The governments of Canada and Ontario have introduced a new program, the Ontario-Canada Business Health Assistance Program for Housing Canada (CECRA), to help small businesses with their rental burden. The program is intended to share rental costs between the government, small contractors and landowners. Landowners and tenants would each pay 25% of the gross rent (as defined in the CECRA program). The remaining 50% would cost the federal government an abominable credit structure. The tenancy agreement also provides for rent reductions in three possible scenarios: between a landlord and a tenant concerned, between a subtenant and a subtenant concerned, and between a principal tenant and a tenant who is not concerned, but who is a subtenant to the subtenants concerned. In this third scenario, the necessary rent reduction between the landlord and the tenant/subtenant must be 75% of the gross rent that subtenants must pay for the three-month period from April to June 2020. On September 8, 2020, Deputy Prime Minister and Finance Minister Chrystia Freeland and Mary Ng, Minister of Small Business, Export Promotion and International Trade, announced that CECRA for Small Business would be extended one last time – an additional month – to help eligible small businesses pay rent for September. Managed by Canada Mortgage and Housing Corporation (CMHC) and delivered by MCAP and First Canadian Title (FCT), which opened the application process for CECRA for small businesses in the spring. On May 20, Prime Minister Trudeau announced that the homeowners` application portal for homeowners seeking relief under Canada`s Commercial Rent Emergency Program (CECRA) will be open on Monday, May 25. The day before, cmhc published on its website new details on THE application process of CECRA, including the types of rent reduction agreements, loan contracts and certificates that must be submitted by landlords who request the discharge1. In addition, landlords and tenants are required to lease and remain required beyond August 31, 2020. In addition, the guidelines recommended that no action could be taken to notify late payment or eviction decisions before the 3 months after the application was filed and the date on which the tenant would no longer receive any rent or pardon reduction or rent credit. The 3-month test has been withdrawn.
CMHC is working to further clarify the calculation of adjusted rent. Under normal circumstances, for a landlord who applies on behalf of his tenant, the adjusted rent is generally calculated as being at 50% of the gross rent for the periods of April, May and June. It is not clear how to calculate the proportional share of insurance and other government benefits, but it should probably be based on the laudable area of the premises rented by the tenants concerned, for which the rent is reduced and the discharge is requested. Small business tenants involved are businesses that pay less than $50,000 in gross rent per month on a given site, with annual sales of less than $20 million (at the highest level of the mother) and which, on average, saw their pre-COVID-19 revenues decline by at least 70 per cent for April, May and June. “The government continues to monitor the impact of the pandemic on the economy and the functioning of the historic support we have provided through the COVID-19 recovery plan. We are strengthening our support for small businesses and homeowners by extending CECRA`s rent relief by one month to ensure they are ready to recover from the pandemic. 2 See “Why CECRA property owners should ask for small businesses” under www.cmhc-schl.gc.ca/en/finance-and-investing/covid19-cecra-small-business; See also “Don`t Force My Hand” for www.cp24.com/news/don-t-force-my-hand-ford-tells-greedy-commercial-landlords-refusing-to-work-with-struggling-businesses-1.4945152 The proceeds of the loan must be used either by the landlord/landlord (i) for the repayment of the tenants concerned for the rent paid for the eligible programming period, paid for more than 25% of the lo