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Residential Tenancies Amendment
(Housing Standards) Bill 2009
Introduction Print
EXPLANATORY MEMORANDUM
General
The Bill seeks to amend the Residential Tenancies Act 1997 in order--
· to enable the Minister for Housing to set by regulation
minimum housing standards for rented premises and rooming
houses;
· to resolve disputes between tenants and landlords arising from
these minimum standards not being complied with.
Clause Notes
Clause 1 outlines the purpose of the amending Bill.
Clause 2 provides that the Bill will come into force on the day after which
it receives the Royal Assent.
Clause 3 inserts a definition of prescribed minimum housing standard into
the Residential Tenancies Act 1997.
Clause 4 substitutes section 69 of the Residential Tenancies Act 1997
which currently requires a landlord, when replacing an older
water fixture, to install at least an 'A rating' water device.
This clause modifies section 69 so that a higher water rating may
be set by the Minister, and this higher rating must be complied
with.
Clause 5 inserts a new Division 5A into Part 2 of the Residential
Tenancies Act 1997 which applies to rented premises.
New section 71A(1) states that landlords must comply with any
housing standards established by the Minister by regulation under
that Act.
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If, after a standard has been prescribed by the Minister by
regulation and the landlord fails to upgrade the premises by their
own accord, new section 71A(2) allows tenants to instigate the
process by informing the landlord in writing that the premises do
not meet the prescribed standard.
If the landlord fails to ensure the premises meet the minimum
standard within 28 days after receiving the notice under new
section 71A(2), new section 71C gives the tenant power to
apply in writing to the Director of Consumer Affairs Victoria.
Under section 71C(2), the Director is then obliged to investigate
the premises, and may negotiate arrangements to ensure that the
premises comply with the standard. The Director must then send
his or her report to the tenant within 28 days after receiving an
application to investigate the premises.
New section 71B allows for an alternative instigation procedure,
whereby the Director may investigate whether a landlord has
complied with the standard without receiving a notice from the
tenant under section 71A. This enables a third party to bring
the condition of a dwelling to the attention of the Director.
Section 71B(2) provides the procedures the Director must follow
upon finding that the premises do not meet the standard.
If, within 60 days after the landlord receives the Director's report,
the tenant is not satisfied that the minimum housing standard has
been, or is being complied with, the tenant may seek an order
from the Victorian Civil and Administration Tribunal ("the
Tribunal") under 71D. Subsection (2) provides that if the
Director's report has not been provided to the tenant, the tenant
may apply to the Tribunal regardless, once 90 days has passed
from the date the Director received the tenant's complaint.
New section 71E sets the scope of the Tribunal's orders.
The Tribunal can order that the landlord comply with the
standards, and set the time within which the minimum housing
standards must be reached.
New section 71F applies to situations where a tenancy agreement
has been made, but the tenant has not yet entered into occupation
of the rental premises and the landlord has been notified that the
premises do not comply with a prescribed minimum housing
standard. The tenant may choose to not enter into occupation of
the premises. If the tenant chooses to enter the premises at a date
later than that in the tenancy agreement, the tenant is not obliged
to pay the rent from the agreed date, but from the date the tenant
actually entered into occupation. This follows current practices
within the Act in relation to houses not vacant or in a reasonably
clean condition.
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New section 71G applies where tenants are already in occupation
of the premises and the landlord is aware that the premises have
not met the standards through the procedures under section
71A(2) or 71B. After 28 days, the tenant may then seek an order
from the Tribunal authorising rental payments to be paid into the
Rent Special Account which will withhold the money until the
landlord has ensured, or is ensuring the premises meet the
minimum standards. If an order is made, the landlord may apply
to the Tribunal, and the Tribunal may order part or whole of the
held rent to be transferred if satisfied that the landlord is ensuring
that the premises comply with the minimum housing standard.
Clause 6 mirrors clause 4 in relation to water ratings, but is applied to
situations where urgent repairs are required.
Clause 7 applies to rooming houses and inserts a new Division 5A into
Part 3 of the Residential Tenancies Act 1997. It is similar to
clause 5.
Clause 8 amends section 226 of the Residential Tenancies Act 1997 to
allow a tenant who has not entered into possession to terminate
the tenancy agreement provided he or she has notified the
landlord of termination on the ground that the premises do not
comply with the minimum housing standard.
Clause 9 amends section 239 of the Residential Tenancies Act 1997 to
allow a tenant in possession to terminate a tenancy agreement if
the landlord does not comply with the housing standards in
contravention of an order from the Tribunal. The tenant is
obliged to give at least 14 days notice from the date the notice is
served.
Clause 10 amends section 485 of the Residential Tenancies Act 1997 to
facilitate payments into the Rent Special Account under new
sections 71G or 128G to be released to the landlord subsequent
to the landlord's compliance with the Tribunal's order.
Clause 11 amends section 511 of the Residential Tenancies Act 1997
which sets out regulation making powers. The amendments
enable the Minister to set regulations imposing minimum housing
standards for rental premises and rooming houses. The listed
subject areas for regulations are not exhaustive. The Minister
may set standards for matters of a similar kind to that contained
within section 511(1)(e) and (ea).
New section 511(2) describes the interplay between regulations
made under section 511(1)(e) and (ea) and any other Victorian
Act or regulation. If the minimum housing standard is not
inconsistent with any other Act or regulation, it must be complied
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with in addition to that other Act or regulation. Conversely, if
the prescribed minimum housing standard is inconsistent, to the
extent of the inconsistency with the other Act or regulation, the
minimum housing standard is of no force or effect.
New section 511(2A) gives both Houses of Parliament the power
to disallow the Minister's regulation of setting a housing
standard. A simple majority of either House will disallow the
regulations.
Clause 12 allows regulations to be made that are of a transitional nature.
Clause 13 provides for the repeal of this amending Act on the first
anniversary of the day on which it receives the Royal Assent.
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