Tanya Fir, minister of economic development, trade and tourism, is seen on June 5, 2020.

By Chris Brown

Protected until Aug. 31

Province gives commercial tenants temporary protection from eviction

Jun 16, 2020 | 4:08 PM

The Alberta government has tabled legislation to protect commercial tenants as the province struggles to come out of the COVID-19 pandemic.

Bill 23, the Commercial Tenancies Protection Act, was introduced in the Alberta Legislature today.

Until the end of August, the act protects tenants from having leases terminated due to non-payment of rent as a result of the pandemic. If passed, the act prevents landlords from raising rent and charging late fees or penalties on missed rent.

The federal program sees the feds pay 50 per cent of a tenant’s rent, with the landlord paying or forgiving 25 per cent. The tenant is responsible for the remaining 25 per cent.

The provincial program provides no such funding and there is only a deferral of rent, but no reduction. And no protections after August. Its success hinges largely on goodwill from tenants and landlords on reaching an agreement.

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“We’re confident that Alberta businesses, the landlords and tenants are going to do just that, come up with a payment plan that works best for each individual situation,” said Tanya Fir, minister of economic development, trade and tourism.

Fir said that after Aug. 31 landlords do have the option to evict tenants, who could be facing a large rent payment at that time.

The legislation does not allow for any evictions or lease terminations already that have already happened to be reversed. Any late fees, penalties or rent increases from Match 17 to Aug. 31 must be reimbursed.

The act covers from March 17 to Aug. 31, and would apply to commercial tenants with agreements that would be eligible for the federal Canada Emergency Commercial Rent Assistance (CECRA) program, but whose landlords have chosen not to participate, and commercial lease agreements where tenants have had to close their business due to public health orders or have had their business revenue decline by 25 per cent or more as a result of the COVID-19 pandemic.

If passed, any late fees, penalties or rent increases imposed on a commercial tenant by their landlord between March 17 and Aug. 31 would need to be reimbursed, however, the legislation would not undo any evictions or lease terminations that happened before the legislation was tabled.