Increased operating costs, capital expenditures
138. (1) A landlord may apply to the Tribunal for an order allowing the rent charged to be increased by more than the guideline for any or all of the rental units in a residential complex in any or all of the following cases: 1. An extraordinary increase in the cost for municipal taxes and charges or utilities or both for the whole residential complex. 2. Capital expenditures incurred respecting the residential complex or one or more of the rental units in it. 3. Operating costs related to security services provided in respect of the residential complex by persons not employed by the landlord. Same (2) An increase in the cost of municipal taxes and charges or utilities is extraordinary if it is greater than the percentage increase set out for the corresponding cost category recognized in the Table referred to in subsection 129 (2). When application made (3) An application under this section shall be made at least 90 days before the effective date of the first intended rent increase referred to in the application. Rent chargeable before order (4) If an application is made under this section and the landlord has given a notice of rent increase as required, until an order authorizing the rent increase for the rental unit takes effect, the landlord shall not require the tenant to pay a rent that exceeds the lesser of, (a) the new rent specified in the notice; and (b) the greatest amount that the landlord could charge without applying for a rent increase. Tenant may pay full amount (5) Despite subsection (4), the tenant may choose to pay the amount set out in the notice of rent increase pending the outcome of the landlord’s application and, if the tenant does so, the landlord shall owe to the tenant any amount paid by the tenant exceeding the amount allowed by the order of the Tribunal. Order (6) In an application under this section, the Tribunal shall make findings in accordance with the prescribed rules with respect to all of the grounds of the application and shall order the percentage rent increase that may be taken and the time period as prescribed, during which it may be taken. Same (7) In making findings in an application under paragraph 2 of subsection (1), the Tribunal may disallow a capital expenditure if the Tribunal finds the capital expenditure is unreasonable. Same (8) The Tribunal shall not make a finding under subsection (7) that a capital expenditure is unreasonable if the capital expenditure, (a) is necessary to protect or restore the physical integrity of the residential complex or part of it; (b) is necessary to maintain maintenance, health, safety or other housing related standards required by law; (c) is necessary to maintain the provision of a plumbing, heating, mechanical, electrical, ventilation or air conditioning system; (d) provides access for persons with disabilities; (e) promotes energy or water conservation; or (f) maintains or improves the security of the residential complex. Limitation (9) The Tribunal shall not make an order with respect to a rental unit that increases the lawful rent with respect to capital expenditures or operating costs related to security services in an amount that is greater than 4 per cent of the previous lawful rent. Same (10) If the Tribunal determines with respect to a rental unit that an increase in lawful rent of more than 4 per cent of the previous lawful rent is justified with respect to capital expenditures, operating costs related to security services or both, the Tribunal shall also order, in accordance with the prescribed rules, increases in rent for the following years in an amount not to exceed in any year 4 per cent of the lawful rent for the previous year, until the total increase has been taken. Order not to apply to new tenant (11) An order of the Tribunal under subsection (6) or (10) with respect to a rental unit ceases to be of any effect on and after the day a new tenant enters into a new tenancy agreement with the landlord if that agreement takes effect on or after the day that is 90 days before the first effective date of a rent increase in the order. 1997, c. 24, s. 138.