Real Rent Control Act, 2017 Tabuns, Peter — Bill 144 (41st Parliament, 2nd Session)

Bill 144, 41-2

Ontario — Bills

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Bill 144, Real Rent Control Act, 2017

Tabuns, Peter

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[41] Bill 144 Original (PDF)

EXPLANATORY

NOTE

The

Bill amends the Residential Tenancies Act, 2006 to

do the following:

1. Repeal

and replace the rules relating to the landlord's responsibility to maintain a

residential complex under

section 20 of the Act.

2. Create

a mechanism by which tenants may apply to the Landlord and Tenant Board in

circumstances in which a landlord has failed to comply with certain orders or a

previously mediated settlement.

3. Set

out new rules for rent that can be charged by a landlord to a new tenant.

4. Expand

the circumstances in which a tenant may apply to the Landlord and Tenant Board

for an order determining the maximum amount of rent that the tenant may

lawfully be charged.

5. Limit

existing grounds on which a landlord can seek an above guideline rent increase

to circumstances in which a landlord incurs an eligible capital expenditure and

amend the current rules around what constitutes an eligible capital expenditure

and when a landlord is eligible for an above guideline rent increase.

6. Establish

a rent registry to be maintained by the Landlord and Tenant Board and set out

rules requiring that landlords file statements with the Board for inclusion in

the registry, providing for consequences for failing to file the statement and governing

the disclosure of information in the registry.

The

Bill also addresses amendments made to the Residential

Tenancies Act, 2006 by the Rental Fairness Act,

2017 .

Bill 144 2017

Act to amend the Residential Tenancies Act, 2006

Her

Majesty, by and with the advice and consent of the Legislative Assembly of the

Province of Ontario, enacts as follows:

(1) Subsection 20 (1) of the Residential Tenancies

Act, 2006 is repealed and the following substituted:

Landlord's

responsibility to repair

(1) Subject

section 34, a landlord is responsible for providing and maintaining a

residential complex, including the rental units in it, in a good state of

repair and fit for habitation and for complying with health, safety, housing

and maintenance standards.

(2) Section

20 of the Act is amended by adding the following subsection:

Same

(3) For

greater certainty, a landlord is in breach of subsection (1) if the landlord

fails in any way to maintain the residential complex, including the rental

units in it, in a good state of repair, fit for habitation and in compliance

with health, safety, housing and maintenance standards regardless of any

efforts on the part of the landlord to maintain the residential complex.

Paragraph 6 of subsection 30 (1) of the Act is repealed.

The Act is amended by adding the following section:

Application

based on mediated settlement, prior order

31.1

(1) If

a landlord has failed to complete specified repairs or replacements or other

work within a period of time specified in a settlement or prior order a tenant

may, without notice to the landlord, apply to the Board for an order under this

section.

Same

(2) The

tenant shall include with the application a copy of the settlement or prior

order and an affidavit setting out the work that has not been completed.

Order

for payment

(3) If

the Board finds that the landlord has failed to comply with the settlement or

prior order, the Board may make one or more of the following orders:

1. Order

the landlord to pay to the Board an administrative fine not exceeding $1,000

per day until the landlord satisfies the Board that the landlord has complied

with the order or settlement.

2. Order

an abatement of rent until the landlord satisfies the Board that the landlord

has complied with the order or settlement.

3. Order

an abatement of rent in the amount of the reasonable costs that the tenant will

incur in completing the repairs or replacements or other work as set out in the

order or settlement.

Amendment

to settlement, order

(4) In

an order under subsection (3), the Board may amend the settlement or prior

order if it considers it appropriate to do so.

Time

limitation

(5) No

application may be made under subsection (1) in respect of a work order made

under

section 225 until the time limit for applying for a review of the work

order under

section 226 has elapsed and the landlord has not applied for a

review or, if the landlord has applied for a review, the Board has made an

order under subsection 226 (2).

Definition

(6) In

this section,

"prior

order" means either an order of the Board made under paragraph 4 of subsection

30 (1) or a work order made under

section 225; ("ordonnance antérieure")

"settlement"

means a settlement mediated under

section 194. ("règlement")

(1) Subsection 37 (7) of the Act is amended by adding "and" at the

end of clause (a), striking out "and" at the end of clause (

b) and striking out

clause (c).

(2) Subsection

37 (9) of the Act is amended by striking out "clauses 7 (a), (

b) and (c)" and

substituting "clauses 7 (

a) and (b)".

Section 113 of the Act is repealed and the

following substituted:

Lawful

rent for new tenant

Subject

section 111, the lawful rent for the first rental period for a new tenant

under a new tenancy agreement is,

(

a) any

amount that is equal to or less than the last lawful rent charged or that ought

to have been charged to the previous tenant if the rental unit was previously

rented in the last 12 months;

(

b) with

respect to a rental unit that has not been rented in the last 12 months, an

amount that is equal to or less than the sum of,

(

i) the

last lawful rent charged or that ought to have been charged to the previous

tenant,

(ii) all

increases to the rent that the landlord would have been permitted to make under

this Act if the rental unit had been occupied, and

(iii) all

decreases to the rent that the landlord would have been required to make under

this Act if the rental unit had been occupied; or

(

c) the

rent first charged to the tenant if the rental unit was not previously rented.

Section 114 of the Act is amended by striking out "6, 7 or 8" wherever it

appears and substituting in each case "7 or 8".

Subsection 115 (1) of the Act is repealed and the following substituted:

Application

by tenant

(1) A

tenant, other than a new tenant who occupies a rental unit described in clause

113 (c), may apply to the Board for an order determining the maximum amount of

rent that the tenant may lawfully be charged.

Same

(1.1) If

at the time of the application an order made under paragraph 7 or 8 of

subsection 30 (1) prohibits the landlord from giving a notice of a rent

increase to the tenant or taking any rent increase for which notice has been

given with respect to the tenant's rental unit, the Board's order will set out

the amount of rent that the tenant may lawfully be charged,

(

a) until

the prohibition in the order ends; and

(

b) after

the prohibition in the order ends.

Same

(1.2) If

the Board determines that the landlord has charged the tenant a rent that

exceeds the maximum lawful rent, the Board shall order that the landlord rebate

to the tenant any rent paid by the tenant in excess of the maximum amount of

rent that the tenant may lawfully be charged.

Section 117 of the Act is repealed and the following substituted:

Compliance

by landlord, no notice required

(1) Despite

section 116, but subject to subsections (2) and (3) of this section, if an

order was issued under paragraph 8 of subsection 30 (1), no notice of rent

increase is required for the landlord to take a rent increase that the landlord

would have been entitled to take in the absence of the order.

Limitation

(2) Subsection

(1) applies only where the landlord,

(

a) has

completed the items in work orders for which the compliance period has expired

and which were found by the Board to be related to a serious breach of a

health, safety, housing or maintenance standard; and

(

b) has

completed the specified repairs or replacements or other work ordered under

paragraph 4 of subsection 30 (1) found by the Board to be related to a serious

breach of the landlord's obligations under subsection 20 (1) or

section 161.

Effective

date

(3) The

authority under subsection (1) to take an increase or charge an amount without

a notice of rent increase is effective on the first day of the rental period

following the date that the landlord completed,

(

a) the

items in work orders for which the compliance period has expired and which were

found by the Board to be related to a serious breach of a health, safety,

housing or maintenance standard; and

(

b) the

specified repairs or replacements or other work ordered under paragraph 4 of

subsection 30 (1) found by the Board to be related to a serious breach of the

landlord's obligations under subsection 20 (1) or

section 161.

Date

of annual increase

(4) In

determining the effective date of the next lawful rent increase under

section

119, an increase taken under subsection (1) shall be deemed to have been taken

at the time the landlord would have been entitled to take it if the order under

paragraph 8 of subsection 30 (1) had not been issued.

Section 120 of the Act is amended by adding the following subsection:

Exception

(1.1) Despite

subsection (1), a landlord who has not filed a statement in respect of a rental

unit in accordance with

section 182.3.2 may not increase the rent in respect of

that unit until the statement is filed.

(1) If this Act receives Royal Assent before subsection 22 (1) of

the Rental Fairness Act, 2017 comes into force,

subsection 22 (1) of the Rental Fairness Act, 2017

is repealed.

(2) If

subsection 22 (1) of the Rental Fairness Act, 2017

is repealed by subsection (1), subsections 126 (1) and (2) of the Act are repealed

and the following substituted:

Application

for above guideline increase

(1) A

landlord may apply to the Board for an order permitting the rent charged to be

increased by more than the guideline for any or all of the rental units in a

residential complex if eligible capital expenditures have been incurred

respecting the residential complex or one or more of the rental units in it.

Eligible

capital expenditure

(2) For

the purpose of this section, an eligible capital expenditure is an expenditure

that funds a capital improvement that benefits the tenants of the residential

complex, as determined in accordance with the regulations, repairs or replaces

systems or things that require major repair or replacement and that,

(

a) is

necessary to protect or restore the physical integrity of the residential

complex or part of it;

(

b) is

necessary to comply with subsection 20 (1) or clauses 161 (

a) to (e);

(

c) is

necessary to maintain the provision of a plumbing, heating, mechanical,

electrical, ventilation or air conditioning system;

(

d) provides

access for persons with disabilities;

(

e) promotes

energy or water conservation; or

(

f) maintains

or improves the security of the residential complex or part of it.

Suite

meter, utilities

(2.1) A

capital expenditure for the installation of a suite meter or for compliance

with subsection 138 (5) is only a capital expenditure if it meets the

requirements under both subsection (2) of this

section and subsection 137

(15) or 138 (10), as the case may be.

(3) If

this Act receives Royal Assent after subsection 22 (1) of the Rental Fairness Act, 2017 comes into force, subsection

126 (1) of the Act, as amended by subsection 22 (1) of the Rental Fairness Act, 2017 , and subsection 126 (2) of the

Act are repealed and the following substituted:

Application

for above guideline increase

(1) A

landlord may apply to the Board for an order permitting the rent charged to be

increased by more than the guideline for any or all

Document details

Collection	Ontario — Bills
Citation	Bill 144, 41-2
Type	bill
Volume / chapter	p41 s2 bill 144 html
Language	en
Format	html
Source	PROVINCIAL
Identifier	4421ac2771a26f77759d3ce2c9636a3bd2e3b5bd

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