Cra Rent Reduction Agreement

The decision to reduce rents for July, August and September (updated) does not require additional documents to be signed by the tenant. Today, Deputy Prime Minister and Minister of Finance, Honorary Citizen Chrystia Freeland and Minister of Small Business, Export Promotion and International Trade Mary Ng announced that Canada`s Emergency Commercial Rent Assistance (CECRA) for small businesses will be extended by one month to help eligible small businesses pay rent for September. All provinces and territories continue to participate in this initiative and are working with the federal government to provide rent assistance to the poorest small businesses. The current deadlines for submitting CECRA applications will also be extended to reflect this extension. Current status: Quebec has not imposed a moratorium. Eligible business owners can apply for and receive financial assistance from CECRA. Commercial real estate owners include property owners who generate rental income exclusively from commercial tenants or from a combination of commercial and residential tenants. The CMHC website provides instructions in cases where a landlord and tenant do not trade weapons grounds, including cases where the landowner owns the small business that is his sole tenant. Under these conditions, the government allows property owners and tenants who are unable to benefit from CECRA as long as all the general requirements of the program apply and there is a valid and enforceable rental agreement at a value that is not above market conditions. A2. Yes, as long as your agreement complies with CECRA requirements. If this is not the case, you can still participate if you change your agreement to meet the eligibility requirements.

For example, any rent paid above the CECRA maximum must be reimbursed in addition to other non-compliant aspects of the agreement or credited to the tenant in accordance with CECRA requirements. Note that the tenant`s contribution of 25% is a maximum; an agreement in which the tenant paid less and would not comply on that basis. On June 30, 2020, the federal government announced that CECRA would be extended by one month to cover eligible rents for small businesses by July 2020. Existing and new applicants can now register for this period. Current situation: B.C.`s moratorium provisions expired on October 1, 2020. At first glance, the ERS appears to be responding to many criticisms of the CECRA programme and providing a more accessible and user-friendly form of financial assistance than was possible under CECRA. The CECRA program required landlords to accept a 25% rent reduction, enter into rent reduction contracts with their eligible tenants, enter into a loan agreement with the program administrator, and compile documents to support a claim. Under CERS, tenants can apply for and receive direct funds without the Sorsen being required to cooperate or negotiate rent reduction contracts. Unlike CECRA, there are no maximum rent thresholds disqualifying larger tenants of eligibility and it appears that tenants with expenses exceeding the DURS ceilings may continue to receive subsidies for eligible expenses within the limits set. Tenants who have suffered significant income losses but have not met certain income loss thresholds have not been eligible for CECRA, but are entitled to ERS benefits based on the reduction in income they have received. Quebéc`s proposed moratorium on commercial evacuation was introduced on 4 June 2020 as part of a general pandemic response law.