Bill 184: Tenant Protections Act
In March 2020, the Ontario government froze evictions and temporarily halted scheduled eviction orders for non-payment of rent due to Covid-19. In the months since, many people have gone through significant hardships. Tenants may have lost their jobs and financial security and landlords may not have been paid rent in months.
Bill 184, Protecting Tenants and Strengthening Community Housing Act of 2020 makes amendments to the following Acts:
Residential Tenancies Act, 2006
Ontario Mortgage and Housing Corporation Repeal Act, 2020
Housing Services Act, 2011
Building Code Act, 1992
Changes are meant to protect both landlords and tenants and to bring more fairness to the system. Every eviction does not necessarily need a hearing at the Board, but a fair eviction is needed in the case that a tenant does not pay back rent owed in bad faith, not because they cannot afford it. The changes to the legislation also protect tenants in the case that a landlord decides to terminate a tenancy in bad faith. Now, if a landlord acts in bad faith, the board will require them to compensate the tenant for hardship, in addition to receiving a large number of fines.
Elaine Page, previous Paralegal of the Year, joins us to discuss what’s happening at the Landlord and Tenant Board and discuss the new legislation and the impacts it has on landlords.
Elaine Page
Owner/Licensed Paralegal
Page Paralegal
elaine@pageparalegal.com
(905) 763-7922
Implications of Bill 184
Increased Compensation For Tenants
Previously a landlord was only required to compensate a tenant if the landlord gives a notice of termination of the tenancy for the purposes of demolition, conversion to non-residential use, or for repairs or renovations.
Bill 184 now requires landlords who give a notice of termination of the tenancy to a tenant on behalf of a purchaser to compensate the tenant one month’s rent or to offer the tenant another rental unit acceptable to the tenant.
If a landlord has given a notice of termination in bad faith, they could now be required to compensate the former tenant up to 12 months of the last rent charged to the former tenant.
Affidavits Now Required to Terminate a Tenancy
Landlords are now required to swear an affidavit that sets out the reasons for terminating a tenancy which must be filed at the same time the application to terminate the residency is submitted to the Board. This is meant to deter and hold landlords who want to terminate tenancy in bad faith accountable. In determining good faith, the Board will also consider if the landlord has given notice of termination for similar reasons within the last two years.
Raising Tenant Issues During A Hearing For Non-Payment Of Rent
Currently at a hearing of an application based on a notice of termination, the tenant may raise any issue that could be the subject of an application made by the tenant under the Act. Moving forward, a tenant may do so only if the tenant complies with specified requirements (including giving of advance written notice of intent to raise the issue) or provides an explanation satisfactory to the Board explaining why the requirements could not be met.
Eviction For Non-Payment of Rent
When considering an application to evict a tenant based on non-payment of rent, the Board will now consider whether the landlord has attempted to negotiate an agreement with the tenant including terms of payment for the tenant’s arrears.
Essentially, a landlord now must try to work out a deal or payment plan in good faith with the tenant before being granted an eviction order.
Landlord Compensation
When a landlord s seeking compensation from a tenant who remains in the unit after their tenancy has ended or for damage to the rental unit could only be made if the tenant was still in possession of the unit. This has been amended so that applications may be made while the tenant is in possession of the unit or no later than one year after the tenant or former tenant ceased to be in possession of the unit.
Also, a landlord may make an application for compensation if the tenant did not pay required utility costs while the tenant is in possession of the unit or no later than one year after the tenant or former tenant ceased to be in possession of the unit.
Rent Increase deemed not void
Previously if a landlord failed to give a tenant 90 days’ written notice of intent to raise the rent, any increase would be void. Now if the tenant has paid the increased rent in respect of each rental period for at least 12 consecutive months, it will become the legal rent (assuming the tenant has not filed an application).
Penalties
The maximum fines of $25,000 (personally) and $100,000 (corporations) have been increased to $50,000 and $250,000, respectively.
Final Comments
Bill 184 is meant to support landlords through these difficult times and ensuring that tenants are protected. Always try to work with your tenant first in good faith to resolve any situation. However, if you find yourself in a difficult situation, always seek professional help. It is very important to know your rights and the options available to protect yourself and using an expert in the field will ensure you don’t waste time and money.