Rent reductions under s. 128 (3) of the Act
 36. (1) The following rules apply in determining the amounts of rent reductions under subsection 128 (3) of the Act: 1.  Subtract the current utility costs from the adjusted base year utility costs as set out in the order. 2.  If the amount determined in paragraph 1 is zero or less, no rent reduction is required. 3.  If the amount determined in paragraph 1 is greater than zero, i.  divide the amount determined in paragraph 1 by the allowance that justified the increase that was set out in the order, and ii.  multiply the amount from subparagraph i by the percentage increase in rent for utilities that was set out in the order. 4.  Despite paragraph 1, if a reduction in utility costs was previously determined in accordance with this subsection, the determination in paragraph 1 shall be made by subtracting the current utility costs from the utility costs used to justify the previous rent reduction.  O. Reg. 516/06, s. 36 (1). (2) Despite subsection (1), the following rules apply in determining the amounts of rent reductions under subsection 128 (3) of the Act if, in accordance with the Act or an agreement between the landlord and the affected tenants, the landlord ceases to provide one or more utilities to one or more rental units in the residential complex: 1.  Subject to paragraphs 5 and 6, multiply the adjusted base year utility costs by the percentage that was set out in the order for each utility. 2.  Subject to paragraph 6, multiply the allowance that justified the increase that was set out in the order by the percentage that was set out in the order for each utility. 3.  The following rules apply to a rental unit to which the landlord has not ceased to provide any utilities: i.  Calculate the sum of the amounts determined under paragraph 1. ii.  If the amounts of one or more previous rent reductions were determined under this paragraph for the rental unit, subtract from the amount determined under subparagraph i the sum of all determinations previously made under subparagraph iii for the rental unit. iii.  Subtract the current utility costs from the amount determined under subparagraph i or, if subparagraph ii applies, from the amount determined under subparagraph ii. iv.  Calculate the sum of the amounts determined under paragraph 2. v.  If the amount determined under subparagraph iii is zero or less, no rent reduction is required. vi.  If the amount determined under subparagraph iii is greater than zero, the amount of the rent reduction under subsection 128 (3) of the Act shall be determined in accordance with the following rules: A.  Divide the amount determined under subparagraph iii by the amount determined under subparagraph iv. B.  Multiply the amount determined under sub-subparagraph A by the percentage increase in rent for utilities that was set out in the order. 4.  The following rules apply to a rental unit to which the landlord has ceased to provide one or more utilities: i.  Calculate the sum of the amounts determined under paragraph 1 for the utilities that the landlord still provides to the rental unit. ii.  If the amounts of one or more previous rent reductions were determined under this paragraph for the rental unit, subtract from the amount determined under subparagraph i the sum of all determinations previously made under subparagraph iv. iii.  If the amounts of one or more previous rent reductions were determined under paragraph 3 for the rental unit, subtract the amount determined in accordance with the following rules from the amount determined under subparagraph i or, if subparagraph ii applies, from the amount determined under subparagraph ii: A.  Calculate the sum of all amounts previously determined under subparagraph 3 iii for the rental unit. B.  Calculate the sum of the percentages that were set out in the order for the utilities that the landlord has not ceased to provide to the rental unit. C.  Multiply the amount determined under sub-subparagraph A by the percentage determined under sub-subparagraph B. iv.  Subtract the portion of the costs in the current utility costs attributable to the utilities no longer provided to the rental unit by the landlord from the current utility costs. v.  Subtract the amount determined under subparagraph iv from, A.  the amount determined under subparagraph i, if neither subparagraph ii nor subparagraph iii applies, B.  the amount determined under subparagraph ii, if subparagraph ii applies and subparagraph iii does not apply, or C.  the amount determined under subparagraph iii, if subparagraph iii applies. vi.  Calculate the sum of the amounts determined under paragraph 2 for the utilities that the landlord still provides to the rental unit. vii.  For each utility set out in the order that is still provided to the rental unit by the landlord, multiply the percentage that was set out in the order for the utility by the percentage increase in rent for utilities that was set out in the order. viii.  If the amount determined under subparagraph v is zero or less, no rent reduction is required. ix.  If the amount determined under subparagraph v is greater than zero, the amount of the rent reduction under subsection 128 (3) of the Act shall be determined in accordance with the following rules: A.  Divide the amount determined under subparagraph v by the amount determined under subparagraph vi. B.  Multiply the amount determined under sub-subparagraph A by the sum of the percentages determined under subparagraph vii. x.  Despite subparagraph ix, if the amount determined under subparagraph v is greater than zero and the sum of the percentages of any previous rent reductions arising from the same order is less than the sum of the percentages determined under subparagraph vii, the amount of the rent reduction under subsection 128 (3) of the Act shall be determined by subtracting from the amount determined under sub-subparagraph ix B the sum of the percentages of the previous rent reductions arising from the same order. xi.  Despite subparagraph ix, no rent reduction is required if the amount determined under subparagraph v is greater than zero and the sum of the percentages of any previous rent reductions arising from the same order is equal to or greater than the sum of the percentages determined under subparagraph vii. 5.  If one or more rent reductions were previously determined in accordance with subsection (1), the reference in paragraph 1 to the adjusted base year utility costs shall be deemed to be a reference to the current utility costs used to determine the most recent of the previous rent reductions in accordance with subsection (1). 6.  If a utility is no longer provided by the landlord to one or more rental units, the references in paragraphs 1 and 2 to the percentage that was set out in the order for that utility shall be deemed to be a reference to the percentage that was set out in the order for that utility multiplied by the number of rental units to which the landlord still provides the utility divided by the number of rental units to which the landlord provided the utility at the time of the application.  O. Reg. 516/06, s. 36 (2). (3) Despite subsections (1) and (2), if the amount of a rent reduction determined under those subsections, expressed as a percentage of the current rent, is less than 0.50, no rent reduction is required.  O. Reg. 516/06, s. 36 (3). (4) Despite subsections (1) and (2), if the amount of a rent reduction determined under those subsections, expressed as a percentage of the current rent, is 0.50 or more, the rent reduction shall be reduced, if necessary, so that the sum of the rent reduction and any previous rent reductions arising from the same order does not exceed the lesser of the following amounts: 1.  The amount of the increase permitted under subsection 126 (10) of the Act that is set out in the order as related to utilities. 2.  The amount of the increase taken for utilities, as determined under section 34 of this Regulation.  O. Reg. 516/06, s. 36 (4). (5) A rent reduction determined under this section takes effect on the first anniversary, on or after the latest date for providing information under subsection 35 (2), of the date the increase permitted by the order was taken.  O. Reg. 516/06, s. 36 (5). (6) If the date that a rent reduction takes effect under subsection (5) is the same as the date on which a rent increase takes effect, the rent reduction shall be deemed to take effect immediately before the rent increase.  O. Reg. 516/06, s. 36 (6).