Amendments to O. Reg. 516/06 under the Residential Tenancies Act, 2006
Regulation - LGIC
Bill or Act:
Residential Tenancies Act, 2006
Summary of Decision:
O. Reg. 516/06 (General) under the Residential Tenancies Act, 2006 was amended by Ontario Regulation 122/17
Ontario Regulation 122/17 came in force on April 24, 2017.
March 31, 2017
Summary of Proposal:
Ontario's "cap and trade" regime seeks to limit the amount of greenhouse gas (GHG) emissions in the province. As a result, various emitters of GHG will incur carbon costs to comply with this regime, including natural gas distributors.
Natural gas rates, including any increases or adjustments, are regulated by the Ontario Energy Board (OEB). The OEB issued an order in late-November 2016 permitting an interim increase in natural gas rates to reflect carbon costs incurred by natural gas distributors as part of their compliance obligations under cap and trade.
Ontario's Climate Change Action Plan committed that the Ministry of Housing will develop and consult on options to mitigate the impact of carbon costs on tenants. To support this commitment, the Ministry of Housing (MHO) is proposing amendments to O. Reg. 516/06 (General).
Currently, rental units in buildings first occupied before November 1, 1991 are generally subject to the rent increase guideline. However, where a landlord has incurred certain additional costs (for example, an extraordinary increase in utility costs), the landlord may apply to the Landlord and Tenant Board for an above-guideline increase (AGI). The determination of such applications is governed by s. 126 and 127 of the Act, and s. 24-34 of O. Reg. 516/06.
Senior Policy Advisor
Ministry of Housing, Residential and Commercial Tenancies
14th Flr, 777 Bay St
April 24, 2017