CHAPTER 3: DOES THE RTA APPLY?

Chapter 3: Does the RTA Apply? Exemptions from the Act Full Exemptions Partial Exemptions

Exemptions from the Act The RTA applies to all residential units in Ontario unless there is a specific exemption for the unit (s.3(1)) Exemptions from the RTA can arise: because a particular use of property does not fall within the definitions of rented residential premises or because the RTA lists a specific exemption. Exemptions can be “full exemptions” to which no rule in the RTA applies Exemptions can also be “partial exemptions,” to which some, but not all, of the rules in the RTA apply

Full Exemptions The RTA does not apply to the following uses: Commercial uses Rentals to employees Rentals at institution “Tenants” who are really owners Educational institutions Situations of close contact

Partial Exemptions New construction or new rentals Partial institutional exemptions Public housing Other educational institutions

New Construction or New Rentals An ordinary apartment or ordinary house rented as living accommodation normally falls within the RTA A major exemption from the limits on rent increases applies to a rental unit if, according to s. 6(2): It has not been occupied for any purpose before June 17, 1998; No part of it has been previously rented since July 29, 1975; or It is in a building no part of which has been occupied for residential purposes before November 1, 1991

Partial Institutional Exemptions Numerous sections of the RTA do not apply to: accommodation that is subject to the Homes for Special Care Act or the Developmental Services Act (s.6(1)) a building owned, operated, or administered by a religious institution for a charitable use on a non-profit basis (ss.7(1)6 and 7(2)(b))

Public Housing Numerous sections of the RTA do not apply to public housing (s. 7(1)1). tenants whose rent is geared to income (ss. 7(2)(a), 7(3), 8(1), and 8(2)). non-profit housing developed under a prescribed federal or provincial program or in non-member units of a housing co- operative (ss. 7(1)2 and 3).

Other Educational Institutions Some units in university residences are not exempt from the RTA under s. 5(g) But they have a partial exemption from ss. 7(1)5 Post-secondary institutions (and landlords who make certain agreements with them) are exempt from the rule that an agreement to terminate is void if it is made at the time that a tenancy agreement is made (ss. 37(5),(6) and (7))