2nd Session, 43rd Legislature

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Bill 12

THE HOUSING AND RENEWAL CORPORATION AMENDMENT ACT

(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. H160 amended

1   The Housing and Renewal Corporation Act is amended by this Act.

2   The following is added after section 14 as part of Part I:

Definitions

14.1   The following definitions apply in this section and sections 14.2 to 14.4.

"agreement" means an agreement referred to in subsection 14.2(1). (« accord »)

"construction" of a building includes acquisition, improvement, rehabilitation and conversion of the building. (« construction »)

"existing agreement" means an agreement entered into before the date this section comes into force which has a term that expires after that date. (« accord »)

"financial institution" means a financial institution as defined under The Real Property Act. (« institution financière »)

"funded building" means a building described in subsection 14.2(1). (« bâtiment financé »)

"funding" includes

(a) grants, loans and advances from or by the corporation;

(b) amounts provided by the corporation to support financing in respect of a building; and

(c) amounts distributed or delivered by the corporation under a social housing contract between the corporation and the Canada Mortgage and Housing Corporation or its successor. (« financement »)

"new agreement" means an agreement entered into on or after the coming into force of this section. (« accord »)

"owner" means a person who is the beneficial owner of a funded building and includes

(a) a purchaser under an agreement for sale;

(b) a person who, under a trust, is entitled to become the registered owner at some future date; and

(c) a person on whose behalf the registered owner holds the funded building as agent. (« propriétaire »)

"sale" includes a lease, if the lease is for a period of 21 years or more including any right of renewal, and any other real or equitable change in control or ownership. (« vente »)

"social housing" means adequate, affordable and accessible housing for individuals or families of low income that is offered at below-market rate or otherwise supported or subsidized by the corporation. (« logement social »)

Application

14.2(1)   This section and sections 14.3 and 14.4 apply to a building in respect of which funding for the construction of social housing has been received, is received or will be received under a new or existing agreement.

Non-application

14.2(2)   Despite subsection (1), this section and sections 14.3 and 14.4 do not apply to a building in respect of which funding for the construction of social housing has been received, is received or will be received under a new or existing agreement if

(a) the amount of the funding provided for the construction and financing of the building is less than 15% of the total cost of the construction and the total amount of financing required for the construction;

(b) the only purpose for the funding is to construct a secondary suite in the building;

(c) the building is owned by the Government of Canada, the Government of Manitoba, a municipality or the corporation; or

(d) the building, agreement or owner is a member of a class of buildings, agreements or owners exempted by regulation.

Prohibition against sale or demolition

14.3(1)   An owner of a funded building must not sell or demolish the building or use the building for a purpose other than social housing without the prior written consent of the corporation.

Caveat

14.3(2)   The corporation must file in the appropriate land titles office against the certificate of title for the land on which the funded building is located a caveat forbidding the registration of any person as owner or transferee of the land unless the corporation consents in writing to the registration.

Timing of caveat

14.3(3)   The corporation must file the caveat as follows:

(a) for a new agreement, as soon as reasonably practicable after entering into the agreement with the owner of the funded building;

(b) for an existing agreement, within 180 days after the day on which this subsection comes into force.

Exception

14.3(4)   Despite subsection (2), the caveat does not have the effect of preventing the sale of the funded building by a financial institution in a mortgage sale or foreclosure proceeding under The Real Property Act, and any caveat filed is deemed to be vacated in that circumstance.

Subsequent owner

14.3(5)   For certainty, this section and section 14.4 apply to the subsequent owner of the funded building.

Application of Law of Property Act

14.3(6)   For certainty, subsection 7(1) of The Law of Property Act does not prohibit the registration of the caveat under this section.

Consent for sale, demolition or change of use

14.4(1)   Before entering into the sale or demolition of a funded building or using a funded building for a purpose other than social housing, the owner must apply to the corporation to obtain consent.

Public interest to be considered

14.4(2)   The corporation must consider the public interest and whether the sale, demolition or change of use of the funded building will have a negative impact on

(a) the adequate supply of housing stock in Manitoba; or

(b) the affordability of, and accessibility to, adequate housing for Manitobans, particularly those in need of social housing.

Decision on sale, demolition or change of use

14.4(3)   The corporation must decide to

(a)  consent to the sale, demolition or change of use without conditions;

(b)  consent to the sale, demolition or change of use with conditions, including conditions on the use of the funded building and the rents to be charged to tenants in the funded building; or

(c)  deny the sale, demolition or change of use.

Notification

14.4(4)   The corporation must promptly advise the owner in writing of the corporation's decision.

Manner and form of application

14.4(5)   The application must be made in the manner and form directed by the corporation.

When minister may exercise power

14.4(6)   If the minister is a party to the agreement, then the minister must exercise the corporation's power under this section unless the minister delegates in writing that power to the corporation.

Non-application

14.4(7)   For certainty, this section does not apply when the funded building is to be sold by a financial institution in a mortgage sale or foreclosure proceeding under The Real Property Act.

3   Section 44 is amended by adding the following after clause (f):

(f.1) exempting classes of buildings, agreements and owners from the application of sections 14.1 to 14.4;

No cause of action

4(1)   No cause of action arises as a result of the enactment of sections 14.1 to 14.4, as enacted by section 2 of this Act.

No remedy

4(2)   No costs, compensation or damages are owing or payable to any person and no remedy, including but not limited to a remedy in contract, restitution, tort or trust, is available to any person in relation to the enactment of sections 14.1 to 14.4, as enacted by section 2 of this Act.

Proceedings barred

4(3)   No action or other proceeding, including but not limited to any action or proceeding in contract, restitution, tort or trust, that is based on or related to the enactment of sections 14.1 to 14.4, as enacted by section 2 of this Act, shall be brought or maintained against the government or any person.

No entitlement to compensation

4(4)   Despite any other Act or law, no person is entitled to be compensated for any loss or damages, including loss of revenues, loss of goodwill, loss of profit or loss of expected earnings or denial or reduction of compensation that would have been payable to any person, arising from the enactment of sections 14.1 to 14.4, as enacted by section 2 of this Act.

No expropriation or injurious affection

4(5)   For greater certainty, no taking, expropriation or injurious affection occurs as a result of the enactment of sections 14.1 to 14.4, as enacted by section 2 of this Act.

CONSEQUENTIAL AMENDMENTS

C.C.S.M. c. R30 amended

5(1)   The Real Property Act is amended by this section.

5(2)   Subsection 45(5) is amended by renumbering clause (h.1) as clause (h.2) and adding the following as clause (h.1):

(h.1) caveats filed in a land titles office under subsection 14.3(2) of The Housing and Renewal Corporation Act;

5(3)   Section 141 is amended by adding "other than a caveat described in clause 45(5)(h.1)" at the end.

COMING INTO FORCE

Coming into force

6   This Act comes into force on January 1, 2026.