Dear Premier Doug Ford:

Tens of thousands of law-abiding, tax-paying rental housing providers across Ontario are outraged by the catastrophic failure of the Landlord and Tenant Board (“LTB”) tribunal to deliver timely justice as guaranteed under Section 11(b) of the Canadian Charter of Rights and Freedoms and additional statutes (see further below).

The Canadian Charter of Rights and Freedoms sets out fundamental rights and freedoms guaranteed to individuals in Canada which may generally come into play when dealing with government actions, inactions or laws. In the context of civil cases like the LTB, the Charter might be invoked in situations where government action or inaction is involved, or where a law is being challenged as unconstitutional.

We estimate that Ontario residential rental housing providers lost about $1 BILLION dollars ANNUALLY in rental income (see further below) attributable directly to the delays at the LTB in rendering justice. 

Such losses also significantly impact federal, provincial and municipal tax revenues, including for example, Toronto’s 2024 property tax increase of 9.5%.

PETITION DEMAND

The signatories to this petition demand that the Government of Ontario:

• Immediately pass legislation or implement a policy and procedure whereby an application made by a rental housing provider to the LTB for eviction of a tenant for non-payment of rent shall be automatically ordered without a hearing, subject to proof satisfactory to a court being provided of such non-payment of rent (per the procedure recommended further below);

• Shall ensure that there is no excuse permitted for a tenant to not pay the rent in full when it is due. A tenant shall make a separate application as provided by the RTA and the LTB for any dispute of another nature;

• A tenant shall NOT have the right to delay or postpone an L1 application except for proven compassionate leave and medical reasons;

• Shall empower private bailiffs to act in the same capacity, and with the same powers, as a sheriff in the execution of an eviction;

• Shall immediately eliminate the standard but non-legislated 11-day delay implemented by the sheriff’s department;

• A tenant shall NOT have the right at the time of eviction to pay all arrears and legal costs then outstanding to void the eviction order.

Such legislation or policy would near-instantly: 

• Remove 41% of all new LTB applications, and possibly remove 50% or more of the current LTB case backlog;

• End certain forms of the government-empowered “cash for keys” or “fees for keys” extortion schemes currently employed by residential tenants that rely principally upon the extensive delays at the LTB.

 

BILLION-DOLLAR ANNUAL LOSSES

Below is the data and logic trail that concludes residential rental housing providers lost about $1 BILLION dollars ANNUALLY in rental income attributable directly to the delays at the LTB in rendering justice.

Such losses also significantly impact federal, provincial and municipal tax revenues, including for example, Toronto’s 2024 property tax increase of 9.5%.

According to the Tribunals Ontario annual report (June 30, 2023):

• Total new LTB applications for 2023 was 64,450
  • 37,690 (41.5%) were L1s for eviction for non-payment of rent

• The backlog caseload increased from 34,731 on March 31, 2021 to 53,057 (34.5%) in March 31, 2023.

• Average call centre wait time increased over 100% from 17 minutes to 36 minutes (1/2 hour)

• Percentage of hearings scheduled within 50 calendar days [1.6 months] for L1 and L9 applications
  • Target = 80%
  • Q1 = 14%
  • Q2 = 05%
  • Q3 = 06%
  • Q4 = 03%
  • Total = 7%

• Decisions issued 20 calendar days for L1 and L9 applications
  • Target = N/A
  • Q1 = TBD (according to LTB Annual report)
  • Q2 = TBD
  • Q3 = TBD
  • Q4 = TBD
  • Total = TBD

 

GRASSROOTS EXPERIENCE AND EXTRAPOLATED LOSSES

• Once an L1 is issued, tenants stop paying rent, despite Residential Tenancies Act, and wait to be evicted

• There is no practical, viable means to collect rent arrears.
  • Housing providers rarely ever recover any rent arrears

• Rental housing providers report that:
  • Scheduling a hearing = 4 to 6 months (assuming no postponements)
  • Order rendered = 2 to 3 months
  • Schedule sheriff for eviction = 1.5 to 2 months
  • Total 7.5 to 11 months

• Assume, according to Rental.ca, average Ontario rent = $2,456 (2024 02 01)
  • Total “average” loss over 7.5 months = $18,420 per applicant
  • Total “average” loss over 11 months = $27,016 per applicant
  • Total average loss for all L1 applicants = $27,016 average loss x 37,690 cases = $1,018,233,040 … (One BILLION dollars) in 2023 ALONE
    • These numbers do not include “cash for fees” extortion payments or rental housing provider losses not reported

 

We recommend that the following procedure be implemented IMMEDIATELY:

The Housing Provider shall:

• Complete and file using only the LTB’s online application an L1 application for eviction of a tenant for non-payment of rent

• Provide a fully-executed copy of the Ontario Standard Tenancy Agreement (“OSTA”) lease agreement with any appendices

• Swears an affidavit or oath as part of the online submission that:
  • Rent arrears greater than thirty (30) days old are outstanding
  • The amount of rent owed is accurate
  • The last month’s rent ("LMR") has been deducted
  • Interest on the LMR is to be deducted unless the applicant agreed to otherwise in the OSTA to offset the annual LMR "top-up"
  • Deliberately providing false information or lying while under oath is deemed perjury and punishable by a method to be determined.

• Delivers a copy of the L1 application to the tenant

• Completes a Certificate of Service attesting to the time, date and method of delivery of the L1 application to the tenant

• Delivers an LTB standard form (to be created) that provides instructions for how the tenant can challenge and repudiate the rental housing provider’s claim

The LTB:

• (also) Notifies the tenant by automated phone call, email and/or SMS text message that an application for eviction has been received and that the tenant has two calendar weeks to submit proof of a court-acceptable nature that the tenant has paid the contested rent amount cited in the L1 application

The Tenant:

• Has two calendar weeks to submit court-acceptable proof (etransfer, receipt, housing provider receipt, processed cheque, etc.) that they have paid the L1-declared amount in full

• Submission may be made either online or by other delivery method provided such other method nevertheless results in the proof documents arriving at the LTB within the two-calendar-week period.

Proof of Payment:

• If proof is provided then the LTB confirms that the proof of payment dates match the period of cited in the L1 application
  • If the dates are confirmed then a hearing date is set and the case proceeds through the usual process

• If proof is NOT received by the LTB within the specified time-frame or the proof does not match the dates covered by the L1 application, then the LTB issues an automatic Order for Eviction plus payment of all arrears, interests and claimed court costs

 

CONSTITUTIONAL RIGHT TO A FAIR AND SPEEDY TRIAL

According to the federal government website:

https://www.justice.gc.ca/eng/csj-sjc/rfc-dlc/ccrf-ccdl/check/art11b.html

• “The primary purpose of section 11(b) [of the Canadian Charter of Rights and Freedoms] is to protect the following rights of individual accused: … (c) the right to a fair trial (R. v. Jordan, [2016] 1 S.C.R. 631 at paragraph 20). The provision also serves secondary societal interests: … (b) the interest in having laws enforced, including through ensuring that those who break the law are tried in a timely fashion … Timely trials are also important to maintaining overall public confidence in the administration of justice (Jordan, supra at paragraph 25; Askov, supra at 1221).”

• “Section 11(b) … also recognizes that the right to a fair trial is protected by attempting to ensure that proceedings take place while evidence is available and fresh (Morin, supra), and that delay can prejudice the ability of the defendant to lead evidence, cross-examine witnesses or otherwise raise a defence (Godin, supra at paragraph 30).”

• “The right to a fair trial is also protected under section 2(e) of the Canadian Bill of Rights. Section 7 provides some residual protection against state-caused delay in limited circumstances.”

• “Similar guarantees can be found in article 14(3)(c) of the International Covenant on Civil and Political Rights.”

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