Item 18, first reading of bills. Item 19, second reading of bills. Item 20, consideration in Committee of the Whole of bills and other matters: Bill 6, Committee Reports 2 and 3, Minister’s Statement 62-16(2), with Mr. Krutko in the chair.

I call the Committee of the Whole to order.

We have several items to deal with. We have Bill 6, Committee Reports 2 and 3, and Minister’s Statement 62-16(2). What is the wish of the committee? Mrs. Groenewegen?

Mr. Chair, the wish of the committee is to deal with everything you’ve just listed in that order.

Is the committee agreed?

With that, we’ll take a short break and begin with Bill 6.

The Committee of the Whole took a short

recess.

I’d like to call the Committee of the Whole back to order.

Prior to the break we agreed to begin with Bill 6, An Act to Amend the Residential Tenancies Act.

At this time I’ll ask the Minister responsible for the bill if he has any opening comments. Mr. Lafferty.

Yes, Mr.

Chair. I

am

pleased to appear before the committee today to review Bill 6, An Act to Amend the Residential Tenancies Act.

The purpose of Bill

6 is to modernize the

Residential Tenancies Act, ensure that disputes are resolved more quickly and provide effective remedies to both landlords and tenants. There are also a number of housekeeping items in the bill to correct errors, omissions or outdated references and definitions in the act. Other changes clarify and strengthen provisions to deal with tenants who are involved in illegal activities on rental premises.

These amendments maintain the balance that currently exists in the act between the rights and responsibilities of landlords and tenants. Bill

6

reflects considerable consultation and discussion with housing organizations, landlords and tenants.

Mr. Chair, I’d like to thank the members of the Standing Committee on Social Programs for their review and comments on the bill.

I will be pleased to answer any questions Members may have. Mahsi.

Thank you, Mr. Minister. At this time I would like to ask the Chair of the Standing Committee on Social Programs, which has reviewed the bill, to make opening comments. Mr. Robert McLeod.

Thank you, Mr. Chair.

The Standing Committee on Social Programs met during the week of April 25 to May 2, 2008, to review Bill 6, An Act to Amend the Residential Tenancies Act. Public hearings took place in Fort Resolution, Hay River, Inuvik, Norman Wells and Yellowknife. The committee would like to thank the Minister’s officials and all the witnesses who spoke on the bill.

The clause-by-clause review of the bill was held on June 5. The committee moved two amendments to the bill in response to concerns raised by representatives from the Inuvik Housing Authority. The Minister concurred with both amendments.

The first amendment extends the time for landlords to settle a tenant’s damage deposit from 30 to 45 days where there has been significant damage to the rented unit. This change was made in response to concerns that in many communities shortage of qualified workers and material, and travel restrictions due to weather and/or road conditions, can easily delay landlords’ ability to determine the cost of repairs.

The second amendment affects public housing leases with fixed terms. The act provides that generally, fixed-term leases become month-to-month leases after the term expires unless the landlord gives the tenant a termination notice. Housing authorities have always been exempt from

this rule. Fixed-term public housing leases are not automatically renewed. Bill 6 would remove this exemption so that housing authorities, like other landlords, will have to give 30-day termination notices if they do not want a fixed-term lease to be continued.

The Minister and his officials indicated that during the public consultations, tenants did request this change. The Inuvik Housing Authority advised the committee that they are strongly opposed to this amendment and believe that it interferes with their ability to administer their leases in a way that suits individual applicants and tenants.

The committee’s motion is intended to address some of their concern by removing the requirement for housing authorities to give termination notices for one-month fixed-term leases in order to prevent those leases from being automatically renewed on a month-to-month basis. Housing authorities will still be able to prevent longer fixed-term leases from automatically continuing on a month-to-month basis by providing 30-day termination notices.

Given the concerns and confusion surrounding these amendments, the committee strongly encourages the department to work with the NWT Housing Corporation to provide housing authorities with clear information about the new rules well in advance of the implementation of the act.

The Inuvik Housing Authority also questioned the fairness of the new subsection 68(2), which will allow a tenant facing eviction to raise new issues at the hearing that the rental officer may address at the time of the hearing. This could result in landlords not having the opportunity to prepare responses to new issues raised by tenants. The Minister and his officials advised the committee that the rental officer will be able to adjourn the proceedings in appropriate circumstances to give the landlord preparation time. The provision is an example of the trust placed on the rental officer to conduct fair and impartial hearings and to make objective and reasoned decisions.

Some witnesses expressed concern with the expanded authority that Bill 6 would give the rental officer. In response to questions from committee members about the rental officer’s accountability, the Minister and his officials replied that this is achieved through the availability of appeals to the court. The department itself does not consider it appropriate to review or comment on the rental officer’s decisions provided contractual obligations are being met.

The committee noted that the act does not require any qualifications of the rental officer and felt that this gap should be addressed considering the power and trust placed in this office. The committee

moved an amendment to the bill requiring that the rental officer have experience and an interest in residential tenancy issues and have either five years’ experience as a lawyer, five years’ experience on administrative tribunals or courts, or reasonably equivalent qualifications. The Minister concurred with the amendment.

Bill 6 includes new provisions that will allow landlords to charge extra security deposits to tenants with pets.

One witness asked about remedies caused by smoking. The Minister and his officials advised that landlords can make not smoking a condition of the lease, although they cannot charge extra damage deposits to smokers. They also confirmed that smoking could, in some cases, amount to interference with the quiet enjoyment of other tenants.

Another witness expressed concern that the provisions of the act applying to land leases for mobile homes are inadequate and unclear. The Minister and his officials advised that the provisions were reviewed and that no amendments were identified at the time but committed to follow up with the rental officer.

During the clause-by-clause review, the Minister also agreed to two minor, non-substantive amendments to the bill. Following the clause-by-clause review, a motion was carried to report Bill 6 as amended and reprinted to the Assembly as ready for Committee of the Whole.

This concludes the committee’s general comments on Bill 6. Individual committee members may have questions or comments as we proceed.

Thank you, Mr. McLeod. At this time, I’d like to ask the Minister responsible for the bill if he will be bringing any witnesses. Mr. Lafferty?

Yes, Mr. Chair.

Does committee agree that the Minister bring in his witnesses?

Sergeant-at-Arms, could you escort the witnesses in, please. For the record, Mr. Minister, could you introduce your witnesses, please.

Mahsi, Mr. Chair. I have Janice Laycock, to my left, senior policy analyst; and Janis Cooper, legislative counsel, legislation division.

Thank you, Mr. Minister. Welcome, witnesses. At this time I’ll open the floor for general comments. General comments on Bill 6. Detail? Bill 6, An Act to Amend the Residential Tenancies Act.

Clauses 1 through 54 inclusive approved.

Bill as a whole?

Bill 6 as a whole approved.

Does committee agree that Bill 6 is ready for third reading?

Bill 6, An Act to Amend the Residential

Tenancies Act, approved for third reading.

Thank you, Mr. Minister. Thank you, witnesses.

As we agreed, the next item we’ll deal with is Committee Report 2-16(2), Government Operations Report on the Review of the Auditor General’s Report on the NWT Housing Corporation. With that, Mr. Menicoche.

Thank you, Mr. Chair. On Friday, May 23, 2008, the Standing Committee on Government Operations presented its Report on the Review of the Report of the Auditor General on the Northwest Territories Housing Corporation Public Housing and Homeownership programs.

Mr. Chair, I would suggest we deal with any general comments members of this committee might have on the report before dealing with the seven recommendations it includes.

On the report? Detail? Mr. Menicoche.

Thank you very much, Mr. Chair. I think the course of action here is that there were up to seven recommendations, and they will become committee motions. I will begin with the first one here, Mr. Chair.