Bill 134, Tenant Protection Amendment Act (Fairness in Rent Increases), 2002

Versions

Bill 134 2001

An Act to amend the
Tenant Protection Act, 1997
to ensure fairness
to Ontario's tenants

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

1. Subsection 129 (1) of the Tenant Protection Act, 1997 is amended by striking out "sections 130 to 139" and substituting "sections 129.1 to 139".

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

Outstanding Work Orders

No increase above guideline
if work order outstanding

129.1 (1) Despite any other provisions in this Act, a landlord shall not increase the rent charged to a tenant or to an assignee under section 17 during the term of their tenancy by more than the guideline if a work order affecting the residential complex has been made, the period for compliance with the work order has passed and it has not been complied with.

Kinds of work orders

(2) Subsection (1) applies to,

(a) an inspector's work order under section 155; and

(b) a property standards officer's order under a by-law,

(i) passed under section 15.1 of the Building Code Act, 1992,

(ii) passed under any special Act respecting maintenance and occupancy standards that is in force in the municipality, or

(iii) passed under any general or special Act respecting health and safety standards for occupants of buildings or structures.

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

Filing financial statement

138.1 (1) If the Tribunal makes an order for a rent increase under subsection 138 (6) or (10) with respect to an extraordinary increase in the cost for utilities or operating costs related to security services, or both, in each of the next three years after the order was made, the landlord shall file with the Tribunal a financial statement showing the actual costs with respect to the utilities or operating costs related to security services and demonstrating that the costs did increase by more than the guideline in the year in which the statement is filed.

Same

(2) If the Tribunal makes an order for a rent increase under subsection 138 (6) or (10) with respect to an increase in capital expenditures or if under section 132 the landlord and tenant have agreed to an increase in rent because the landlord added a prescribed service, facility, privilege or accommodation, in each of the next five years after the order was made or the agreement was entered into, as the case may be, the landlord shall file with the Tribunal a financial statement showing the actual costs of the capital expenditure or of the prescribed thing that was added under section 132 in the year in which the statement is filed.

Copy to tenant

(3) The landlord shall provide a copy of the financial statements filed under subsection (1) or (2) to the tenant.

Reversal of increase

(4) Where, after filing financial statements under subsection (1) or (2), the landlord is unable to demonstrate,

(a) that the costs did increase by more than the guideline in the year in which the statement is filed, in the case of an order of the Tribunal for a rent increase under subsection 138 (6) or (10); or

(b) that there are continued costs in the year in which the statement is filed associated with the thing that was added under section 132,

the order of the Tribunal ceases to be of any effect or the agreement for a rent increase is rescinded, as the case may be, and the rent that the landlord may charge is the rent that the landlord could have lawfully charged had the Tribunal not made the order or the agreement had not been entered into.

Exception

(5) This section ceases to apply if during the period from when the rent increased until the final year in which the landlord must file financial statements under this section, the rental unit becomes vacant.

Commencement

4. This Act comes into force on the day it receives Royal Assent.

Short title

5. The short title of this Act is the Tenant Protection Amendment Act (Fairness in Rent Increases), 2001.

EXPLANATORY NOTE

The Bill amends the Tenant Protection Act, 1997 so that rent may not be increased beyond the guidelines if there is an outstanding work order. It also provides for the roll back of above the guideline increases in rent if the landlord ceases to incur the costs that justified the increase and for the rescission of agreed increases in rent where there are no further costs incurred by the landlord for the additions provided to the tenant.