Bill 23 Proposed to Protect Nonprofits from Eviction During COVID-19
Bill 23, the Commercial Tenancies Protection Act, is a piece of provincial legislature meant to address the gaps in the current Canada Emergency Commercial Rent Assistance (CECRA) program.
This legislation would cover the period of March 17 through August 31, with the ability for the province to extend the period if needed. Eligible tenants would include:
commercial tenants with tenancy agreements that would be eligible for the CECRA program, but whose landlords have chosen not to participate;
commercial lease agreements where tenants have had to close their business due to public health orders; and
commercial tenants who have had their business revenue decline by 25% or more due to the pandemic.
Nonprofits who lease commercial space and meet one of the above criteria will be eligible for protection under Bill 23.
If passed, this bill would protect eligible commercial tenants from eviction due to non-payment as a result of the COVID-19 pandemic. It would also prevent landlords from raising rent and charging late fees or penalties on missed rent.
Additionally, any rent increases, late fees, or penalties that have already been imposed on commercial tenants would need to be reimbursed. However, it would not undo evictions or lease terminations that happened prior to the legislation being tabled on June 16.
This act would also mandate that tenants and landlords must work together to come up with a payment plan for missed rent payments. However, it does not include financial support or relief for rent payments missed due to COVID-19, or for nonprofits who continue to struggle to meet operational costs.
The Government of Alberta previously committed to providing small businesses, including nonprofits, with grants of up to $5,000 to cover relaunch costs including rent. More information on this funding has not yet become available.
More information on Bill 23 can be found here.
Interested commercial tenants and landlords can fill out a survey here to communicate their experience and challenges with commercial rent during the COVID-19 pandemic. The Government of Alberta will be using this survey to inform future supports for businesses, nonprofits, and landlords.