BILL NO. 479
(as introduced)
1st Session, 64th General Assembly
Nova Scotia
3 Charles III, 2024
Private Member's Bill
Rental Fairness and Affordability Act
Claudia Chender
Dartmouth South
First Reading: September 11, 2024
Second Reading:
Third Reading:
An Act to Secure Fairness for Renters
1 This Act may be cited as the Rental Fairness and Affordability Act.
"guideline" means the guideline established under Section 7;
"lawful rent" means the lawful rent as determined by Section 5 and thereafter modified by this Act;
"prescribed" means prescribed by the regulations.
(2) Subject to subsection (1) and the regulations, words and expressions in this Act have the same meaning as in the Residential Tenancies Act.
(3) A reduction in services provided by a landlord is deemed to be an increase of rent.
3 (1) No landlord shall increase the rent charged for residential premises except in accordance with this Act.
(2) No landlord shall increase the rent charged for a residential-premises unit more than once in a 12-month period.
4 No landlord shall charge rent to a tenant in an amount that is greater than lawful rent permitted by this Act.
5 (1) Subject to Section 6 and unless otherwise prescribed, the lawful rent that may be charged for residential premises for which there is a lease in effect on the day this Section comes into force is the rent that was charged on the day before this Section comes into force or, where that amount was not permitted under an enactment, the amount that was permitted on that day.
(2) Subject to Section 6, the lawful rent for residential premises for the first rental period for a new tenant under a new lease is the rent charged to the previous tenant or, where there is not a previous tenant, the rent first charged to the new tenant.
6 (1) The lawful rent is not affected by
(a) a discount in rent at the beginning of, or during, a tenancy of up to two per cent of the rent that could otherwise be lawfully charged, if the discount is provided for paying rent on or before the date it is due and the discount meets any prescribed conditions;
(b) a discount in rent at the beginning of, or during, a tenancy that consists of up to three months rent in any 12-month period if the discount is provided in the form of rent-free periods and meets any prescribed conditions; or
(2) Subject to subsection (1), where a landlord offers a discount in rent at the beginning of, or during, a tenancy, the lawful rent must be calculated in accordance with the regulations.
(3) 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, the lawful rent must be calculated in accordance with the regulations.
7 (1) The lawful rent may only be increased in accordance with the guideline established by this Section.
(2) The guideline for each year is the percentage change from year to year in the Consumer Price Index for the Province 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.
(3) The Minister shall publish the guideline for each year in the Royal Gazette not later than August 31st of the preceding year.
8 (1) A landlord may apply to the Director for an order permitting the rent charged by the landlord to be increased by more than the guideline for any or all the residential premises in a particular building or group of buildings if in the previous year
(a) there was an extraordinary increase in the cost for municipal taxes and charges relating to the residential premises;
(b) there was an extraordinary increase in the cost of utilities included in the rent;
(c) the landlord incurred prescribed capital expenditures with respect to the residential premises or the building or buildings containing those premises; or
(d) the landlord incurred operating costs related to providing security services by persons not employed by the landlord in respect of the residential premises or the building or buildings containing those residential premises.
(2) An application under this Section must be made at least 90 days before the date of the first intended rent increase referred to in the application.
(3) Where an application is made in respect of an increase in the cost of utilities under clause (1)(b),
(a) the application must include information on the total cost of those utilities; and
(b) the landlord shall provide the information referred to in clause (a) to each tenant whose rent the landlord is applying to increase.
(4) Where an application is made in respect of capital expenditures under clause (1)(c), the application must include
(a) a description of the work that was or is to be carried out;
(b) the person or entity that performed or is to perform the work;
(c) the person or entity that ordered the work and the date the order was made; and
(d) such additional information as may be prescribed.
(5) Where an application is made in respect of capital expenditures under clause (1)(c), the landlord shall provide the information referred to in subsection (4) to each tenant whose rent the landlord is applying to increase.
9 (1) Where the Director is of the opinion that an increase in rent applied for under Section 8 is fair and reasonable in the circumstances, the Director shall issue an order approving the increase.
(2) Where the Director is of the opinion that an increase in rent applied for under Section 8 is not fair and reasonable in the circumstances, the Director shall refuse to issue an order approving the increase, or may issue an order substituting a lesser percentage increase.
10 Where the Director issues an order to increase rent as a result of a prescribed capital expenditure pursuant to clause 8(1)(c),
(a) the Director shall specify in the order the percentage of the increase that is attributable to the prescribed capital expenditure;
(b) the Director shall specify in the order a date, determined in accordance with the regulations, for the purpose of clause (c); and
(c) the order must require that
- (i) where the rent charged to a tenant for residential premises is increased pursuant to the order by the maximum percentage permitted by the order and the tenant continues to occupy the premises on the date specified under clause (b), the landlord shall, on that date, reduce the rent charged to that tenant by the percentage specified under clause (a), and
(ii) where the rent charged to a tenant for residential premises is increased by less than the maximum percentage permitted by the order and the tenant continues to occupy the premises on the date specified under clause (b), the landlord shall, on that date, reduce the rent charged to the tenant by a percentage, determined in accordance with the regulations, that is equal to or lower than the percentage specified under clause (a).
11 (1) Where the Director issues an order to increase rent as a result of an extraordinary increase in the cost of utilities pursuant to clause 8(1)(b),
(a) the Director shall specify in the order the percentage increase that is attributable to the extraordinary increase; and
(b) the specified portion of the increase ceases to apply if the landlord ceases to provide the utility to the residential premises.
(2) Where the landlord increased the rent pursuant to an order referred to in subsection (1) and the cost of utilities decreases by more than the prescribed percentage in the prescribed period, the landlord shall reduce the rent in accordance with the regulations.
12 (1) A tenant may apply to the Director for an order for a reduction of the rent charged for residential premises due to a reduction or discontinuance in services or facilities provided in respect of residential premises.
(2) A former tenant may apply under this Section if the former tenant was affected by the discontinuance or reduction of services or facilities while a tenant.
(3) The Director shall make findings in accordance with the regulations and may order that
(a) the rent charged be reduced by a specified amount;
(b) there be a rebate to the tenant of any rent found to have been unlawfully collected by the landlord; or
(c) the rent charged be reduced by a specified amount for a specified period if there has been a temporary reduction in a service.
(4) An order under this Section reducing rent takes effect on the day that the discontinuance or reduction first occurred.
(5) No application may be made under this Section more than two years after a reduction or discontinuance of services or facilities.
13 (1) Where the municipal property tax for residential premises or a building containing residential premises is reduced by more than the prescribed percentage, the lawful rent for those residential premises is reduced in accordance with the regulations.
(2) The rent reduction has effect on the date determined by the regulations, whether or not notice has been given under subsection (3).
(3) Where, for a building with the prescribed number of residential premises, the lawful rent is reduced under subsection (1), the municipality in which the building is located shall, within the prescribed period and by the prescribed method of service, notify the Director, the landlord and all of the tenants in the building of that fact.
(4) The notice required under subsection (3) must be in the prescribed form and must
(a) inform the tenants that their rent is reduced;
(b) set out the percentage by which their rent is reduced and the date the reduction takes effect;
(c) inform the tenants that where the rent is not reduced in accordance with the notice they may apply to the Director for an order under Section 15; and
(d) advise the landlord and the tenants of their right to apply for an order under Section 14.
14 (1) A landlord or tenant may apply to the Director under the prescribed circumstances for an order varying the amount by which the rent charged is to be reduced under Section 13.
(2) An application under subsection (1) must be made within the prescribed time.
(3) The Director shall determine an application under this Section in accordance with the regulations and shall issue an order setting out the percentage of the rent reduction.
(4) An order under this Section has effect on the date determined under subsection 13(2).
15 (1) A tenant of residential premises may apply to the Director for an order for a reduction of the rent charged for the premises due to a reduction in the municipal taxes and charges relating to the residential premises.
(2) The Director shall determine an application under this Section in accordance with the regulations and shall issue an order setting out the percentage of the rent reduction.
(3) An order under this Section has effect on the date determined in accordance with the regulations.
16 (1) A landlord shall not increase the rent charged to a tenant without first giving at least 90 days written notice of the landlord's intention to do so.
(2) The notice required under subsection (1) must be in the prescribed form.
(3) An increase in rent is void if the landlord has not given the notice required under subsection (1).
17 A tenant who does not give a landlord notice to quit under Section 10 of the Residential Tenancies Act after receiving a notice of an intended rent increase under Section 16 is deemed to have accepted the lower of the increase specified in the notice or whatever rent increase would be allowed under this Act.
18 Any rent collected by a landlord that exceeds the lawful rent is a debt due to the tenant or former tenant who paid that rent.
19 Where there is more than one tenant occupying residential premises, the aggregate of all rents charged to tenants in respect of those premises may not exceed the lawful rent.
20 An order of the Director made under this Act may be appealed in accordance with Sections 17C to 17F of the Residential Tenancies Act.
21 Two or more tenants may make an application to the Director under this Act jointly, in accordance with the regulations, if the application is in respect of the same landlord and residential premises in the same building.
22 Every person who contravenes this Act is guilty of an offence and liable on summary conviction to a fine not exceeding $10,000.
23 The Minister shall initiate a review of this Act within four years of its coming into force and thereafter within four years of the previous review.
24 (1) The Governor in Council may make regulations
(a) respecting the calculation and determination of lawful rent;
(b) prescribing conditions that discounts referred to in clause 6(1)(a) or (b) must meet to not affect the lawful rent;
(c) prescribing discounts that do not affect the lawful rent;
(d) prescribing any forms that are to be prescribed under this Act;
(e) prescribing capital expenditures for the purpose of Sections 8 to 10;
(f) respecting applications, including the information that must be included in an application, the form of an application and joint applications;
(g) respecting the determination of dates pursuant to clause 10(b);
(h) prescribing the percentage and period for the purpose of subsection 11(2);
(i) respecting the reduction of rent under subsection 11(2);
(j) respecting findings and determinations of the Director;
(k) prescribing a percentage for the purpose of subsection 13(1);
(l) respecting the date on which a rent reduction has effect pursuant to subsection 13(2);
(m) prescribing a number of residential premises for the purpose of subsection 13(3);
(n) respecting any matter or thing that is to be prescribed or done in accordance with the regulations under this Act;
(o) defining or further defining any word or expression used in this Act;
(p) respecting any matter or thing which the Governor in Council considers necessary or advisable to effectively carry out the intent and purpose of this Act.
(2) Regulations made under this Section may be general or specific in application, and, for greater certainty, may apply to specific municipalities, parts of municipalities or particular buildings or particular residential premises or categories thereof.
(3) The exercise by the Governor in Council of the authority contained in subsection (1) is a regulation within the meaning of the Regulations Act.
25 Chapter 22 of the Acts of 2021, the Interim Residential Rental Increase Cap Act, is repealed.
26 Chapter 8 of the Acts of 1959, the Rental Act, is repealed.
27 Subsection 8H(3) of Chapter 401 of the Revised Statutes, 1989, the Residential Tenancies Act, as enacted by Chapter 41 of the Acts of 2018, is amended by striking out "subsection 11(2)" and substituting "Rental Fairness and Affordability Act".
28 Section 10AE of Chapter 401, as enacted by Chapter 36 of the Acts of 2021, is amended by
(a) striking out "under Section 11"; and
(b) striking out "three" and substituting "two".
29 The heading immediately after Section 10I and Sections 11 to 11B of Chapter 401 are repealed.
30 Section 20 of Chapter 401, as amended by Chapter 31 of the Acts of 1992, Chapter 7 of the Acts of 1997 and Chapter 10 of the Acts of 2002, is further amended by striking out "Rent Review" and substituting "Rental Fairness and Affordability".
31 Section 23 of Chapter 401, as amended by Chapter 10 of the Acts of 2002, is further amended by striking out "or the Rent Review Act".
32 Clauses 26(1)(cg) to (ck) of Chapter 401 are repealed.
33 This Act has effect on and after January 1, 2025.
This page and its contents published by the Office of the Legislative Counsel, Nova Scotia House of Assembly, and © 2024 Crown in right of Nova Scotia. Created September 11, 2024. Send comments to legc.office@novascotia.ca.
