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Tenant Protection Act, 1997

ONTARIO REGULATION 194/98

Amended to O. Reg. 539/05

GENERAL

Historical version for the period October 21, 2005 to November 16, 2006.

This is the English version of a bilingual regulation.

CONTENTS

   

Sections

PART I

DEFINITIONS

1-2

PART II

EXEMPTIONS

3-5

PART III

CARE HOMES

6-8

PART IV

MOBILE HOMES

9-10

PART V

LAWFUL RENT

11-14

PART VI

APPLICATIONS UNDER SECTION 138 OF THE ACT FOR RENT INCREASES ABOVE THE GUIDELINE

 
 

Interpretation

15-17

 

Material to be Filed with Application

18

 

General Rules for Making Findings

19-21

 

Rules re Capital Expenditures

22-23

 

Rules re Operating Costs

24-25

 

Calculation of the Rent Increase

26

 

When the Rent Increase may be Taken

27-28

PART VI.1

RENT REDUCTIONS AS A RESULT OF REDUCTION OF MUNICIPAL TAXES

28.1-28.6

PART VII

APPLICATIONS TO TRIBUNAL BY TENANT RESPECTING ILLEGAL CHARGES OR FOR REDUCTION IN RENT

29-32

PART VIII

TRIBUNAL — ADMINISTRATION AND POWERS

33-36

PART IX

MISCELLANEOUS

37-39

Schedule

Useful life of work done or thing purchased

 

PART I
DEFINITIONS

1. Expressions used in the Act are defined as follows:

1. In the definition of “municipal taxes and charges” in subsection 1 (1) of the Act, “taxes charged to a landlord by a municipality” includes taxes levied under Division B of Part IX of the Education Act.

2. In subsection 54 (1) of the Act, “a person who was a tenant of a rental unit when it became subject to a registered declaration and description under the Condominium Act” does not include a person to whom the rental unit is subsequently assigned.

3. In subsection 54 (2) of the Act, “the tenant of the rental unit who was the tenant on the date the agreement of purchase and sale was entered into” does not include a person to whom the rental unit is subsequently assigned.

4. In subsection 54 (5) of the Act, “a tenant who was a tenant on the date of the registration referred to in subsection (1)” does not include a person to whom the rental unit is subsequently assigned.

5. In clause 41 (a), section 78 and subsections 79 (1) and (2) of the Act, “abandoned” does not include the circumstance where the tenant is not in arrears of rent.

6. In clause 77 (1) (b) of the Act, “specified conditions of the order or settlement” include only those conditions in the order or settlement the breach of which give rise to the same reasons for terminating the tenancy under the Act as were claimed in the previous application referred to in clause 77 (1) (a).

7. If the Tribunal permits an application to be filed in an electronic format by electronic means, “sign” for the purposes of subsections 172 (1) and (2) and 173 (2) of the Act means to type one’s name on the application, and “signed” and “signs” have a corresponding meaning.

8. If the Tribunal permits an application to be filed in an electronic format by electronic means, “shall be accompanied by the prescribed information” in subsection 172 (1) of the Act shall be interpreted as requiring the mailing, faxing or delivery of the prescribed information such that it is received by the Tribunal, or is deemed under the Act to have been given to the Tribunal, within five days following the day on which the application was filed electronically with the Tribunal.

9. In the Act, for greater certainty, “sublet” refers to the situation in which,

i. the tenant vacates the rental unit,

ii. the tenant gives one or more other persons the right to occupy the rental unit for a term ending on a specified date before the end of the tenant’s term or period, and

iii. the tenant has the right to resume occupancy of the rental unit on that specified date. O. Reg. 194/98, s. 1; O. Reg. 143/00, s. 1.

2. The following charges are not included in the definition of “municipal taxes and charges” in subsection 1 (1) of the Act:

1. Charges for work, services or non-emergency repairs performed by a municipality in relation to a landlord’s non-compliance with a by-law.

2. Penalties, interest, late payment fees and fines.

3. Costs incurred by a municipality under subsection 149 (1) of the Act and administrative fees applied to those costs under subsection 149 (2) of the Act. O. Reg. 194/98, s. 2.

PART II
EXEMPTIONS

3. The Act does not apply to living accommodation provided by a non-profit housing co-operative to its members. O. Reg. 194/98, s. 3.

4. (1) Subsections 39 (3) and (4) of the Act do not apply to rental units occupied by students of one or more post-secondary educational institutions in a residential complex owned, operated or administered by or on behalf of the post-secondary educational institutions. O. Reg. 194/98, s. 4 (1).

(2) Subsections 39 (3) and (4) of the Act do not apply to rental units in a residential complex with respect to which the landlord has entered into an agreement with one or more post-secondary educational institutions providing,

(a) that the landlord, as of the date the agreement is entered into and for the duration of the agreement, rents the rental units which are the subject of the agreement only to students of the institution or institutions;

(b) that the landlord will comply with the maintenance standards set out in the agreement with respect to the rental units which are the subject of the agreement; and

(c) that the landlord will not charge a new tenant of a rental unit which is a subject of the agreement a rent which is greater than the lawful rent being charged to the former tenant plus the guideline. O. Reg. 194/98, s. 4 (2).

(3) The maintenance standards set out in the agreement and referred to in clause (2) (b) shall not provide for a lower maintenance standard than that required by law. O. Reg. 194/98, s. 4 (3).

(4) If the landlord breaches any of clauses (2) (a), (b) and (c), the agreement referred to in subsection (2) is terminated and the exemption provided by subsection (2) no longer applies. O. Reg. 194/98, s. 4 (4).

(5) The landlord shall be deemed to have not breached the condition in clause (2) (a) if,

(a) upon a tenant ceasing to be a student of a post-secondary educational institution that is a party to the agreement with the landlord, the landlord takes action to terminate the tenancy in accordance with an agreement with the tenant to terminate the tenancy or a notice of termination given by the tenant; or

(b) a tenant sublets the rental unit to a person who is not a student of a post-secondary educational institution that is a party to the agreement with the landlord. O. Reg. 194/98, s. 4 (5).

(6) Either party to an agreement referred to in subsection (2) may terminate the agreement on at least 90 days written notice to the other party and, upon the termination of the agreement, the exemption provided by subsection (2) no longer applies. O. Reg. 194/98, s. 4 (6).

5. Subsections 54 (1) and (2) of the Act do not apply to a residential complex the first rental unit in which is first rented on or after July 10, 1986, if all or part of the residential complex becomes subject to a registered declaration and description under the Condominium Act on or before the later of,

(a) the second anniversary of the day on which the first rental unit was first rented; and

(b) the second anniversary of the day that section 54 of the Act comes into force. O. Reg. 194/98, s. 5.

PART III
CARE HOMES

6. (1) The following services are included in the definition of “care services” in subsection 1 (1) of the Act:

1. Nursing care.

2. Administration and supervision of medication prescribed by a medical doctor.

3. Assistance with feeding.

4. Bathing assistance.

5. Incontinence care.

6. Dressing assistance.

7. Assistance with personal hygiene.

8. Ambulatory assistance.

9. Personal emergency response services. O. Reg. 194/98, s. 6 (1).

(2) The following services are included in the definition of “care services” in subsection 1 (1) of the Act if they are provided along with any service set out in subsection (1):

1. Recreational or social activities.

2. Housekeeping.

3. Laundry services.

4. Assistance with transportation. O. Reg. 194/98, s. 6 (2).

7. The information package referred to in section 92 of the Act must contain the following information:

1. List of the different types of accommodation provided and the alternative packages of care services and meals available as part of the total charge.

2. Charges for the different types of accommodation and for the alternative packages of care services and meals.

3. Minimum staffing levels and qualifications of staff.

4. Details of the emergency response system, if any, or a statement that there is no emergency response system.

5. List and fee schedule of the additional services and meals available from the landlord on a user pay basis.

6. Internal procedures, if any, for dealing with complaints, including a statement as to whether tenants have any right of appeal from an initial decision, or a statement that there is no internal procedure for dealing with complaints. O. Reg. 194/98, s. 7.

8. (1) One or more rental units that form part of a residential complex are care homes for the purpose of the definition of “care home” in subsection 1 (1) of the Act if the rental units are occupied or intended to be occupied by persons for the purpose of receiving care services, whether or not receiving the care services is the primary purpose of the occupancy. O. Reg. 194/98, s. 8 (1).

(2) A rental unit described in subsection (1) is a care home for the purpose of the definition of “care home” in subsection 1 (1) of the Act even if a third party rents the rental unit from the landlord and provides or arranges to provide both the rental unit and care services to the tenant. O. Reg. 194/98, s. 8 (2).

PART IV
MOBILE HOMES

9. For the purpose of section 114 of the Act, the prescribed amount is the greatest of,

(a) $50 per month;

(b) an amount equal to the difference between the last lawful rent charged and the maximum rent, as determined under subsection 135 (2) of the Act, which the landlord would have been able to take as a rent increase prior to the first anniversary of the commencement of the new tenancy had the former tenant remained the tenant; and

(c) the amount, including the guideline, that the landlord would have been entitled to take as a rent increase under an order under subsection 138 (6) or (10) of the Act prior to the first anniversary of the commencement of the new tenancy had the former tenant remained the tenant. O. Reg. 194/98, s. 9.

10. For the purpose of section 116 of the Act, the definition of “infrastructure work” includes work with respect to fire hydrants and related systems, poles for telephone service, walkways, garbage storage and disposal areas, fencing, retaining walls and flood control systems. O. Reg. 194/98, s. 10.

PART V
LAWFUL RENT

11. For the purpose of calculating lawful rent under sections 12 and 13,

“rent which is actually charged or to be charged” does not include,

(a) amounts which cannot be lawfully charged for a reason other than the operation of section 12 or 13,

(b) rent increases under section 132 of the Act during the 12-month period defined in subsection 12 (3), or

(c) rent decreases under section 134 of the Act during the 12-month period defined in subsection 12 (3). O. Reg. 194/98, s. 11.

12. (1) The following rules are prescribed for calculating the lawful rent which may be charged where a landlord provides a tenant with a discount in rent at the beginning of, or during, a tenancy:

1. The lawful rent for any rental period in the 12-month period shall be calculated in the following manner:

i. Add the sum of the rents which are actually charged or to be charged in each of the rental periods in the 12-month period to the eligible discount to be provided to the tenant during the 12-month period.

ii. Divide that sum by the number of rental periods in the 12-month period.

iii. Add to the amount determined under subparagraph ii any rent increases under section 132 of the Act and subtract from that amount any rent decreases under section 134 of the Act.

2. Despite paragraph 1, where a landlord offers a discount that is not greater than 2 per cent of the rent which could otherwise be lawfully charged for a rental period as an incentive for the prompt payment of rent, the lawful rent shall be the undiscounted rent.

3. Despite paragraph 1, where a landlord offers a discount that is greater than 2 per cent of the rent which could otherwise be lawfully charged for a rental period as an incentive for the prompt payment of rent, the lawful rent shall be calculated by dividing the discounted rent by 0.98. O. Reg. 194/98, s. 12 (1).

(2) Where a landlord offers a discount as an incentive for the prompt payment of rent, in addition to any other type of discount, the lawful rent shall be calculated by first applying paragraph 2 or 3 of subsection (1) and then applying paragraph 1 of subsection (1) and in that case, “the rent which is actually charged or to be charged” in paragraph 1 of subsection (1) is the lawful rent as calculated under paragraph 2 or 3 of subsection (1). O. Reg. 194/98, s. 12 (2).

(3) For the purpose of paragraph 1 of subsection (1),

“eligible discount” means,

(a) if provided for in a written tenancy agreement, the discount or the sum of any discounts in rent during the first eight months of the 12-month period, not exceeding the rent for one month, or

(b) otherwise, the largest discount in rent in one rental period in the 12-month period; (“remise admissible”)

“the 12-month period” means,

(a) where the tenancy commences on or after the day section 124 of the Act comes into force, the 12-month period following the commencement of the tenancy,

(b) where the tenancy exists on the day section 124 of the Act comes into force, the 12-month period following the first rent increase taken after that day, other than a rent increase under section 132 of the Act,

(c) where clause (a) or (b) applies, the 12-month period following any rent increase taken after the 12-month period described in clause (a) or (b), other than a rent increase taken under section 132 of the Act. (“période de 12 mois”) O. Reg. 194/98, s. 12 (3).

13. Where the rent a landlord charges for the first rental period of a tenancy is greater than the rent the landlord charges for subsequent rental periods in the 12-month period beginning on the day the tenancy commenced, the lawful rent for each rental period in that 12-month period shall be calculated in the following manner:

1. Add all the rents actually charged or to be charged by the landlord during the 12-month period.

2. Subtract from that sum the rent for the first rental period.

3. Divide the amount determined under paragraph 2 by a number equal to the number of rental periods in the 12-month period minus 1. O. Reg. 194/98, s. 13.

13.1 (1) Despite sections 12 and 13, if a tenancy agreement operates under the Strong Communities Housing Allowance Program — Toronto Pilot, subject to subsection (2), the lawful rent is whatever amount would be permitted under the Act had the discount under the Program not been provided. O. Reg. 539/05, s. 1.

(2) For the lawful rent to be whatever amount would be permitted under the Act had the discount under the Program not been provided, the landlord shall set out the discounted rent and the undiscounted rent,

(a) in the written tenancy agreement; and

(b) in a written notice to the tenant accompanying any notice of rent increase given to the tenant under section 127 of the Act. O. Reg. 539/05, s. 1.

(3) If the landlord does not comply with subsection (2), the lawful rent shall be the undiscounted rent that was permitted under the Act at the time when the tenancy agreement began to operate under the Program. O. Reg. 539/05, s. 1.

14. (1) The following services, facilities, privileges, accommodations or things are prescribed for the purposes of subsection 132 (1) and section 134 of the Act:

1. Cable television.

2. Satellite television.

3. An air conditioner.

4. Extra hydro for an air conditioner.

5. Extra hydro for a washer or dryer in the rental unit.

6. Blockheater plug-ins.

7. Lockers or other storage space.

8. Heat.

9. Hydro.

10. Water or sewage services, excluding capital work.

11. Floor space.

12. Property taxes with respect to a site for a mobile home or a land lease home. O. Reg. 194/98, s. 14 (1).

(2) If there is an agreement under subsection 132 (1) or section 134 of the Act, the maximum increase in rent or minimum decrease in rent shall be the actual cost to the landlord of the service, facility, privilege, accommodation or thing (other than floor space) that is the subject of the agreement or, where the actual cost to the landlord cannot be established or where there is no cost to the landlord, a reasonable amount based on the value of the service, facility, privilege, accommodation or thing. O. Reg. 194/98, s. 14 (2).

(3) If the agreement under subsection 132 (1) or section 134 of the Act is to provide or cease to provide floor space, the maximum increase in rent or minimum decrease in rent shall be proportionate to the change in floor space. O. Reg. 194/98, s. 14 (3).

(4) Where an amount determined in accordance with subsection (3) would be unreasonable given the nature and quality of the floor space added or taken away, the maximum increase in rent or minimum decrease in rent shall be a reasonable amount based on the nature and quality of the floor space and the amount of the change in the floor space. O. Reg. 194/98, s. 14 (4).

(5) Despite subsections (2), (3) and (4), where a service, facility, privilege, accommodation or thing was provided in accordance with a previous agreement under section 132 of the Act, section 46 of the Rent Control Act, 1992 or subsection 96 (4) of the Residential Rent Regulation Act, the minimum decrease in rent on ceasing to provide the service, facility, privilege, accommodation or thing shall be equal to,

(a) the most recent amount of the separate charge for the service, facility, privilege, accommodation or thing; or

(b) where there is no separate charge, the increase in rent which the landlord took when the service, facility, privilege, accommodation or thing was first provided, adjusted by the percentage increase in the rent being charged for the rental unit from the date the service, facility, privilege, accommodation or thing was first provided to the date the landlord ceased to provide it. O. Reg. 194/98, s. 14 (5).

PART VI
APPLICATIONS UNDER SECTION 138 OF THE ACT FOR RENT INCREASES ABOVE THE GUIDELINE

Interpretation

15. (1) In the Act and in this Part,

“capital expenditure” means an expenditure on a major renovation, repair, replacement or new addition, the expected benefit of which extends for at least one year and may include,

(a) an expenditure with respect to a leased asset if the lease qualifies under subsection (2), and

(b) an expenditure which the landlord is required to pay on work undertaken by a municipality, local board or public utility, other than work undertaken because of the landlord’s failure to do it; (“dépense en immobilisations”)

“incurred” means, in relation to a capital expenditure,

(a) the payment in full of the amount of the capital expenditure, other than a holdback withheld under the Construction Lien Act,

(b) if the expenditure relates to a lease, the assumption, when the lease commences, of the obligations under it, or

(c) if the expenditure relates to work undertaken by a municipality, local board or public utility, when the work is completed; (“engager”)

“physical integrity” means the integrity of all parts of a structure, including the foundation, that support loads or that provide a weather envelope and includes, without restricting the generality of the foregoing, the integrity of,

(a) the roof, exterior walls, exterior doors and exterior windows,

(b) elements contiguous with the structure that contribute to the weather envelope of the structure, and

(c) columns, walls and floors that support loads. (“intégrité matérielle”) O. Reg. 194/98, s. 15 (1).

(2) For the purposes of the definition of “capital expenditure” in subsection (1), a lease qualifies if substantially all the risks and benefits associated with the leased asset are passed to the lessee and, when the lease commences, any one or more of the following is satisfied:

1. The lease provides that the ownership of the asset passes to the lessee at or before the end of the term of the lease.

2. The lease provides that the lessee has an option to purchase the asset at the end of the term of the lease at a price that is less than what the market value of the asset will be at that time.

3. The term of the lease is at least 75 per cent of the useful life of the asset as determined in accordance with section 23.

4. The net present value of the minimum lease payments is at least 90 per cent of the asset’s fair market value at the commencement of the lease. The net present value shall be determined using the interest rate determined under subsection 17 (1). O. Reg. 194/98, s. 15 (2).

16. (1) In this Part,

“base year” means,

(a) when determining rent increases due to an extraordinary increase in the cost for municipal taxes and charges, the last completed calendar year immediately preceding the day that is 90 days before the effective date of the first intended rent increase referred to in the application,

(b) when determining rent increases due to an extraordinary increase in the cost for utilities or due to operating costs related to security services, the annual accounting period of one year in length chosen by the landlord which is most recently completed on or before the day that is 90 days before the effective date of the first intended rent increase referred to in the application; (“année de base”)

“local board” means a “local board” as defined in the Municipal Affairs Act; (“conseil local”)

“reference year” means the 12-month period immediately preceding the base year. (“année de référence”) O. Reg. 194/98, s. 16 (1).

(2) Despite clause (b) of the definition of “base year” in subsection (1), where an order has previously been issued with respect to the residential complex under section 138 of the Act in which relief was granted for an extraordinary increase in costs for utilities or for operating costs related to security services, the base year shall begin and end on the same days of the year as the base year used in the previous order. O. Reg. 194/98, s. 16 (2).

17. (1) The interest rate for the purposes of paragraph 4 of subsection 15 (2) and paragraph 8 of section 22 is the chartered bank administered conventional five-year mortgage interest rate on the last Wednesday of the month before the month in which the application is made, as reported by the Bank of Canada, plus 1 per cent. O. Reg. 194/98, s. 17 (1).

(2) The factor for the purposes of subparagraph 5 v of section 22, subparagraph 6 iv of section 22, subparagraphs 1 v and 2 iii of subsection 24 (1), paragraph 4 of subsection 24 (2) and subparagraph 1 ii of section 25 is determined by dividing the number of rental units in the residential complex which are subject to the application and are affected by the capital expenditure item or operating cost by the number of rental units in the residential complex which are affected by the capital expenditure item or operating cost. O. Reg. 194/98, s. 17 (2); O. Reg. 143/00, s. 2.

Material to be Filed with Application

18. (1) An application under section 138 of the Act must be accompanied by the following material:

1. If the application is based on an extraordinary increase in the cost for municipal taxes and charges or utilities or both,

i. evidence of the costs for the base year and the reference year and evidence of payment of those costs, and

ii. evidence of all grants, other forms of financial assistance, rebates and refunds received by the landlord that effectively reduce those costs for the base year or the reference year.

2. If the application is based on capital expenditures incurred, evidence of all costs and payments for the amounts claimed for capital work, including any information regarding grants and assistance from any level of government and insurance, resale, salvage and trade-in proceeds.

3. If the application is based on operating costs related to security services, evidence of the costs claimed in the application for the base year and the reference year, and evidence of payment of those costs. O. Reg. 194/98, s. 18; O. Reg. 351/02, s. 1 (1).

(2) Despite subsection (1), if any of the following evidence or information is unavailable at the time the application is made under section 138 of the Act but becomes available before the end of the hearing, the evidence or information must be provided to the Tribunal before or during the hearing:

1. Evidence described in subparagraph 1 ii of subsection (1).

2. Information concerning grants and assistance referred to in paragraph 2 of subsection (1).

3. Information concerning insurance, resale, salvage and trade-in proceeds referred to in paragraph 2 of subsection (1). O. Reg. 351/02, s. 1 (2).

General Rules for Making Findings

19. In determining the amount of any capital expenditures or the amount of operating costs in an application under section 138 of the Act, the Tribunal shall,

(a) include any goods and services tax and provincial sales tax paid by the landlord in respect of the capital expenditures or operating costs;

(b) exclude any penalties, interest or other similar charges for late payment of any amount paid by the landlord in respect of the capital expenditures or operating costs;

(c) exclude any amount that has already been included in calculating the amount of a capital expenditure or operating cost in the same application or for which the landlord has obtained relief in a previous order under the Act or under the Rent Control Act, 1992;

(d) subtract the amount of all grants, other forms of financial assistance, rebates and refunds received by the landlord that effectively reduce the operating costs. O. Reg. 194/98, s. 19; O. Reg. 351/02, s. 2.

20. (1) Where a residential complex forms part of a larger project, the operating costs for the project and the amount of capital expenditures which benefit both the residential complex and the other parts of the project shall be allocated between the residential complex and the other parts of the project in accordance with one or more of the following factors:

1. The area of each part of the project.

2. The market value of each part of the project.

3. The revenue generated by each part of the project. O. Reg. 194/98, s. 20 (1).

(2) If the allocation of operating costs and capital expenditures in accordance with subsection (1) would be unreasonable considering how much of the costs and expenditures are attributable to each part of the project, the operating costs and capital expenditures shall be allocated among the parts of the project in reasonable proportions according to how much of the costs and expenditures are attributable to each part of the project. O. Reg. 194/98, s. 20 (2).

21. (1) If the landlord incurs a cost arising out of a transaction that is not an arm’s length transaction, the Tribunal shall consider only that part of the landlord’s cost that is less than or equal to the costs that would arise from a similar market transaction. O. Reg. 194/98, s. 21 (1).

(2) In this section,

“arm’s length” means the persons involved are not related persons; (“sans lien de dépendance”)

“control” means direct or indirect ownership or control either alone or with a related person of,

(a) more than 50 per cent of the issued share capital of a corporation having full voting rights under all circumstances, or

(b) issued and outstanding share capital of a corporation in an amount that permits or may permit the person to direct the management and policies of the corporation; (“contrôle”)

“family”, in relation to a person, means,

(a) the person’s spouse,

(b) the parents or other ancestors or the children or other descendants of the person or the person’s spouse,

(c) the brothers and sisters of the person or the person’s spouse, and the children and other descendants of those brothers and sisters,

(d) the aunts and uncles of the person and the person’s spouse and the children and other descendants of those aunts and uncles,

(e) the spouses of the person’s sons and daughters; (“famille”)

“related person”, where used to indicate a relationship with any person, includes,

(a) a member of the family of such person,

(a.1) Revoked: O. Reg. 343/05, s. 1.

(a.2) Revoked: O. Reg. 343/05, s. 1.

(a.3) Revoked: O. Reg. 343/05, s. 1.

(a.4) Revoked: O. Reg. 343/05, s. 1.

(a.5) Revoked: O. Reg. 343/05, s. 1.

(b) an employer or employee of such person,

(c) a partner of such person,

(d) a trust or estate in which such person has a beneficial interest,

(e) a trust or estate in which such person serves as a trustee or in a similar capacity,

(f) a trust or estate in which persons related to such person, as otherwise determined under this definition, have a beneficial interest,

(g) a corporation controlled by such person,

(h) a corporation controlled by such person and persons related to such person, or

(i) a corporation controlled by a person related to such person; (“personne liée”)

“similar market transactions” means arm’s length transactions that occur or may reasonably be expected to occur under the same or comparable terms and conditions and in the same general geographic location. (“opération semblable sur le marché”) O. Reg. 194/98, s. 21 (2); O. Reg. 76/00, s. 1; O. Reg. 343/05, s. 1.

(3) In this section, one corporation is related to another corporation if,

(a) one of the corporations is controlled by the other corporation;

(b) both of the corporations are controlled by the same person or group of related persons each member of which is related to every other member of the group;

(c) each of the corporations is controlled by one person and the person who controls one of the corporations and the person who controls the other corporation are related persons;

(d) one of the corporations is controlled by one person and that person is related to any member of a group of related persons that controls the other corporation;

(e) one of the corporations is controlled by one person and that person is related to each member of an unrelated group that controls the other corporation;

(f) any member of a group of related persons that controls one of the corporations is related to each member of an unrelated group that controls the other corporation; or

(g) each member of an unrelated group that controls one of the corporations is a related person to at least one member of an unrelated group that controls the other corporation. O. Reg. 194/98, s. 21 (3).

Rules re Capital Expenditures

22. The following are prescribed as rules for making findings relating to capital expenditures:

1. A rent increase shall not be ordered in respect of a capital expenditure unless the work was completed during the 18-month period ending 90 days before the effective date of the first intended rent increase referred to in the application.

2. Despite paragraph 1, a rent increase may be ordered in respect of a capital expenditure completed prior to the 18-month period referred to in that paragraph if,

i. the work was completed on or after June 25, 1996, and

ii. the capital expenditure is the subject of an application made within six months of the day that section 138 of the Act comes into force.

3. The value of the landlord’s own labour in carrying out the work involved in the capital expenditure is equal to the amount of time spent multiplied by a rate of pay that is reasonable given the landlord’s experience and skill in the type of work done. If the amount of time spent exceeds the amount of time that would be reasonable given the landlord’s experience and skill, the latter amount of time shall be used in the calculation of the value of the landlord’s own labour. Only that part of the value of the landlord’s own labour that does not exceed the amount a person in the business of doing such work would charge shall be considered. The value of the landlord’s own labour does not include any amount with respect to the management and administration of the work involved in the capital expenditure.

4. The cost of a leased asset is the fair market value of the leased asset at the commencement of the lease.

5. Subject to paragraph 6, the amount of a capital expenditure is calculated as follows:

i. Add the total of the purchase prices, the cost of any leased assets and the installation, renovation and construction costs, other than the value of the landlord’s own labour as determined under paragraph 3.

ii. Multiply that sum by 1.05 as an allowance for management and administration.

iii. Add to the amount determined under subparagraph ii the value of the landlord’s own labour, as determined under paragraph 3.

iv. Subtract from the amount determined under subparagraph iii any grant or other assistance from any level of government and any insurance, salvage, resale or trade-in proceeds related to the work undertaken or the item purchased.

v. Multiply the amount determined under subparagraph iv by the factor determined under subsection 17 (2).

6. The amount of a capital expenditure for furniture or appliances is calculated as follows:

i. Add the total of the purchase prices, the cost of any leased assets and the installation, renovation and construction costs.

ii. Add to that sum the value of the landlord’s own labour, as determined under paragraph 3.

iii. Subtract from the amount determined under subparagraph ii any grant or other assistance from any level of government and any insurance, salvage, resale or trade-in proceeds related to the work undertaken or the item purchased.

iv. Multiply the amount determined under subparagraph iii by the factor determined under subsection 17 (2).

7. The allowance for each capital expenditure is the amount of the capital expenditure amortized over the useful life of the work done or the thing purchased, as determined in accordance with section 23, in equal instalments of blended principal and interest.

8. The amortization under paragraph 7 shall be calculated using the interest rate determined under subsection 17 (1). O. Reg. 194/98, s. 22.

23. (1) The useful life of work done or a thing purchased shall be determined from the Schedule subject to the following rules:

1. If, when a thing is purchased, it has previously been used, the useful life of the thing shall be determined taking into account the length of time of that previous use.

2. If the work done or thing purchased does not appear in the Schedule, the useful life of the work or thing shall be determined with reference to items with similar characteristics that do appear in the Schedule. O. Reg. 194/98, s. 23 (1).

(2) If the useful life of work done or a thing purchased cannot be determined under subsection (1) because the work or thing does not appear in the Schedule and no item with similar characteristics appears in the Schedule, the useful life of the work or thing shall be what is generally accepted as the useful life of such work or thing. O. Reg. 194/98, s. 23 (2).

Rules re Operating Costs

24. (1) The following are prescribed as rules for making findings related to extraordinary increases in the cost for municipal taxes and charges or utilities or both:

1. Subject to subsection (2), the amount of the allowance for an extraordinary increase in the cost for municipal taxes and charges is calculated as follows:

i. Adjust the reference year costs for municipal taxes and charges by the three-year moving average for municipal taxes and charges set out in the Table referred to in section 129 of the Act for the calendar year in which the effective date of the first intended rent increase referred to in the application falls.

ii. If municipal taxes and charges for a tax year are increased as a result of an appeal of a tax assessment, add to the base year costs for municipal taxes and charges the amount of the increase resulting from the appeal.

iii. If a tax notice respecting the reference year municipal taxes and charges is issued on or after November 1 in the base year,

A. add to the base year costs for municipal taxes and charges the amount, if any, by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year, and

B. if the reference year municipal taxes and charges are increased as a result of an appeal of a tax assessment, the amount of the increase resulting from the appeal,

1. shall be included in determining the amount by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year for the purpose of sub-subparagraph A, and

2. shall not be added under subparagraph ii.

iv. Subtract the reference year costs for municipal taxes and charges, as adjusted under subparagraph i, from the base year costs for municipal taxes and charges, as adjusted under subparagraphs ii and iii.

v. Multiply the amount determined in subparagraph iv by the factor determined under subsection 17 (2).

2. The amount of the allowance for an extraordinary increase in the cost for utilities shall be calculated as follows:

i. Adjust the reference year costs for each of heat, hydro and water by the three-year moving averages for the operating cost categories of heat, hydro and water set out in the Table referred to in section 129 of the Act for the calendar year in which the effective date of the first intended rent increase referred to in the application falls.

ii. Subtract the amount determined in subparagraph i for heat from the base year costs for heat and do the same for hydro and water.

iii. Multiply the amount determined in subparagraph ii for heat by the factor for heat determined under subsection 17 (2) and do the same for hydro and water.

iv. Add together the amounts determined under subparagraph iii. O. Reg. 194/98, s. 24 (1); O. Reg. 455/98, s. 1 (1, 2); O. Reg. 143/00, s. 3 (1); O. Reg. 204/00, s. 1 (1).

(2) Where the three-year moving average for the operating cost category of municipal taxes and charges set out in the Table referred to in section 129 of the Act is negative, the amount of the allowance for an extraordinary increase in the cost for municipal taxes and charges shall be calculated as follows:

1. If municipal taxes and charges for a tax year are increased as a result of an appeal of a tax assessment, add to the base year costs for municipal taxes and charges the amount of the increase resulting from the appeal.

2. If a tax notice respecting the reference year municipal taxes and charges is issued on or after November 1 in the base year,

i. add to the base year costs for municipal taxes and charges the amount, if any, by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year, and

ii. if the reference year municipal taxes and charges are increased as a result of an appeal of a tax assessment, the amount of the increase resulting from the appeal,

A. shall be included in determining the amount by which the reference year municipal taxes and charges exceed the municipal taxes and charges for the year preceding the reference year for the purpose of subparagraph i, and

B. shall not be added under paragraph 1.

3. Subtract the reference year costs for municipal taxes and charges from the base year costs for municipal taxes and charges, as adjusted under paragraphs 1 and 2.

4. Multiply the amount determined under paragraph 3 by the factor determined under subsection 17 (2). O. Reg. 194/98, s. 24 (2); O. Reg. 455/98, s. 1 (3, 4); O. Reg. 143/00, s. 3 (2); O. Reg. 204/00, s. 1 (2).

(3) An increase in municipal taxes and charges as a result of an appeal of a tax assessment shall not be considered under subparagraph 1 ii or iii of subsection (1) or paragraph 1 or 2 of subsection (2) if,

(a) the increase is for a tax year before 1996; or

(b) the application for the rent increase was filed more than 12 months after the decision on the appeal was issued. O. Reg. 143/00, s. 3 (3).

25. The following is prescribed as a rule for making findings respecting operating costs related to security services:

1. The amount of the allowance for operating costs related to security services shall be calculated as follows:

i. Subtract the operating costs for security services in the reference year from the operating costs for security services in the base year.

ii. Multiply the amount determined under subparagraph i by the factor determined under subsection 17 (2). O. Reg. 194/98, s. 25.

Calculation of the Rent Increase

26. (1) Subject to subsection (2) and subsection 138 (9) of the Act, the percentage rent increase above the guideline for each rental unit which is the subject of the application shall be calculated in the following manner:

1. Divide the amount of each allowance determined under sections 22, 24 and 25 by the total rents for the rental units subject to the application which are affected by the capital expenditure or operating cost.

2. Multiply the amount determined under paragraph 1 by 100.

3. Add together the amounts determined under paragraph 2 for each allowance where the rental unit is affected by the capital expenditure or operating cost. O. Reg. 194/98, s. 26 (1).

(2) If the apportionment of an allowance in accordance with paragraph 1 of subsection (1) would be unreasonable in the circumstances, the Tribunal may use another method which better reflects how the rental units which are subject to the application are affected by the subject matter of the allowance. O. Reg. 194/98, s. 26 (2).

When the Rent Increase may be Taken

27. (1) Subject to section 28, where the Tribunal orders a rent increase for a rental unit under subsection 138 (6) of the Act, that rent increase may only be taken within 12 months of the first intended rent increase referred to in the application for a rental unit in the residential complex. O. Reg. 194/98, s. 27 (1).

(2) Subject to section 28, the rent increases ordered under subsection 138 (10) of the Act may only be taken during the subsequent 12-month periods which begin and end on the same days of the year as the 12-month period referred to in subsection (1). O. Reg. 194/98, s. 27 (2).

28. (1) If an order with respect to a rental unit that increases the lawful rent is made under section 138 of the Act with respect to capital expenditures or operating costs for security services before the time for taking any rent increases under one or more previous orders has expired, the landlord may annually increase the lawful rent being charged by no more than the guideline rent increase plus 4 per cent of the previous lawful rent, until such time as no rent increase with respect to capital expenditures or operating costs related to security services ordered under section 138 of the Act remains to be taken. O. Reg. 194/98, s. 28 (1).

(2) Where a landlord fails to take a rent increase in accordance with subsection (1) in any 12-month period in which the landlord was entitled to take such a rent increase, the landlord may not take that rent increase in any subsequent time period. O. Reg. 194/98, s. 28 (2).

(3) Where a landlord takes a rent increase in accordance with subsection (1) which is less than the amount the landlord was entitled to take, the landlord may not take the amount of the rent increase which the landlord failed to take in any subsequent time period. O. Reg. 194/98, s. 28 (3).

(4) This section does not prevent a landlord from increasing the rent charged by more than 4 per cent of the previous lawful rent charged with respect to an extraordinary increase in the cost for municipal taxes and charges or utilities or both in accordance with an order under subsection 138 (6) of the Act. O. Reg. 194/98, s. 28 (4).

PART VI.1
RENT REDUCTIONS AS A RESULT OF REDUCTION OF MUNICIPAL TAXES

28.1 (1) The prescribed percentage for the purpose of subsection 136 (1) of the Act is 2.49 per cent. O. Reg. 455/98, s. 2.

(2) For the purpose of section 136 of the Act,

“municipal property tax” means taxes charged to a landlord by a municipality and includes taxes levied on a landlord’s property in unorganized territory and taxes levied under Division B of Part IX of the Education Act, but does not include,

(a) charges for inspections done by the municipality on a residential complex if those charges are related to an alleged breach of a health, safety, housing or maintenance standard,

(b) charges for emergency repairs carried out by the municipality on a residential complex,

(c) charges for work in the nature of a capital expenditure carried out by the municipality,

(d) the charges set out in section 2, or

(e) any other charges levied by the municipality. O. Reg. 455/98, s. 2.

(3) If the lawful rent for the rental units in a residential complex is to be reduced under subsection 136 (1) of the Act, the reduction in rent shall be determined as follows:

1. Determine the percentage by which the municipal property tax for the residential complex in the year has been reduced from the municipal property tax for the residential complex in the previous year.

2. Determine the percentage by which the rent is to be reduced by multiplying the percentage determined under paragraph 1 by 20 per cent. O. Reg. 455/98, s. 2.

28.2 (1) The prescribed date for the purposes of subsection 136 (2) of the Act is December 31 for 1998 and for any subsequent year in which the municipal property tax reduction takes effect. O. Reg. 455/98, s. 2.

(2) Despite subsection (1), if the lawful rent for the rental units in a residential complex is reduced under subsection 136 (1) of the Act as a result of the 1997 municipal property tax for the complex exceeding the 1998 municipal property tax for the complex by more than the percentage prescribed in subsection 28.1 (1), the prescribed date on which the rent reduction takes effect for a rental unit in the complex for the purposes of subsection 136 (2) of the Act is May 31, 1999 if,

(a) the tax notice effecting the reduction in the 1998 municipal property tax for the residential complex by more than the prescribed percentage is issued on or after November 1, 1999; or

(b) a notice of the rent reduction is required to be given under subsection 136 (3) of the Act, and the notice of rent reduction is given to the tenant of the rental unit on or after November 1, 1999. O. Reg. 204/00, s. 2.

(3) Subsection (2) does not apply if the tenant, former tenant, prospective tenant or subtenant of the rental unit has applied to the Tribunal under section 144 of the Act on or before December 30, 1999 for an order for the repayment of any rent paid in excess of the amount to which the lawful rent is reduced under subsection 136 (1) of the Act. O. Reg. 204/00, s. 2.

28.3 (1) The prescribed number of rental units for the purpose of subsection 136 (3) of the Act is seven. O. Reg. 455/98, s. 2.

(2) The period within which notification of a rent reduction must be given for the purpose of subsection 136 (3) of the Act is,

(a) between June 1 and September 15 for landlords; and

(b) between October 1 and December 15 for tenants. O. Reg. 455/98, s. 2.

(3) Despite subsection (2), if the municipal property tax for 1998 is reduced, the period within which notification of a rent reduction under subsection 136 (3) of the Act must be given to landlords and tenants is,

(a) if a supplementary tax notice is issued that affects the reduction in the municipal property tax for 1998, within 30 days after the day that notice is issued;

(b) if a tax notice is issued for the 1999 taxation year that contains an increase in the taxes payable that affects the reduction in the municipal property tax for 1998, within 30 days after the day that notice is issued;

(c) if, as a result of the reduction of municipal property tax for 1998, a refund is issued for an excess amount paid on account of the 1998 taxes, within 30 days after the day the refund is issued;

(d) if the taxes payable on a tax notice for the 1999 taxation year are reduced as a result of the reduction of municipal property tax for 1998, within 30 days after the day that notice is issued; and

(e) otherwise between October 1, 1998 and December 15, 1998. O. Reg. 635/98, s. 1.

(4) When the notice under subsection 136 (3) of the Act is served on the landlord, it shall be addressed to the landlord or to the owner of the property for tax purposes and when it is served on the tenants, the notice for each tenant shall be addressed to the tenant or occupant of the tenant’s rental unit. O. Reg. 455/98, s. 2.

(5) The notice under subsection 136 (3) of the Act shall be served,

(a) by handing it to the person;

(b) if the person is a landlord, by handing it to an employee of the landlord exercising authority in respect of the residential complex to which the notice or document relates;

(c) if the person is a tenant, by handing it to an apparently adult person in the rental unit;

(d) by leaving it in the mail box where mail is ordinarily delivered to the person;

(e) if there is no mail box, by leaving it at the place where mail is ordinarily delivered to the person; or

(f) by sending it by mail, by courier or by facsimile to the last known address where the person resides or carries on business. O. Reg. 455/98, s. 2.

28.4 (1) For the purpose of subsection 137 (1) of the Act, a person may apply to the Tribunal for an order varying the rent reduction determined under section 136 of the Act if,

(a) other charges that are in addition to the municipal property tax and that are not set out in clauses (a), (b), (c) and (d) of the definition of “municipal property tax” in subsection 28.1 (2) were levied upon the landlord by the municipality in the base year;

(b) the percentage of the rent charged in the residential complex that the municipal property tax comprises is not 20 per cent;

(c) there is an error in the notice of rent reduction with respect to the amount by which the municipal property tax is reduced or the amount by which the rent is to be reduced; or

(d) the municipal property tax is increased or decreased during the period from the day the notice of rent reduction was issued to March 31 of the year following the date the rent reduction takes effect. O. Reg. 455/98, s. 2.

(2) An application referred to in subsection (1) shall be made,

(a) if a notice of the rent reduction is required to be given under subsection 136 (3) of the Act, on or before the later of,

(i) the ninetieth day following the day on which the person who will be the applicant is given the notice of rent reduction, and

(ii) March 31 in the year following the year in which the rent reduction takes effect;

(b) if a notice of the rent reduction is not required to be given under subsection 136 (3) of the Act, on or before the later of,

(i) the ninetieth day following the day on which the tax notice effecting the reduction in the municipal property tax and forming the basis of the rent reduction is issued, and

(ii) March 31 in the year following the year in which the rent reduction takes effect. O. Reg. 204/00, s. 3.

(3) Despite subsection (2), an application referred to in subsection (1) for an order varying a rent reduction resulting from a reduction in the 1998 municipal property tax shall be made on or before May 30, 2000 if,

(a) the tax notice effecting the reduction in the 1998 municipal property tax and forming the basis of the rent reduction is issued on or after November 1, 1999; or

(b) a notice of the rent reduction is required to be given under subsection 136 (3) of the Act, and the person who will be the applicant is given the notice of rent reduction on or after November 1, 1999. O. Reg. 204/00, s. 3.

(4) Despite subsection (2), an application referred to in subsection (1) for an order varying a rent reduction resulting from a reduction in the 1999 municipal property tax shall be made,

(a) if a notice of the rent reduction is required to be given under subsection 136 (3) of the Act, on or before the later of,

(i) the ninetieth day following the day on which the person who will be the applicant is given the notice of rent reduction, and

(ii) May 30, 2000;

(b) if a notice of the rent reduction is not required to be given under subsection 136 (3) of the Act, on or before the later of,

(i) the ninetieth day following the day on which the tax notice effecting the reduction in the 1999 municipal property tax and forming the basis of the rent reduction is issued, and

(ii) May 30, 2000. O. Reg. 204/00, s. 3.

28.5 (1) In this section,

“base year” means the calendar year in which the rent reduction takes effect; (“année de base”)

“reference year” means the calendar year immediately preceding the base year. (“année de référence”) O. Reg. 455/98, s. 2.

(2) The Tribunal shall determine an application under clause 28.4 (1) (a), (c) or (d) as follows:

1. Calculate the actual decrease, if any, in the municipal taxes and charges from the reference year to the base year.

2. Determine the percentage rent decrease for a rental unit that is subject to the application,

i. if the total of the annual rents is not proven by the landlord or the tenant, in accordance with paragraphs 1 and 2 of subsection 28.1 (3), and

ii. otherwise, by dividing the amount determined under paragraph 1 by the total of the annual rents for all of the rental units in the residential complex and multiplying that quotient by 100. O. Reg. 455/98, s. 2.

(3) The Tribunal shall determine an application under clause 28.4 (1) (b) as follows:

1. Calculate the actual decrease, if any, in the municipal taxes and charges from the reference year to the base year.

2. Determine the percentage rent decrease for a rental unit that is subject to the application by dividing the amount determined under paragraph 1 by the total of the annual rents for all of the rental units in the residential complex and multiplying that quotient by 100. O. Reg. 455/98, s. 2.

28.6 The following shall be filed with an application under section 137 of the Act:

1. Evidence of the amount of municipal taxes in the reference year and in the base year.

2. If the application is made under clause 28.4 (1) (a), evidence of the other charges levied by the municipality in the reference year and in the base year.

3. If the application is made under clause 28.4 (1) (b), evidence of the rents charged for the residential complex.

4. If notice of a reduction of rent has been given under subsection 136 (3) of the Act, a copy of that notice. O. Reg. 455/98, s. 2; O. Reg. 635/98, s. 3.

PART VII
APPLICATIONS
TO TRIBUNAL BY TENANT RESPECTING ILLEGAL CHARGES OR FOR REDUCTION IN RENT

29. The following payments are exempt from the operation of section 140 of the Act:

1. Payment for additional keys or cards requested by the tenant, not greater than the direct costs.

2. Payment for replacement keys or cards, not greater than the direct replacement costs, unless the replacement keys or cards are required because the landlord, on the landlord’s initiative, changed the locks.

3. Payment of a refundable key or card deposit, not greater than the expected direct replacement costs.

4. Payment of NSF charges charged by a financial institution to the landlord.

5. Payment of an administration charge, not greater than $20, for an NSF cheque.

6. Payment by a tenant or subtenant in settlement of a court action or potential court action or an application or potential application to the Tribunal.

7. Payment to a landlord or tenant of a mobile home park or land lease community at the commencement of a tenancy as consideration for the rental of a particular site.

8. Payment of a charge not exceeding $250 for transferring between rental units in a residential complex described in paragraph 1, 1.1, 2 or 3 of subsection 5 (1) of the Act, where the transfer was requested by the tenant.

9. Payment of an amount to reimburse the landlord for property taxes paid by the landlord with respect to a mobile home or a land lease home owned by the tenant. O. Reg. 194/98, s. 29; O. Reg. 647/00, s. 1.

30. (1) The provisions of this section are prescribed as rules for making findings relating to a reduction of the rent charged under section 142 of the Act, based on a discontinuance or reduction in services or facilities. O. Reg. 194/98, s. 30 (1).

(2) If a service or facility is discontinued, the rent shall be reduced by an amount that is equal to what would be a reasonable charge for the service or facility based on the cost of the service or facility to the landlord or, if the cost cannot be determined or if there is no cost, on the value of the service or facility. O. Reg. 194/98, s. 30 (2).

(3) Despite subsection (2), where a service or facility was previously provided under an agreement under section 132 of the Act, section 46 of the Rent Control Act, 1992 or subsection 96 (4) of the Residential Rent Regulation Act, the reduction in rent on discontinuing the service or facility shall be equal to,

(a) the most recent amount of the separate charge for the service or facility; or

(b) where there is no separate charge, the increase in rent which the landlord took when the service or facility was first provided, adjusted by the percentage increase in rent being charged for the rental unit from the date the service or facility was first provided to the date the landlord discontinued the service or facility. O. Reg. 194/98, s. 30 (3).

(4) If a service or facility is reduced, the amount of the reduction of rent shall be a reasonable proportion, based on the degree of the reduction of the service or facility, of the amount determined under subsection (2) or (3). O. Reg. 194/98, s. 30 (4).

(5) If the discontinuance or reduction is temporary and its duration is reasonable, taking into account the effect on the tenant, there shall be no reduction of rent. O. Reg. 194/98, s. 30 (5).

30.1 (1) This section applies for the purposes of section 26, paragraph 6 of subsection 32 (1) and subsection 35 (1) of the Act,

(a) in determining whether a landlord, in carrying out work in a rental unit or a residential complex, substantially interfered with the reasonable enjoyment of the unit or complex for all usual purposes by the tenant of the unit; and

(b) in determining whether it is appropriate for the Tribunal to order an abatement of rent and the amount of any abatement. O. Reg. 268/02, s. 1.

(2) In this section,

“eligible work” means work,

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

(b) that is necessary to maintain maintenance, health, safety or other housing related standards required by law,

(c) that is necessary to maintain the provision of a plumbing, heating, mechanical, electrical, ventilation or air conditioning system,

(d) that provides access for persons with disabilities,

(e) that promotes energy or water conservation, or

(f) that maintains or improves the security of the residential complex; (“travaux admissibles”)

“landlord” includes a superintendent and an agent of the landlord; (“locateur”)

“tenant” means, in respect of a rental unit, the tenant or a former tenant of the unit or a member of the household of the tenant or former tenant; (“locataire”)

“work” means, in respect of a rental unit or a residential complex, maintenance, repairs or capital improvements carried out in the unit or complex; (“travaux”) O. Reg. 268/02, s. 1.

(3) In determining for the purposes of subsection 35 (1) of the Act whether there was substantial interference with the reasonable enjoyment of a rental unit or residential complex,

(a) the Tribunal shall consider the effect of the carrying out of the work on the tenant’s use of the rental unit or residential complex; and

(b) the Tribunal shall not find that the carrying out of the work constituted a substantial interference with the tenant’s reasonable enjoyment of the unit or complex unless the Tribunal finds that the carrying out of the work constituted an interference with the tenant’s use and enjoyment of the unit or complex that was unreasonable in the circumstances. O. Reg. 268/02, s. 1.

(4) If the Tribunal finds that there was substantial interference with the tenant’s reasonable enjoyment of the rental unit or residential complex, the Tribunal shall not order an abatement of rent if all of the following conditions are satisfied:

1. The landlord gave notice in advance to the tenant, concerning the work to be carried out.

2. The notice mentioned in paragraph 1 was reasonably accurate and comprehensive in the circumstances and at the time it was given and was given in a reasonably timely manner.

3. The work is eligible work.

4. If required under the Building Code Act, 1992, a permit was issued in respect of the work.

5. The work was carried out at reasonable times, or if a municipal noise control by-law was in effect, during the times permitted under the noise control by-law.

6. The duration of the work was reasonable in the circumstances.

7. The landlord took reasonable steps to minimize any interference resulting from noise associated with the work. O. Reg. 268/02, s. 1.

(5) If the Tribunal finds there was substantial interference with the tenant’s reasonable enjoyment of the rental unit or residential complex and an abatement of rent is not prohibited under subsection (4), the Tribunal shall consider the following in determining whether it is appropriate to order an abatement of rent and the amount of the abatement:

1. The nature, duration and degree of interference with the tenant’s reasonable enjoyment caused by the carrying out of the work.

2. Whether the tenant is responsible for any undue delay in the carrying out of the work.

3. The steps taken by the landlord during the work to minimize interference with the tenant’s reasonable enjoyment.

4. Whether the tenant has taken advantage of any service provided by the landlord or arrangement made by the landlord that would minimize interference with the tenant’s reasonable enjoyment.

5. Whether a failure to carry out the work could reasonably be expected to result in any of the following within a reasonable period of time:

i. Interference with the tenant’s reasonable enjoyment of the rental unit or the residential complex.

ii. A reduction or discontinuation of a service or facility.

iii. Damage or additional damage to the rental unit, the residential complex or anything in the unit or complex.

iv. Risk to any person’s health or personal safety.

v. A breach of subsection 24 (1) of the Act by the landlord. O. Reg. 268/02, s. 1.

(6) Except as permitted under subsection (7), no abatement of rent shall exceed 10 per cent of the monthly rent for each month or part of a month during which there was substantial interference with a tenant’s reasonable enjoyment of the rental unit or residential complex. O. Reg. 268/02, s. 1.

(7) The Tribunal shall not order an abatement of rent that exceeds 10 per cent of the monthly rent for a rental unit unless,

(a) the Tribunal considers a larger abatement to be warranted in the circumstances because the substantial interference with the tenant’s reasonable enjoyment far exceeded the level that would normally be expected, taking into consideration all of the relevant circumstances; and

(b) the Tribunal is satisfied that,

(i) the work is not eligible work,

(ii) the work was carried out at unreasonable times or at a time that is not permitted under any applicable noise control by-law,

(iii) the work was carried out in a manner that contravened a condition or requirement of a building permit issued under the Building Code Act, 1992,

(iv) the work was carried out over a period of time far in excess of the amount of time that normally would be required, after taking into consideration any exceptional circumstances beyond the control of the landlord, including weather-related delays, delays in obtaining necessary government approvals or permits and delays caused by market shortages of suitable goods or services or qualified labour at reasonable costs, or

(v) the landlord refused to take reasonable steps during the work to minimize interference with the tenant’s reasonable enjoyment of the rental unit or residential complex. O. Reg. 268/02, s. 1.

(8) The Tribunal shall not order an abatement of rent that exceeds 100 per cent of the monthly rent for each month or part of a month during which the Tribunal determines that the work substantially interfered with the tenant’s reasonable enjoyment of the rental unit or residential complex. O. Reg. 268/02, s. 1.

31. (1) In this section,

“base year” means the last completed calendar year immediately preceding the day on which an application under section 143 of the Act is filed with the Tribunal; (“année de base”)

“reference year” means the calendar year immediately preceding the base year. (“année de référence”) O. Reg. 194/98, s. 31 (1); O. Reg. 455/98, s. 3 (1); O. Reg. 143/00, s. 6 (1).

(1.1) For the purpose of this section, the adjusted costs for municipal taxes and charges for the base year shall be calculated in the following manner:

1. If municipal taxes and charges for a tax year are decreased as a result of an appeal of a tax assessment, subtract from the base year costs for municipal taxes and charges the amount of the decrease resulting from the appeal.

2. If a tax notice respecting the reference year municipal taxes and charges is issued on or after November 1 in the base year,

i. subtract from the base year costs for municipal taxes and charges the amount, if any, by which the municipal taxes and charges for the year preceding the reference year exceed the reference year municipal taxes and charges, and

ii. if the reference year municipal taxes and charges are decreased as a result of an appeal of a tax assessment, the amount of the decrease resulting from the appeal,

A. shall be taken into account in determining the amount by which the municipal taxes and charges for the year preceding the reference year exceed the reference year municipal taxes and charges for the purpose of subparagraph i, and

B. shall not be subtracted under paragraph 1.

3. A decrease in municipal taxes and charges as a result of an appeal of a tax assessment shall not be considered under paragraph 1 or 2 if,

i. the decrease is for a tax year before 1996, or

ii. the application for the rent reduction was filed more than 12 months after the decision on the appeal was issued. O. Reg. 143/00, s. 6 (2); O. Reg. 204/00, s. 4.

(2) The following are prescribed as the rules for making findings on an application for a reduction in rent due to a reduction in the municipal taxes and charges for the residential complex:

1. If the reduction in municipal taxes and charges takes effect in the base year, the amount of the allowance is the amount by which the costs for the reference year exceed the costs for the base year.

2. Otherwise, the amount of the allowance is the amount by which the costs for the base year exceed the adjusted costs for the base year. O. Reg. 455/98, s. 3 (2).

(3) The percentage rent decrease for a rental unit which is subject to an application under section 143 of the Act shall be calculated in the following manner:

1. Divide the amount of the allowance determined under subsection (2) by the total of the annual rents for the rental units in the residential complex.

2. Multiply the amount determined under paragraph 1 by 100. O. Reg. 194/98, s. 31 (3).

(4) Where the landlord or the tenant does not prove the total of the annual rents for the rental units in the residential complex, the percentage rent decrease shall be calculated in the following manner:

1. Divide the amount of the allowance determined under subsection (2) by the reference year costs.

2. Multiply the amount determined under paragraph 1 by 20. O. Reg. 194/98, s. 31 (4).

(4.1) Revoked: O. Reg. 143/00, s. 6 (3).

(4.2) Revoked: O. Reg. 143/00, s. 6 (3).

(5) A rent reduction order made under section 143 of the Act takes effect on the first day of the first rental period that commences on or after the date the application was filed with the Tribunal. O. Reg. 194/98, s. 31 (5).

32. Sections 19, 20 and 21 apply with necessary modifications to an application to the Tribunal by a tenant under section 142 or 143 of the Act. O. Reg. 194/98, s. 32.

PART VIII
TRIBUNAL — ADMINISTRATION AND POWERS

33. Employees of the Tribunal shall be appointed under the Public Service Act. O. Reg. 194/98, s. 33.

34. (1) The Tribunal may establish bank accounts in the name of the Tribunal into which it may place money paid into the Tribunal. O. Reg. 194/98, s. 34 (1).

(2) The Tribunal may invest money paid into the Tribunal in investments in which the Minister of Finance may invest public money under section 3 of the Financial Administration Act. O. Reg. 194/98, s. 34 (2).

(3) The Tribunal may employ a trust corporation to make the investments or to act as a custodian of the securities purchased as investments. O. Reg. 194/98, s. 34 (3).

(4) Money paid into the Tribunal shall bear interest at the rate of 0.25 per cent per year, compounded semi-annually. O. Reg. 194/98, s. 34 (4).

35. An application to the Tribunal must be accompanied by the following information:

1. If the application is with respect to a notice of termination on any ground, a copy of the notice of termination and a certificate of service of the notice of termination, if notice was given by the landlord.

2. If the application is with respect to a notice of termination for demolition, conversion or repair, in addition to the information required by paragraph 1, evidence, where required, that the landlord paid the necessary compensation required under section 55 or 57 of the Act or found acceptable alternative accommodation for the tenant.

3. If the application is with respect to a notice of termination due to a second contravention in six months, in addition to the information required by paragraph 1, a copy of the original notice of termination and a copy of the certificate of service of the original notice of termination.

4. If the application is made under section 76 of the Act with respect to an agreement to terminate the tenancy, a copy of the agreement.

5. If the application is with respect to a review of a work order under section 156 of the Act, a copy of the work order. O. Reg. 194/98, s. 35.

36. The following are time requirements under the Act that the Tribunal may not extend or shorten:

1. All time requirements related to notice requirements for terminating tenancies.

2. All deadlines for filing applications (other than those which the Tribunal is expressly permitted to extend or shorten under subsection 176 (1) of the Act).

3. The seven-day period referred to in clause 17 (4) (d) of the Act.

4. The 24-hour notice required under subsection 21 (1) of the Act.

5. The 30-day period referred to in subsection 44 (1) of the Act.

6. The 30-day period referred to in subsection 49 (1) of the Act.

7. The six-month periods referred to in subsections 50 (3) and (4), 79 (7) and 111 (4) and (5) of the Act.

8. The period, described in subsections 76 (5) and 83 (1) of the Act, during which an eviction order is not effective.

9. The five-day period in which a tenancy agreement may be cancelled, as provided in section 93 of the Act.

10. The five-day period in which an agreement to increase the rent charged may be cancelled, as provided in subsection 130 (4) of the Act.

11. The 90-day notice period required by sections 101 and 127 of the Act.

12. The 60-day period referred to in subsection 125 (3) of the Act.

13. The 12-month period referred to in subsection 126 (1) of the Act.

14. The six-day period referred to in subsection 130 (5) of the Act.

15. The one-year period after which rent and rent increases shall be deemed to be lawful under subsections 141 (1) and (2) of the Act. O. Reg. 194/98, s. 36.

PART IX
MISCELLANEOUS

37. The following federal, provincial or municipal programs are prescribed for the purposes of paragraph 2 of subsection 5 (1) of the Act:

1. Non-Profit Low Rental Housing Program administered under the National Housing Act (Canada).

2. Non-Profit 2% Write-Down Non-Profit Housing Program administered under the National Housing Act (Canada).

3. Non-Profit Full Assistance Housing Programs administered before January 1, 2001 by the Ministry, not including the Municipal Non-Profit Housing Program, but including:

i. JobsOntario Homes.

ii. The Ontario Non-Profit Housing Program (P-3000).

iii. The Ontario Non-Profit Housing Program (P-3600).

iv. The Ontario Non-Profit Housing Program (P-10,000).

v. Homes Now.

vi. Federal/Provincial Non-Profit Housing Program (1986-1993).

4. Municipal Non-Profit Housing Program (1978-1985).

5. Municipal Assisted Housing Program (Toronto Housing Company).

6. Urban Native Fully Targeted Housing Program administered under the National Housing Act (Canada).

7. Urban Native 2% Write-Down and Additional Assistance Program administered under the National Housing Act (Canada).

8. Rural and Native Rental Housing Program administered under the National Housing Act (Canada). O. Reg. 647/00, s. 2.

38. (1) The prescribed date for the purpose of subsection 54 (3) of the Act is July 10, 1986. O. Reg. 194/98, s. 38 (1).

(2) The prescribed date for the purpose of subsection 54 (4) of the Act is the date that section 54 of the Act comes into force. O. Reg. 194/98, s. 38 (2).

39. For the purpose of section 199 of the Act, the allowed amount of a contingency fee charged by an agent of a landlord or tenant is 10 per cent of the amount that has been or may be recovered, gained or saved, in whole or in part, over a one-year period, through the efforts of the agent. O. Reg. 194/98, s. 39.

SCHEDULE
USEFUL LIFE OF WORK DONE OR THING PURCHASED

Column 1

Column 2

Work done or thing purchased

Useful life in years

Sitework

 

1.

Fences

 
 

    i. Concrete

20

 

    ii. Steel, Chain Link

15

 

    iii. Metal, Wrought Iron

25

 

    iv. Wood

15

2.

Landscaping

 
 

    i. Dead Tree Removal

20

 

    ii. New Trees

20

 

    iii. Shrub Replacement

15

 

    iv. Sodding

10

3.

Parking Lot, Driveways and Walkways

 
 

    i. Asphalt

15

 

    ii. Concrete

15

 

    iii. Gravel

10

 

    iv. Interlocking Brick

20

 

    v. Repairs

5

Concrete

 

1.

Curbs and Patio Slabs

15

2.

Foundation Walls

20

3.

Garage Concrete Floor (Slab) and Rebar Repairs

10

4.

Retaining Walls

25

5.

Stairs and porches

10

6.

Balcony Slabs

10

Masonry

 

1.

Chimney

 
 

    i. Masonry (Brick, Block)

20

 

    ii. Metalbestos Type

15

 

    iii. Repairs, Masonry

15

2.

Masonry

 
 

    i. Repairs, Tuck Pointing

15

 

    ii. Replacement

20

3.

Sandblasting

25

Metals

 

1.

Balcony Railings, Steel

15

Wood and plastics

 

1.

Balcony Railings, Wood

10

2.

Decks and Porches

20

3.

Retaining Walls, Wood

15

Thermal and Moisture Protection

 

1.

Caulking

10

2.

Eavestrough and Downpipes

 
 

    i. Aluminium, Plastic

15

 

    ii. Galvanized

20

3.

Garage Conc. Floor, Waterproofing

 
 

    i. Membrane

15

 

    ii. Sealer

5

4.

Insulation

20

5.

Metal Flashing

 
 

    i. Aluminium

25

 

    ii. Galvanized, Painted

15

 

    iii. Steel, Prefinished

10

6.

Roof

 
 

    i. Cedar Shakes

25

 

    ii. Clay Tiles

25

 

    iii. Built Up

15

 

    iv. Inverted four-ply

20

 

    v. Metal Panels

25

 

    vi. Sarnafil

25

 

    vii. Single ply

20

 

    viii. Slate

25

 

    ix. Sloped (Asphalt Shingles)

15

 

    x. Repairs

5

7.

Siding

 
 

    i. Asphalt Shingles

15

 

    ii. Cedar

25

 

    iii. Cedar Shakes

25

 

    iv. Insulated Panel, Aluminium

25

 

    v. Steel

25

 

    vi. Masonite

20

 

    vii. Plywood

10

 

    viii. Stucco

20

8.

Soffits and Fascia

 
 

    i. Aluminium

25

 

    ii. Gypsum

15

 

    iii. Plywood

20

 

    iv. Pre-finished Steel

25

 

    v. Vinyl

25

 

    vi. Wood

15

9.

Waterproofing, Above Ground

15

Doors and Windows

 

1.

Aluminium Storm Doors and Windows

15

2.

Doors

 
 

    i. Aluminium, Steel

20

 

    ii. Patio

20

 

    iii. Wood

20

3.

Garage Door and Operator

10

4.

Lock Replacement, Building

20

5.

Window Framing

 
 

    i. Aluminium

20

 

    ii. Wood

15

Finishes

 

1.

Carpets

 
 

    i. Common Areas

10

 

    ii. Ensuite

10

2.

Flooring

 
 

    i. Asphalt

10

 

    ii. Ceramic Tile

10

 

    iii. Hardwood

20

 

    iv. Linoleum

10

 

    v. Marble

25

 

    vi. Parquet

20

 

    vii. Quarry Tile

10

 

    viii. Restaining

5

 

    ix. Rubber Tiles

20

 

    x. Sanding

5

 

    xi. Vinyl Tile

10

3.

Gypsum Board

 
 

    i. Repairs

5

 

    ii. Replacement

20

4.

Marble Wall Panels

25

5.

Mirror Panels

10

6.

Painting

 
 

    i. Exterior: Walls, Trim, Balconies

5

 

    ii. Interior: Common Areas, Ensuite

10

7.

Panelling

20

8.

Suspended Ceilings

 
 

    i. Fibre

15

 

    ii. Metal

25

9.

Wallcovering, Vinyl

10

Specialties

 

1.

Bicycle Racks

10

2.

Building, Storage/Service

20

3.

Lockers

 
 

    i. Recreational

15

 

    ii. Storage

15

4.

Mailboxes

15

5.

Playground Equipment (Swings, etc.)

10

6.

Satellite Dish

10

7.

Saunas

 
 

    i. Heaters

10

 

    ii. Walls

15

8.

Steel Television Antennae

15

9.

Swimming Pool

 
 

    i. Above Ground

10

 

    ii. Ceramic Tile

15

 

    iii. Concrete

20

 

    iv. Heater

10

 

    v. Painting

5

 

    vi. Pump, Filter

15

 

    vii. Vinyl

15

10.

Whirlpool, Jacuzzi

15

Equipment

 

1.

Backhoe

10

2.

Dehumidifiers

10

3.

Floor Polishers

 
 

    i. Commercial

15

 

    ii. Domestic

5

4.

Front End Loader

10

5.

Garbage Bins, Boxes

10

6.

Garbage Compactors

15

7.

Garbage Disposers

5

8.

Garbage Huts

 
 

    i. Metal

20

 

    ii. Wood

15

9.

Humidifiers

10

10.

Incinerator

15

11.

Metal Scaffold

20

12.

Power Lawnmower

10

13.

Snow Blower

10

14.

Tractors, Small

10

15.

Trucks, Pick-up and Delivery

10

16.

Vacuums, Commercial

10

Furnishings

 

1.

Appliances

 
 

    i. Clothes Dryer

15

 

    ii. Dishwasher

10

 

    iii. Microwave

10

 

    iv. Refrigerator

15

 

    v. Stove

15

 

    vi. Washing Machine

15

2.

Cabinets, Counters: Bath, Kitchen

25

3.

Drapes

10

4.

Furniture

 
 

    i. Couches

10

 

    ii. Folding Chairs and Tables

10

 

    iii. Office

10

5.

Pictures

15

6.

Venetian Blinds

10

Conveying Systems

 

1.

Elevators

 
 

    i. Electrical Controls

15

 

    ii. Interior Wall Panels

15

 

    iii. New Installation

20

 

    iv. Mechanical Retrofit (Cable System)

15

Mechanical

 

1.

Heating, ventilation and air conditioning

 
 

    i. Boilers

 
 

      A. Gas Fired Atmospheric

15

 

      B. Hot Water

15

 

      C. Insulation

25

 

      D. Retubing

20

 

      E. Steam

25

 

    ii. Central System (air conditioning)

15

 

    iii. Chiller

25

 

    iv. Cooling Tower

25

 

    v. Corridor System

15

 

    vi. Exhaust and Supply Fans

20

 

    vii. Fan Coil Units

20

 

    viii. Furnace

 
 

      A. Electric, Forced Air

25

 

      B. Oil, Gas, Forced Air

25

 

      C. Oil, Gas, Wall or Floor

20

 

    ix. Heat Exchanger

15

 

    x. Heat Pumps

15

 

    xi. Heating System

 
 

      A. Electric

10

 

      B. Hot Air

15

 

      C. Hot Water

25

 

      D. Steam

10

 

    xii. Hot Water Tanks

 
 

      A. Commercial

20

 

      B. Domestic

25

 

    xiii. Sanitary Exhaust

 
 

      A. Central System

20

 

      B. Individual System

15

 

    xiv. Stair Pressurization Fans

20

 

    xv. Units (Air Conditioners)

 
 

      A. Incremental

15

 

      B. Sleeve, Window

10

2.

Mechanical

 
 

    i. Culvert (Metal, Concrete)

25

 

    ii. Drains, Stacks (Plastic)

20

 

    iii. Lawn Sprinklers (Underground)

10

 

    iv. Plumbing Fixtures

 
 

      A. Faucets

10

 

      B. Tubs, Toilets, Sinks

15

 

    v. Pumps

 
 

      A. Booster, Circulating

25

 

      B. Fire, Jockey

15

 

      C. Sump

15

 

    vi. Risers

25

 

    vii. Sanitary System

25

 

    viii. Septic Tank and Tile Bed

20

 

    ix. Storm System

25

 

    x. Valves, Access Doors, Fittings, etc.

15

 

    xi. Water Softener

15

 

    xii. Water Treatment

20

 

    xiii. Wells and Water System

20

Electrical

 

1.

Electric Heating Cables (Garage Ramp)

10

2.

Emergency Lighting (Battery Operated)

15

3.

Emergency System

 
 

    i. Lighting

20

 

    ii. Generator

25

4.

Fire Extinguishers

10

5.

Fire System (Alarms, Smoke Detectors)

15

6.

Intercom

15

7.

Light Fixtures

 
 

    i. Exterior

15

 

    ii. Interior: Common Areas, Ensuite

10

8.

Panel and Distribution

15

9.

Power Line

25

10.

Rewiring

25

11.

Street Lighting

15

12.

Surveillance System

 
 

    i. Cameras

15

 

    ii. Monitors

15

 

    iii. Switchers

15

13.

Switches and Splitters

25

14.

Temperature Control

 
 

    i. Electric

 
 

      A. Indoor

15

 

      B. Outdoor

15

 

    ii. Pneumatic

20

15.

Transformer

25

O. Reg. 194/98, Sched.