Bill 227: What Does It Mean for Landlords and Tenants?

Question: How do the amendments in Bill 227 affect property management under the Residential Tenancies Act, 2006?

Answer: The amendments streamline procedures, allowing for minor errors in documents to be deemed as substantial compliance, thus reducing administrative hurdles for landlords and promoting timely resolutions of disputes.

Bill 227 – What it means for the Residential Tenancies Act, 2006

Introduction

Bill 227, the "Cutting Red Tape, Building Ontario Act, 2024," received Royal Assent on December 4, 2024, and introduces amendments to Ontario's Residential Tenancies Act, 2006 (RTA) and the Statutory Powers Procedure Act (SPPA) through Schedules 24 and 25, respectively.  These changes aim to enhance procedural efficiency and clarity within the province's legal framework.

Schedule 24: Amendments to the Residential Tenancies Act, 2006

Schedule 24 adds subsection 212(2) to the RTA,

When error still constitutes substantial compliance

(2) For greater certainty, an error in the contents of a form, notice or document still constitutes substantial compliance with this Act, as long as the error does not significantly prejudice a party’s ability to participate in a proceeding under this Act.

This new section states that errors in the contents of a form, notice, or document constitute substantial compliance with the Act, provided the error does not significantly prejudice a party's ability to participate in proceedings.  This amendment seeks to prevent minor technical errors from invalidating documents, thereby promoting procedural fairness and reducing unnecessary delays.¹

Schedule 25: Amendments to the Statutory Powers Procedure Act

Schedule 25 revises section 4.4 of the SPPA, addressing situations where tribunal panel members are unable to complete hearings or make decisions due to incapacity or other reasons.

Incapacity, failure to complete hearing or make decision

capacity, panel of one

4.4(1) In the case of a panel of one person, if the person dies or is or appears to be, for any other reason, unable to complete a hearing or to make a decision, the chair of the tribunal may, on a party’s motion to the tribunal or on the chair’s own initiative, assign another panel to complete the hearing or make a decision in the person’s place.

Incapacity, panel of more than one

(2) In the case of a panel of more than one person, if a member of the panel dies or is unable for any other reason to complete a hearing or to participate in a decision, the remaining member or members may complete the hearing or make a decision.

Failure to meet reasonable time frame

(3) If the chair of the tribunal is of the opinion that a panel has failed to complete a hearing or make a decision within a reasonable time, the chair may specify a deadline by which the panel must complete the hearing or make a decision.

Same

(4) For the purposes of subsection (3), the chair of the tribunal,

(a)  shall consider,

(i)  the guidelines established by the tribunal under section 16.2, and

(ii)  the service standard policy developed by the tribunal under section 5 of the Adjudicative Tribunals Accountability, Governance and Appointments Act, 2009, if applicable; and

(b)  may consider any other matter that, in the chair’s opinion, is relevant in the circumstances.

Failure to meet specified deadline

(5) If a panel fails to meet a deadline specified under subsection (3), the chair of the tribunal may, on a party’s motion to the tribunal or on the chair’s own initiative, assign another panel to complete the hearing or make a decision in the first panel’s place.

If assigned to another panel

(6) The panel assigned under subsection (1) or (5) shall determine whether to,

(a)  continue the hearing or make a decision on the basis of the existing evidentiary record, subject to subsection (8); or

(b)  rehear the proceeding.

Same, submissions

(7) If the panel permits, the parties to the proceeding may make submissions on the determination to be made by the panel under subsection (6).

Same, powers

(8) Despite clause (6) (a), the panel may, during or after the hearing, recall a witness or require further evidence.

Other Acts and regulations

(9) This section is subject to any other Act or regulation that applies to the proceeding.

The amendments empower the tribunal chair to assign new panels to continue proceedings or make decisions, ensuring continuity and timeliness in adjudicative processes.  Additionally, the chair can set deadlines for panels to complete hearings or decisions, with the authority to reassign cases if deadlines are not met.  These provisions aim to enhance the efficiency and responsiveness of tribunals in Ontario.²

Concerns Raised by Tenant Advocacy Groups

Tenant advocacy organizations, such as the Advocacy Centre for Tenants Ontario (ACTO), have expressed concerns regarding the potential impact of Bill 227 on tenant rights.  While specific objections to Schedules 24 and 25 have not been prominently highlighted, ACTO has previously raised issues with legislative changes that may disproportionately affect tenants, particularly those from marginalized communities.²

In the context of Bill 227, concerns may arise that the amendments could inadvertently lead to expedited proceedings without adequate consideration of tenants' circumstances, potentially compromising their ability to effectively participate in hearings.  The emphasis on procedural efficiency should be balanced with ensuring that tenants have the necessary support and resources to engage fully in the adjudicative process.

Benefits to Landlords

The amendments introduced in Schedules 24 and 25 offer several advantages to landlords:

1. Procedural Flexibility: By recognizing substantial compliance despite minor errors in documentation, landlords may face fewer administrative hurdles, reducing the risk of dismissal or delays in their applications due to technicalities.
2. Timely Resolution of Disputes: The ability of tribunal chairs to reassign panels and set deadlines for decisions can lead to more prompt resolutions of disputes, enabling landlords to address issues such as non-payment of rent or property damage more efficiently.
3. Operational Efficiency: Streamlined processes can decrease the time and resources landlords spend navigating legal proceedings, allowing for more focus on property management and tenant relations.

Implications of the Amendments

The amendments introduced in Schedules 24 and 25 are designed to streamline legal processes and reduce procedural barriers.  By allowing certain errors to be considered substantial compliance, Schedule 24 minimizes the risk of proceedings being derailed by minor technicalities, thereby facilitating access to justice.  Schedule 25's provisions for reassigning tribunal panels and setting deadlines address potential delays caused by unforeseen circumstances, ensuring that proceedings are conducted expeditiously, and decisions are rendered in a timely manner.

These legislative changes reflect Ontario's commitment to modernizing its legal framework, enhancing procedural efficiency, and ensuring that justice is both accessible and effective for all parties involved.  However, it is crucial to monitor the implementation of these amendments to ensure they do not inadvertently compromise the rights and participation of tenants in the adjudicative process.

Conclusion

Bill 227 represents a significant advancement for landlords in Ontario, aiming to streamline legal processes and reduce administrative burdens.  The amendments introduced through Schedules 24 and 25 provide landlords with greater procedural flexibility and the potential for more timely dispute resolutions.  By minimizing the impact of minor technical errors and enhancing the efficiency of tribunal proceedings, landlords can expect a more straightforward and expedited process in managing tenancies and addressing disputes.  However, it remains essential to balance these efficiencies with the rights of tenants to ensure that the pursuit of procedural improvements does not inadvertently compromise fairness and access to justice for all parties involved.

Footnotes

1. Legislative Assembly of Ontario. (2024). Bill 227, Cutting Red Tape, Building Ontario Act, 2024.  Retrieved from https://www.ola.org/en/legislative-business/bills/parliament-43/session-1/bill-227 ^{1, 2}
2. Advocacy Centre for Tenants Ontario. (2021, December 14). Renters' advocacy group concerned about Ontario Landlord and Tenant Board's online transition.  Retrieved from https://ca.news.yahoo.com/renters-advocacy-group-concerned-ontario-090000868.html