BILL 26
An Act to Amend The Residential Tenancies Act
Her Majesty, by and with the advice and consent of the Legislative Assembly of New Brunswick, enacts as follows:
1 Section 11.1 of The Residential Tenancies Act, chapter R-10.2 of the Acts of New Brunswick, 1975, is amended
ain subsection (1) by adding “section 22.1 and” after “Subject to”;
bin subsection (2) by adding “section 22.1 and” after “Subject to”
2 The Act is amended by adding after section 22 the following:
PERMITTED RENT INCREASE
Permitted rent increase
22.1( 1) Except as provided in sections 22.2, 22.3 and 22.5, the cumulative amount of any one or more increases to rent charged by a landlord to a tenant between January 1 and December 31 of any year shall not exceed the percentage change from year to year in the Consumer Price Index for New Brunswick for prices of goods and services as reported monthly by Statistics Canada, averaged over the 12-month period that ends at the end of May of the previous calendar year, rounded to the first decimal point.
22.1( 2) The Minister of Service New Brunswick shall publish in The Royal Gazette the permitted increase for each calendar year not later than August 31 of the preceding year.
22.1( 3) This section applies despite the provisions in a Standard Form of Lease or other tenancy agreement.
Application for greater increase or review
22.2( 1) If a landlord seeks a rent increase greater than the amount permitted under section 22.1, the landlord shall apply to the Chief Residential Tenancies Officer for approval of the proposed increase not later than ten days after giving the tenant the notice of rent increase required under subsection 11.1(1) or (2), as the case may be.
22.2( 2) If a landlord seeks a rent increase equal to or less than the amount permitted under section 22.1, the tenant may apply to the Chief Residential Tenancies Officer for a review of the proposed increase not later than ten days after receipt of the notice of rent increase required under subsection 11.1(1) or (2), as the case may be.
22.2( 3) An application under subsection (1) or (2) shall be made on the form prescribed by regulation and a copy of the application shall be served on the other party.
22.2( 4) On receipt of an application under subsection (1) or (2), the Chief Residential Tenancies Officer shall within ten days give written notice to the landlord and tenant of the date, time, and place set for the hearing of the application.
22.2( 5) The landlord and tenant shall supply any information requested by the Chief Residential Tenancies Officer for the purpose of deciding an application under subsection (1) or (2), and all information provided to the Chief Residential Tenancies Officer under this subsection shall be made available to both parties.
22.2( 6) A party who receives information of another party under subsection (5) shall keep the information confidential.
22.2( 7) On the hearing of an application under subsection (1) or (2), both parties are entitled to appear and be heard in person or by counsel or agent.
22.2( 8) In deciding an application under subsection (1) or (2), the Chief Residential Tenancies Officer shall consider the following factors:
awhether the increase in rent is necessary to prevent financial loss to the landlord in the operation of the building in which the premises are located;
bincreased operating costs or capital expenditures incurred by the landlord;
cthe landlord’s expectation of a reasonable return on capital investment; and
dsuch other matters as may be prescribed by regulation.
22.2( 9) After hearing and considering an application under subsection (1) or (2), the Chief Residential Tenancies Officer may
aapprove the rent increase;
bdeny the rent increase; or
capprove a rent increase of a lesser amount.
22.2( 10) The Chief Residential Tenancies Officer shall give written notice of a decision under subsection (9), and the reasons for the decision, to all parties within thirty days after the date of the hearing of the application.
22.2( 11) If an application has been made under subsection (1) or (2), the landlord shall not charge or collect a rent increase pending the outcome of that application.
Agreement for greater increase
22.3( 1) Subject to subsections (2) to (5), a landlord and a tenant may agree to increase the rent charged to the tenant above the amount permitted under section 22.1 if
athe landlord has carried out or undertakes to carry out a specified capital expenditure in exchange for the rent increase; or
bthe landlord has provided or undertakes to provide a new or additional service in exchange for the rent increase.
22.3( 2) An agreement under subsection (1) shall be in the form prescribed by regulation and shall set out the new rent, the tenant’s right under subsection (4) to cancel the agreement and the date the agreement is to take effect.
22.3( 3) An agreement under subsection (1) shall not increase the rent by more than the yearly allowable increase as provided under section 22.1 plus 3 per cent of the previous lawful rent charged.
22.3( 4) A tenant who enters into an agreement under subsection (1) may cancel the agreement by giving written notice to the landlord within five days after signing the agreement.
22.3( 5) An agreement under subsection (1) may take effect no earlier than six days after it has been signed.
22.3( 6) Section 11.1 does not apply with respect to a rent increase under this section.
Application for relief from agreed increase
22.4( 1) A tenant or former tenant may apply to a residential tenancies officer for relief if the landlord and the tenant or former tenant agreed to an increase in rent under section 22.3 and
athe landlord has failed in whole or in part to carry out an undertaking under the agreement;
bthe agreement was based on work that the landlord claimed to have done but did not do; or
cthe agreement was based on services that the landlord claimed to have provided but did not provide.
22.4( 2) No application may be made under subsection (1) more than two years after the rent increase becomes effective.
22.4( 3) In an application under subsection (1), the residential tenancies officer may find that some or all of the rent increase above the amount permitted under section 22.1 is invalid from the day on which it took effect and may order the landlord to pay any money consequently owing to the tenant or former tenant.
Greater increase in exchange for additional services
22.5 Despite section 11.1, a landlord may, in the manner prescribed by regulation, increase the rent charged to a tenant above the amount permitted under section 22.1 at any time if the landlord and the tenant agree that the landlord will add any of the following with respect to the tenant’s occupancy of the premises:
aa parking space; or
ba service, facility, privilege, or accommodation prescribed by regulation.
Coerced agreement void
22.6 An agreement under section 22.3 or 22.5 is void if it has been entered into as a result of coercion or as a result of a false, incomplete or misleading representation by the landlord or an agent of the landlord.
Decrease in services
22.7 A landlord shall decrease the rent charged to a tenant in the manner prescribed by regulation if the landlord and the tenant agree that the landlord will cease to provide anything referred to in section 22.5 with respect to the tenant’s occupancy of the premises.
3 Section 24.5 of the Act is repealed.
4 Section 25.4 of the Act is repealed.
5 Subsection 29(1) of the Act is amended
ain paragraph (g.5) by striking out “and” at the end of the paragraph;
bby adding after paragraph (g.5) the following:
g.6prescribing an application form for the purposes of subsection 22.2(3);
g.7respecting matters to be considered by the Chief Residential Tenancies Officer for the purposes of paragraph 22.2(8)(d);
g.8prescribing a form of agreement to increase rent for the purposes of subsection 22.3(2);
g.9prescribing the manner in which rent increases under section 22.5 may be made;
g.91prescribing services, facilities, privileges or accommodations for the purposes of paragraph 22.5(b);
g.92prescribing the manner in which decreases in rent under section 22.7 are determined;