Bill 3 - An Act to Amend The Residential Tenancies Act

BILL 3

An Act to Amend The Residential Tenancies Act

His 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 (2)

( i) in the portion preceding paragraph (a) by striking out “section 11.11” and substituting “sections 11.11 and 11.12”;

( ii) in paragraph (a) of the English version by striking out the comma at the end of the paragraph and substituting “, and”;

( iii) in paragraph (b) by striking out “, and” at the end of the paragraph and substituting a period;

( iv) by repealing paragraph (c);

(b) by repealing subsection (2.01) and substituting the following:

11.1( 2.01) Except when a landlord and tenant have agreed in writing otherwise, a landlord referred to in subsection (2) shall not increase the rent

(a) in the first consecutive 12-month period of a tenancy agreement, and

(b) more than once in any other consecutive 12-month period of a tenancy agreement.

11.1( 2.03) If a tenant applies to a residential tenancies officer under subsection (2.02), the residential tenancies officer shall review the notice of the increase and shall ask the landlord to establish that the notice is a document separate from any other notice or receipt given to or served on the tenant by the landlord.

(d) by repealing subsection (2.04) and substituting the following:

11.1( 2.04) The residential tenancies officer shall set aside the notice of the increase served under subsection (2) if the landlord fails to establish to the satisfaction of the residential tenancies officer that the notice is a document separate from any other notice or receipt given to or served on the tenant by the landlord.

(e) by repealing subsection (2.05) and substituting the following:

11.1( 2.05) The residential tenancies officer shall confirm the notice of the increase served under subsection (2) if the landlord establishes to the satisfaction of the residential tenancies officer that the notice is a document separate from any other notice or receipt given to or served on the tenant by the landlord.

(f) in subsection (2.06)

( i) in paragraph (a) of the English version by striking out the comma at the end of the paragraph and substituting “, or”;

( ii) in paragraph (b) by striking out “, or” at the end of the paragraph and substituting a period;

( iii) by repealing paragraph (c).

2 The Act is amended by adding after section 11.11 the following:

Maximum rent increase on or after February 1, 2025

11.12( 1) Subject to section 11.13 and despite any other Act, a landlord shall not increase the rent by more than 3% effective at any time on or after February 1, 2025.

11.12( 2) Subject to section 11.13, a notice of increase in rent served by the landlord on a tenant that provides for an increase in rent of more than 3% effective at any time on or after February 1, 2025, shall be deemed to be a notice of increase in rent of 3%.

Exception to maximum rent increase

11.13( 1) A landlord who wishes to increase the rent by more than the increase in rent provided for in subsection 11.12(1) may apply to a residential tenancies officer in the manner prescribed by regulation, and the application shall be accompanied by the information prescribed by regulation.

11.13( 2) A residential tenancies officer may approve an application under subsection (1), whether in whole or in part, if the residential tenancies officer is of the opinion that the requirements prescribed by regulation are met.

11.13( 3) An increase in rent approved under this section shall not exceed the upper limit to a rent increase prescribed by regulation, expressed as a percentage.

Annual review of maximum rent increase

11.14 The New Brunswick Housing Corporation shall

(a) perform an annual review of the maximum rent increase under subsection 11.12(1), and the review shall consider, among other things, the factors prescribed by regulation, and

(b) within the period prescribed by regulation, publish the results of the review in accordance with the terms prescribed by regulation.

3 Subsection 25.4(1) of the Act is amended by striking out “section 11.11” and substituting “sections 11.11 and 11.12”.

4 Subsection 29(1) of the Act is amended

(a) in paragraph (b) by striking out “to be used under the provisions of this Act” and substituting “and authorizing a residential tenancies officer to provide forms to be used under the provisions of this Act”;

(b) by repealing paragraph (g.11);

(g.12) for the purposes of section 11.13,

( i) prescribing the manner in which a landlord may make an application under subsection 11.13(1),

( ii) prescribing the information that the landlord shall provide in an application under subsection 11.13(1),

( iii) prescribing the requirements for the purposes of subsection 11.13(2), and

( iv) prescribing the upper limit to a rent increase under subsection 11.13(3), expressed as a percentage;

(g.13) prescribing the factors to be considered in an annual review of the maximum rent increase, prescribing the period within which the results of the review are published and prescribing the terms of publication;

Transitional provisions

5( 1) Despite any provision of this Amending Act, if, after an application is made by a tenant under subsection 11.1(2.02) of The Residential Tenancies Act as it existed immediately before the commencement of this Amending Act, an agreement was entered into following mediation between a landlord and a tenant before the commencement of this Amending Act where the tenant and landlord mutually agree to an increase in rent of more that 3 % effective at any time on or after February 1, 2025, the agreement continues to be valid and of full force and effect.

5( 2) If the residential tenancies officer confirms, before the commencement of this Amending Act, a notice of increase in rent of more than 3 % effective at any time on or after February 1, 2025,

(a) the increase in rent shall be deemed to be an increase of 3 %; or

(b) with respect to an increase that is spread over a period in accordance with paragraph 11.1(2.06)(c) of The Residential Tenancies Act as it existed immediately before the commencement of this Amending Act, any portion of the increase in rent that is more than 3 % effective any time on or after February 1, 2025, shall be deemed to be an increase in rent of 3 %.

5( 3) 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.

Regulation under The Residential Tenancies Act

6 New Brunswick Regulation 82-218 under The Residential Tenancies Act is amended

(a) by adding after section 11.1 the following:

11.12( 1) For the purposes of subsection 11.13(2) of the Act, a residential tenancies officer may approve an application by a landlord if the landlord establishes that capital expenditures for renovations have been incurred.

11.12( 2) An application under subsection 11.13(1) of the Act shall be made on a form provided by the residential tenancies officer and accompanied by information that provides proof that the landlord incurred capital expenditures for renovations to the premises referred to in the application.

11.12( 3) For the purposes of subsection 11.13(3) of Act, the upper limit to a rent increase is 9 %.

11.13( 1) For the purposes of paragraph 11.14(a) of the Act, the following factors shall be considered:

(a) inflation;

(b) rental market surveys conducted by the Canada Mortgage and Housing Corporation established under the Mortgage and Housing Corporation Act (Canada); and

11.13( 2) The results of an annual review shall be published on the website of the New Brunswick Housing Corporation on or before June 1 of each year.

(b) by repealing section 17.2.

Commencement

7 This Act comes into force on February 1, 2025.