a Rally for Fair Rent on July 15. The group claims that the owners of the two buildings have used a controversial tool called “above guideline rent increases,” otherwise known as “AGIs,” to increase rents over the past few years.

Despite living in a rent-controlled building, tenants at 33 King St. claim to have seen rent increase by 22 per cent in the last five years, while tenants at 22 John St. claim to have seen rent increases from seven to 10 per cent year-over-year, even though the building only opened up in 2018.

According to the union, Dream boasts “over $16 billion in assets and 30,000 rental units” as a corporate landlord.

Last month, members of the union met with Dream executives with three specific demands: to withdraw existing applications for above guidelines increases and follow rent control, to commit to no more AGIs in the building, and to pay tenants compensation for loss of services and amenities.

However, the union alleges that the corporate landlord “failed to meaningfully engage with any of their demands,” offering instead to collaborate with tenants on community programming.

“This isn’t about free rent, it’s about fairness. We’ll pay our rent when Dream Unlimited sits down to negotiate these excessive increases with us as a tenant union, but so far they only want to talk about ‘community programming,'” said Sharlene Henry, co-chair of the tenant union.

“We don’t want charity. We want rent control.”

The coalition of climate groups is set to deliver the open letter on July 27 at Dream Unlimited’s headquarters at 30 Adelaide St. E.

Lead photo by
York South-Weston Tenant Union

 

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China Evergrande Suspends Trading as New Trouble Roils Property Market – The New York Times

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Toronto Restaurant Real Estate Putting A Squeeze On Owners – Storeys

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Why China’s Real Estate Crisis Is Different

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(Bloomberg) —

The troubles facing highly indebted property developers in China have dominated conversations about the Asian nation’s economy and markets this year. Yet according to Rayliant Global Advisors’ Jason Hsu, there’s an important distinction between this housing crisis and previous ones elsewhere: The developers are the ones who are over-leveraged—not households. And that difference is guiding policymakers’ response.Hsu, chief investment officer of Rayliant and a co-founder of Research Affiliates, joined the What Goes Up podcast to discuss China and other emerging markets. “Chinese households are not levered when it comes to real estate,” he says. “They’re not levered because they can buy their first home with money down—and they pay quite a bit money down—and they generally have to sort of have enough income to cover the payment. That bankruptcy you’re seeing in the developer sector is very engineered. On the household side, there’s not a balance-sheet crisis, because they’re not buying real estate on leverage. So they really don’t think there’s a meaningful problem there.”

 

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