Rental Fairness Act, 2017 — Bill 124 (41st Parliament, 2nd Session)

Bill 124, 41-2

Ontario — Bills

2ND SESSION, 41ST LEGISLATURE, ONTARIO 66 ELIZABETH II, 2017 Bill 124

An Act to amend the Residential Tenancies Act, 2006 The Hon. C. Ballard Minister of Housing Government Bill 1st Reading April 24, 2017 2nd Reading May 4, 2017 3rd Reading Royal Assent (Reprinted as amended by the Standing Committee on General Government and as reported to the Legislative Assembly May 17, 2017) (The provisions in this Bill will be renumbered after 3rd Reading)

This reprint of the Bill is marked to indicate the changes that were made in Committee. The changes are indicated by underlines for new text and a strikethrough for deleted text. ______________ EXPLANATORY NOTE The Bill amends the Residential Tenancies Act, 2006. The principal amendments to the Act are described below. New exemption from Act under

section 5.1

Section 5.1 is added to the Act to provide a new exemption. Under subs ection 5.1 (1), living accommodation is exempt from the Act if it is provided to a person as part of a program that meets specified requirements and if the occupant and the provider of the living accommodation have entered into an agreement that meets specified requirements. The program must consist of the provision of living accommodation and accompanying services which must include rehabilitative or therapeutic services or services intended to support employment or life skills development.

Rent control rules The Bill repeals subsection 6 (2) of the Act. Currently, subsection 6 (2) exempts certain rental units from various rules relating to rent (including rules relating to the rent increase guideline). There are three categories of rental units that ar e exempt: a unit that was not occupied for any purpose before June 17, 1998; a unit that has not been previously rented since July 29, 1975; and a unit in a building, mobile home park or land lease community no part of which was occupied for residential purposes before November 1, 1991. A new

section 120.1 is enacted. It sets out transitional rules relating to notices of rent increases that are given by landlords before the day subsection 6 (2) of the Act is repealed in respect of rental units that, as of that day, are no longer exempt from the rent control rules. Prescribed form of tenancy agreement New

section 12.1 provides that every tenancy agreement entered into in respect of a tenancy of a prescribed class on or after the date prescribed for that clas s shall be in the form prescribed and comply with the requirements prescribed for that class. Related regulation-making powers are given to the Minister of Housing under new

section 241.1. Subsections 12.1 (5) to (10) set out rules that apply when the agre ement is not in the prescribed form or does not comply with the prescribed requirements. The tenant may demand that the landlord provide for the tenant’s signature a propose d tenancy agreement that is in the prescribed form and complies with the prescribe d requirements.

If the landlord does not comply within 21 days of the demand, the tenant may withhol d rent payments that become due after the expiry of that period, subject to the following: in total, the tenant may not withhold more than an amount equal to one month’s rent and may no longer withhold rent payments once the landlord complies with the demand. The landlord may require the tenant to pay rent payments withheld, provided that t he landlord complies with the demand no later than 30 days after the first rent payment was withheld.

Section 47.0.1 is added to allow a tenant to terminate a yearly tenancy or a tenancy for a fixed term before the end of the y ear or term by giving at least 60 days notice effective on the last day of a rental period . A tenant may give the notice if the tenant has made a demand for a proposed tenancy agreement and the landlord does not comply within 21 days or if the tenant does not enter into the proposed agreement and gives the notice no later than 30 days after it was provided by the landlord. Notice of termination by landlord under

section 48 Currently, subsection 48 (1) allows a landlord to give a termination notice if the landlord requires possession of the rental unit for the purpose of residential occupatio n by the landlord, a member of the landlord’s family or other specified persons. Under subsection 48 (1), as amende d, the landlord must require p ossession for the purpose of residential occupation for at least one year. Under new

section 48.1, a landlord who gives a termination notice under

section 48 is required to compensate the tenant in an amount equal to one month’s rent or to offer the tenant another unit acceptable to the tenant. Compensation under

section 48.1, 52, 54 or 55 New

section 73.1 provides that when the Landlord and Tenant Board refuses to grant an application under

section 69 for an order terminating the tenancy and evicting the tenant based on a termination notice under

section 48 or 50 (for the purposes of residential occupation, demolition, conversion to non -residential rental use, renovations or repairs), the Board may order that the tenant pay back to the landlord compensation received under

section 48.1, 52, 54 or 55 in connection with the notice . Currently, under subsection 83 (4), the Board shall not issue an eviction order in a proceeding for termination of a tenanc y for the purposes of demolition, conversion to non-residential rental use, renovations or repairs until the landlord has compensated the tenant as required under

section 52, 54 or 55. Subsection 83 (4) is amended so that it also applies to compensation required under

section 48.1.

ii Currently, under subsection 135 (1), a tenant or former tenant may apply to the Board for an order that the landlord pay to the tenant any money collected or retained in contravention of the Act. New subsection 135 (1.1) provides that a landlord is deemed to have retained money in contravention of the Act if the landlord is required to compensate a tenant under

section 48.1, 52, 54 or 55 and fails to do so. Current clause 233 (

f) provides that a person who knowingly recovers possession of a rental unit without complying with the requirements of sections 52, 54 and 55 is guilty of an offence. Clause 233 (

f) is amended so that it also applies to recovering possession of a unit without complying with

section 48.1. Termination notice under

section 68 and paragraph 11 of subsection 94.2

(1) Currently, under

section 68, a landlord’s initial termination notice must have become v oid as a result of the tenant’s compliance with its terms, in order for the landlor d to be allowed to give the tenant a subsequent termination notice for a subsequent contravention. Current paragraph 11 of subsection 94.2 (1) provides a similar rule with respect to a non -profit housing co -operative’s initial and subsequent notice to terminate a member’s occupancy of a member unit.

Section 68 is amended and paragraph 11 of subsection 94.2 (1) is re -enacted to require only that 7 days have passed since the i nitial notice was given. Stay of eviction order under subsection 74 (13) Currently, under subsection 74 (13), an order terminating a tenancy and evicting a tenant is stayed when a motion made by the tenant under subsection 74 (11) is received by the Board. Subsection 74 (13) is amended to provide that the order is stayed when the motion is accepted for filing by the Board.

Under subsection 74 (11), a tenant may make a motion to set aside an eviction order if, after the order becomes enforceable but before it is executed, the tenant makes the required payment and files the required affidavit. Subsection 74 (11.1) is added to provide that the Board shall refuse to accept the motion for filing, if the tenant has not complied with all the requirements of subsection 74 (11).

Applications based on previous order or settlement Currently, subsection 78 (3) provides that in an application under subsection 78 (1) for an order terminating the tenancy or evicting the tenant based on a previous order or settlement, the landlord may also request that the Board make an order for payment under subsection 78 (7) if, in the previous application, the landlord had applied for an order for the payment of arrears of rent and the previous order or settlement requires the tenant to pay rent or some or all of the arrears of rent.

Subsection 78 (3) is amended to also permit an order for payment if, in the previous application, the landlord had applied for an order for the payment of compensation for the repair or replacement of damag ed property and the previous order or settlement requires the tenant to pay such compensation.

Applications for above-guideline rent increase Currently, under paragraph 1 of subsection 126 (1), a landlord may apply to the Board for an order permitting an a bove- guideline rent increase for rental units in a residential complex due to an extraordinary increase in the cost for municipal taxes and charges or utilities or both for the residential complex. Paragraph 1 of subsection 126 (1) is re- enacted to no longer allow applications based on an extraordinary increase in the cost for utilities.

Under paragraph 2 of s ubsection 126 (1), a landlord may apply to the Board for an order permitting an above -guideline rent increase for rental units in a residential complex due to eligible capital expenditures incurred respecting the residential complex or one or more of the rental units in it. Subsection 126 (7), which lists the requirements a capital expenditure must meet to be an eligible capital expenditure, is a mended to make the subsection subject to such exceptions as may be provided in the regulations. Related regulation-making powers are added to

section 241. Currently, if subsection 126 (13) applies to a rental unit, the Board is required to either dismiss t he application with respect to the unit or provide in an order permitting an above -guideline rent increase that the rent charged for the unit shall not be increased until the Board is satisfied, on a motion made by the landlord, on notice to the tenant, th at the previous findings made by the Board under subsection 126 (12), which resulted in the application of subsection 126 (13), have been addressed.

Subsection 126 (12.1) is added to provide that subsection 126 (13) also applies to a rental unit if the B oard finds that the landlord has not completed, within the compliance period, items in work orders, or items in orders made under

section 21 of the Technical Standards and Safety Act, 2000 or specified repairs or replacements or other work ordered by the B oard, which relate to one or more elevators in the residential complex. Subsection 126 (3.1) is added to require a landlord to include with an application under

section 126 a

summary of items in work orders or orders issued under

section 21 of the above -noted Act or repairs, replacements or other work ordered by the Board, that are yet to be completed and that relate to one or more elevators in the residential complex, even if the complian ce period has not yet expired. New subsection 126 (3.2) sets out the information to be included in the

summary. Additional charges prohibited Current clause 134 (1) (

a) prohibits landlords from collecting, requiring or attempting to require or collect from a tenant o r prospective tenant of a rental unit a fee, premium, commission, bonus, penalty, key deposit or other like amount of money in respect of the unit. Clause 134 (1) (

a) is amended to also apply with respect to former tenants.

iii Subsection 134 (1.1) is added to prohibit landlords from collecting, requiring or a ttempting to require or collect from a former tenant of a rental unit any amount of money purporting to be rent in respect of any period after the tenancy has terminated and the tenant has vacated the unit. Clause 234 (

l) is amended to make it an offence for a person to charge or collect amounts from a former tenant in contravention of

section 134. Transition regulations New section

Document details

Collection	Ontario — Bills
Citation	Bill 124, 41-2
Type	bill
Volume / chapter	p41 s2 bill 124 bill text 41 2 en b124rep e.pdf
Language	en
Format	pdf
Source	PROVINCIAL
Identifier	e5cb3267b01959a97293be54f004e909f5443c77

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