ane

- - June 7, 1974

Mayor and Council

some sort of proof that there are special circumstances in the municipality that
would justify special consideration in rent controls.

(ii) Unless there are very special circumstances in the municipality they do not
expect to be granting blanket exemptions and expect that the exemptions will be
applied to certain classes of buildings within the municipality or buildings in a
certain rental group. For example, a municipality may apply for exemption applying
to all apartment buildings or all buildings where the rent excéeds $500.00 a month.

(iii) They also expect to see some indication of support for the municipalities’
applications from local landlord or tenant groups. I understand that they have
received two applications to date from municipalities asking for blanket exemptions
and I note that in the case of the District of Coldstream the Cabinet has approved
exemption on the basis that there are no rental premises within the mumicipality.

The Interim Rent Stabilization Act that places the 8% limitation on rental increases
will be superseded by the new Landlord and Tenant Act when it comes into. force.

The new Act will regulate rental increases by order of the Lieutenant Governor

in Council and they will be not limited to 8% as provided in Bill 75 but may be

any amount as recommended by the Provincial Rentalsman and established by the Lieu-
tenant Governor in Council. In addition, in the new Act, there is provision for
certain exemptions. It would appear to me that there would be not much point in
applying for exemption under the provisions of Bill 75 as Bill 105, the new Land-
lord and Tenant Act will be coming inte effect over the next few months as the
various sections are proclaimed by the Lieutenant Governor in Council. Our recourse
under this Act is to apply to the Lieutenant Governor for authority to pass a by-
law to either; .

(1) exempt residential premises within the municipality from the provisions of
Section 28 of the Act, which removes any limitations on rental controls and removes
the responsibility from the kentalsman in prescribing rental increzses; or

(2) authority to pass a by-law establishing a municipal rent review bureau which
would, subject to conditions prescribed by the Lieutenant Governor, have the powers

of a Rentalsman under Section 28.

I would not recommend requesting authority to establish our own municipal rent
review board as the Board would be assuming the powers of a Rentalsman and the
responsibilities under the new Act are far greater and more complex than the duties
imposed on the Rental Review Board under the previous legislation.

Council may wish to review the implications of submitting an application

for exemption under the Bill 105 in the light of the three criteria outlined

by the Attorney General's Department and listed above. I would think that a

case could be made for some relief on rental controls in this area due to

the fact that property values have risen so rapidly that it has been difficult

for rents to keep pace. In effect the 8% limitation has drastically affected
the value of all property and it will have affected the value of property in. :
Port Coquitlam probably to a greater extent than in some other areas of the
Lower Mainland. in spite of this problem I believe it would be no solution to :
have the Government grant partial exemptions within the City as I believe this
would only aggravate the situation if some rented properties are under the rent
controls end others are exempted. Council may wish us to pursue this matter
further as more information on Bill 105 becomes available. As I have pointed j
out in the first paragraph the Attorney General's Department is not prepared !
to issue a definite criteria at this time.