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The Residential Tenancies Amendment Act (2)

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S.M. 1993, c. 45

The Residential Tenancies Amendment Act (2)

(Assented to July 27, 1993)

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

C.C.S.M. c. R119 amended

1           The Residential Tenancies Act is amended by this Act.

2(1)        Subsection 1(1) is amended

(a) in the part following clause (b) of the definition "rent", by striking out ", but does not include payment for the rental of furniture provided by the landlord";

(b) in the definition "residential tenancies repair program", by striking out "clause 44(j)" and substituting "clause 44(k)";

(c) by repealing the definition "security deposit trust account";

(d) in the definition "tenancy agreement", by striking out ", and includes, when the rental unit is furnished, an agreement for the use of furniture"; and

(e) by adding the following definition in alphabetical order:

"security deposit compensation fund" means the fund established under subsection 36(1); (« Fonds »)

2(2)        The following is added after subsection 1(1):

Furniture included in rental unit

1(1.1)      In this Act, a reference to a "rental unit" includes the furniture and appliances provided by the landlord for use in the rental unit.

2(3)        Clauses 1(2)(b) and 1(3)(b) are amended by striking out ", together with the security deposit if it was applied,".

3           Section 13 is repealed and the following is substituted:

Notice of name of landlord or agent

13(1)       On first entering into a tenancy agreement, a landlord shall give the tenant a notice in writing setting out

(a) the landlord's legal name, telephone number and address for giving and sending documents; or

(b) the name, address and telephone number of the landlord's agent responsible for making repairs, collecting rent and receiving documents from tenants on the landlord's behalf.

Alternative method of giving notice

13(2)       A landlord may comply with subsection (1) by posting and keeping posted in a conspicuous place in the residential complex an up-to-date notice setting out the information required under subsection (1).

4           Sections 15 and 16 are amended by striking out "or furniture rental".

5           Section 18 and the heading "FURNISHED RENTAL UNITS" preceding it are repealed and the following is substituted:

Furnished rental units

18          A landlord who rents a furnished rental unit shall provide to the tenant, at the time the tenancy agreement is first entered into, an itemized list of the furniture provided by the landlord for use in the rental unit.

6           Sections 19 and 20 are repealed.

7(1)        Subsection 25(2) is repealed and the following is substituted:

Notice to new tenant

25(2)       Subsection (1) does not apply to a rent increase that is intended to take effect when, or within three months after, a new tenant first occupies a rental unit under a new tenancy agreement, if notice of the increase is given in accordance with section 116.1.

7(2)        Subsection 25(3) is amended by striking out "subsection (1)" and substituting "subsection (1) or (2)".

8(1)        Paragraph 2 of section 29 is repealed and the following is substituted:

2.

A security deposit must not be required to be paid unless,

(a) before the tenancy agreement is first entered into, the landlord notifies the tenant that a security deposit is required, and

(b) before any assignment is made, the landlord notifies the prospective tenant that a security deposit is required.

8(2)        Paragraph 5 of section 29 is repealed.

9           Section 30 is repealed and the following is substituted:

Security deposit held by landlord or remitted

30(1)       A landlord who requires a tenant to pay a security deposit shall, on payment of the security deposit,

(a) hold it in accordance with this Act; or

(b) remit it to the director.

Security may be provided

30(2)       A landlord who holds a security deposit under clause (1)(a) may provide to the director a bond, financial instrument or other security for the payment of security deposits and interest, in such form and amount and upon such terms and conditions as required by the regulations.

If security not provided and deposit not returned

30(3)       If a landlord who requires a tenant to pay a security deposit

(a) holds the security deposit but does not provide a bond, financial instrument or other security to the director under subsection (2); and

(b) does not comply with an order made under subsection 154(1) to return all or part of the security deposit and interest to the tenant;

the provisions of this Act with respect to enforcement of the director's order or recovery of any payment made to the tenant from the security deposit compensation fund apply.

Deposit remitted to director

30(4)       A security deposit remitted to the director under clause (1)(b), and any interest, shall be held in trust.

Director may charge administration fee

30(5)       When a landlord remits a security deposit to the director under clause (1)(b), the director may require the landlord to pay a prescribed administration fee.

Director may return deposits to landlord

30(6)       At the request of a landlord, the director may return a security deposit that was previously remitted, and interest at the prescribed rate.

10          Subsection 31(1) is amended by striking out "the regulations" and substituting "a regulation made by the minister".

11          The following is added after section 31:

CLAIMS AGAINST SECURITY DEPOSITS

Claim for rent or other compensation

31.1        A landlord may make a claim under this Act against a security deposit and interest at the prescribed rate for outstanding rent or other compensation payable to the landlord, including expenses incurred for repair of damage and extraordinary cleaning.

12          Sections 32 to 36 are repealed and the following is substituted:

Return of security deposit if no claim by landlord

32(1)       When a landlord who holds a security deposit has no claim against it, the landlord shall, within 14 days after the date of termination of the tenancy, return the security deposit and interest at the prescribed rate to the tenant.

Landlord to notify tenant of claim

32(2)       When a landlord who holds a security deposit wishes to make a claim against the security deposit and interest, the landlord shall, within 28 days after the date of termination of the tenancy,

(a) send a written notice setting out the amount of the landlord's claim to the tenant at the tenant's last known address; and

(b) return to the tenant any unclaimed portion of the security deposit and interest or, if the tenant cannot be located, comply with subsection 33(1).

Request to director for determination

32(3)       Except when a landlord and tenant have agreed in writing on the disposition of a security deposit and interest, either party may apply to the director to determine payment of the security deposit and interest.

Landlord may make claim

32(4)       When the director receives an application from a tenant under subsection (3) and has not received an application from the landlord making a claim against the security deposit and interest, the director shall notify the landlord of the tenant's application and advise the landlord that if the landlord has a claim, the landlord must file an application with the director within

(a) 14 days after the landlord receives the notification from the director; or

(b) 28 days after the date of termination of the tenancy;

whichever is later.

If landlord fails to make claim

32(5)       A landlord who does not make an application in accordance with subsection (4) shall return the security deposit and interest to the tenant, but the landlord retains the right to take proceedings against the tenant under Part 11 in respect of any claim for outstanding rent or other compensation.

Director to determine payment

32(6)       Subject to subsection (7), after receiving an application from a landlord under this section, the director shall determine payment of the security deposit and interest.

Determination when tenant not located

32(7)       If under this section a landlord files an application making a claim against the security deposit and interest of a tenant who cannot be located, the director shall not make a determination under subsection (6) earlier than 60 days after the date of termination of the tenancy.

Deposit paid to director if tenant not located

32(8)        If the director makes a determination requiring a landlord to return all or part of a security deposit and interest to a tenant who cannot be located, the landlord shall pay to the director the amount owing to the tenant.

Deposit paid to director if no claim by landlord

33(1)       When a landlord who holds a security deposit cannot locate the tenant and the landlord has no claim against the security deposit, or has a claim for less than the security deposit and interest at the prescribed rate, the landlord shall, within 28 days after the date of termination of the tenancy, pay to the director the security deposit and interest or that part of the security deposit and interest against which the landlord has no claim.

Forfeiture to Crown

33(2)       The director shall hold an amount paid to the director under subsection (1) or subsection 32(8) for a tenant for two years in an account in the trust and special division of the Consolidated Fund, and at the end of two years it is forfeited to the Crown and shall be paid into the security deposit compensation fund established under subsection 36(1).

RETURN OF SECURITY DEPOSIT HELD BY THE DIRECTOR

Security deposit held by director

34(1)       This section and section 35 apply when the director holds a security deposit and interest.

Return of security deposit if no claim by landlord

34(2)       Subject to subsection (4), when a tenancy is terminated, the director shall return the security deposit and interest at the prescribed rate to the tenant unless within 28 days after the date of termination, or such further period as the director may allow, the director receives from the landlord an application making a claim against the security deposit and interest.

Landlord to notify tenant of claim

34(3)       A landlord who wishes to make a claim against a security deposit and interest shall, within 28 days after the date of termination of the tenancy, send a written notice setting out the amount of the landlord's claim to the tenant at the tenant's last known address.

Payment of security deposit when tenant agrees to claim

34(4)       A tenant may agree in writing to the landlord's claim and in that case the landlord shall, within 28 days after the date of termination of the tenancy, or such further period as the director may allow, give a copy of the agreement to the director, and the director shall pay the security deposit and interest in accordance with the agreement.

Payment when no agreement

34(5)        When the director receives an application from a landlord under subsection (2) and is not given a copy of an agreement between the landlord and tenant in accordance with subsection (4), the director shall determine payment of the security deposit and interest.

Landlord's right under Part 11

34(6)       When the director returns a security deposit and interest to a tenant under subsection (2), the landlord retains the right to take proceedings under Part 11 against the tenant in respect of any claim for outstanding rent or other compensation.

When tenant cannot be located

35(1)       A landlord who cannot locate a tenant shall, within 28 days after the date of termination of the tenancy, or such further period as the director may allow,

(a) give the director a statement that the tenant cannot be located; and

(b) if the landlord wishes to make a claim against the security deposit and interest at the prescribed rate, file an application with the director setting out the amount of the claim.

Director to determine payment

35(2)       When the director receives an application under clause (1)(b), the director shall, not earlier than 60 days after the date of termination of the tenancy, determine payment of the security deposit and interest.

Forfeiture to Crown

35(3)       If the director determines that a person who cannot be located is entitled to payment of all or part of a security deposit and interest, the director shall hold the amount owing for the person for two years in an account in the trust and special division of the Consolidated Fund, and at the end of two years it is forfeited to the Crown and shall be paid into the security deposit compensation fund established under subsection 36(1).

SECURITY DEPOSIT COMPENSATION FUND

Security deposit compensation fund

36(1)       There is hereby established in the trust and special division of the Consolidated Fund an account to be known as the "security deposit compensation fund".

Unclaimed deposits  and other money into fund

36(2)       The director shall credit the security deposit compensation fund with the following money:

(a) all money that is forfeited to the Crown under subsection 33(2) or 35(3) (unclaimed security deposits) or 140(6) (unclaimed rent refunds);

(b) all money that is forfeited to the Crown under subsection 107(3) (unclaimed property sale proceeds);

(c) all money that is forfeited to the Crown under subsection 196(2.1) (unclaimed security deposits under former Act) or 197(1.1) (unclaimed rent refunds under former Act);

(d) any money paid out of the fund that is recovered by the director under subsection 36.1(5);

(e) any interest earned by the money referred to in clauses (a) to (d).

Payment to tenant from fund if deposit not returned

36(3)       When a landlord has contravened an order of the director under subsection 154(1) to return all or part of a security deposit to a tenant, the director may, in accordance with section 36.1, pay the amount owing to the tenant from the security deposit compensation fund.

Balance exceeding $30,000.

36(4)       If at any time the balance in the security deposit compensation fund exceeds $30,000., the minister may use the excess to contribute towards the cost of providing educational and other programs for landlords, tenants and the public.

Unexpended balance paid into Consolidated Fund

36(5)       Any balance in the security deposit compensation fund as of March 31 of each year in excess of $30,000. shall, to the extent that in the opinion of the minister it is not required to make future payments described in subsection (3) or to meet future costs of programs described in subsection (4), be paid as revenue into the Consolidated Fund.

PAYMENT OF UNSATISFIED SECURITY DEPOSITS FROM FUND

Application for payment from fund

36.1(1)     When

(a) the director makes an order under subsection 154(1) requiring a landlord to return all or part of a security deposit and interest to a tenant; and

(b) the order has not been satisfied;

the tenant may apply to the director in writing for payment of the amount owing from the security deposit compensation fund established under subsection 36(1).

Director to determine application

36.1(2)     If, after considering the application, the director determines that

(a) the order referred to in clause (1)(a) has not been satisfied by the landlord; and

(b) there are no reasonable and appropriate procedures available that will allow the order to be satisfied within a reasonable period of time;

the director may pay to the tenant from the security deposit compensation fund, the amount that remains unsatisfied under the order.

Director may postpone payment

36.1(3)     When there is insufficient money in the security deposit compensation fund to make a payment under subsection (2), the director shall postpone making a payment until there is sufficient money in the fund to make the payment.

Director entitled to recover payment from fund

36.1(4)     On making a payment from the security deposit compensation fund under subsection (2), the director may complete a certificate as to the amount of money paid out of the fund and file the certificate in the court, and on filing the certificate is deemed to be a judgment of the court in favour of the director for the purpose of enforcement.

Money recovered paid into compensation fund

36.1(5)     Any money paid out of the security deposit compensation fund that is recovered by the director shall be paid by the director into the security deposit compensation fund.

13(1)       Subsection 39(1) is amended by striking out "and, if the rental unit is furnished, for the furniture".

13(2)       Subsection 39(2) is amended by adding "and" at the end of clause (a), by striking out "and" at the end of clause (b) and by repealing clause (c).

14          Section 47 is amended

(a) by adding "or" at the end of clause (b) and by repealing clause (c); and

(b) in clause (d), by striking out "or furniture" and ", furniture rental".

15(1)       Subsection 51(1) is amended by striking out everything after "prescribed form" and substituting the following:

(a) setting out

(i) the new landlord's legal name, telephone number and address for giving or sending documents, or

(ii) the name, address and telephone number of the new landlord's agent responsible for making repairs and collecting rent on the landlord's behalf; and

(b) setting out the amount of the security deposit being held for the rental unit and the interest at the prescribed rate that has accrued to the date of possession of the residential complex by the new landlord.

15(2)       Subsection 51(2) is amended

(a) in the part preceding clause (a), by striking out "in trust"; and

(b) in subclause (b)(i), by striking out ", the original amount of the security deposit and interest payable with respect to it, if any, and the date the security deposit was deposited in a security deposit trust account," and substituting "and the original amount of the security deposit and interest payable with respect to it, if any,".

15(3)       Subsection 51(3) is repealed.

15(4)       Subsections 51(4) and (5) are amended by striking out "or furniture rental" wherever it occurs.

16(1)       Clause 54(1)(d) is amended by striking out "or furniture".

16(2)       Clause 54(1)(f) is amended

(a) in subclause (i), by adding "or to inspect the rental unit to determine if an obligation should be performed" after "agreement"; and

(b) in subclause (ii), by striking out "or furniture".

17          Section 64 is repealed.

18(1)       Subsection 69(1) is amended

(a) in the section heading, by striking out "and furniture rental"; and

(b) in the subsection, by striking out "and furniture rental, if any," .

18(2)       Subsection 69(2) is amended by striking out "and furniture rental".

18(3)       The following is added after subsection 69(2):

Payment to director

69(3)       For the purposes of subsection (1), when a tenant pays rent to the director in accordance with an order made by the director under this Act, the payment to the director is deemed to be payment to the landlord.

Landlord may impose late payment fee

69(4)       When a tenant fails to pay the rent on a date specified in the tenancy agreement, the landlord may require the tenant to pay a late payment fee determined in accordance with the regulations.

19          Subsection 72(1) is amended by adding ", or pay compensation to the landlord," after "manner".

20          The following is added after section 76:

Removal of belongings

76.1        A tenant who vacates or abandons a rental unit shall remove his or her personal property unless the tenant makes an agreement with the landlord for the storage of any personal property that is not removed.

21          Section 77 is amended by adding "or abandoning" after "vacating".

22          Subsection 80(2) is repealed and the following is substituted:

Restriction on recovery of possession

80(2)       Unless a tenant has vacated or abandoned a rental unit, the landlord shall not regain possession of the rental unit except in accordance with a writ of possession issued under subsection 157(2).

23          Subclause 89(1)(a)(i) is repealed.

24          The following is added after section 93:

Termination for reduction or withdrawal of services, etc.

93.1        When a landlord reduces or withdraws a service, facility, privilege, accommodation or thing relating to the use or enjoyment of a rental unit before the expiry date of a written tenancy agreement, or gives notice under clause 138(1)(a) of an intention to do so, the tenant may apply to the director for an order terminating the tenancy on a specified date before the expiry date of the tenancy agreement, on the ground that the service, facility, privilege, accommodation or thing is so fundamental to the tenancy that termination is justified.

25          Clause 94(2)(a) is amended by striking out "or furniture rental".

26          Section 95 is amended

(a) in subsection (1), by striking out "or furniture rental" wherever it occurs;

(b) in subsection (2) of the English version, by striking out "or furniture rental"; and

(c) in subsections (5) and (6), by striking out ", furniture rental".

27          Subclause 96(1)(a)(i) is repealed.

28          Subsection 105(3) is amended by adding "unless the tenant was responsible for making the rental unit or residential complex uninhabitable by contravening an obligation under Parts 1 to 8 or breaching an obligation under the tenancy agreement" after "subsection (2)".

29          Subsection 107(3) is amended

(a) by adding "in an account in the trust and special division of the Consolidated Fund" after "clause (2)(b)"; and

(b) by striking out "account referred to in" and substituting "security deposit compensation fund established under".

30          Subsection 116(1) is amended

(a) in the part preceding clause (a), by striking out "sections 117 to 119" and substituting "sections 118 and 119"; and

(b) by striking out "or" at the end of clause (d) and by adding the following after clause (d):

(d.1) subsidized housing; or

31          The following is added after section 116:

NOTICE TO NEW TENANTS

Notice to new tenants

116.1(1)    On first entering into a tenancy agreement for a rental unit to which this Part applies, a landlord shall give the tenant a notice in the prescribed form setting out

(a) the current rent being charged for the rental unit and the date the rent was first charged;

(b) the immediately preceding rent charged for the rental unit;

(c) if the current rent being charged for the rental unit is to be increased within three months after the commencement of the tenancy, the effective date and amount of the increased rent;

(d) if the rent was established or is to be established under section 132, the average rent payable for similar or comparable rental units in the residential complex; and

(e) any other information that is prescribed.

Notice to be given to director

116.1(2)    A landlord shall give a copy of the notice referred to in subsection (1) to the director within 14 days after giving it to the tenant.

32          Clause 118(2)(a) is amended by adding "section 132.1 (landlord adds furniture)," after "(landlord regains possession of a rental unit),".

33          Section 121 is amended by striking out "affected by a notice of rent increase" and substituting "who receives notice under subsection 25(1) of a rent increase referred to in subsection 120(2)".

34          Section 124 is amended by striking out "affected by an application for a rent increase under section 123" and substituting "who receives notice under subsection 25(1) of a rent increase referred to in subsection 123(2)".

35(1)       Clause 127(2)(a) is repealed and the following is substituted:

(a) give at least three months' notice in writing to the tenants who are in occupancy of the rental units affected by the increase three months before the increase is to take effect; and

35(2)       Subsection 127(3) is amended by striking out "of the affected rental units" and substituting "referred to in clause (2)(a)".

36 Section 128 is amended by striking out "affected by an application for an increase under subsection 127(2)" and substituting "referred to in clause 127(2)(a)".

37          Clause 129(2)(b) is amended by striking out "actual".

38          Clause 131(2)(a) is amended by striking out "section 13" and substituting "section 116.1".

39          Subsections 132(2) and (3) are repealed and the following is substituted:

Increase effective against new tenant

132(2)      An increase under subsection (1) is effective against a new tenant of the rental unit if the landlord gives notice of the increase in accordance with section 116.1 but the amount of the increase is subject to any order under subsection (4).

Application by tenant

132(3)      A tenant who receives a notice referred to in subsection (2) may, not later than 30 days after receiving the notice, apply to the director for a determination of the average of the rents chargeable for rental units in the residential complex that are similar or comparable to the tenant's unit.

Order

132(4)      When a tenant makes an application under subsection (3), the director

(a) shall inquire into the matter; and

(b) may require the landlord to file with the director any material respecting the rent increase that the director considers necessary;

and the director may make an order determining the average of the rents chargeable.

40          The following is added after section 132:

ADDITION OF FURNITURE TO RENTAL UNIT

Rent increase for added furniture

132.1(1)    When a landlord lawfully regains possession of a rental unit, other than one described in subsection 131(1), in which the landlord did not previously provide furniture, the landlord may add furniture to that rental unit and increase the rent by an amount not exceeding a prescribed portion of the cost of the furniture.

Increase effective against new tenant

132.1(2)    An increase under subsection (1) is effective against a new tenant of the rental unit if the landlord gives notice of the increase in accordance with section 116.1 but the amount of the increase is subject to any order made under subsection (4).

Objection by tenant

132.1(3)    A tenant who receives a notice referred to in subsection (2) may, not later than 30 days after receiving the notice, file an objection with the director on the ground that the increase is not justified.

Order

132.1(4)    When a tenant files an objection under subsection (3), the director

(a) shall inquire into the matter;

(b) may require the landlord to file with the director any material respecting the rent increase that the director considers necessary; and

(c) shall consider the additional factors referred to in subsection (5);

and the director may make an order setting the maximum rent increase that may be charged for the rental unit, subject to any conditions the director considers reasonable.

Mandatory considerations

132.1(5)    Before making an order under this section, the director shall consider

(a) the rent charged for the rental unit immediately before the addition of the furniture to the rental unit;

(b) the cost of the furniture added to the rental unit;

(c) the age and value of the furniture added to the rental unit;

(d) the submissions and representations made by the landlord and tenant; and

(e) any other information that is prescribed.

41(1)       Subsection 133(1) is amended by striking out "sections 134 to 136" and substituting "sections 134 and 135".

41(2)       Subsection 133(2) is repealed and the following is substituted:

Application for approval

133(2)      A landlord who intends to carry out a rehabilitation scheme for a rental unit or a residential complex and desires an exemption from this Part may apply to the director for an order approving the scheme.

41(3)       Subsection 133(5) is repealed and the following is substituted:

Application available for inspection

133(5)      A landlord shall keep a copy of the application and the supporting material available for inspection by affected tenants and their representatives during normal business hours

(a) in the residential complex; or

(b) in the landlord's usual place of business if it is located in the same city, town or municipality as the residential complex;

until an order is made either approving or refusing the rehabilitation scheme.

42(1)       Clause 134(1)(a) is repealed and the following is substituted:

(a) that the landlord will take steps to minimize the disruption to tenants of rental units affected by the rehabilitation scheme; and

42(2)       Subsection 134(2) is amended

(a) by adding "and" at the end of clause (a); and

(b) by repealing clauses (c) and (d).

42(3)       Subsection 134(3) is repealed.

43          Section 136 is repealed.

44(1)        Subsection 137(1) is repealed and the following is substituted:

Application to fix value of improvements, etc.

137(1)      When, in response to a request from a tenant or prospective tenant, a landlord proposes to provide

(a) an improvement to or alteration of a rental unit or residential complex; or

(b) a service, facility, privilege, accommodation or thing relating to the use or enjoyment of a rental unit that is not usually provided by the landlord in connection with the rental unit;

the landlord may apply to the director for an order fixing the value of the improvement, alteration, service, facility, privilege, accommodation or thing.

44(2)       Subsection 137(3) is repealed and the following is substituted:

Order fixing value of improvement, etc.

137(3)      On receiving an application under subsection (1), the director may make an order

(a) fixing the value to the tenant of the improvement to or alteration of the rental unit or residential complex or the provision of the service, facility, privilege, accommodation or thing;

(b) fixing the method and duration of payment, either as part of the rent or otherwise, of the amount fixed as the value under clause (a); and

(c) imposing such conditions on the landlord and the tenant as the director considers reasonable.

45          Sections 138 and 139 are repealed and the following is substituted:

Application re reduction of services

138(1)      A landlord who intends to reduce or withdraw a service, facility, privilege, accommodation or thing relating to the use or enjoyment of one or more rental units shall

(a) give the tenant of each rental unit affected by the reduction or withdrawal a notice in the prescribed form not later than three months before the effective date of the reduction or withdrawal; and

(b) apply to the director in the prescribed form not later than 14 days after the beginning of the three-month period referred to in clause (a) for an order fixing the value of the reduction or withdrawal.

Application if reduction beyond landlord's control

138(2)      Despite subsection (1), when a reduction or withdrawal is beyond the control of the landlord, the director may permit an application to be made under subsection (1) at any time.

Notice by director

138(3)      On receiving an application under subsection (1), the director shall give notice to the tenants of the affected rental units of their right to make a written submission to the director respecting the landlord's application, but no proceeding is invalid because a notice is not given to each tenant.

Submission by tenant

138(4)      A tenant may, not later than 14 days after the director sends a notice to the tenant under subsection (3), file a written submission with the director stating the tenant's position with respect to the landlord's application.

Order respecting reduction

139         After considering an application under subsection 138(1) and any submission from a tenant, the director may make an order

(a) fixing the value of the service, facility, privilege, accommodation or thing reduced or withdrawn to the tenants of the affected rental units;

(b) directing that the rent of the tenants be reduced by that value; and

(c) imposing such conditions as the director considers appropriate.

46(1)       Subsection 140(1) is repealed and the following is substituted:

Interpretation

140(1)      For the purpose of this section, when a landlord reduces or withdraws a service, facility, privilege, accommodation or thing relating to the use or enjoyment of a rental unit other than in accordance with an order of the director under section 139, the landlord is deemed to charge rent in excess of the rent permitted by this Act.

46(2)       Clause 140(3)(c) is repealed and the following is substituted:

(c) imposing such conditions as the director considers reasonable.

46(3)       Subsection 140(4) is repealed and the following is substituted:

Order authorizing set-off or redirection of rent

140(4)      If the director makes an order under clause (3)(b), the director may also make an order

(a) authorizing the tenant to recover the amount owing to the tenant under the order by setting off the amount owed against the rent for a specified rental payment period or periods; or

(b) directing that another tenant or specified tenants of the residential complex pay the rent or a specified part of the rent to the director, for payment to the tenant entitled to the reimbursement.

When tenant cannot be located

140(5)      If the director makes an order under clause (3)(b) requiring the landlord to reimburse a tenant who cannot be located, the landlord shall pay the amount owing to the director.

Forfeiture to Crown

140(6)      The director shall hold money paid to the director under subsection (5) for two years in an account in the trust and special division of the Consolidated Fund, and at the end of two years it is forfeited to the Crown and shall be paid into the security deposit compensation fund established under subsection 36(1).

47          Subsection 152(1) is repealed and the following is substituted:

Director's authority: matters other than rent regulation

152(1)      Except as provided in this section, the director has the exclusive authority, at first instance, to investigate, endeavour to mediate a settlement and determine

(a) a question arising under Parts 1 to 8; or

(b) a matter arising from an alleged breach of a tenancy agreement or contravention of a provision of Parts 1 to 8.

Application

152(1.1)    A person who wishes to have a question or matter determined shall make an application to the director.

48          Subsection 153(1) is amended by striking out "subsection 152(1)" and substituting "subsection 152(1.1)".

49(1)        Paragraph 5 of subsection 154(1) is repealed and the following is substituted:

5.

Requiring a person who has contravened an obligation under Parts 1 to 8 or breached a tenancy agreement

(a) to compensate another person affected for loss suffered or expense incurred as a result of the contravention or breach;

(b) to pay to the other person reasonable costs incurred to a maximum of 10% of the amount of the compensation; and

(c) to pay interest to the other person, as determined in accordance with a regulation made by the minister, on the compensation.

49(2)       Paragraph 10 of subsection 154(1) is repealed and the following is substituted:

10.

If the director is of the opinion that a landlord's contravention of the obligation to repair under subsection 59(1) or failure to comply with an order filed under subsection 59(3) is so substantial that occupancy of a rental unit is or would be unfair to a tenant, or endangers or would endanger the health and safety of a tenant, prohibiting the landlord from renting the rental unit until the contravention is remedied or the order is complied with.

49(3)       Paragraph 11 of subsection 154(1) is repealed and the following is substituted:

11.

If the director believes on reasonable grounds that a landlord has contravened or is likely to contravene subsection 32(1), (2) or (5) or subsection 33(1), ordering that security deposits held or to be received by the landlord respecting rental units specified in the order be paid to the director.

50          The following is added after subsection 156(2):

Certificate filed in court

156(3)      Section 183.1 applies, with necessary modifications, to money that is advanced from the residential tenancies repair program in accordance with an order referred to in subsection (1).

51          Subsection 157(2) is amended by striking out "the order may be filed" and substituting "a certified copy of the order may be filed".

52          Subsection 161(2) is repealed and the following is substituted:

Notice of appeal

161(2)      Except as provided in subsection (2.1), an appeal shall be commenced by filing a notice of appeal in writing with the commission within 14 days after the person receives a copy of the decision or order of the director, or within such further time as the commission permits.

Notice in specified matters

161(2.1)    An appeal of a decision or order made by the director under paragraph 2 of subsection 154(1) respecting a contravention of subsection 32(5) or under paragraph 9 of subsection 154(1) shall be commenced by filing a notice of appeal in writing with the commission within seven days after the person receives a copy of the decision or order, or within such further time as the commission permits.

53          The following is added after section 179:

DIRECTOR'S AUTHORITY: REDIRECTING RENTS

Prescribed fee for rent redirection orders

179.1(1)    When the director makes an order under clause 140(4)(b), paragraph 3 of subsection 154(2) or section 183.2 directing that a tenant's rent be paid to the director, the director may also require the landlord to pay a prescribed administration fee.

Director's authority to apply rents

179.1(2)    When the director receives money from a tenant in accordance with an order of the director under clause 140(4)(b), paragraph 3 of subsection 154(2) or section 183.2 directing that the tenant's rent be paid to the director, the director may pay the money

(a) to any person to remedy a failure by the landlord to comply with an order of the director respecting a contravention by the landlord of an obligation under this Act or a breach of a tenancy agreement; and

(b) to the security deposit compensation fund or the residential tenancies repair program in any amounts that the director is entitled under this Act to recover from the landlord.

Balance to landlord

179.1(3)    After making the payments referred to in clauses (2)(a) and (b) and deducting any prescribed administration fee, the director shall pay any balance remaining to the landlord.

54(1)       Subclauses 180(5)(b)(ii) and (iii) are repealed and the following is substituted:

(ii) whether the director's estimate of potential net revenue available to a receiver-manager over a period of one year from the appointment of the receiver-manager is sufficient to meet the estimated cost of the repairs, including the repair of any structural deficiency, that the director considers necessary to comply with an order filed under subsection 59(3), and

(iii) the effect on the financial viability of the residential complex of the nature and estimated cost of the repairs in relation to the director's estimate of potential net revenue available to a receiver-manager over a period of one year from the appointment of the receiver-manager; and

54(2)       The following is added after subsection 180(5):

Decision to apply to court

180(5.1)     A decision of the director under clause (4)(a) to make application to the court is final and not subject to appeal.

54(3)       Subsection 180(6) is amended by striking out ", unless the decision is appealed to the commission".

55          Subsection 181(1) is repealed and the following is substituted:

Appeal to commission

181(1)      If the director decides under clause 180(4)(a) not to make application to the court, any person or local authority entitled under clause 180(4)(b) to receive notice of the director's decision may appeal the decision by filing a notice of appeal in writing with the commission within 14 days after receiving the notice, or within such further time as the commission permits.

56          The following is added after clause 182(4)(c):

(c.1) varying an order made under this section;

(c.2) reinstating any order of the director or the commission under this Act that was in effect at the time the receiver-manager was appointed;

57(1)       The following is added after subsection 183(1):

Notice of right to object

183(1.1)    When the director gives notice to the local authority under clause (1)(b), the director shall give notice to the landlord, any owner of the residential complex and any person who has registered a charge, encumbrance or claim in the land titles office against the land on which the residential complex is located of the right to object to the addition of the amount referred to in clause (1)(b) to the real property tax.

Objection filed with director

183(1.2)    A person who receives a notice under subsection (1.1) may, within 30 days after receiving the notice, file an objection in writing with the director on the ground that the total of the following amounts is less than 75% of the fair market value of the residential complex and the land:

(a) the amount of all charges, encumbrances and claims registered in the land titles office against the land on which the residential complex is located;

(b) the amount of money expended by the receiver-manager in the exercise of a power or in the performance of a duty approved by the court that is in excess of the rent and other money received by the receiver-manager;

(c) the amount of any overdue real property taxes on the land on which the residential complex is located;

(d) the amount of any money owing to the residential tenancies repair program with respect to the residential complex, other than money that is included in any of the amounts described in clauses (a) to (c);

(e) the amount of all security deposits and interest at the prescribed rate held by the landlord with respect to tenants of the residential complex, unless the landlord has provided security in accordance with subsection 30(2).

Objection to include request for appraisal

183(1.3)    An objection filed under subsection (1.2) shall include a request that the director obtain an appraisal of the fair market value of the residential complex and the land on which it is located and an undertaking by the person filing the objection to pay the cost of the appraisal to the director.

Appointment of appraiser

183(1.4)    On receiving an objection under subsection (1.2), the director

(a) shall appoint a qualified appraiser to prepare an appraisal of the fair market value of the residential complex and the land on which it is located; and

(b) may require any person to file with the director any information that the director considers necessary respecting the matters described in clauses (1.2)(a) to (e).

Finding by director

183(1.5)    If, after considering the appraisal and any other information obtained under subsection (1.4), the director finds that the total of the amounts described in clauses (1.2)(a) to (e) is less than 75% of the appraised value of the residential complex and the land on which it is located, the director shall

(a) withdraw the notice given to the local authority under clause (1)(b) and request the local authority to remove the amount added to the real property tax under that clause; and

(b) give notice of the withdrawal to the persons given notice under subsection (1.1).

57(2)       Subsection 183(2) is repealed and the following is substituted:

Remittance by local authority

183(2)      Unless the director withdraws the notice given under clause (1)(b), the local authority shall remit to the director the amount added to the real property tax under this section when that amount is paid.

Report to local authority

183(2.1)    If the director gives notice to the local authority under clause (1)(b), the director shall report to the local authority from time to time as to any change in the amount owing and request that the real property tax be adjusted accordingly.

57(3)       Subsections 183(3) and (4) are renumbered as subsections 182(2.1) and (2.2) respectively.

57(4)       Subsection 183(5) is renumbered as subsection 182(5).

58          The following is added after section 183:

Certificate filed in court

183.1       At any time after an advance is made from the residential tenancies repair program to a receiver-manager, the director may complete a certificate as to the amount of money borrowed from the residential tenancies repair program and file the certificate in the court, and on filing the certificate is deemed to be a judgment of the court in favour of the director for the purpose of enforcement.

Redirection of rent

183.2       When, after a receiver-manager is discharged, money borrowed by the receiver-manager from the residential tenancies repair program has not been repaid with interest in accordance with the requirements of the program, the director may make an order directing that a tenant or tenants of the residential complex pay the rent or a specified part of the rent to the director for payment to the residential tenancies repair program.

59          Subclause 184(1)(a)(ii) is amended by striking out "rental unit" and substituting "residence of the tenant, sub-tenant or occupant".

60          Section 194 is amended

(a) by repealing clause (c) and substituting the following:

(c) respecting the records and information respecting security deposits that shall be kept and that shall be provided to the director;

(b) in the part of clause (d) preceding subclause (i), by striking out "section 29" and substituting "subsection 30(2)";

(c) in clause (g), by striking out ", subclause 125(4)(a)(ii) and clause 129(2)(b)" and substituting "and subclause 125(4)(a)(ii)";

(d) by adding the following after clause (g):

(g.1) respecting the determination of a landlord's expenses for the purpose of clause 129(2)(b);

(g.2) prescribing the portion of the cost of furniture for the purpose of calculating a rent increase under subsection 132.1(1);

(e) by adding the following after clause (i):

(i.1) respecting late payment fees landlords may charge under subsection 69(4);

61          The following is added after section 194:

Regulations by minister

194.1       The minister may make regulations

(a) prescribing the rate of interest payable on a security deposit under subsection 31(1);

(b) respecting interest for the purpose of clause (c) of paragraph 5 of subsection 154(1).

62          Subsection 195(4) is amended by striking out "paragraph 5 of section 29 or by subsection 32(1), 32(2), 33(1) or 196(1)" and substituting "subsection 32(1), 32(2), 32(5) or 33(1)".

63(1)       Subsection 196(1) is repealed.

63(2)       Subsection 196(2) is amended by striking out ", and sections 33, 35 and 36 of this Act apply as if the money were a security deposit owing under this Act to a tenant who could not be located".

63(3)       The following is added after subsection 196(2):

Forfeiture to Crown

196(2.1)    The director shall hold the money referred to in subsection (2) in an account in the trust and special division of the Consolidated Fund until a period of two years has expired from the date the money was first received by the rentalsman, and on the expiry of that period the money is forfeited to the Crown and shall be paid into the security deposit compensation fund established under subsection 36(1).

63(4) Subsections 196(3) and (4) are repealed.

64          The following is added after section 196:

Furniture rental agreements

196.1       When immediately before the coming into force of this section, a landlord rents a furnished rental unit to a tenant,

(a) the furniture rental agreement entered into before the coming into force of this section is deemed to be part of the tenancy agreement;

(b) any amount payable as furniture rental under that furniture rental agreement shall be added to the rent payable for the rental unit after the coming into force of this section; and

(c) any condition report for the furniture in the furnished rental unit is deemed to be a condition report under section 39.

65(1)       Subsection 197(1) is amended by striking out ", and sections 33, 35 and 36 of this Act apply as if the money were a security deposit owing under this Act to a tenant who could not be located".

65(2)       The following is added after subsection 197(1):

Forfeiture to Crown

197(1.1)    The director shall hold the money referred to in subsection (1) in an account in the trust and special division of the Consolidated Fund until a period of two years has expired from the date the money was first received by the director of the Rent Regulation Bureau, and on the expiry of that period the money is forfeited to the Crown and shall be paid into the security deposit compensation fund established under subsection 36(1).

65(3)       Subsection 197(2) is amended by striking out "an exemption approved under clause 134(2)(b) of this Act" and substituting "an order made under subsection 134(1) of this Act granting an exemption referred to in clause 134(2)(b) of this Act".

65(4)       The following is added after subsection 197(2):

Prohibition re condominium conversions continued

197(2.1)    When on the coming into force of this subsection an order referred to in subsection 197(2) is in effect, the provisions of section 136 that were in force immediately before the coming into force of this subsection apply to that order, with necessary modifications.

Coming into force

66          This Act comes into force on September 1, 1993.