Increase by amount carried forward
22. (1) The maximum rent for a rental unit shall be increased by more than the guideline in accordance with this section if a notice of carry forward issued under this section authorizes the increase. Notice of intent (2) A landlord who wishes to have a notice of carry forward issued shall file with a Chief Rent Officer a notice of intent at least 120 days before the day that is, (a) twelve months after the effective date of the first rent increase set out in the order that permitted the carry forward; or (b) twenty-four months after the effective date of the first rent increase set out in the order that permitted the carry forward if, (i) a subsequent order under section 21 provided for a further carry forward under this clause, or (ii) a notice of carry forward under this section has previously been issued respecting part of the amount to be carried forward. Findings (3) A rent officer shall determine in accordance with the prescribed rules for each rental unit in the residential complex, (a) what guideline is to be applied to the rental unit; (b) the amount that is justified by the carry forward; (c) the amount of maximum rent for each rental unit and the date that maximum rent takes effect; and (d) the total amount of each capital component included in the maximum rent and the date on which that capital component is to be deducted from the maximum rent. Capital component (4) 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 an amount is justified in respect of the carry forward of an allowance for a capital expenditure under clause (3) (b), 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 amount justified respecting the carry forward. 2. The capital component for a capital expenditure is its capital component from the most recent finding under clause 20 (1) (h) or determination under clause (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. Guideline (5) For the purposes of clause (3) (a), the guideline to be applied to the rental units is the guideline as of the first or second anniversary, as the case may be, of the effective date of the first rent increase in the residential complex set out in the order permitting the carry forward. Idem (6) The part of the guideline allocated to capital expenditures shall not be included in determining the maximum rents under clause (3) (c) for any of the rental units in the residential complex if the amount carried forward relates to a capital expenditure originally claimed under section 15 or 16. Idem (7) The part of the guideline allocated to capital expenditures shall not be included in determining the maximum rent under clause (3) (c) for a rental unit in a residential complex if subsection (6) does not apply and if the amount carried forward relates to a capital expenditure originally claimed under section 17. Cap on maximum rent (8) The rent officer shall not determine an amount of maximum rent under subsection (3) that increases the previous maximum rent by more than the amount obtained by applying the guideline plus 3 per cent to that part of the maximum rent that excludes all capital components. Notice of carry forward (9) Subject to subsection (14), after a landlord has filed a notice of intent and a rent officer has made the determinations under subsection (3), the rent officer shall issue a notice of carry forward to the landlord and to all of the tenants setting out the maximum rent for each rental unit and the date the maximum rent takes effect. Capital component (10) The rent officer shall set out in the notice, (a) for the residential complex, the total amount of all new capital components and all capital components increased by the notice for all rental units for each capital expenditure and the useful life of the work done or the thing purchased; (b) for each rental unit, the total amount of all capital components included in the maximum rent. Idem (11) The determination under clause (3) (d) shall be deemed to form part of the notice even if it is not set out in it. Idem (12) If a landlord or tenant who received a copy of a notice of carry forward requests a copy of the determination under clause (3) (d), the Chief Rent Officer shall provide it to that person without charge, despite section 132. Exception (13) If the amount the landlord intends to carry forward for a rental unit under subsection (2) is less than the reduction that would be taken under subsection (6) for that rental unit, the rent increase set out in the notice of carry forward shall be the guideline amount as set out in subsection (5). Idem (14) If the amount the landlord intends to carry forward for each of the rental units under subsection (2) is less than the reduction that would be taken under subsection (6) for that rental unit, the rent officer shall notify the landlord that a notice of carry forward will not be issued respecting any of those rental units and that the landlord may make an application under section 13 respecting any of them. No application (15) If a notice of intent has been filed respecting a residential complex, the landlord shall not make an application under section 13 seeking a rent increase for a rental unit that would have an effective date within the twelve-month period following the first effective date set out in the notice of intent unless a rent officer notifies the landlord under subsection (14) that a notice of carry forward will not be issued. Application withdrawn (16) If a landlord files a notice of intent, an application previously made under section 13 shall be deemed to be withdrawn if it seeks a rent increase for a rental unit that would have an effective date within the twelve-month period following the first effective date set out in the notice of intent. 1992, c. 11, s. 22. Application to Reduce Rent