Ontario’s latest legislation – Helping Homebuyers Protecting Tenants Act

By Ridhima Pathak

The discussion in every household is economic uncertainty, rising of inflation, high interest rates, and how the rental market has been simply booming. All of which is referred to as the housing supply crisis, which the Ontario government has attempted to tackle year after year.

Last week, the Ontario government announced a new piece of legislation to continue these efforts. The Helping Homebuyers Protecting Tenants Act, which focuses on building 1.5 million homes by 2031 as well as investing more into the Landlord and Tenant Board to improve services for both landlords and tenants.

Essentially, here is what you need to know about this legislation:

1. Working with the Landlord and Tenant Board to reduce active applications and improving client services for its applicants.
2. Tenants are now permitted to install air conditioning in their rental units. Conditions include:
   • Notifying the landlord in writing;
   • Safe and secure installation of air conditioning without causing damage;
   • Tenant is responsible for any costs associated with installation and maintenance;
   • Installation and maintenance must comply with applicable laws; and
   • Where the landlord supplies electricity, a tenant must inform the landlord about the air conditioner’s energy efficient, and how much they will use it. Landlords are further permitted to charge a seasonal fee based on the actual electricity cost or an estimate.
3. Stricter rules against landlords and evictions.
   1. In order for a tenant to vacate a unit for it to be renovated, landlords must provide:
      1. Proof that the unit must be vacant for renovations to take place;
      2. Updates on the status on the renovations in writing; and
      3. A 60-day grace period to move back in once renovations are complete.
      It is no surprise that the rules are in favour of tenants as landlords must allow a tenant to move back in at a similar rent after renovations are complete. Otherwise, the tenant can file a complaint with the Landlord and Tenant Board either 2 years after moving out or 6 years after renovations.
   2. In order to evict a tenant for use of a unit i.e. moving in yourself or having a family member move in, this must occur by a specific deadline.
   3. Doubling the fine for bad-faith evictions under the Residential Tenancies Act
      1. $100,000 for individuals
      2. $500,000 for corporations
4. A new form called the Payment Agreement has been created by the Landlord and Tenant Board for when a tenant is in arrears.
   • A commitment to build 1.5 million homes by 2031 including rental homes. This goes hand in hand with Ontario’s Housing Supply Action Plan to build more homes faster.

Ultimately, we are seeing the government take the necessary measures to address the housing shortage and introducing new considerations for the rental market impacting both landlords and tenants.

For any questions related to the new legislation or residential real estate, contact Ridhima Pathak at ridhima@sorbaralaw.com.

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