As the global COVID-19 crisis continues to unfold, there is growing debate in Ontario in connection with the obligations of residential tenants to pay their monthly rent at the beginning of April.

Currently, the Ontario government has not announced that residential tenants are entitled to forego their monthly rent payments, which are due and owing to their respective landlords.

However, the Ontario government announced early on as part of its emergency measures that, in essence, residential tenants would not face any evictions during the crisis. This announcement has caused residential tenant advocates to lobby for the deferral of residential rent, while landlord advocates are suggesting that tenants and landlords meet to enter their own arrangements

The Legislation

On March 20, 2020, the Ontario government issued an emergency order, which suspended all eviction orders and all hearings related to residential tenancy evictions.

The order was contained in Ontario Regulation 73/20 under the Emergency Management and Civil Protection Act.

Under paragraph 2, the order provides as follows:

Any provision of any statute, regulation, rule, by-law or order of the Government of Ontario establishing any period of time within which any step must be taken in any proceeding in Ontario, including intended proceeding, shall subject to the discretion of the court, tribunal or other decision-maker responsible for the proceeding, be suspended for the duration of the emergency, and the suspension shall be retroactive to Monday, March 16, 2020.

Pursuant to the foregoing order, the Landlord Tenant Board immediately announced that it was suspending the issuance of eviction orders and all hearings related to eviction applications, unless the matter related to an urgent issue such as an illegal act or serious impairment of safety.

The federal government's new emergency response also does not provide any direct rental payment relief for residential tenants.

Other Helpful Government Announcements

However, as part of the federal government's Bill C-13 relief package, a new income support regime will be made available to any worker who has lost income as a result of the pandemic. The federal government has announced that it will provide $2,000 a month, for 16 weeks, to such workers.

Workers who are eligible will be able to provide for this income support payment commencing April 6, 2020.

A number of tax deferrals are also contained in the federal government's announcements. These tax deferrals will provide relief to both individuals and businesses.

Meanwhile, the Ontario government has also made a host of other announcements to ease the financial burdens on both individuals and businesses, including the fixing of electricity prices at the lowest rate.

Although monthly rental payments for most residential tenants includes the payment of utilities, this announcement should help lower utility expense costs incurred by residential landlords.

As well, the decision of Canada's largest banks to offer six month deferrals on mortgage payments will help smaller landlords to potentially make adjustments on a case-by-case basis.

The Current Landscape

On March 29, 2020, Daryl Chong, president and CEO of the Greater Toronto Apartment Association, an organization representing landlords, suggested that tenants and landlords should speak to one another about the need for any accommodations during the current crisis.

In Toronto, for example, Toronto Community Housing ("THC") has announced that it will be taking a flexible approach to the payment of monthly rent.

Rent for "rent-geared-to-income" tenants will be recalculated based on employment income changes owing to job loss or layoff incurred because of COVID-19. Rent will be adjusted or deferred. For "market rent tenants", THC will assess rental payments on a case-by-case basis for those whose income has been reduced as a result of a job loss or layoff because of COVID-19. Options being considered by the THC with respect to this group of residential tenants, may include deferred payment plans.

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