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[37] Bill 38 Original (PDF)

Bill 38 2001

An Act to amend the
Tenant Protection Act, 1997

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

1. Section 124 of the Tenant Protection Act, 1997 is repealed and the following substituted:

New tenant

124. (1) The lawful rent for a unit for the first rental period under a new tenancy agreement that commences on or after the day this section comes into force is the lesser of,

(a) the amount of rent that was charged for the unit immediately before the new tenancy began; and

(b) the maximum amount of rent that could be lawfully charged by the landlord for the unit immediately before the new tenancy began.

Statement of rent

(2) Before entering into a new tenancy agreement for a rental unit, a landlord shall give to the new tenant a statement certifying the amount of the last rent charged for the unit, and shall file a copy of the statement with the Tribunal.

Transitional

(3) If subsection (1) comes into force after the day a landlord gave a notice to the previous tenant of the unit under section 127 but before the day the first intended increase in rent takes effect, the amounts of rent described in clauses (1) (a) and (b) are the amounts determined before the intended increase.

Rent freeze

124.1 (1) Despite this Act and the regulations, the lawful rent for a rental unit for a period of two years starting on the day this section comes into force shall not exceed the lesser of,

(a) the amount of rent that was charged for the unit on the day before this section came into force; and

(b) the maximum amount of rent that could be lawfully charged by the landlord for the unit on the day before this section came into force.

Transitional

(2) If subsection (1) comes into force after the day a landlord gives a notice to a tenant under section 127 or makes an application under section 138 in respect of a rental unit but before the day the first intended increase in rent takes effect, the amounts of rent described in clauses (1) (a) and (b) for the rental unit are the amounts determined before the intended increase.

Application

(3) Sections 129, 130, 132, 138 and 139 do not apply to landlords and tenants in respect of the amount of rent for rental units for the two-year period starting on the day subsection (1) comes into force.

Rent registry established

124.2 (1) A rent registry for all residential units to which this Act applies shall be established as prescribed.

Purpose of rent registry

(2) The purpose of the rent registry is to provide a means of giving information to the public about the lawful rent that may be charged for a rental unit.

Landlord to file statement with rent registry

(3) Within six months after the day this Act comes into force, every landlord of a rental unit shall file a statement in the prescribed manner with the person or body required by the regulations to operate the rent registry.

New rental units

(4) If a new rental unit is established after the day this Act comes into force, the landlord shall file the statement referred to in subsection (3) within six months after the day the new unit is first rented.

Contents of statement

(5) The statement shall set out the lawful rent in respect of a rental unit, and any other prescribed information.

2. Section 135 of the Act is repealed.

3. (1) Subsection 206 (1) of the Act is amended by adding the following paragraphs:

11.1 Give a false statement of rent under section 124.

11.2 Give false information in a statement filed with the rent registry under section 124.2.

(2) Subsection 206 (2) of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule K, section 6, is further amended by adding the following paragraphs:

13.1 Fail to give a statement of rent required under section 124.

13.2 Fail to file a statement with the rent registry in the prescribed form and manner, and with the prescribed information, as required by section 124.2.

4. Subsection 208 (1) of the Act, as amended by the Statutes of Ontario, 2000, chapter 26, Schedule K, section 6, is further amended by adding the following paragraphs:

13.1 requiring a body or person to establish and operate the rent registry;

13.2 respecting the operation and use of the rent registry;

13.3 respecting the contents and forms of statements to be filed by landlords under section 124.2 and the manner in which such statements shall be filed;

13.4 respecting any other matter necessary for the administration of a rent registry;

Commencement

5. This Act comes into force on the day it receives Royal Assent.

Short title

6. The short title of this Act is the Rent Freeze Act, 2001.

EXPLANATORY NOTE

The Bill freezes the amount of residential rents for a period of two years. Notices and applications for rent increases to take effect after the Bill passes will have no effect.

No rent increase will be permitted on renting to a new tenant. Landlords will be required to give new tenants a statement certifying the amount of rent last charged for the unit. Landlords who give false statements or fail to give the statement will be subject to prosecution.

Landlords will no longer be permitted to increase the rent charged to the maximum rent allowed when Part VI of the Tenant Protection Act, 1997 came into force.

The Bill also establishes a rent registry. Landlords are required to file a statement with the registry that sets out the lawful rent for each rental unit to which the Act applies.