Bill 184, Protecting Tenants and Strengthening Community Housing Act, 2020

On July 21, 2020 Bill 184, title “Protecting Tenants and Strengthening Community Housing Act, 2020” received royal assent. The most significant change in this Bill for landlords, is the ability to streamline the eviction process for non-payment of rent. As a result of this Bill, landlords who reach an agreement with their tenant for repayment of outstanding rent will not have to go through an LTB hearing, if the tenant breaches the repayment agreement. However, a landlord can only be eligible for this process if the repayment agreement has been filed with and approved by the Landlord and Tenant Board Here are some other notable changes that landlords should understand when dealing with their tenants:

1. Compensation for Tenants When Giving Notice of Termination for “No Fault” Evictions Previously, if a landlord was giving notice of termination as a result of the sale of the property and the purchaser required the unit, no compensation was required to be paid. Now, no matter which “no fault” eviction notice a landlord gives to their tenant, at least one month’s rent compensation must be paid on or before the termination date. If this compensation is not paid, the landlord cannot obtain an order for eviction from the Landlord and Tenant Board.
2. Above Guideline Increases no Longer Deemed Void if Paid for 12 Months Previously, regardless of the amount of time that had passed, a tenant could bring an application for a rebate as a result of an above guideline increase of rent. Now, the increase in rent is deemed not void if the tenant has paid the increased rent for at least 12 consecutive months, provided the tenant has not, within one year after the increased was first charged, made an application to the Landlord Tenant Board disputing the increase.
3. Affidavits Required With “No Fault” Evictions If the landlord would like to evict a tenant to use a unit themself, they will now have to disclose to the Landlord and Tenant Board if they have used this notice previously in the past two years and the Board will need to consider this when determining whether the landlord is giving this notice in good faith.
4. Landlords can Pursue Remedies at the Landlord Tenant Board for up to One Year After Tenancy is Terminated Previously, once a tenant vacated the property, the Landlord Tenant Board did not have jurisdiction over an order for rent arrears and a landlord could only pursue remedies in Small Claims Court. Now, if a tenant owes the landlord rent arrears, a landlord can now obtain an order for payment of these arrears from the Landlord and Tenant Board within one year of the date the tenant vacated the property.
5. Increased Penalties for Bad Faith Terminations The most common application by a tenant for bad faith terminations arises when they receive an N12 notice terminating the tenancy because the landlord or the landlord’s immediate family member would like to use the property. Previously, if the Landlord Tenant Board found that the notice was given in bad faith, the landlord could be ordered to pay the difference between the old and new rent for up to a one-year period. Now, a tenant has two years to file a claim and increase the possible compensation by an additional full year’s rent, up to a maximum of $35,000.