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Bill 82, Protecting Renters from Unfair Above Guideline Rent Increases Act, 2026

Smyth, Stephanie

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Bill 82 Original (PDF)

EXPLANATORY

NOTE

The

Act amends the Residential Tenancies Act, 2006 with

respect to above guideline rent increases.

The

amendments require landlords to provide additional reports and evidence with

any application they make to the Landlord and Tenant Board for an above

guideline increase that is due in whole or in part to an eligible capital

expenditure.

The

amendments also establish new exceptions for capital expenditures that cannot

be the subject of an above guideline increase, including expenditures related

to specified cosmetic work, certain routine or ordinary work and work that

arises as a result of a failure of the landlord to comply with specified

obligations.

The

Board is required to consider certain considerations relating to the potential

effect on affected tenants. The Board may, after considering these factors,

determine that an above guideline increase would impose undue hardship on the

affected tenant or tenants and dismiss the application.

When

determining the amount of an above guideline increase, the Board shall not

include any costs the landlord incurs or is expected to incur in a non-arm’s

length transaction and any amounts for which the landlord has received

specified financial assistance from any level of government.

Currently,

subsection 126 (12) effectively authorizes the Board to dismiss or pause

applications in cases of “serious breaches” of certain landlord obligations.

The amendments replace the concept of a “serious breach” with the concept of a

“breach” of these obligations.

Section

129 is amended to add a new requirement for landlords to provide notice to the

tenant of the date on which their rent will be reduced if an above guideline

increase has been approved. If notice is not given and if the tenant overpays,

the landlord is required to reimburse the tenant for 1.5 times the amount of

the overpayment.

Bill 82 2025

Act to amend the Residential Tenancies Act, 2006 with respect to above

guideline rent increases

His

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

Province of Ontario, enacts as follows:

(1) Section 126 of the Residential Tenancies

Act, 2006 is amended by adding the following subsection:

Required

information with application for eligible capital expenditure

(3.0.1) The

landlord shall include the following information with an application under this

section for an above guideline increase that is due in whole or in part to an

eligible capital expenditure:

1. An

engineering or professional report demonstrating that the expenditure is

necessary to protect the structural integrity, health, safety of the

residential complex or one or more of the rental units in it or that it is

necessary to provide a vital service.

2. Evidence

demonstrating that the expenditure is not substantially cosmetic in nature.

3. Evidence

demonstrating that the expenditure is not for routine or ordinary work.

4. If

the expenditure is to repair or replace a capital asset, evidence that the

expenditure is not reasonably expected due to the expected service life of the

capital asset that is to be repaired or replaced.

5. If

the expenditure is to replace a capital asset, documentation of why the

landlord believes it is reasonable to replace the asset instead of repairing

it, having regard to the cost-effectiveness of the potential repairs, the state

of the asset and any other relevant concerns.

6. Documentation

demonstrating that any costs the landlord incurs in respect of an eligible

capital expenditure for which the landlord intends to seek an above guideline

increase are incurred as part of an arm’s length transaction, as defined in the

regulations.

(2) Subsection

126 (7) of the Act is amended by striking out “Subject to subsections (8) and

(9)” at the beginning of the portion before clause (

a) and substituting

“Subject to subsections (8), (8.1) and (9)”.

(3) Section

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

Exception

(8.1) The

following capital expenditures are not eligible capital expenditures for the

purposes of this section:

1. Work

that is substantially cosmetic in nature or is designed to enhance the level of

prestige or luxury offered by a unit or residential complex.

2. Routine

or ordinary work undertaken on a regular basis or undertaken to maintain a

capital asset in its operating state, such as cleaning and janitorial services,

elevator servicing, general building maintenance, grounds-keeping, appliance

repairs, electrical repairs, roof repairs, heating equipment repairs,

ventilation repairs and air conditioning repairs.

3. Any

work that arises as a result of the landlord’s failure to comply with

subsection 20 (1) or

section 161.

(4) Section

126 of the Act is amended by adding the following subsections:

Considerations

(9.1) In

assessing an application under this section, the Board shall consider the

following:

1. The

percentage of income that the affected tenant or tenants currently spend on

rent.

2. The

local vacancy rate.

3. The

impact of local rent pressures on the ability of the affected tenant or tenants

to find other housing.

Board

may dismiss application for undue hardship

(9.2) The

Board may dismiss the application with respect to a rental unit if the Board

determines, after considering the factors described in subsection (9.1), that

an above guideline increase would impose undue hardship on the affected tenant

or tenants.

Calculation

to exclude certain costs

(9.3) In

assessing an application under this

section and determining the amount by which

the rent may be increased, the Board shall not include any of the following

costs:

1. Any

costs the landlord incurs or is expected to incur in a non-arm’s length

transaction, as defined in the regulations.

2. Any

costs that are or will be paid for by a grant, rebate, subsidy or other

financial assistance from any level of government.

(5) Subsection

126 (12) of the Act is amended by striking out “serious breach” wherever it

appears and substituting in each case “breach”.

(6) The

French version of subclause 126 (12) (a) (iii) of the Act is amended by

striking out “soit a gravement manqué” and substituting “soit a manqué”.

(7) Subclause

126 (13) (b) (iii) of the Act is amended by striking out “serious breach” and

substituting “breach”.

(8) Section

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

Transition

(16.1) An

application that was made before the day

section 1 of the Protecting

Renters from Unfair Above Guideline Rent Increases Act, 2025 comes into

force shall continue to be dealt with in accordance with this

section as it

read at the time the application was made.

Section 129 of the Act is repealed and the following substituted:

Capital

expenditures

(1) If the Board issues an order

under subsection 126 (10) permitting an increase in rent that is due in whole

or in part to eligible capital expenditures,

(

a) the

Board shall specify in the order the percentage increase that is attributable

to the eligible capital expenditures;

(

b) the

Board shall specify in the order a date, determined in accordance with the

prescribed rules, for the purpose of clause (c); and

(

c) the

order shall require that,

(

i) if

the rent charged to a tenant for a rental unit is increased pursuant to the

order by the maximum percentage permitted by the order and the tenant continues

to occupy the rental unit on the date specified under clause (b), the landlord

shall, on that date, reduce the rent charged to that tenant by the percentage

specified under clause (a), and

(ii) if

the rent charged to a tenant for a rental unit is increased pursuant to the

order by less than the maximum percentage permitted by the order and the tenant

continues to occupy the rental unit on the date specified under clause (b), the

landlord shall, on that date, reduce the rent charged to that tenant by a

percentage determined in accordance with the prescribed rules that is equal to

or lower than the percentage specified under clause (a).

Landlord

to provide notice

(2) If

the Board has issued an order described in subsection (1), the landlord shall

provide notice to the tenant of the date on which their rent will be reduced as

described in clause (1) (

c) at least 30 days before that date.

Failure

to provide notice resulting in overpayment

(3) If

the landlord fails to provide notice as required by subsection (2) and the

tenant overpays by paying the amount that was owing before the reduction

required by clause (1) (c), the landlord shall reimburse the tenant for an

amount equal to 1.5 times the amount of the overpayment.

(1) Paragraph 31 of subsection 241 (1) of the Act is amended by

striking out “clause 129 (b)” at the end and substituting “clause 129 (1) (b)”.

(2) Paragraph

32 of subsection 241 (1) of the Act is amended by striking out “subclause 129

(c) (ii)” at the end and substituting “subclause 129 (1) (c) (ii)”.

Commencement

This Act comes into force on the day that is four months after the day this Act

receives Royal Assent.

Short

title

The

short title of this Act is the Protecting Renters from Unfair Above Guideline Rent Increases

Act, 2025 .

Date Bill stage Event Outcome Committee

March 26, 2026

Second Reading

Vote

Lost on division

March 25, 2026

Second Reading

Question put

Vote deferred

March 25, 2026

Second Reading

Debated

November 27, 2025

First Reading

Ordered for Second Reading

November 27, 2025

First Reading

Vote

Carried

First Reading

November 27, 2025

Carried

Ordered for Second Reading

Second Reading

March 25, 2026

Questions and Responses

Bowman, Stephanie

Don Valley West

Glover, Chris

Spadina—Fort York

Kernaghan, Terence

London North Centre

Schreiner, Mike

Guelph

Shamji, Adil

Don Valley East

Smith, Laura

Thornhill

Smyth, Stephanie

Toronto—St. Paul's

Vaugeois, Lise

Thunder Bay—Superior North

Watt, Tyler

Nepean

Question put

March 26, 2026

Lost on division