BILL 96

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

(a)  in subsection (1) by striking out “Subject to any other Act” and substituting “Subject to section 11.11 and to any other Act”;

(b)  in subsection (2) in the portion preceding paragraph (a) by striking out “Subject to any other Act” and substituting “Subject to section 11.11 and to any other Act”.

2 The Act is amended by adding after section 11.1 the following:

Maximum rent increase for 2022

11.11( 1) Despite any other Act, a landlord shall not increase the rent by more than 3.8 % effective at any time from January 1, 2022, to December 31, 2022, inclusive.

11.11( 2) If, at any time from January 1, 2022, until the commencement of this section, a landlord increases the rent by more than the increase under subsection (1) and the tenant pays the rent increase, the landlord shall

(a)  for a tenant who continues to occupy the premises,

( i) credit the overpayment against the first rent owing by the tenant after the commencement of this section, up to the amount of the rent payable, and

( ii) credit against any rent that subsequently becomes owing the remaining portion of the overpayment that has not been credited against the first rent, if applicable, and

(b)  for a tenant who no longer occupies the premises, reimburse the tenant the overpayment.

11.11( 3) A notice of increase in rent served by the landlord on a tenant before the coming into force of this section that provides for an increase in rent of more than 3.8 % effective at any time from January 1, 2022, to December 31, 2022, inclusive, shall be deemed to be a notice of increase in rent of 3.8 %.

3 The Act is amended by adding after section 24.11 the following:

Limitation on landlord’s right to terminate

24.12( 1) A landlord shall not serve a notice of termination of a tenancy unless

(a)  the landlord intends in good faith that the premises will be occupied by the landlord, the landlord’s spouse, a child of the landlord, a parent of the landlord or a parent of the landlord’s spouse,

(b)  the premises occupied by the tenant will be used other than as residential premises,

(c)  the premises will be renovated to an extent that vacant possession is necessary to perform the renovations, or

(d)  the tenancy arises out of an employment relationship between the tenant and the landlord in which the employment relates to the maintenance or management of the premises, or both, and the employment relationship is terminated.

24.12( 2) A landlord who serves a notice of termination under subsection (1) shall state the reason for the termination in the notice.

24.12( 3) A tenant who is served notice of termination may apply in writing to a residential tenancies officer within 15 days after the receipt of the notice to have the notice reviewed by the residential tenancies officer.

24.12( 4) When a tenant applies to a residential tenancies officer under subsection (3), the residential tenancies officer shall review the notice and ask the landlord to establish the reason for the termination.

24.12( 5) The residential tenancies officer shall set aside the notice of termination if the landlord fails to establish to the satisfaction of the residential tenancies officer that the reason for the termination is one of those listed in subsection (1).

24.12( 6) The residential tenancies officer shall confirm the notice of termination and may vary the day on which the tenancy is to terminate if the landlord establishes to the satisfaction of the residential tenancies officer that the reason for the termination is one of those listed in subsection (1).

24.12( 7) If a tenant does not apply to a residential tenancies officer under subsection (3) within 15 days after the receipt of the notice of termination, the tenant shall be deemed to have accepted the notice as terminating the tenancy on the day set in the notice.

24.12( 8) If a landlord who has served a notice of termination on the basis of a reason listed in paragraph (1)(a), (b) or (c) does not, within two months after the tenancy terminates, occupy, lease, use or renovate the premises in a manner consistent with the reason for the termination as stated in the notice of termination, the tenant who was served with the notice of termination may apply to the residential tenancies officer, within two years after the date the tenancy is terminated, in a form provided by the residential tenancies officer, to compensate the tenant for losses caused by the termination.

24.12( 9) A residential tenancies officer who receives an application for compensation under subsection (8) may conduct an investigation and, after conducting the investigation, order the landlord to pay to the tenant an amount determined by the residential tenancies officer to compensate the tenant for losses caused by the termination, within the time specified in the order.

24.12( 10) Subject to section 27, a decision of a residential tenancies officer under subsection (9) in respect of compensating a tenant and the amount of compensation to be paid by the landlord to the tenant is final and binding on the landlord and the tenant.

4 The heading “Application of sections 24.3 to 24.7” preceding section 24.2 of the Act is amended by striking out “24.7” and substituting “24.6”.

5 Section 24.2 of the Act is amended by striking out “Sections 24.3 to 24.7” and substituting “Sections 24.3 to 24.6”.

6 Subsection 24.5(1) of the Act is amended by striking out “Notwithstanding section 11.1” and substituting “Despite section 11.1 and subject to section 11.11”.

7 The heading “Limitation on landlord’s right to terminate” preceding section 24.7 of the Act is repealed.

8 Section 24.7 of the Act is repealed.

9 Subsection 25.4(1) of the Act is amended by striking out “Notwithstanding section 11.1” and substituting “Despite section 11.1 and subject to section 11.11”.

10 Subsection 28(2) of the Act is amended by striking out “8.01(2), 16(1)” and substituting “8.01(2), 11.11(1), 11.11(2), 16(1), 24.12(1), 25.6(1)”.

TRANSITIONAL PROVISIONS

Notice of termination

11( 1) If, on or after March 22, 2022, a notice of termination of a tenancy is served by a landlord on a tenant but the termination of the tenancy is not effective until after the commencement of this section, the notice is void unless the reason for the termination is one of those listed in subsection 24.12(1) of this Amending Act.

11( 2) If, before March 22, 2022, a notice of termination of a tenancy is served by a landlord on a tenant but the termination of a tenancy is not effective until after the commencement of this Act, the notice is valid even if the reason for the termination is not one of those listed in subsection 24.12(1) of this Amending Act.

Tenancies of residential premises and tenancy agreements

12 For greater certainty, this Amending Act applies with respect to tenancies of residential premises and tenancy agreements arising or entered into and in force before the commencement of this section.