Bill 184 (Protecting Tenants and Strengthening Community
Housing Act, 2020) was
passed by the Ontario Legislature on July 21, 2020. The bill made many changes
to the Residential Tenancies Act. Some of the changes to the RTA went into
effect immediately upon passage of the bill, while other changes will come into
effect at a later date.
There are too
many changes to the RTA to list them all here. This is a list of the most
important changes currently in effect that I want my landlord clients to know
about.
Please note that
although every effort was made to make sure these explanations are complete and
accurate, it is very difficult to take complex legal language and explain it
fully in layman’s language.
Please check the
precise wording of the amendments made in the Residential Tenancies Act. It is
recommended that you obtain proper legal advice on interpreting the RTA, and
how it applies to you.
Here are the
sections of the Residential Tenancies Act whose major changes are already in
force:
If an N12 Notice
for Purchaser’s Own Use was given to the tenant after July 21, 2020, the
landlord must pay compensation to the tenant equal to one month’s rent, or
offer the tenant another apartment suitable to the tenant.
If an N13 Notice
for demolition or conversion to non-residential use was given to the tenant
after July 21, 2020, and the building contains fewer than five residential
units, the landlord must pay compensation to the tenant equal to one month’s
rent, or offer the tenant another apartment suitable to the tenant. This
section applies if the demolition was not ordered to be carried out.
This section
applies if:
- an N13 Notice for major repairs requiring vacant possession and a building permit was given to the tenant after July 21, 2020;
- the building contains fewer than five residential units;
- the tenant does not give notice to the landlord before vacating that the tenant is exercising their right of first refusal to move back in after repairs are made;
- the major repair was not ordered to be carried out.
The landlord
must pay compensation to the tenant equal to one month’s rent, or offer the
tenant another apartment suitable to the tenant.
However, if the
tenant does give notice before vacating that they plan to move back in after
the repairs are completed, than the landlord shall pay the tenant the lessor of
one month’s rent or the period the apartment was under repair or renovation.
If the
landlord gives a notice of termination for landlord’s own use, purchaser’s own
use, for renovation and repair, conversion to no residential use, or for
demolition, any compensation the landlord is required to pay the tenant must be
paid by the termination date set out in the notice of termination.
- Section 78(1)(3)(4)(7)(12)
Section 78
allows a landlord to apply to the board for an eviction order, without a
hearing being held if the landlord had previously applied to the board for an
eviction order, and the board ordered that there would be no eviction if the
tenant met certain conditions. The tenant failed to meet one or more of the
conditions, and the order of the board permitted the landlord to apply for an
eviction order under section 78 if the tenant failed to one or more of the
conditions.
These amendments deal with the section 206. Now a landlord can also apply for an order
evicting the tenant if the tenant fails to meet the conditions in the Payment
Plan filed with the board.
At a non-payment
of rent hearing a tenant is entitled to raise any issue that could be raised in
an tenant’s application (e.g.: maintenance, harassment,) as if they had filed
an application and paid a filing fee to the board.
This new section now requires the tenant to
give to the landlord and the Landlord and Tenant Board written notice of their
intent to raise issues which could be raised if a tenant’s application had been
filed. The proposed rules require the tenant to give a written description of
each issue the tenant plans to raise, and to serve a copy of the issues and of
all evidence the tenant plans to rely on at least five business days before the
hearing.
However, the tenant may still be able to
proceed with their claim if the tenant provides a satisfactory explanation to
the board why they were unable to comply with this requirement.
The Landlord and Tenant Board is required on all
eviction applications to use its discretion based on all the circumstances
disclosed at an eviction hearing to determine whether it would be fair to delay
or deny an eviction.
The new section deals with non-payments of rent
applications where the rent owed in whole or in part is during the COVID-19
period starting on March 17, 2020. The Board is now required to consider
whether it would be fair to delay or deny an eviction based on whether the
landlord has attempted to negotiate an agreement or payment terms with the
tenant.
If a tenant pays
an illegal rent increase for 12 consecutive months, and if the tenant does not
make an application to the board challenging the illegal rent increase within
12 months of the date of the increase, then this rate becomes the legal rent
payable.
This section
applies to an illegal rent increase made before or after July 21, 2020,
provided the board validity of the rent increase was not determined by the
board prior to July 21, 2020.
This section
removes the loophole that once an illegal rent increase was made, the tenant
could dispute the lawful rent being charged years later.
The board always
had mediators on site to assist the parties, if they voluntarily chose to speak
with a mediator, to try come to their own solution to the application before
the board.
This amendment now
permits the board to order the parties to attend mediation or another dispute
resolution process. Mediation may be forced upon the parties.
Section 206
If the landlord has filed an L1 application (non-payment of rent) with the Landlord and Tenant Board, and the landlord and the tenant agree in writing to a payment plan signed by all the parties on how the arrears are to be paid, this may be filed with the board in advance of the scheduled hearing. If filed, the board may order a payment plan without holding a hearing. If this happens, then no eviction will be ordered.
The agreement
may include payment of the arrears of rent, NSF cheque fees incurred, and NSF
administrative fees, payment of the LTB filing fee, and future rent that will
become due during the period that the rent arrears are being paid off.
The board will
issue an order that will contain a section 78 clause. If tenant fails any make
payment as set out in the signed agreement, the landlord may within 30 days of
that breach file an L4 application with the board setting out which terms were
breached. The board may order an eviction without holding a hearing.
Alternatively, a
landlord may file a request to reopen the application and have a hearing, even
if a section 78 clause was included in the order.
A landlord or a
tenant may file a request to reopen the application within 30 days of the L1
payment plan order being made alleging the other party coerced
them or deliberately made false or misleading representations which had an
effect on the agreement and the order issued as a result of the signed payment
agreement.
Section 238(1)
The Rental
Housing Enforcement Unit of the Ministry of Housing investigates and prosecutes
contraventions of the Residential Tenancies Act.
The maximum
fines for individuals (landlords or tenants) found guilty increases to
$50,000.00. This is up from $25,000.00.
The maximum file for corporate landlords found guilty increases to $250,000.00. This is up from $100,000.00.
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Paralegal Representation
Every day our office receives calls from landlords wanting to hire me for LTB matters.
If you need to hire an experienced, licensed paralegal, contact me:
Marshall Yarmus
Civil Litigations
(416) 229-1479 or (343) 600-7722
https://civilparalegal.com/home_services/landlord-and-tenant-board/