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Bill 23, Rent Stabilization Act, 2021

Karpoche, Bhutila

Bell, Jessica

Harden, Joel

Kernaghan, Terence

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Status

Debates

Acts affected

Original

Bill 23 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. 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.

addition, statutes governing the provision of legal aid services are amended to

require the mandatory provision of legal representation before the Landlord

Tenant Board to individuals who are directly affected by an application for a

rent increase that is more than the guideline determined under the Residential Tenancies Act, 2006 .

Bill 23 2021

Act to amend the Residential Tenancies Act, 2006 to implement various measures

to stabilize rent

Her

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

Province of Ontario, enacts as follows:

Subsection 6 (1) of the Residential Tenancies Act, 2006

is amended by striking out “6, 7 and 8” in the portion before clause (

a) and

substituting “7 and 8”.

Subsection 7 (1) of the Act is amended by striking out “6, 7 and 8” in the

portion before paragraph 1 and substituting “7 and 8”.

Subsection 8 (1) of the Act is amended by striking out “paragraph 6 of

subsection 30 (1) and

Part VII do not apply” and substituting “Part VII does

not apply”.

(1) Subsection 20 (1) of the Act is repealed and the following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), by striking out “and” at the end of clause (

b) and by 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.

Subsection 123 (2) of the Act is amended by striking out “and despite any order

under paragraph 6 of subsection 30 (1)” at the end.

The Act is amended by adding the following Part:

PART XI.1

RENT REGISTRY

Rent

registry

182.3.1

(1) The

Board shall establish and maintain a rent registry for all rental units to

which this Act applies and shall make the information available in accordance with

section 182.3.3.

Content

of registry

(2) The

Board shall include in the registry any information contained in a statement or

notice filed with the Board under this Part and any order made by the Board

under paragraph 7 or 8 of subsection 30 (1) or subsection 126 (10).

Updates

to registry

(3) The

Board shall take reasonable steps to ensure that the information contained in

the registry is accurate and may correct or update any information contained in

the registry.

Landlord

to file statement

182.3.2

(1) Every

landlord of a rental unit to which this Act applies shall file with the Board a

statement in a form approved by the Board within 30 days after entering into a

lease respecting the rental unit.

Content

of statement

(2) The

statement shall set out the following information:

1. The

landlord’s name and address.

2. If

the landlord is not ordinarily resident in Ontario, the name and address of the

landlord’s representative or agent in Ontario.

3. The

municipal address of the rental unit.

4. The

rent charged to the tenant as of the date of filing, including whether the rent

amount includes rent attributable to services described under subsection 123

(1) or utilities and the amounts attributable to each.

5. Any

other prescribed information.

Updates

respecting rent

(3) Every

landlord of a rental unit in respect of which a statement has been filed under this

section shall, within 30 days after a change to the rent charged to the tenant takes

effect, file with the Board a notice specifying the change to the rent charged

and its effective date.

Copy

to tenant

(4) The

landlord shall also provide a copy of any statement or notice filed with the

Board under this

section to the tenant.

Tenant

application

(5) The

tenant may apply to the Board, on notice to the landlord, for an order

determining the accuracy of the information in the statement or notice with

respect to the tenant’s rental unit.

Board

may make order

(6) If

the Board determines that the information in the statement or notice is not accurate,

the Board may correct the information or order that the landlord file another

statement or notice, as the case may be.

Time

limitation

(7) No

application may be made under subsection (5) more than 60 days after the tenant

has received the copy of the statement or notice.

Transition

(8) If,

on the day

section 14 of the Rent Stabilization Act, 2021

comes into force, a rental unit to which this Act applies is rented, the

landlord shall file with the Board a statement referred to in subsection

(1) within 30 days after that day.

Disclosure

of information

182.3.3

(1) The

Board shall disclose any information contained in the registry about a

particular rental unit to any of the following individuals who request it:

1. The

landlord or an individual authorized by the landlord.

2. The

tenant, an individual who ceased to be a tenant of the rental unit within 12

months prior to the request or an individual authorized by the tenant or former

tenant.

3. A

prospective tenant who has applied to the landlord to occupy the rental unit.

Same

(2) The

Board shall take reasonable steps to verify that an individual who requests

information in respect of a particular rental unit is a person described in

subsection (1).

Information

respecting rent

(3) The

Board shall make the following information contained in the registry available

to the public in accordance with subsection (4):

1. The

municipal address of each rental unit contained in the registry.

2. The

rents charged in respect of each rental unit contained in the registry, along

with the effective date of any change to the rent.

Same

(4) The

Board shall make the information referred to in subsection (3) available to the

public by,

(

a) publishing

it on a website maintained by the Board; and

(

b) providing

it to members of the public upon request.

Disclosure

to tax authorities

(5) The

Board may disclose any information contained in the registry to a ministry, department

Income Tax Act , the Taxation

Act, 2007 or the Income Tax Act (Canada).

Subsection 196 (1) of the Act is repealed and the following substituted:

Board

may refuse to proceed if money owing, statement not filed

(1) Upon

receiving information that an applicant owes money to the Board as a result of

having failed to pay any fine, fee or costs or has not filed a statement in

accordance with subsection 182.3.2 (1),

(

a) if

the information is received on or before the day the applicant submits an

application, an employee in the Board shall, in such circumstances as may be

specified in the Rules, refuse to allow the application to be filed;

(

b) if

the information is received after the application has been filed but before a

hearing is held, the Board shall stay the proceeding until the fee, fine or

costs have been paid or the statement has been filed, as the case may be, and

may discontinue the application in such circumstances as may be specified in

the Rules; or

(

c) if

the information is received after a hearing with respect to the application has

begun, the Board shall not issue an order until the fine, fee or costs have

been paid or the statement has been filed, as the case may be, and may

discontinue the application in such circumstances as may be specified in the

Rules.

Clause 227 (

a) of the Act is amended by striking out “monitor” and substituting

“ensure”.

Section 233 of the Act is amended by adding the following clause:

(g.1) provides

false information in a statement filed with the Board under subsection 182.3.2

(1);

(1) Clause 234 (

k) of the Act is repealed.

(2) Section

234 of the Act is amended by adding the following clause:

(r.1) fails

to file a statement with the Board under subsection 182.3.2 (1);

(1) Paragraphs 12, 29 and 30 of subsection 241 (1) of the Act are

repealed.

(2) Subsection

241 (1) of the Act is amended by adding the following paragraph:

61.2 governing

the rent registry established under

Part XI.1.

Legal

Aid Services Act, 1998

Section 13 of the Legal Aid Services Act, 1998 is

amended by adding the following subsections:

Legal

representation before the LTB

(1.1) The

Corporation shall provide legal aid services in the form of legal

representation before the Landlord and Tenant Board to tenants who request such

legal representation and who are directly affected by an application to the

Board for an order permitting the rent charged to be increased by more than the

guideline determined under

section 120 of the Residential

Tenancies Act, 2006 .

Exception

(1.2) The

eligibility criteria set out in

section 16 do not apply with respect to the

provision of legal aid services under subsection (1.1) and the Corporation may

not require an individual to contribute towards the costs for the legal aid

services under

section 40.

Legal

Aid Services Act, 2020

The Legal Aid Services Act, 2020 is amended by

adding the following section:

Legal

representation before the LTB

4.1

(1) The

Corporation shall provide legal aid services in the form of legal

representation before the Landlord and Tenant Board to tenants who request such

legal representation and who are directly affected by an application to the

Board for an order permitting the rent charged to be increased by more than the

guideline determined under

section 120 of the Residential

Tenancies Act, 2006 .

Same

(2) The

conditions of eligibility to receive legal aid services referred to in

section

7 do not apply with respect to the provision of legal aid services under

subsection (1) and the Corporation may not require an individual to contribute

towards the costs of providing the legal aid services under

section 9.

Commencement

(1) Subject to subsection (2), this Act comes into force six months

after the day it receives Royal Assent.

(2) Section

21 comes into force on the later of the day

section 3 of

Schedule 15 to the Smarter and Stronger Justice Act, 2020 comes into force

and the day this Act receives Royal Assent.

Short

title

The

short title of this Act is the Rent Stabilization Act,

2021 .

Date Bill stage Event Outcome Committee

November 29, 2021

Second Reading

Vote

Lost on division

November 25, 2021

Second Reading

Deferred vote

November 25, 2021

Second Reading

Debated

October 19, 2021

First Reading

Vote

Carried

Debates and Progress

First Reading

October 19, 2021

Committee

Second Reading

November 25, 2021

Mr. Terence Kernaghan, Mr. Dave Smith, Ms. Jessica Bell, Mme Lucille Collard, Mr. Joel Harden, Ms. Bhutila Karpoche

Vote deferred.

November 29, 2021

Lost on division.

Committee

Third Reading

Royal Assent

Acts affected - Bill 23

Most Ontario public acts are available electronically; to view copies of the Acts to be amended by this bill visit e-laws

Legal Aid Services Act, 1998

Legal Aid Services Act, 2020

Residential Tenancies Act, 2006

Legislative Assembly of Ontario

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