Bill 198, Non-profit Housing Co-operatives Statute Law Amendment Act, 2011

Versions

Bill 198 2011

An Act to amend the Co-operative Corporations Act and the Residential Tenancies Act, 2006 in respect of non-profit housing co-operatives

Note: This Act amends or repeals more than one Act. For the legislative history of these Acts, see the Table of Consolidated Public Statutes – Detailed Legislative History at www.e-Laws.gov.on.ca.

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Co-operative Corporations Act

1. Subsection 171.7 (1) of the Co-operative Corporations Act is repealed and the following substituted:

Application of landlord and tenant law

(1) The Residential Tenancies Act, 2006, the Commercial Tenancies Act and the common law relating to landlord and tenant relationships do not apply with respect to the member units of a non-profit housing co-operative, except as otherwise provided in this Act or the Residential Tenancies Act, 2006.

2. (1) Paragraph 1 of subsection 171.8 (2) of the Act is repealed and the following substituted:

1. Membership and occupancy rights may be terminated only by a resolution of the board of directors.

(2) Paragraph 4 of subsection 171.8 (2) of the Act is repealed and the following substituted:

4. The notice must,

i. set out the time and place of the board's meeting at which the matter will be considered,

ii. set out the grounds for the proposed termination,

iii. identify the member unit to which the member has occupancy rights,

iv. specify the date of the proposed termination,

v. advise the member that he or she may appear and make submissions at the board's meeting, and

vi. advise the member that he or she may appeal the board's decision to the members if the by-laws provide a right of appeal with respect to the grounds set out in the notice.

4.1 The notice must advise the member that he or she need not vacate the member unit but that, after the termination of the member's membership and occupancy rights, the co-operative may obtain possession of the member unit,

i. by obtaining an order of the Landlord and Tenant Board terminating the member's occupancy of the member unit and evicting the member, if Part V.1 of the Residential Tenancies Act, 2006 applies, or

ii. by obtaining a writ of possession from the court, if Part V.1 of the Residential Tenancies Act, 2006 does not apply.

(3) Paragraphs 8 and 9 of subsection 171.8 (2) of the Act are repealed and the following substituted:

8. The member shall be given written notice of the decision of the board of directors within 10 days after the board's meeting.

9. If the by-laws provide a right of appeal with respect to the grounds set out in the notice under paragraph 4, the member may appeal the board's decision to the members. The effect of the decision is suspended until the appeal is disposed of or abandoned.

(4) Subsection 171.8 (3) of the Act is repealed.

3. The Act is amended by adding the following section:

Termination by member of membership and occupancy rights

Withdrawal from membership

171.8.1 (1) If a member of a non-profit housing co-operative does not have occupancy rights, the member may withdraw from membership in accordance with section 64 but, if the member has occupancy rights, his or her membership or occupancy rights may be terminated by the member only if both are terminated concurrently in accordance with subsection (2).

Procedure for terminating membership, etc.

(2) The following rules apply with respect to the termination of the membership and occupancy rights of a member of a non-profit housing co-operative who wishes to terminate his or her membership and occupancy rights:

1. The member must give at least 60 days written notice to the co-operative of the member's intention to terminate his or her membership and occupancy rights.

2. The notice must specify the last day of a month as the date of the termination.

3. The member may not withdraw the notice without the consent of the board of directors.

4. Unless the notice is withdrawn with the consent of the board of directors, the member's membership and occupancy rights are terminated on the termination date specified in the notice.

5. If the member does not vacate the member unit on or before the termination date specified in the notice, the co-operative may obtain possession of the member unit by obtaining an order issued by the Landlord and Tenant Board under Part V.1 of the Residential Tenancies Act, 2006 terminating the member's occupancy of the member unit and evicting the member.

Period of notice, termination date end of February or March

(3) A member who gives notice under this section specifying as the termination date the last day of February or the last day of March in any year is deemed to have given at least 60 days notice of the termination if the notice is given not later than January 1 of that year in respect of a termination date that is the last day of February, or February 1 of that year in respect of a termination date that is the last day of March.

4. The Act is amended by adding the following section:

Student housing

Non-application of s. 171.9

171.9.1 (1) If a member who is a post-secondary student has membership and occupancy rights for a fixed term of less than one year in a non-profit housing co-operative that provides housing units primarily for post-secondary students, this section applies and section 171.9 does not apply to the member.

Termination notice

(2) A member described in subsection (1) may give notice to the co-operative to terminate his or her membership and occupancy rights on a fixed day,

(a) at the time he or she takes occupancy of the member unit or enters into an occupancy agreement with the co-operative; or

(b) as a condition of taking occupancy of the member unit or entering into an occupancy agreement with the co-operative.

Agreement to terminate

(3) If a member described in subsection (1) enters into an agreement, at the time he or she takes occupancy of the member unit or enters into an occupancy agreement with the co-operative or as a condition of taking occupancy or entering into an occupancy agreement with the co-operative, to terminate his or her membership and occupancy rights on a fixed day, he or she is deemed to have given the notice described in subsection (2).

If student does not vacate by fixed day in notice

(4) If the member does not vacate the member unit on or before the termination date set out in the notice described in subsection (2) or (3), the member's membership and occupancy rights are deemed to be terminated on the termination date and the co-operative may obtain possession of the member unit by obtaining an order issued by the Landlord and Tenant Board under Part V.1 of the Residential Tenancies Act, 2006 terminating the member's occupancy of the member unit and evicting the member.

5. Section 171.12 of the Act is repealed and the following substituted:

Repossession of a member unit

171.12 (1) Unless a member unit is vacant, a non-profit housing co-operative may obtain possession of the member unit only after the member's membership and occupancy rights have been terminated or have expired under section 171.8, 171.8.1, 171.9 or 171.9.1 and only by one of the following means:

1. If Part V.1 of the Residential Tenancies Act, 2006 applies, by obtaining an order issued by the Landlord and Tenant Board terminating the member's occupancy of the member unit and evicting the member, in accordance with that Act.

2. If Part V.1 of the Residential Tenancies Act, 2006 does not apply, by obtaining a writ of possession from the court under this Act.

Timing of application

(2) If Part V.1 of the Residential Tenancies Act, 2006 applies, the co-operative shall not serve a notice of termination on the member under that Part,

(a) until the expiry of any applicable appeal period provided in subsection 171.8 (2), if the member did not appeal the board's decision to terminate his or her membership and occupancy rights; or

(b) until after the disposition or abandonment of that appeal, if the member did appeal the board's decision to terminate his or her membership and occupancy rights.

Transition

(3) If a non-profit housing co-operative has made an application for a writ of possession under this Act and the applicant's claim has not been determined by the court before the day this subsection comes into force, the co-operative may,

(a) continue the application; or

(b) if Part V.1 of the Residential Tenancies Act, 2006 applies, discontinue the application and follow the procedures under that Act to apply to the Landlord and Tenant Board for an order terminating the member's occupancy of the member unit and evicting the member.

Membership, etc., reinstated

Writ or eviction order not issued

171.12.1 (1) If, after a person's membership and occupancy rights have been terminated or have expired under section 171.8, 171.8.1, 171.9 or 171.9.1, an application is made under this Act for a writ of possession or under Part V.1 of the Residential Tenancies Act, 2006 for an order terminating the person's occupancy of a member unit and evicting the person and, after final disposition of the application, no writ of possession or eviction order is issued and the person is still in possession of the member unit, the person's membership and occupancy rights are deemed not to have been terminated.

Termination notice or eviction order void

(2) If, after a person's membership and occupancy rights have been terminated or have expired under section 171.8, 171.8.1, 171.9 or 171.9.1, a notice of termination is given or an application is made under Part V.1 of the Residential Tenancies Act, 2006 for an order terminating the person's occupancy of a member unit and evicting the person and the notice of termination or eviction order becomes void, or the eviction order expires, and the person is still in possession of the member unit, the person's membership and occupancy rights are deemed not to have been terminated.

6. (1) Subsection 171.13 (1) of the Act is amended by striking out "After a person's membership and occupancy rights are terminated" at the beginning and substituting "After a person's membership and occupancy rights are terminated or have expired under section 171.8, 171.8.1, 171.9 or 171.9.1".

(2) Section 171.13 of the Act is amended by adding the following subsection:

Application for eviction order

(1.1) Subsection (1) does not apply in the circumstances in which Part V.1 of the Residential Tenancies Act, 2006 applies.

(3) Subsections 171.13 (5) and (13) of the Act are repealed.

7. Section 171.14 of the Act is repealed.

8. (1) Subsection 171.15 (1) of the Act is amended by striking out "or 171.14".

(2) Subsection 171.15 (2) of the Act is amended by striking out "or 171.14".

9. Subsection 171.16 (1) of the Act is amended by striking out "or 171.14" at the end.

10. Subsection 171.18 (1) of the Act is amended by striking out "or 171.14".

11. Subsection 171.20 (1) of the Act is amended by striking out "or 171.14".

12. The Act is amended by adding the following section:

Effect of procedural irregularities

171.20.1 Where grounds for terminating a member's membership and occupancy rights have otherwise been established, the court shall not set aside or otherwise invalidate the decision of a non-profit housing co-operative to terminate the member's membership and occupancy rights on the ground that a procedural irregularity has occurred if,

(a) the irregularity is,

(i) an irregularity in the content or service of any form, notice or other document,

(ii) an irregularity in the conduct of a meeting of the board held pursuant to subsection 171.8 (2),

(iii) an irregularity in the conduct of a meeting of the members held pursuant to subsection 171.8 (2), or

(iv) an inadvertent failure to comply with any time requirements;

(b) the irregularity has not been shown to affect the decision of the co-operative in any material way; and

13. Clause 171.22 (a) of the Act is amended by striking out "a writ of possession is executed" and substituting "a writ of possession under this Act or an eviction order under Part V.1 of the Residential Tenancies Act, 2006 is executed".

14. Section 171.23 of the Act is repealed and the following substituted:

Service re termination, expiry of membership or occupancy rights

Service on a person

171.23 (1) A notice or other document required to be given to or served on a person in relation to the termination or expiry of the membership or occupancy rights of a member of a non-profit housing co-operative or in relation to the obtaining of a writ of possession under this Act is sufficiently given or served,

(a) by handing it to the person;

(b) if the person is a member of the co-operative or is an occupant or sub-occupant of a member unit, by handing it to an apparently adult person in the member unit;

(d) if there is no mail box, by leaving it at the place where mail is ordinarily delivered to the person, placing it under the door of the unit or through a mail slot in the door; or

(e) by sending it by mail to the last known address where the person resides or carries on business.

Service on the co-operative

(2) A notice or other document required to be given to or served on a non-profit housing co-operative in relation to the termination or expiry of the membership or occupancy rights of a member of the co-operative or in relation to the obtaining of a writ of possession under this Act is sufficiently given or served,

(a) by delivering it personally or sending it by mail to the head office of the co-operative as shown on the records of the Ministry; or

(b) by handing it to a manager or co-ordinator of the co-operative exercising authority in respect of the residential complex to which the notice or document relates.

Deemed delivery

(3) If a document is given or served by mail, it is deemed to have been given or served on the fifth day after the date of mailing.

Other methods of service

(4) A judge may order any other method of service in respect of any matter before him or her.

When notice deemed valid

(5) A notice or other document that is not given or served in accordance with this section is deemed to have been validly given or served if it is proven that its contents actually came to the attention of the co-operative, the member or the other person or entity for whom it was intended within the required time period.

Non-application of s. 172

(6) Section 172 does not apply if this section applies.

Residential Tenancies Act, 2006

15. Section 1 of the Residential Tenancies Act, 2006 is amended by adding the following subsection:

Exception, Part V.1

(2) Subsection (1) does not apply to Part V.1, the purpose of which is to provide protection to members of non-profit housing co-operatives, within the meaning of the Co-operative Corporations Act, from unlawful evictions under this Act and to allow non-profit housing co-operatives and their members access to the framework established under this Act for the adjudication of disputes related to the termination of occupancy in a member unit of a non-profit housing co-operative.

16. Clause 5 (c) of the Act is repealed and the following substituted:

(c) except for Part V.1 and as provided in that Part, living accommodation that is a member unit of a non-profit housing co-operative;

17. Subsection 37 (6) of the Act is repealed and the following substituted:

Application of subss. (4) and (5)

(6) Subsections (4) and (5) do not apply to rental units occupied by students of one or more post-secondary educational institutions,

(a) in a residential complex owned, operated or administered by or on behalf of the post-secondary educational institutions; or

(b) in a residential complex where a non-profit housing co-operative provides housing units primarily for post-secondary students.

18. Subsection 60 (1) of the Act is amended by striking out "family" and substituting "household".

19. Section 75 of the Act is amended by striking out "application referred to under section 69" and substituting "application under section 69".

20. Section 90 of the Act is amended by striking out "family" and substituting "household".

21. The Act is amended by adding the following Part:

PART V.1
termination of occupancy - NON-PROFIT HOUSING CO-OPERATIVES

Definitions

94.1 In this Part,

"by-law" means a by-law enacted by a non-profit housing co-operative under the Co-operative Corporations Act; ("règlement administratif")

"co-operative" means a non-profit housing co-operative; ("coopérative")

"housing charges" has the same meaning as in the Co-operative Corporations Act; ("frais de logement")

"member" means a member as defined in the Co-operative Corporations Act and a former member whose membership and occupancy rights have been terminated or have expired in accordance with that Act; ("membre")

"member unit" has the same meaning as in the Co-operative Corporations Act; ("logement réservé aux membres)

"regular monthly housing charges" includes the amount of any consideration paid or given or required to be paid or given by or on behalf of a member to a co-operative or the co-operative's agent for the right to occupy a member unit and for any services and facilities and any privilege, accommodation or thing that the co-operative provides for the member in respect of the occupancy of the member unit, whether or not a separate charge is made for services and facilities or for the privilege, accommodation or thing, but "regular monthly housing charges" does not include one-time or irregular charges, deposits, penalties, fines or occasional charges for services; ("frais de logement mensuels ordinaires")

"residential complex" means a building or related group of buildings in which one or more member units are located and includes all common areas and services and facilities available for the use of its residents. ("ensemble d'habitation")

Notice of Termination of Occupancy by Co-operative

Notice of termination of occupancy

94.2 (1) A non-profit housing co-operative may give a member notice of termination of the member's occupancy of a member unit under this Act in any of the following circumstances:

1. The member has persistently failed to pay regular monthly housing charges on the date they became due and payable.

2. The member unit is in a residential complex described in paragraph 1, 2 or 3 of subsection 7 (1) and the member has ceased to meet the qualifications required for occupancy of the member unit.

3. The member fails to pay the regular monthly housing charges lawfully owing with respect to the member unit.

4. The member unit is in a residential complex described in paragraph 1, 2 or 3 of subsection 7 (1) and the member has knowingly and materially misrepresented his or her income or that of other members of his or her household occupying the member unit.

5. The member or another occupant of the member unit commits an illegal act or carries on an illegal trade, business or occupation or permits a person to do so in the member unit or the residential complex.

6. The member, another occupant of the member unit or a person whom the member permits in the member unit or the residential complex wilfully or negligently causes undue damage to the member unit or the residential complex.

7. The member, another occupant of the member unit or a person whom the member permits in the member unit or the residential complex,

i. wilfully causes undue damage to the member unit or the residential complex, or

ii. uses the member unit or the residential complex in a manner that is inconsistent with use as residential premises and that causes or can reasonably be expected to cause damage that is significantly greater than the damage described in subparagraph i or in paragraph 6.

8. The conduct of the member, another occupant of the member unit or a person permitted in the residential complex by the member is such that it substantially interferes with the reasonable enjoyment of the residential complex for all usual purposes by another member or occupant or substantially interferes with another lawful right, privilege or interest of the co-operative or another member or occupant.

9. An act or omission of the member, another occupant of the member unit or a person permitted in the residential complex by the member seriously impairs or has seriously impaired the safety of any person and the act or omission occurs in the residential complex.

10. The number of persons occupying the member unit on a continuing basis results in a contravention of health, safety or housing standards required by law.

11. A notice of termination given for a circumstance described in paragraph 6, 8 or 10 has become void as a result of the member's compliance with the terms of the notice and, within six months after the notice was given, an activity takes place, conduct occurs or a situation arises that constitutes the same circumstance under which the previous notice of termination was given.

Deemed termination of membership and occupancy rights

(2) Despite subsections 171.8 (1) and 171.12.1 (2) of the Co-operative Corporations Act, where the circumstance described in paragraph 11 of subsection (1) exists, the member's membership and occupancy rights are deemed to have been terminated for the purpose of giving a notice of termination of the member's occupancy under this section.

Form, contents of notice of termination

94.3 (1) A notice of termination under section 94.2 shall be in a form approved by the Board and shall,

(a) identify the member unit for which the notice is given;

(b) state the date on which the occupancy is to terminate; and

(c) be signed by a director of the co-operative giving the notice, a person authorized to act for the co-operative or the co-operative's agent.

Same

(2) The notice shall also set out the reasons for and details respecting the termination and inform the member that,

(a) if the member vacates the member unit in accordance with the notice, the occupancy terminates on the date set out in accordance with clause (1) (b);

(b) if the member does not vacate the member unit, the co-operative may apply to the Board for an order terminating the occupancy and evicting the member; and

Termination date and other requirements in notice

Non-payment or ceasing to meet qualifications

94.4 (1) In a circumstance described in paragraph 1 or 2 of subsection 94.2 (1), the notice of termination shall provide a termination date not earlier than the 60th day after the notice is given.

Non-payment of regular monthly housing charges

(2) In a circumstance described in paragraph 3 of subsection 94.2 (1), the notice of termination shall,

(a) provide a termination date not earlier than the 14th day after the notice is given;

(b) set out the amount of the regular monthly housing charges that is due; and

(c) specify that the member may avoid the termination of the occupancy by paying, on or before the termination date specified in the notice, the amount as set out in the notice and any additional regular monthly housing charges that have become due as at the date of payment by the member.

Misrepresentation of income

(3) In a circumstance described in paragraph 4 of subsection 94.2 (1), the notice of termination shall provide a termination date not earlier than the 20th day after the notice is given.

Illegal act, etc.

(4) In a circumstance described in paragraph 5 of subsection 94.2 (1), the notice of termination shall provide a termination date not earlier than,

(a) the 10th day after the notice is given, in the case of a notice grounded on an illegal act, trade, business or occupation involving,

(i) the production of an illegal drug,

(ii) trafficking in an illegal drug, or

(iii) possession of an illegal drug for the purposes of trafficking; or

(b) the 20th day after the notice is given, in all other cases.

Damage

(5) In a circumstance described in paragraph 6 of subsection 94.2 (1), the notice of termination shall,

(a) provide a termination date not earlier than the 20th day after the notice is given; and

(b) require the member, within seven days,

(i) to repair the damaged property or pay to the co-operative the reasonable costs of repairing the damaged property, or

(ii) to replace the damaged property or pay to the co-operative the reasonable costs of replacing the damaged property, if it is not reasonable to repair the damaged property.

Damage, shorter notice period

(6) Despite subsection (5), in a circumstance described in paragraph 7 of subsection 94.2 (1), the notice of termination may provide a termination date not earlier than the 10th day after the notice is given and clause (5) (b) and subsection 94.5 (3) do not apply to this notice.

Interfering with reasonable enjoyment

(7) A notice of termination for a circumstance described in paragraph 8 of subsection 94.2 (1) shall,

(a) provide a termination date not earlier than the 20th day after the notice is given; and

(b) require the member, within seven days, to stop the conduct or activity or correct the omission set out in the notice.

Impairing safety

(8) In a circumstance described in paragraph 9 of subsection 94.2 (1), the notice of termination shall provide a termination date not earlier than the 10th day after the notice is given.

Too many occupants

(9) In a circumstance described in paragraph 10 of subsection 94.2 (1), the notice of termination shall,

(a) provide a termination date not earlier than the 20th day after the notice is given; and

(b) require the member, within seven days, to reduce the number of persons occupying the member unit to comply with health, safety or housing standards required by law.

Further contravention

(10) In a circumstance described in paragraph 11 of subsection 94.2 (1), the notice of termination shall provide a termination date not earlier than the 14th day after the notice is given.

Definitions

(11) In subsection (4),

"illegal drug" means a controlled substance or precursor as those terms are defined in the Controlled Drugs and Substances Act (Canada); ("drogue illicite")

"possession" has the same meaning as in the Controlled Drugs and Substances Act (Canada); ("possession")

"production" means, with respect to an illegal drug, producing the drug within the meaning of the Controlled Drugs and Substances Act (Canada); ("production")

"trafficking" means, with respect to an illegal drug, trafficking in the drug within the meaning of the Controlled Drugs and Substances Act (Canada). ("trafic")

Where notice void

94.5 (1) A notice of termination under subsection 94.2 (1), other than a notice of termination for a circumstance described in paragraph 3 of that subsection, becomes void 30 days after the termination date specified in the notice unless,

(a) the member vacates the member unit before that time; or

(b) the co-operative applies for an order terminating the occupancy of the member unit and evicting the member before that time.

Same, if member pays housing charges

(2) The notice of termination for a circumstance described in paragraph 3 of subsection 94.2 (1) is void if, before the day the co-operative applies to the Board for an order terminating the occupancy and evicting the member based on the notice, the member pays,

(a) the regular monthly housing charges that are in arrears; and

(b) the additional regular monthly housing charges that would have been due as at the date of payment by the member had notice of termination not been given.

Same, if member repairs, replaces or pays for damaged property

(3) The notice of termination for a circumstance described in paragraph 6 of subsection 94.2 (1) is void if the member, within seven days after receiving the notice, complies with the requirement referred to in clause 94.4 (5) (b) or makes arrangements satisfactory to the co-operative to comply with that requirement.

Same, if member stops conduct, etc.

(4) The notice of termination for a circumstance described in paragraph 8 of subsection 94.2 (1) is void if the member, within seven days after receiving the notice, stops the conduct or activity or corrects the omission.

Same, if member reduces number of persons in member unit

(5) The notice of termination for a circumstance described in paragraph 10 of subsection 94.2 (1) is void if the member, within seven days after receiving the notice, sufficiently reduces the number of persons occupying the member unit.

Effect of payment

94.6 Unless a non-profit housing co-operative and member agree otherwise, the co-operative does not waive a notice of termination by accepting arrears of regular monthly housing charges or compensation for the use or occupation of a member unit after,

(a) the co-operative gives a notice of termination of the occupancy under section 94.2; or

(b) the Board makes an eviction order or an order terminating the occupancy.

Application by Co-operative – After Notice of Termination

Application to Board, after notice is given to member

94.7 (1) If a non-profit housing co-operative gives a member notice of termination of occupancy of the member unit under section 94.2, the co-operative may apply to the Board for an order terminating the member's occupancy of the member unit and evicting the member.

Same

(2) An application under subsection (1) may not be made later than 30 days after the termination date specified in the notice, except where the application is based on a notice of termination for a circumstance described in paragraph 3 of subsection 94.2 (1).

No application during remedy period

(3) A co-operative may not apply to the Board for an order terminating the occupancy of a member unit and evicting the member based on a notice of termination for a circumstance described in paragraph 6, 8 or 10 of subsection 94.2 (1) before the seven-day remedy period specified in the notice expires.

When application can be made for non-payment of housing charges

(4) A co-operative may not apply to the Board for an order terminating an occupancy and evicting the member based on a notice of termination for a circumstance described in paragraph 3 of subsection 94.2 (1) before the day following the termination date specified in the notice.

Immediate application

94.8 Subject to subsections 94.7 (3) and (4), a co-operative that has given a member notice of termination under section 94.2 may apply immediately to the Board under section 94.7 for an order terminating the occupancy of the member unit and evicting the member.

Application by Co-operative – No Notice of Termination

Application to Board, without notice, based on member's withdrawal, agreement or notice

94.9 (1) The co-operative may, without notice to the member, apply to the Board for an order terminating the member's occupancy of a member unit and evicting the member where,

(a) the member gave written notice of his or her intention to terminate his or her membership and occupancy rights under section 171.8.1 of the Co-operative Corporations Act and the member has not withdrawn the notice under that section;

(b) the member has consented in writing to the expiry of his or her membership and occupancy rights under subsection 171.9 (1) of the Co-operative Corporations Act or he or she has failed to give a written notice under paragraph 1 of subsection 171.9 (3) of that Act that he or she wishes to continue his or her membership and occupancy rights; or

(c) the member gave notice or agreed to terminate his or her membership and occupancy rights under section 171.9.1 of the Co-operative Corporations Act.

Affidavit

(2) The co-operative shall include with the application an affidavit verifying,

(a) the member's notice of intention to terminate his or her membership and occupancy rights under section 171.8.1 of the Co-operative Corporations Act and his or her failure to withdraw the notice under that section;

(b) the member's consent in writing to the expiry of his or her membership and occupancy rights under subsection 171.9 (1) of the Co-operative Corporations Act or his or her failure to give a written notice under paragraph 1 of subsection 171.9 (3) of that Act that he or she wishes to continue his or her membership and occupancy rights; or

(c) the member's notice or agreement to terminate his or her membership and occupancy rights under section 171.9.1 of the Co-operative Corporations Act.

Same

(3) An application under subsection (1) shall not be made later than 30 days after the date on which the membership and occupancy rights terminated or expired under section 171.8.1, 171.9 or 171.9.1 of the Co-operative Corporations Act.

Order

(4) On receipt of the application, the Board may make an order terminating the member's occupancy of the member unit and evicting the member.

Same

(5) An order under subsection (4) shall be effective not earlier than,

(a) the date on which the co-operative applied to the Board under subsection (1); and

(b) the date on which the membership and occupancy rights terminated or expired under section 171.8.1, 171.9 or 171.9.1 of the Co-operative Corporations Act.

Motion to set aside order

(6) The member may make a motion to the Board, on notice to the co-operative, to have the order under subsection (4) set aside within 10 days after the order is issued.

Motion stays order

(7) An order under subsection (4) is stayed when a motion to have the order set aside is received by the Board and shall not be enforced under this Act or as an order of the Superior Court of Justice during the stay.

Order of Board

(8) If the member makes a motion under subsection (6), the Board shall, after a hearing,

(a) make an order setting aside the order under subsection (4) if,

(i) the member did not give a notice of intention to terminate his or her membership and occupancy rights under section 171.8.1 of the Co-operative Corporations Act or the member withdrew the notice of intention to terminate with the consent of the board of directors,

(ii) the member did not give his or her consent in writing to the expiry of his or her membership and occupancy rights under subsection 171.9 (1) of the Co-operative Corporations Act or did give a written notice under paragraph 1 of subsection 171.9 (3) of that Act that he or she wishes to continue his or her membership and occupancy rights, or

(iii) the member did not give a notice or enter into an agreement to terminate his or her membership and occupancy rights under section 171.9.1 of the Co-operative Corporations Act;

(b) make an order setting aside the order under subsection (4) if the Board is satisfied, having regard to all the circumstances, that it would not be unfair to do so; or

(c) make an order lifting the stay of the order under subsection (4), effective immediately or on a future date specified in the order.

Application to Board, without notice, based on previous order, mediated settlement

94.10 (1) A non-profit housing co-operative may, without notice to the member, apply to the Board for an order terminating a member's occupancy of a member unit and evicting the member if the following criteria are satisfied:

1. The co-operative previously applied to the Board for an order terminating the member's occupancy of the member unit and evicting the member.

2. A settlement mediated under section 194 or an order made with respect to the previous application,

i. imposed conditions on the member that, if not met by the member, would give rise to the same grounds for terminating the member's occupancy of the member unit as were claimed in the previous application, and

ii. provided that the co-operative could apply under this section if the member did not meet one or more of the conditions referred to in subparagraph i.

3. The member has not met one or more of the conditions referred to in subparagraph 2 i.

Deemed termination of membership and occupancy rights

(2) Despite subsections 171.8 (1) and 171.12.1 (2) of the Co-operative Corporations Act, where the circumstance described in subsection (1) exists, the member's membership and occupancy rights are deemed to have been terminated for the purpose of this section.

Application of s. 78 (2) to (12)

(3) Subsections 78 (2) to (12) apply with necessary modifications to an application under subsection (1) and for that purpose,

(a) "tenant" shall be read as "member";

(b) "landlord" shall be read as "non-profit housing co-operative";

(d) "tenancy" shall be read as "occupancy";

(e) "rent",

(i) in paragraphs 1 and 2 of subsection 78 (3) and in paragraph 1 of subsection 78 (4) shall be read as "regular monthly housing charges",

(ii) in subparagraph 4 ii of subsection 78 (4) and paragraph 2 and subparagraph 5 i of subsection 78 (7) shall be read as "regular monthly housing charges and other housing charges, other than any refundable amounts";

(f) subsection 78 (4) shall be read as including the following paragraph:

3.1 The amount of any additional other housing charges, other than any refundable amounts, arising after the date of the settlement or order.

(g) paragraph 5 of subsection 78 (4) shall be read as follows:

5. The amount of any damage deposit and other refundable amounts.

(h) "section 86" in paragraph 1 of subsection 78 (7) shall be read as "section 94.12";

(i) paragraph 4 and subparagraph 5 iii of subsection 78 (7) shall be read without "not exceeding the amount per cheque that is prescribed as a specified amount exempt from the operation of section 134";

(j) "rent deposit and interest on the deposit that would be owing to the tenant on the termination of the tenancy" in subsection 78 (8) shall be read as "damage deposit and other refundable amounts owing to the member on the termination of the member's occupancy of the member unit"; and

(k) the words and expressions that are the modifications in clauses (a) to (j) shall have the meanings given to them in this Part.

Eviction Orders

Power of Board to refuse order

94.11 (1) Upon an application for an order terminating a member's occupancy of a member unit and evicting a member, the Board may, despite any other provision of this Act, the Co-operatives Corporations Act, the by-laws of the co-operative, or the occupancy agreement,

(a) refuse to grant the application unless satisfied, having regard to all the circumstances, that it would be unfair to refuse; or

(b) order that the enforcement of the order be postponed for a period of time.

Mandatory review

(2) If a hearing is held, the Board shall not grant the application unless it has reviewed the circumstances and considered whether or not it should exercise its powers under subsection (1).

Circumstances where refusal required

(3) Without restricting the generality of subsection (1), the Board shall refuse to grant the application where satisfied that the application is being brought because,

(a) the member has attempted to secure or enforce his or her legal rights;

(b) the member is a member of a non-profit housing co-operative members' association or is attempting to organize such an association; or

Compensation for Co-operative

Compensation, member unit not vacated

94.12 A non-profit housing co-operative is entitled to compensation for the use and occupation of a member unit by a member who does not vacate the unit after his or her membership and occupancy rights are terminated or expire under the Co-operative Corporations Act.

Application for arrears

94.13 (1) If a non-profit housing co-operative has made an application under section 94.7 based on a notice of termination for a circumstance described in paragraph 3 of subsection 94.2 (1), the co-operative may also apply to the Board for an order for the payment of arrears of the regular monthly housing charges if,

(a) the member has not paid the regular monthly housing charges lawfully owing by him or her; and

(b) the member is in possession of the member unit.

Compensation, overholding member

(2) If a non-profit housing co-operative has made an application under section 94.7 and the member is in possession of the member unit after his or her membership and occupancy rights have been terminated or have expired under the Co-operative Corporations Act, the co-operative may apply to the Board for an order for the payment of compensation for the use and occupation of the member unit after that termination or expiry.

Amount of arrears of housing charges or compensation

(3) In determining the amount of arrears of the regular monthly housing charges, compensation or both owing in an order for termination of a member's occupancy of a member unit and the payment of arrears of the housing charges, compensation or both, the Board shall subtract from the amount owing the amount of any damage deposit and other refundable amounts that would be owing to the member on termination.

NSF cheque and other charges

(4) On an application by a co-operative under subsection (1), the Board may include the following amounts in determining the total amount owing to the co-operative by a member in respect of a member unit:

1. The amount of NSF cheque charges claimed by the co-operative and charged by financial institutions in respect of cheques tendered to the co-operative by or on behalf of the member, to the extent the co-operative has not been reimbursed for the charges.

2. The amount of unpaid administration charges in respect of the NSF cheques, if claimed by the co-operative.

3. The amount of other unpaid housing charges, other than any refundable amounts, lawfully owing by the member.

Same

(5) On an application by a co-operative under subsection (2), the Board may include the following amounts in determining the total amount owing to the co-operative by a member in respect of a member unit:

2. The amount of unpaid administration charges in respect of the NSF cheques, if claimed by the co-operative.

Compensation for damage

94.14 (1) If a non-profit housing co-operative has made an application to the Board under section 94.7 to terminate a member's occupancy of a member unit based on a notice of termination for a circumstance described in paragraph 6 or 7 of subsection 94.2 (1), the co-operative may also apply to the Board for an order requiring the member to pay reasonable costs that the co-operative has incurred or will incur for the repair or, where repairing is not reasonable, the replacement of damaged property, if the member, another occupant of the member unit or a person whom the member permits in the residential complex wilfully or negligently causes undue damage to the member unit or the residential complex and the member is in possession of the member unit.

Same

(2) If the Board makes an order requiring payment under subsection (1) and for the termination of the member's occupancy of the member unit and the eviction of the member, the Board shall set off against the amount required to be paid the amount of any damage deposit and other refundable amounts that would be owing to the member on termination.

General

Application of ss. 74 to 90

94.15 (1) Subsections 74 (2) to (12) and sections 75, 76, 79 to 81, 84, 85 and 90 apply with necessary modifications to an application to and an order by the Board under this Part and for that purpose,

(a) "tenant" shall be read as "member";

(b) "landlord" shall be read as "non-profit housing co-operative";

(d) "tenancy" shall be read as "occupancy" and "a tenancy" shall be read as "an occupancy";

(e) "rent" shall be read as "regular monthly housing charges";

(f) "during the period of the tenant's tenancy agreement with the landlord" shall be read as "during the period of the member's membership in the co-operative" and "during the period of the agreement" shall be read as "during that period".

Same

(2) In addition to the necessary modifications in subsection (1),

(a) subsection 74 (4) shall be read as if "and" at the end of clause (d) were struck out, and with the following additional clause:

(d.1) the amount of unpaid housing charges, other than any refundable amounts, payable by the member as allowed by the Board in an application by the co-operative under section 94.13; and

(b) subsection 74 (11) shall be read with the addition of the following paragraph:

4.1 The amount of unpaid housing charges, other than any refundable amounts, payable by the member as allowed by the Board in an application by the co-operative under section 94.13.

(c) a reference in subsection 76 (1) to the landlord or other tenants shall be read as referring to other members or occupants;

(d) a reference to section 69, 78, 83, 86 or 87 shall be read as referring, respectively, to section 94.7, 94.10, 94.11, 94.12 or 94.13;

(e) a reference to a notice of termination under section 59, 60 or 61, clause 61 (2) (a), section 62, clause 63 (1) (a) or (b) or section 64, 66 or 67 shall be read as referring to a notice of termination for a circumstance described in paragraph 3, 4 or 5 of subsection 94.2 (1), clause 94.4 (4) (a), or paragraph 6, subparagraph 7 i or ii or paragraph 8, 9 or 10 of subsection 94.2 (1), respectively; and

(f) the words and expressions that are the modifications in subsection (1) and in clauses (a) to (e) shall have the meanings given to them in this Part.

Application of other provisions and Parts of this Act

94.16 (1) The following provisions and Parts of this Act apply with necessary modifications with respect to non-profit housing co-operatives and member units of a non-profit housing co-operative:

1. Sections 1, 2, 3, 5 and 7.

2. Part XI.

3. Part XII (excluding subsection 191 (1) and section 202).

4. Part XV (excluding section 230).

5. Part XVI (excluding section 233, other than clauses 233 (h), (j) and (k), section 234, other than clauses 234 (v) and (w), and section 235).

6. Paragraphs 4, 6 to 9, 61 to 71 and 76 to 78 of subsection 241 (1) and subsection 241 (2).

Same

(2) For the purpose of subsection (1), the following necessary modifications shall be made to the provisions and Parts listed in that subsection:

1. "tenant", except in the phrase "Landlord and Tenant Board", shall be read as "member" and in Part XI shall be read as "member of a non-profit housing co-operative".

2. "landlord", except in the phrase "Landlord and Tenant Board", shall be read as "non-profit housing co-operative".

3. "rental unit" shall be read as "member unit".

4. "tenancy" shall be read as "occupancy".

5. "rent" shall be read as "regular monthly housing charges".

6. "under a tenancy agreement" shall be read as "with respect to the member unit".

7. "rental periods" shall be read as "months".

Same

(3) The words and expressions used in the sections and Parts listed in subsection (1) and in the modifications set out in subsection (2) shall have the meanings given to them in this Part.

Conflicts

(4) In interpreting a provision of this Act with respect to a member unit of a non-profit housing co-operative, if a provision in this Part conflicts with another provision of this Act that is made to apply with respect to non-profit housing co-operatives and member units of a non-profit housing co-operative by subsection (1), the provision in this Part applies.

Provisions conflicting with this Part void

94.17 Subject to section 194, where this Part applies, a provision in an occupancy agreement or a by-law that is inconsistent with this Part is void.

Not a landlord tenant relationship

94.18 Nothing in this Part shall be construed as altering the relationship between a non-profit housing co-operative and a member and, in particular, the relationship shall not be construed as being one of a landlord and tenant.

22. Section 191 of the Act is amended by adding the following subsection:

Same, Part V.1

(1.1) Despite subsection (1), for the purposes of Part V.1, a notice or document is sufficiently given to a person other than the Board,

(a) by handing it to the person;

(b) if the person is a non-profit housing co-operative, by handing it to a manager or co-ordinator of the co-operative exercising authority in respect of the residential complex to which the notice or document relates at the co-operative or at its business office;

(d) by leaving it in the mail box where mail is ordinarily delivered to the person;

(e) if there is no mail box, by leaving it at the place where mail is ordinarily delivered to the person, placing it under the door of the unit or through a mail slot in the door;

(f) by sending it by mail to the last known address where the person resides or carries on business;

(g) if the person is a non-profit housing co-operative, by delivering it personally or sending it by mail to the head office of the co-operative as shown on the records of the Ministry of Finance; or

(h) by any other means allowed in the Rules.

23. (1) Section 203 of the Act is repealed and the following substituted:

Determinations related to housing assistance and housing charges

Housing assistance

203. (1) The Board shall not make determinations or review decisions concerning,

(a) eligibility for rent-geared-to-income assistance as defined in the Social Housing Reform Act, 2000 or the amount of geared-to-income rent payable under that Act; or

(b) eligibility for, or the amount of, any prescribed form of housing assistance.

Housing charges

(2) The Board shall not make determinations or review decisions concerning,

(a) housing charges that have been established by a resolution of the members of a non-profit housing co-operative or, where authorized by the by-laws, by the board of directors of the co-operative;

(b) eligibility for, or the amount of, any subsidy established for regular monthly housing charges; or

(2) Clause 203 (1) (a) of the Act, as re-enacted by subsection (1), is amended by striking out "as defined in the Social Housing Reform Act, 2000" and substituting "as defined in section 38 of the Housing Services Act, 2011".

24. Paragraph 68 of subsection 241 (1) of the Act is amended by striking out "clause 203 (b)" at the end and substituting "clause 203 (1) (b)".

Consequential Amendments

Energy Consumer Protection Act, 2010

25. Clause (b) of the definition of "multi-unit complex" in section 31 of the Energy Consumer Protection Act, 2010 is repealed and the following substituted:

(b) a residential complex as such term is defined in subsection 2 (1) of the Residential Tenancies Act, 2006,

Ontario Clean Energy Benefit Act, 2010

26. Subclause (d) (iii) of the definition of "eligible account" in subsection 2 (1) of the Ontario Clean Energy Benefit Act, 2010 is repealed and the following substituted:

(iii) a residential complex, within the meaning of subsection 2 (1) of the Residential Tenancies Act, 2006,

Commencement and Short Title

Commencement

27. (1) Subject to subsections (2) and (3), this Act comes into force on the day it receives Royal Assent.

Same

(2) Sections 1 to 22, subsection 23 (1) and sections 24 to 26 come into force on a day to be named by proclamation of the Lieutenant Governor.

Same

(3) Subsection 23 (2) comes into force on the later of,

(a) the day subsection 23 (1) of this Act comes into force; and

(b) the day section 38 of the Housing Services Act, 2011 comes into force.

Short title

28. The short title of this Act is the Non-profit Housing Co-operatives Statute Law Amendment Act, 2011.

EXPLANATORY NOTE

The Bill amends the Co-operative Corporations Act and the Residential Tenancies Act, 2006.

The following are some of the amendments to the Co-operative Corporations Act:

1. Subsection 171.7 (1) is amended to provide that the Residential Tenancies Act, 2006, the Commercial Tenancies Act and the common law relating to landlord and tenant relationships do not apply with respect to member units of a non-profit housing co-operative ("co-operative"), except as provided in the Co-operative Corporations Act or the Residential Tenancies Act, 2006.

2. Subsection 171.8 (2) is amended to require notice to a member of a co-operative, in circumstances where the board of directors is considering terminating the member's membership and occupancy rights, of how the co-operative may obtain possession of a member unit.

3. New section 171.8.1 sets out rules for how a member of a co-operative may terminate his or her membership and occupancy rights.

4. New section 171.9.1 relates to a member who is a post-secondary student and has membership and occupancy rights for a fixed term of less than one year in a co-operative that provides housing units primarily for post-secondary students. That section sets out rules for such a member to terminate his or her membership and occupancy rights.

5. Section 171.12 is repealed and re-enacted to provide new rules for how a co-operative may obtain possession of a member unit.

Currently, the Residential Tenancies Act, 2006 does not apply to member units of a co-operative. Section 5 of the Act is amended to provide that new Part V.1 of the Act (see below) applies to such member units. New subsection 1 (2) provides that the purpose of Part V.1 is to protect members of co-operatives from unlawful evictions and to allow co-operatives and their members access to the framework under the Act for the adjudication of disputes related to termination of occupancy.

The following are some of the highlights of the new Part V.1 of the Act (sections 94.1 to 94.18):

1. Section 94.2 allows a co-operative to give a member notice of termination of the member's occupancy in specified circumstances. Sections 94.3 and 94.4 set out the required form and contents of a notice of termination, including rules for termination dates.

2. Sections 94.7 to 94.10 govern applications by a co-operative to the Landlord and Tenant Board for an order terminating a member's occupancy and evicting the member. Section 94.11 governs the types of orders the Board may make.

3. Sections 94.12 and 94.13 provide for compensation for the co-operative where a member's membership and occupancy rights are terminated or expire under the Co-operative Corporations Act.

4. Section 94.15 provides that various existing provisions of the Act apply with necessary modifications to an application to and an order by the Board under new Part V.1. Section 94.16 provides that various existing provisions of the Act, including provisions in Part XII regarding proceedings before the Board, apply with necessary modifications to co-operatives and member units of a co-operative.