Amendments to O. Reg. 516/06 under the Residential Tenancies Act, 2006
O. Reg. 516/06
Bill or Act:
Residential Tenancies Act, 2006
Summary of Proposal:
As part of the Fair Housing Plan, the Rental Fairness Act, 2017 (the Act) received Royal Assent on May 30, 2017. Among other amendments, the Act amends the Residential Tenancies Act, 2006 (RTA) to:
-strengthen tenant protections by protecting former tenants from unauthorized charges;
-improve Landlord and Tenant Board processes by clarifying second breach evictions; and,
-mitigate the impact of carbon costs on tenants to support Ontario's Climate Change Action Plan (CCAP).
The above amendments to the RTA are not yet proclaimed and in force.
The Ministry of Housing (MHO) is proposing the following regulatory amendments to O. Reg. 516/06:
1) Regulatory Amendment to Clarify Exemptions from the Prohibition on Unauthorized Charges
The RTA prohibits landlords from attempting to collect unauthorized charges (fees, penalties or other amounts), other than specified charges, from tenants. Section 24 of the Act extends this prohibition under the RTA to former tenants as well.
Currently O. Reg. 516/06 outlines exemptions to the prohibition on unauthorized charges (e.g., payment for additional keys requested by the tenant, payment in a settlement of a court action). MHO is proposing a regulatory amendment to clarify that, in addition to tenants and subtenants, payment by a former tenant or a former subtenant in a settlement of a court action or potential court action is permissible.
2) Regulatory Amendments to Clarify the Transition Rules for Second Breach Evictions
MHO is proposing a transitional rule which clarifies the second breach eviction process. The Act includes technical amendments to the RTA to improve LTB processes, including simplifying the second breach eviction process (section 12 and 18 of the Act). The Act amends the RTA to clarify that the first notice of termination for interfering with others, damage or overcrowding (LTB N5 Notice) need not be void in order for a landlord to give a second, non-voidable notice of termination.
MHO is proposing a regulatory amendment to provide a transition rule which clarifies that second breach notices and any related applications given on or after sections 12 and 18 of the Act come into force will be subject to the new rules regarding second breach notices.
3) Consequential Amendments Related to the Removal of Above Guideline Rent Increases (AGIs) for Utilities
MHO is proposing consequential regulatory amendments related to the removal of above guideline rent increases (AGIs) for utilities. The Act supports CCAP by mitigating the impact of carbon costs on tenants through an amendment that removes AGIs for extraordinary increases in utility costs (sections 22(1) and 23 of the Act). MHO is proposing regulatory amendments to clarify that the rules relating to AGIs continue to apply to utility AGI applications already in process while AGI applications made after sections 22(1) and 23 of the Act come into force cannot include utility costs.
October 2, 2017
Comments Due Date:
November 16, 2017
Andre Trevisan, Acting Manager
Ministry of Housing, Residential Tenancies
14th Flr, 777 Bay St
Toronto ON M5G 2E5