Current situation: Alberta`s moratorium provisions have not been extended beyond the original termination date of August 31, 2020. The order applies in cases where a landlord and tenant (or subtenant and subtenant) are entitled to CECRA but do not participate because of the landlord`s decision not to enter into a rent reduction tenancy agreement that includes a moratorium on eviction. In such cases, the lessor is prohibited: the moratorium on commercial evacuation proposed by Quebéc was introduced on 4 June 2020 as part of a general law on the response to the pandemic. However, for procedural reasons that had nothing to do with the provision of the moratorium on evictions, the bill was not passed before the summer recess of the National Assembly. As a result, the moratorium on evictions will not come into effect as planned and it remains to be seen whether it will be reinstated at a later date. As suggested, in the event of a tenant`s non-payment of rent, the moratorium on commercial eviction would have prevented landlords from terminating a commercial tenancy agreement, from seizing real property in the rented premises, or from giving tenants advance notice of the exercise of a hypothetical property on the property contained in the promises of tenancy and from registering the advance notice in the register of real personal rights and furniture. CMHC`s website provides that the amount of the tradable loan is exempt from the turnover tax (GST and HST). In addition, GST and HST are also excluded from determining the gross amount of rent, which means that monthly rents are calculated before taxes on current turnover. In addition, homeowners are not required to collect GST/HST for payments they have received from CMHC under the CECRA for Small Businesses program. While the Canadian Revenue Agency (CRA) has not yet provided any indication of this, If GST/HST tenants` landowners are required to collect the total amount of the monthly rent, it is expected that, if the landlord issues a credit equivalent to the rent reduction granted to the tenant, the landlord is only required to collect GST/HST from tenants on the amount of rent paid by the tenant during the period during which the rental charge is granted. The official guidelines are expected to be published by the rating agency in the coming weeks. CECRA for small businesses provides direct rental facilities for small entrepreneurs or sub-tenants concerned. Landowners are required to use funds received from CECRA for small businesses to compensate affected tenants for rent paid on more than 25% of the rent due during the eligible period (unless the tenant chooses to apply this amount for future rents).
While tenant reimbursement is a top priority, landlords are also allowed to apply these funds to expenses and expenses directly related to the property, including owner financing and maintenance and repair obligations.