Consultation with Residential Tenancy Branch

Consultation on Life Lease Act of Manitoba:

    The minister responsible for the Life Lease file requested the Residential Tenancy Branch (RTB) to undertake a review of the Act and recommend appropriate changes to it. The RTB undertook this review and invited representatives of the MLLOA, Life Lease Management Firms, Life Lease Sponsors and Tenants to participate in the review.

    This consultation process has now been completed and the RTB is developing a report which will incorporate those changes that they feel are needed and/or appropriate. to date - January 2017 - the MLLOA has not received such a report and therefore does not know what changes are being recommended by the RTB.

    In the meantime, the MLLOA Executive has developed a document which incorporates the changes we feel are required. A brief summary of the major changes we recommend as follows:

1. Clarifying the right of tenants to act as Directors of the Corporation without an conflict of interest.
2. Requirement of the Life Lease owner/developer to complete a Reserve Fund Study and maintain the Reserve Fund at an appropriate level.
3. Provide the RTB with clear responsibility to oversee and enforce the legislation and/or regulations.
4. Establish a clear expectation that the Board of Directors will turn to tenants to fill board positions if the sponsoring organization is unable to do so within a reasonable time after losing quorum on the Board.
5. Inclusion of all Life Lease facilities under the provisions of the Life Lease Act (pre 1999 buildings currently are exempt from certain portions of the Act).
6. Tenants right of access to Audited Financial Statements and to Minutes of Board meetings.
7. Requirement that Landlords maintain financial records according to generally accepted accounting principles.
8. Tenants' right to have representatives at Board meetings and to participate in Board meetings, including voting on all matters other than personnel issues.
9. Requirement to allow, under certain conditions, all Life Leases to be assignable if desired by the tenant.
10. Clarification of recourse for Landlords when tenants move out and the suite needs refurbishing due to excessive abuse or if increased rents should be proportionately shared with the departing tenant.
11. Give family members the right of succession to the lease if they meet the usual criteria.

   The above summary does not attempt to include or spell out all the detail and nuances of the recommended changes.

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