4th Session, 42nd Legislature

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Bill 218

THE RESIDENTIAL TENANCIES AMENDMENT ACT

(Assented to                                         )

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

The following is added after subsection 25(4):

Restrictions re removal of rent discount

25(4.1)

If a landlord has given a tenant a rent discount, the landlord must not

(a) remove or reduce the discount when the landlord applies under section 123 for a rent increase above the maximum permitted by the regulations or within one year after making such an application; or

(b) apply under section 123 for a rent increase above the maximum permitted by the regulations within one year after removing or reducing the rent discount.

3

Subsection 123(2) is replaced with the following:

Application for rent increase above maximum

123(2)

A landlord may apply to the director for an order permitting the rent charged for a rental unit to be increased by more than the maximum increase permitted by the regulations in one or more of the following circumstances:

(a) there has been an extraordinary increase in municipal taxes or charges for the residential complex;

(b) there has been an extraordinary increase in utility charges for the residential complex;

(c) the landlord has incurred eligible capital expenditures respecting the residential complex;

(d) the landlord has incurred operating costs related to the provision of security services for the residential complex that are not provided by persons employed by the landlord.

Eligible capital expenditures

123(2.1)

Subject to subsection (2.2), a capital expenditure is an eligible capital expenditure if

(a) it is necessary to protect or restore the physical integrity of the residential complex or any part of the residential complex;

(b) it is necessary to maintain the operation of a plumbing, heating, mechanical, electrical, ventilation or air conditioning system;

(c) it improves access for persons with disabilities;

(d) it promotes energy or water conservation; or

(e) it maintains or improves the security of the residential complex or any part of the residential complex.

Exception

123(2.2)

A capital expenditure to replace a system or thing is not an eligible capital expenditure for the purposes of this section if the system or thing that was replaced did not require major repairs or replacement, unless the replacement of the system or thing improves

(a) access for persons with disabilities;

(b) energy or water conservation; or

(c) security of the residential complex or any part of the residential complex.

4

Clause 124(d) is replaced with the following:

(d) the tenant does not believe that the landlord's costs and expenses set out in subsection 123(2) have increased in a manner that justifies the requested increase;

5(1)

Subsection 125(1) is replaced with the following:

Order re application

125(1)

After considering any objection filed by a tenant under section 124 and the factors set out in subsection (3), the director must make an order on an application for a rent increase above the maximum increase permitted by the regulations. The director may

(a) grant the application, in whole or in part, subject to any conditions the director considers reasonable;

(b) order that any increase granted under clause (a) be phased in over a specified period of time to provide affordability for tenants; or

(c) deny the application.

5(2)

Subsection 125(2) is amended, in the part before clause (a), by adding "granting a rent increase" after "An order".

5(3)

Clause 125(3)(b) is amended by striking out "actual expenses" and substituting "costs and expenses set out in subsection 123(2)".

6

The following is added after section 126 and before the centred heading that follows it:

No increase until order made

126.0.1

A landlord must not charge rent that is increased by more than the maximum increase permitted by the regulations until the director has made an order under section 125 that authorizes the increased rent.

7

Subsection 194(1) is amended

(a) by adding the following after clause (f):

(f.1) defining or determining extraordinary increases in expenses for the purpose of subsection 123(2);

(b) in clause (g), by striking out "actual".

Coming into force

8

This Act comes into force on the day it receives royal assent.