Rent review by rentala- mar. Rent review by munick palities, 28. (1) This section docs not apply (a) to residential premises situated in a residential building that is ‘occupied by the landlord for his residential purposes and that contains jess than three residential premises; . (b) to residential premises in respect of which the rent payable, on the date one year preceding the date an application is made under this section, was more than four hundred dollars per month, or was more than such amount greater than four hundred dollars as may be prescribed in the regulations; (c) during the term of the agreement, to residential premises owned by a landlord who has entered into an agreement with the rentalsman to regulate rents payable by tenants during a period of not less than five years; and (4) to such residential premises, ot such classes of residential premises, as may from time to time be designated in the regulations, (2) The Lier:tenant-Governor in Council may, upon the recommendation of the rentalsman, from time to time prescribe an allowable rent increase in respect of residential premises and different classes of residential premises, and may prescribe different allowable rent increases in respect of different parts of the Province, . (3) Subject to subsection (1), where a tenant receives a notice of a rent increase greater than the allowable rent increase, the tenant may, not more than thirty days :fter the date he receives notice of the increase, give to the Tentalsman and the landlord a notice requiring the landlord to apply to the rentalsraan for approval of the rent increase. (4) The fandiord shall, not more than thirty days after the date he receives a notice from a tenant under subsection (1), (a) reduce the rent increase to the amount of the allowable rent increase prescribed under subsection (2), and give the tenant and the rentalsman notice of the reduction; ur (b) apply, in the form and manner prescribed in the regulations, to the rentalsman for approval of the portion of the rent increase that exceeds the amount of the allowable rent increase, (5) Upon application under subsection (4) (b), the rentaisman, after such investigation and hearing as he considers necessary, may, (a) where the rentalsman is satisfied that the landlord's reasonable operating expenses and capital expenses juctify the amount of the rent increase, approve the full amount of the rent increase; or (b) order that the landlord reduce the amount of the rent increase to the amount of the allowable rent increase prescribed under subsection (2), or to such amount, not jess than the amount of the allowable rent increase prescribed under subsection (2), as the renalsman may specify in the order. (6) For the purposes of subsection (5), the rentalsraan may, in accordance with the regulations, determine whether or not an Operating expense or capital expense is reasonable. . (7) Where a landlord receives a notice requiring him to apply to the rentalsman for approval of a rent increase, the amount of the rent increase is void and unenforceable if it is not made in accordance with subsection (4) (a) or an order of the rentalsman under subsection (5). 29. (1) The Lieutenant-Governor in Council, upon application by the council of a municipality other than a regional district, may authorize the municipal council to pass a by-law (a) exempting residential premises situated within the municipality from section 28; or . (b) establishing a municipal rent review bureau and giving to it, subject to such terms and conditions as the Licutenant-Governor in Council may specify, the powers of the rentalsman under section 28, (2) Where a council passes a by-law under subsection (1) (a), section 28 does not apply to residential premises situated within the municipality. (3) Where a council passes a by-law under subsection (1) (b), section 28 appiies to rent increases in respect of residential premises situated within the municipality; and a reference in sectinn 25 to the Lieutenant-Governor in Council, the rentalsman, and the regulations, shall be deemed to be reference to the council, the bureau, and the rules of procedure established by the council.