Alberta bill to protect business tenants
Alberta has proposed legislation to stop business tenants from being evicted during the economic slump caused by the COVID-19 pandemic.
Economic Development Minister Tanya Fir says it would also stop landlords from raising rent and charging late fees on missed rent payments.
“Commercial tenants and their landlords are facing unprecedented circumstances,” Fir said Tuesday prior to introducing the bill in the legislature.
“We expect businesses and landlords will work together in a respectful and fair manner during this challenging time. And this legislation will help create the conditions so that they can do exactly that.”
If passed, the bill would be retroactive, covering from March 17 to Aug. 31.
It responds to business community concerns that too many tenants face eviction because landlords are having trouble navigating or are declining to sign up for government rent relief under the Canada Emergency Commercial Rent Assistance.
Under that program, federal and provincial governments are responsible for half of rent payments. Landlords and tenants split the rest, meaning tenants are ultimately responsible for 25 per cent of their rent during the pandemic.
Alberta has already committed $67 million toward the program.
The proposed legislation would help tenants whose landlords have not signed up for the program, saw their businesses closed by health orders, or experienced revenue declines of 25 per cent or more during the COVID-19 crisis.
In return for eviction protection, landlords and tenants would be responsible for hammering out full repayment plans. If they couldn’t, landlords would have the option to proceed to evict after Aug. 31, Fir said. Tenants could seek redress through the courts.
The bill does not call for evictions or terminations that have already been launched to be undone. Landlords can still evict tenants who break terms of their lease for reasons not linked to the pandemic.
The province declared a state of public health emergency due to the novel coronavirus outbreak on March 17.
That order has been rescinded.