Houston v. 530675 Ontario

Landlord wins · 2017-12-07

Adjudicator

N. Spies

Dispute

Above Guideline Increase

Landlord

530675 Ontario Limited O/A Mayfield Estates LP

Tenant

L.H., J.S.

Landlord rep

Joseph J. Hoffer

Tenant rep

Joseph W. Richards II

What happened

The landlord applied for an above-guideline rent increase (AGI) based on extraordinary increases in municipal taxes and charges, including fees for a Rental Housing License (RHL) and Electrical Safety Authority (ESA) inspections required by a municipal by-law. The tenants appealed the Landlord and Tenant Board's decision to allow the AGI to the Divisional Court.

The ruling

The Divisional Court dismissed the tenants' appeal of the Landlord and Tenant Board's decision to allow an above-guideline rent increase based on extraordinary increases in municipal taxes and charges. The court found that the Board's decisions regarding the classification of ESA fees as municipal charges, the non-exemption of RHL and ESA fees, and the lack of discretion to amortize the increase over more than 12 months were all reasonable.