Findings
20. (1) Before making an order on an application under section 13, the rent officer shall make findings in accordance with the prescribed rules, (a) taking into account the matters the rent officer considers under paragraphs 1 and 2 of subsection 13 (8), to determine the previous maximum rent for each rental unit; (b) to determine what guideline is to be applied to that previous maximum rent and what amount is to be obtained by applying that guideline; (c) taking into account the matters the rent officer considers under paragraph 3 of subsection 13 (8), subsection 13 (9) and section 14, to determine whether an increase in the amount determined under clause (b) is justified and in what amount and whether a decrease of that increase or a reduction of the previous maximum rent is justified and in what amount; (d) for any other ground on which the landlord bases the application, to determine whether an increase of the maximum rent is justified and in what amount; (e) to determine the amount to be carried forward from a previous order under subsection 21  (8) if the effective date of the first rent increase under the previous order is twelve months before the effective date of the first intended rent increase under the application; (f) to determine the amount to be carried forward from a previous order under subsection 21 (8) if, (i) the effective date of the first rent increase under the previous order is twenty-four months before the effective date of the first intended rent increase under the application, and (ii) an amount has been carried forward from the previous order in an order encompassing findings under this section or in a notice of carry forward; (g) to determine the new maximum rent for each rental unit and the date on which it takes effect; and (h) if part of the new maximum rent represents amounts respecting capital expenditures, to determine the total capital component of the maximum rent for each capital expenditure and the date on which the capital component respecting the expenditure is to be deducted from the maximum rent. Guideline (2) For the purposes of clause (1) (b), the guideline to be applied to the rental units is the guideline as of the first intended rent increase in the application. Reduction of guideline (3) The part of the guideline allocated to capital expenditures shall not be included in determining the maximum rents for any of the rental units in the residential complex if, (a) a capital expenditure is claimed and allowed for the residential complex or a rental unit in it and that capital expenditure is claimed under section 15 or 16; or (b) an amount to be carried forward is allowed for the residential complex or a rental unit in it and that amount relates to a capital expenditure originally claimed under section 15 or 16. Idem (4) The part of the guideline allocated to capital expenditures shall not be included in determining the maximum rent for a rental unit in the residential complex if subsection (3) does not apply and if, (a) a capital expenditure is claimed and allowed for the rental unit and that capital expenditure is claimed under section 17; or (b) an amount to be carried forward is allowed for the rental unit and that amount relates to a capital expenditure originally claimed under section 17. Capital expenditures (5) In determining the amount of an increase that is justified for a capital expenditure, the rent officer shall make findings with respect to the following matters and shall calculate the allowance for the capital expenditure according to the prescribed rules: 1. The amount of the capital expenditure. 2. Interest on the expenditure at the prescribed rates, regardless of whether the expenditure is financed by borrowing, by the landlord’s own funds or by both. 3. The value of the landlord’s own labour, if any, in carrying out the work involved in the capital expenditure. 4. The prescribed useful life of the work done or the thing purchased. Reduction for capital expenditure previously allowed (6) If a rent officer intends to permit an allowance for a capital expenditure for the replacement of an item that was allowed as a capital expenditure in a previous order made under a predecessor of this Act and if the capital expenditure was allowed in a previous order with a first effective date that is on or after the 1st day of August, 1985, the rent officer shall reduce the allowance for the capital expenditure by the allowance for the capital expenditure in the previous order. Idem (7) If a rent officer intends to permit an allowance for a capital expenditure for the replacement of an item that was allowed as a capital expenditure in a previous order made under this Act and if the period for the useful life set out in the previous order has not expired, the rent officer shall reduce the previous maximum rent by the capital component for the capital expenditure allowed in the previous order. Capital component (8) The rent officer shall determine the capital component of the maximum rent for each capital expenditure for which an amount is included in the maximum rent as follows: 1. If there is a finding in respect of a capital expenditure under clause (1) (d), the capital component for that capital expenditure is the prescribed part of the allowance respecting the capital expenditure. 2. If there is a finding in respect of the carry forward of an allowance for a capital expenditure under clause (1) (e) or (f), the capital component for that capital expenditure is the sum of, i. the capital component for that capital expenditure from the most recent order or notice of carry forward referring to that capital expenditure, and ii. the prescribed part of the allowance respecting the carry forward. 3. The capital component for a capital expenditure is its capital component from the most recent finding under clause (1) (h) or determination under clause 22 (3) (d) if, i. there was a previous finding or determination in respect of the capital component, and ii. there is no new finding in respect of the capital component referring to the capital expenditure to which the capital component relates. Transitional (9) Despite subsection (2), if the date of the first intended rent increase in the application is before the 1st day of January, 1993, the guideline to be applied to the rental units for the purposes of clause (1) (b) is the guideline in effect for the 1993 calendar year. 1992, c. 11, s. 20.