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2nd Session, 43rd Legislature

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Bill 10

THE RESIDENTIAL TENANCIES AMENDMENT ACT (2)


  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(1)   Clause 36(2)(d) is amended by adding "or 154(7)" at the end.

2(2)   Subsection 36(4) is replaced with the following:

Balance exceeding $30,000

36(4)   If at any time the balance in the security deposit compensation fund exceeds $30,000, the excess amount may be used

(a) to contribute towards the cost of providing educational and other programs for landlords, tenants and the public, as directed by the minister; and

(b) if required, to assist displaced tenants in accordance with paragraph 5 of subsection 154(2).

2(3)   Subsection 36(5) is amended

(a) by adding "or clause (4)(b)," after "payments described in subsection (3)"; and

(b) by striking out "subsection (4)" and substituting "clause (4)(a)".

3(1)   Subsection 59(1) is amended in the section heading by adding "and maintain" at the end.

3(2)   Subsection 59(2) of the English version is amended by replacing the section heading with "Tenant's knowledge of condition immaterial".

4   The following is added after section 59.1:

Obligations if building ordered to be vacated

59.1.1(1)   If under an order, notice or similar directive of a provincial or municipal authority made under the authority of a statute, all the tenants of a residential complex, or of a building that is part of a residential complex, are required to vacate their rental units because the residential complex or building does not comply with health, building or maintenance and occupancy standards, the landlord must, in accordance with the regulations,

(a) provide a copy of the order, notice or directive to the director as soon as practicable;

(b) refund each tenant within 72 hours any rent and tenant services charges paid in advance for the period that the order, notice or directive is in effect (prorated for any part of that period during which the tenant is permitted to remain in their rental unit); and

(c) subject to subsections (4) and (5), pay to each tenant

(i) the tenant's reasonable moving expenses to new living accommodation, up to a maximum prescribed amount,

(ii) the tenant's reasonable additional expenses associated with being displaced from their rental unit, up to a maximum prescribed amount, and

(iii) any additional compensation set out in the regulations.

No rent increase application after order to vacate

59.1.1(2)   Subject to subsection (4), if all the tenants of a residential complex, or of a building that is part of a residential complex, are required to vacate in the circumstances described in subsection (1),

(a) the director must dismiss any outstanding rent increase applications made by the landlord under subsection 123(2) in respect of the residential complex; and

(b) the landlord is not eligible to make any rent increase applications under subsection 123(2) in respect of the residential complex until the order, notice or directive is no longer in effect and for a period of two years after that.

Definition

59.1.1(3)   In clause (2)(a), "outstanding rent increase application" means an application in respect of which the director has not made an order under subsection 125(1).

Exceptions

59.1.1(4)   Clause (1)(c) and subsection (2) do not apply in the following circumstances:

(a) the landlord took all reasonable steps to prevent the occurrence or condition that resulted in the order, notice or directive to vacate;

(b) the occurrence or condition that resulted in the order, notice or directive to vacate was caused by circumstances beyond the landlord's control, such as a natural disaster or unlawful activity, and could not have been prevented even if the landlord had taken all reasonable steps;

(c) any other circumstances that are prescribed.

Additional exception for tenant who is responsible

59.1.1(5)   Even if none of the exceptions in subsection (4) apply, the landlord is not required to pay the expenses and compensation set out in clause (1)(c) to a tenant who was responsible for the occurrence or condition that resulted in the order, notice or directive to vacate by contravening an obligation under Parts 1 to 8 or breaching an obligation under the tenancy agreement.

Onus on landlord

59.1.1(6)   In any proceeding under this Act concerning the application of an exception in subsection (4) or (5), the onus is on the landlord to prove that the exception applies.

5   Subclause 89(1)(a)(v) of the English version is amended by adding "and maintain" after "repair".

6   The following is added after clause 124(d):

(d.1) the application must be dismissed or is prohibited under subsection 59.1.1(2) (no rent increase application after order to vacate);

7   Clause 125(3)(e) of the English version is amended by adding "and maintain" after "repair".

8(1)   Subsection 154(1) is amended, in paragraph 10 of the English version, by adding "and maintain" after "repair".

8(2)   Subsection 154(2) is amended

(a) in the part before clause (a) of paragraph 4 of the English version, by adding "and maintain" after "repair"; and

(b) by adding the following after paragraph 4:

5. If the director is of the opinion that performance of the landlord's obligation to pay a tenant the amounts set out in clause 59.1.1(1)(b) or (c) is urgently required and there is sufficient money in the security deposit compensation fund, directing

(a) that the amounts set out in clause 59.1.1(1)(b) or (c), or a specified part of those amounts, be paid to the tenant from the fund;

(b) that the landlord reimburse the director for the amounts paid with interest, as determined in accordance with a regulation made by the minister; and

(c) that the rent, any tenant services charges, or a specified part of either, paid to the director under paragraph 3 be used to satisfy the landlord's obligation to reimburse the director.

8(3)   The following is added after subsection 154(6):

Money recovered paid into compensation fund

154(7)   Any money paid out of the security deposit compensation fund under paragraph 5 of subsection (2) that is recovered by the director shall be paid by the director into the security deposit compensation fund.

9   Subsection 161(2.1) is amended by striking out "subsection 32(5) or under paragraph 9 of subsection 154(1)" and substituting "subsection 32(5) or 59.1.1(1), or under paragraph 9 of subsection 154(1),".

10   Clause 180(2)(a) of the English version is amended by adding "and maintain" after "repair".

11   Subsection 184(1) is amended by striking out "or" at the end of subclause (a)(ii), adding "or" at the end of clause (b) and adding the following after clause (b):

(c) in any other manner required or permitted by the regulations.

12(1)   The following is added after clause 193.1(1)(b):

(b.1) subsection 59(1) (obligation to repair and maintain);

12(2)   The following is added after subsection 193.1(1):

Limitation

193.1(1.1)   The director may issue a notice of administrative penalty under clause (1)(b.1) only in the following circumstances:

(a) the contravention of subsection 59(1) results in all the tenants of a residential complex, or of a building that is part of a residential complex, being required to vacate in the circumstances described in subsection 59.1.1(1) and none of the exceptions set out in subsection 59.1.1(4) apply;

(b) any other circumstances that are prescribed.

13   The following is added after clause 194(1)(d):

(d.0.1) respecting the landlord's obligations when tenants are required to vacate their rental units in the circumstances described in subsection 59.1.1(1), including

(i) prescribing the manner in which a copy of the order, notice or directive is to be provided to the director,

(ii) respecting the determination of the amounts payable under clause 59.1.1(1)(c) for moving expenses, additional expenses and additional compensation, and

(iii) prescribing when and in what manner the amounts payable under clause 59.1.1(1)(c) are to be paid;

14   Clause 194.1(b) is amended by striking out "and" at the end of subclause (ii), adding "and" at the end of subclause (iii) and adding the following after subclause (iii):

(iv) clause (b) of paragraph 5 of subsection 154(2).

Coming into force

15   This Act comes into force on a day to be fixed by proclamation.

Explanatory Note

The Residential Tenancies Act is amended to address situations in which a residential complex or building is ordered to be vacated for non-compliance with health, building or maintenance and occupancy standards.

In these circumstances, the landlord must pay the tenants any rent and tenant services charges the tenants paid for the period they are required to vacate, as well as other compensation determined in accordance with the regulations. In urgent circumstances, the director may use the security deposit compensation fund to advance to tenants amounts they are entitled to and then recover those amounts from the landlord.

In addition, the landlord may not apply for a rent increase above the maximum permitted by the regulations while the vacate order is in effect and for a period of two years after that and may be required to pay an administrative penalty.

Exceptions are available if the landlord took all reasonable steps to prevent the circumstances that resulted in the vacate order or if those circumstances were beyond their control. The landlord has the onus of proving that an exception applies.