Both the commercial landlord and the tenant must carry out certain eligibility checks. A tenant is entitled to the CECRA program if (i) his gross monthly rent per site is less than $50,000; (ii) it generates no more than $20,000,000 in annual sales (including the level of the mother); and (iii) the tenant reduced his income by at least 70% before COVID-19. To demonstrate the decline in turnover, a tenant must compare their current income for April, May and June 2020 with their april, May and June 2019 revenues. In the absence of june 2020 sales, a tenant can use forecasts for June. For new businesses that were not in service from April to June 2019, average revenues for January and February 2020 can be used for comparison with the April, May and June 2020 periods. It should be noted that (i) businesses that opened on or after March 1, 2020 are not eligible for the CECRA program; and (ii) the temporary closure of a tenant`s operation is no longer another criterion covered in point iii). It is likely that this temporary closure criterion has been removed in view of the gradual opening up of the current economy. Learn more about the process for tenants and professional landlords under the commercial rent relief program. The CMHC clarified that landowners with a non-arm length relationship with a legitimate tenant are also eligible for the CECRA program, provided that (i) the lease has not been established or amended after April 1, 2020; (ii) the lease is made under a fair market; and (iii) the gross rent payable under such a tenancy agreement is not higher than the fair market rent for the property.
If these conditions are met, all general program requirements apply, including confirmation that the owner of the property has indicated rental income in his certificate. The ban on commercial evictions for B.C tenants who qualify for CECRA is no longer at issue from 1 October 2020. Contracts – Rent reduction contract (PDF example) 😛 landlord must enter into a legally binding tenancy agreement with each tenant concerned to validate the rent reduction in accordance with the terms of the program. This agreement is subject to the final approval of CECRA`s application for small businesses. A1. No no. Both the landlord and the tenant must meet the conditions and declare themselves ready to participate. It also implies that the parties enter into a freely negotiated lease agreement for rent reduction. If there is no agreement, the tenant or landlord can apply to the VSBC for free mediation to help resolve the tenancy dispute. 1.
A moratorium on evacuation during the period during which the landowner agrees to apply the proceeds of the loan, and2. A rental price declaration contained in certification principles 3, 4 and 5 relates to rent reduction and applies on a case-by-case basis: to be eligible for CECRA for small businesses, the commercial owner: landowners are required to use the funds received from CECRA for small businesses in order to reimburse the tenants concerned for the rent paid on 25% of the rent due during the eligible period , the tenant chooses to pay this amount against future rent).