XN000022-1979-05-04 — Page 4

FRIDAY, MAY 4, 1979

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LANDLORD AND TENANT LEGISLATION

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IN TODAY'S (FRIDAY) GAZETTE, THE LANDLORD AND TENANT (CONSOLIDATION)(ÄMENDMENT) BILL CONTAINS PROPOSALS BY GOVERNMENT IN RESPECT OF RENT CONTROLS.

A GOVERNMENT SPOKESMAN SAID THAT AFTER VERY CAREFUL CONSIDERATION OF THE SITUATION, IT HAD BEEN DECIDED TO EXTEND EXISTING RENT CONTROLS ON POSTWAR DOMESTIC PREMISES FOR A FURTHER THREE YEARS FROM DECEMBER 14, 1979. TENANTS OF THESE CONTROLLED PREMISES WILL THEREFORE CONTINUE TO HAVE SECURITY OF TENURE UNTIL DECEMBER 14, 1982. THE FACTOR REGULATING RENT INCREASES FOR THESE PREMISES BY A GIVEN PROPORTION OF THE DIFFERENCE BETWEEN THE ACTUAL RENT AND THE ESTIMATED MARKET RENT WILL BE REDUCED FROM 3 TO 2, CONTINUING THE PROCESS OF GRADUALLY REDUCING THE DIFFERENTIAL BETWEEN CONTROLLED AND MARKET LEVEL RENTS. THE SPOKESMAN SAID THAT RENTS OF THESE PREMISES NOW STAND AT ABOUT 70 PER CENT 75 PER CENT OF FAIR MARKET RENTS. HE ADDED THAT THE 21 PER CENT CEILING FOR RENT INCREASES OVER A PERIOD OF TWO YEARS WILL CONTINUE TO BE APPLIED, EXCEPT FOR VERY LARGE PREMISES AS IS THE CASE ALREADY.

IN RESPECT OF PREWAR PREMISES WHERE RENTS ARE CURRENTLY CONTROLLED, WHOLLY NON-DOMESTIC PREMISES WILL BE DECONTROLLED IN STAGES BY JULY 1, 1984. ON THAT DATE, A LANDLORD WHO WISHES TO SERVE NOTICE OF TERMINATION OF TENANCY WILL BE REQUIRED TO DO SO UNDER PART V OF THE ORDINANCE.

AS FOR PREDOMINANTLY NON-DOMESTIC PREMISES WHERE HUMAN HABITATION IS ALREADY ESTABLISHED, TENANTS WHO RECEIVE NOTICE OF TERMINATION AFTER JULY 1, 1984 WILL BE ABLE TO APPLY TO THE LANDS TRIBUNAL FOR AN EXTENSION OF TENANCY OF UP TO 12 MONTHS AT ANY ONE TIME. RENT DURING SUCH AN EXTENSION WILL BE DETERMINED BY THE LANDS TRIBUNAL ON THE BASIS THAT IT SHALL NOT EXCEED THE RENT BEING PAID AT THAT TIME BY MORE THAN ONE-THIRD, OR THE FAIR MARKET RENT, WHICHEVER IS THE LOWER FIGURE.

PERMITTED RENTS FOR DOMESTIC AND NON-DOMESTIC PREWAR PREMISES WILL BE INCREASED TO FOUR TIMES AND EIGHT TIMES RESPECTIVELY THE STANDARD RENT+ (THAT IS, THE 1941 RENT) FROM THE PRESENT THREE AND SIX TIMES, PROVIDED THE PERMITTED RENT DOES NOT EXCEED THE FAIR MARKET RENT. THE AVERAGE RENT PASSING FOR DOMESTIC UPPER TENEMENT FLOORS IN THESE CONTROLLED PREWAR BUILDINGS IS ABOUT 28 PER CENT OF FAIR MARKET RENT. THE AVERAGE RENT PASSING FOR BUSINESS GROUND TENEMENT FLOORS IN THESE CONTROLLED PREWAR BUILDINGS IS ABOUT 44 PER CENT OF FAIR MARKET RENT.

LANDLORDS ARE REQUIRED TO GIVE ONE MONTH'S NOTICE OF ANY PROPOSED INCREASE TO TENANTS, AND TENANTS MAY CHALLENGE THE INCREASE ON THE GROUNDS THAT IT EXCEEDS THE FAIR MARKET RENT. THE TENANCY TRIBUNAL WILL DETERMINE SUCH MATTERS.

/AN ADMINISTRATIVE