Bill 160 2016

An Act to regulate life leases

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

Definitions

   1.  In this Act,

"life lease complex" means a residential complex, as defined in subsection 2 (1) of the Residential Tenancies Act, 2006, that contains at least one residential unit that is the subject of a life lease interest; ("ensemble d'habitation en location viagère")

"life lease holder", in respect of a residential unit, means a person who holds a life lease interest in the unit; ("titulaire d'un bail viager")

"life lease interest" means the right to occupy a residential unit for life or for a fixed term of not less than 50 years; ("intérêt dans un bail viager")

"prescribed" means prescribed by the regulations; ("prescrit")

"regulations" means the regulations made under this Act; ("règlements")

"residential unit" has the same meaning as in subsection 2 (1) of the Residential Tenancies Act, 2006; ("habitation")

"sponsor" means a person who owns a residential unit that is subject to a life lease interest. ("parrain")

Repayment if possession not given

   2.  A sponsor shall repay any amount received in respect of a life lease unit if possession of the unit is not given to the life lease holder on the day specified in the agreement to purchase the life lease interest.

Reserve fund for life lease complex

   3.  A sponsor who owns a life lease complex shall, at all times on and after the first occupancy date of the complex, maintain a reserve fund to pay for any unforeseen major repair or replacement of assets of the complex, including, without limitation, roofs, exteriors, buildings, roads, sidewalks, sewers, heating, electrical or plumbing systems, elevators and laundry, recreational and parking facilities.

Annual meeting for life lease complex

   4.  (1)  A sponsor who owns a life lease complex shall hold an annual meeting for life lease holders.

Notice of meeting

   (2)  The sponsor shall give every life lease holder in the complex a written notice of the time and place of the meeting at least 30 days and not more than 50 days before the meeting.

Content of notice

   (3)  The sponsor shall include the following information in the notice:

    1.  A statement of the revenues and expenses of the complex for the preceding fiscal year.

    2.  A detailed budget for the current fiscal year.

    3.  The balance of the complex's reserve fund.

    4.  Any other information prescribed by the regulations.

Sponsor's attendance

   (4)  The sponsor or, if the sponsor is a corporation, at least one director of the board of the sponsor must attend the meeting.

Right to be heard

   (5)  Every life lease holder is entitled to place matters on the agenda for the meeting and to discuss those matters with the sponsor.

Regulations

   5.  The Lieutenant Governor in Council may make regulations,

  (a)  prescribing anything that may be prescribed under this Act;

  (b)  exempting any person or class of persons from any provision of this Act and attaching conditions to the exemption.

Commencement

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

Short title

   7.  The short title of this Act is the Life Lease Act, 2016.

EXPLANATORY NOTE

The Bill enacts the Life Lease Act, 2016.

The Act defines a life lease interest and provides for repayment if possession of a unit subject to a life lease interest is not given as agreed. It also provides for an annual meeting for life lease holders in a life lease complex.