Rent Decrease - Capital Expenses (Above Guideline Applications)(RTA)

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Date Retrieved:	2024-04-28
CLNP Page ID:	2221
Page Categories:	[Payment of Rent (LTB)], [AGI Applications]
Citation:	Rent Decrease - Capital Expenses (Above Guideline Applications)(RTA), CLNP 2221, <https://rvt.link/6k>, retrieved on 2024-04-28
Editor:	Sharvey
Last Updated:	2023/12/06

Residential Tenancies Act, 2006, S.O. 2006, c. 17

126 (1) A landlord may apply to the Board for an order permitting the rent charged to be increased by more than the guideline for any or all of the rental units in a residential complex in any or all of the following cases:

1. An extraordinary increase in the cost for municipal taxes and charges for the residential complex or any building in which the rental units are located.

2. Eligible capital expenditures incurred respecting the residential complex or one or more of the rental units in it.

3. Operating costs related to security services provided in respect of the residential complex or any building in which the rental units are located by persons not employed by the landlord. 2006, c. 17, s. 126 (1); 2017, c. 13, s. 22 (1).

...

(10) Subject to subsections (11) to (13), in an application under this section, the Board shall make findings in accordance with the prescribed rules with respect to all of the grounds of the application and, if it is satisfied that an order permitting the rent charged to be increased by more than the guideline is justified, shall make an order,

(a) specifying the percentage by which the rent charged may be increased in addition to the guideline; and

(b) subject to the prescribed rules, specifying a 12-month period during which an increase permitted by clause (a) may take effect. 2006, c. 17, s. 126 (10).

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(13) If this subsection applies to a rental unit, the Board shall,

(a) dismiss the application with respect to the rental unit; or

(b) provide, in any order made under subsection (10), that the rent charged for the rental unit shall not be increased pursuant to the order until the Board is satisfied, on a motion made by the landlord within the time period specified by the Board, on notice to the tenant of the rental unit, that,

(i) all items referred to in subclause (12) (a) (i) that affect the rental unit have been completed, if a finding was made under that subclause,

(ii) all repairs, replacements and other work referred to in subclause (12) (a) (ii) that affect the rental unit have been completed, if a finding was made under that subclause,

(iii) the serious breach referred to in subclause (12) (a) (iii) no longer affects the rental unit, if a finding was made under that subclause,

(iv) all items referred to in clause (12.1) (a) have been completed, if a finding was made under that clause,

(v) all items referred to in clause (12.1) (b) have been completed, if a finding was made under that clause, and

(vi) all repairs, replacements and other work referred to in clause (12.1) (c) have been completed, if a finding was made under that clause. 2006, c. 17, s. 126 (13); 2017, c. 13, s. 22 (6).

...

129 If the Board issues an order under subsection 126 (10) permitting an increase in rent that is due in whole or in part to eligible capital expenditures,

(a) the Board shall specify in the order the percentage increase that is attributable to the eligible capital expenditures;

(b) the Board shall specify in the order a date, determined in accordance with the prescribed rules, for the purpose of clause (c); and

(c) the order shall require that,

(i) if the rent charged to a tenant for a rental unit is increased pursuant to the order by the maximum percentage permitted by the order and the tenant continues to occupy the rental unit on the date specified under clause (b), the landlord shall, on that date, reduce the rent charged to that tenant by the percentage specified under clause (a); and

(ii) if the rent charged to a tenant for a rental unit is increased pursuant to the order by less than the maximum percentage permitted by the order and the tenant continues to occupy the rental unit on the date specified under clause (b), the landlord shall, on that date, reduce the rent charged to that tenant by a percentage determined in accordance with the prescribed rules that is equal to or lower than the percentage specified under clause (a). 2006, c. 17, s. 129.

130 (1) A tenant of a rental unit may apply to the Board for an order for a reduction of the rent charged for the rental unit due to a reduction or discontinuance in services or facilities provided in respect of the rental unit or the residential complex. 2006, c. 17, s. 130 (1).

(2) A former tenant of a rental unit may apply under this section as a tenant of the rental unit if the person was affected by the discontinuance or reduction of the services or facilities while the person was a tenant of the rental unit. 2006, c. 17, s. 130 (2).

(3) The Board shall make findings in accordance with the prescribed rules and may order,

(a) that the rent charged be reduced by a specified amount;

(b) that there be a rebate to the tenant of any rent found to have been unlawfully collected by the landlord;

(c) that the rent charged be reduced by a specified amount for a specified period if there has been a temporary reduction in a service. 2006, c. 17, s. 130 (3).

(4) An order under this section reducing rent takes effect on the day that the discontinuance or reduction first occurred. 2006, c. 17, s. 130 (4).

(5) No application may be made under this section more than one year after a reduction or discontinuance in a service or facility. 2006, c. 17, s. 130 (5).

O. Reg. 516/06: GENERAL; under Residential Tenancies Act, 2006

38. (1) The rules for determining a date for the purpose of clause 129 (c) of the Act are as follows:

1. If the unit is subject to an order issued under subsection 126 (10) of the Act and subsection 126 (13) of the Act does not apply, the date shall be the day immediately before the anniversary, in the year determined by adding the weighted useful life as determined under paragraph 6 of subsection 26 (6) of this Regulation to the year in which the landlord took the increase, of the date the landlord took the increase.

2. Despite paragraph 1, if a landlord was entitled to take an increase under clause 126 (10) (b) of the Act but only took an increase or increases under clause 126 (11) (b) of the Act, the date shall be the day immediately before the anniversary, in the year determined by adding the weighted useful life as determined under paragraph 6 of subsection 26 (6) of this Regulation to the year that contains the first effective date set out in the order, of the first effective date set out in the order.

3. If the unit is subject to an order issued under subsection 126 (10) of the Act, and was subject to subsection 126 (13) of the Act, the date shall be the day immediately before the anniversary, in the year determined by adding the weighted useful life as determined under paragraph 6 of subsection 26 (6) of this Regulation to the year that contains the first effective date set out in the order, of the first effective date set out in the order. O. Reg. 516/06, s. 38 (1).

(2) The rules to determine the percentage for the purpose of subclause 129 (c) (ii) of the Act are as follows:

1. If an order was issued by the Board under subsection 126 (10) of the Act permitting an increase in rent that is due in whole to eligible capital expenditures, the percentage reduction shall be equal to the percentage increase taken by the landlord.

2. If an order was issued by the Board under subsection 126 (10) of the Act permitting an increase in rent that is due only in part to eligible capital expenditures, the percentage reduction shall be the percentage for eligible capital expenditures as determined under section 34 of this Regulation. O. Reg. 516/06, s. 38 (2).