The Residential Tenancies Amendment Act

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1st Session, 43rd Legislature

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Bill 26

THE RESIDENTIAL TENANCIES AMENDMENT ACT

Bilingual version (PDF)

Explanatory Note

(Assented to )

HIS 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 Subsection 26(1) is amended by striking out "and" at the end of clause (e), adding "and" at the end of clause (f) and adding the following after clause (f):

(g) any additional prescribed information.

3 The following is added after subsection 116(2.2):

Non-application to eligible converted buildings

116(2.3) This Part, except sections 117 to 119, does not apply to a rental unit in a residential complex or part of a residential complex

(a) that is an eligible converted building for which a residential occupancy permit is required, for 10 years after the earlier of

(i) the day the first residential occupancy permit for the building is issued, or

(ii) the day a rental unit in the building is first occupied by a tenant; or

(b) that is an eligible converted building for which no residential occupancy permit is required, for 10 years after a rental unit in the building is first occupied by a tenant.

Eligible converted buildings

116(2.4) For the purpose of subsection (2.3), a building is an eligible converted building if

(a) the building was converted from a non-residential use to a residential complex or part of a residential complex through renovation or redevelopment;

(b) the building did not contain a rental unit or other form of living accommodation at any time prior to the conversion; and

(c) the first rental unit in the building to be occupied by a tenant is first occupied on or after January 1, 2025, and the building's first residential occupancy permit, if one is required, is issued after that date.

4 Subsection 123(2) is replaced with the following:

Application for 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 and charges for the residential complex;

(b) there has been an extraordinary increase in charges for vital services such as heat, gas, electricity, hot and cold water or other public utility that the landlord is obligated to supply for the residential complex under one or more tenancy agreements;

(c) there has been an increase in operating costs related to the provision of security services for the residential complex provided by a person who is at arm's length to the landlord;

(d) the landlord has incurred eligible capital expenditures respecting the residential complex.

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;

(d) it promotes energy or water conservation;

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

(f) it serves any other prescribed purpose.

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

(a) improves accessibility for persons with disabilities;

(b) improves energy or water conservation;

(d) serves any other prescribed purpose.

5 Clause 124(d) is replaced with the following:

(d) the tenant believes that the circumstances set out in clauses 123(2)(a) to (d) have not occurred in a manner that justifies the requested increase;

6(1) Subsection 125(1) is replaced with the following:

Order

125(1) After considering any objection filed by a tenant under section 124 and the factors referred to 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) approve the application, in whole or in part, subject to any conditions the director considers reasonable;

(b) order that any increase approved under clause (a) be phased in over a period of time specified in the order, which may be two or more years; or

6(2) Subsection 125(2) is amended, in the part before clause (a), by adding "approving a rent increase" after "An order".

6(3) Subsection 125(3) is amended

(a) by replacing clause (b) with the following:

(b) the increase in actual expenses referred to in clauses 123(2)(a) to (c);

(b.0.1) the actual amount of any eligible capital expenditures referred to in clause 123(2)(d);

(b) in clause (b.1), by striking out "services, facilities, privileges or accommodations that the landlord provides for the tenants" and substituting "amounts claimed by the landlord in the application";

(c) in clause (c), by striking out "change in" and substituting "reduction or withdrawal of"; and

(d) in subclause (f)(i), by striking out "increases in the costs with respect to repairs and maintenance of the residential complex" and substituting "amounts claimed by the landlord in the application".

7 Subsection 194(1) is amended

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

(f.1) defining, or prescribing a method of determining, an extraordinary increase for the purpose of clause 123(2)(a) or (b);

(f.2) respecting the factors referred to in subsection 125(3), including the manner in which the director is to determine them;

(b) in clause (g), by striking out "clause 125(3)(b) and".

Transitional — previous rent increase application

8(1) If an application for a rent increase has been received by the director under section 123 of the former Act and the effective date of the first rent increase applied for is less than three months after the coming into force of this section, the application must be dealt with as if the former Act remained in force.

Meaning of "former Act"

8(2) In this section, "former Act" means The Residential Tenancies Act as it read immediately before the coming into force of this section.

Coming into force — royal assent

9(1) Subject to subsection (2), this Act comes into force on the day it receives royal assent.

Coming into force — proclamation

9(2) Sections 2 and 4 to 8 come into force on a day to be fixed by proclamation.

Explanatory Note

Under The Residential Tenancies Act, a landlord may apply to the director for a rent increase above the maximum permitted by the regulations.

The Act is amended to prevent a landlord from making such an application unless

the landlord has incurred eligible capital expenditures;

there has been an increase in costs for security services; or

there has been an extraordinary increase in taxes, utilities or similar costs.

The director may order a landlord to phase in an approved increase over a number of years.

Rental units created as a result of a non-residential building being converted to residential use are exempt from rent regulation for 10 years. The exemption applies to conversions that are first occupied on or after January 1, 2025.