S-8, r. 7 - By-law respecting housing

Updated to 5 January 2014

This document has official status.

chapter S-8, r. 7

By-law respecting housing

Act respecting the Société d’habitation du Québec

(chapter S-8, ss. 51, 60, 64 and 86).

DIVISION I DEFINITIONS

1. In this By-law, unless the context indicates otherwise,

(a)  “Act” means the Act respecting the Société d’habitation du Québec (chapter S-8);

(b)  “municipality” means a municipality whatever be the Act by which it is governed;

(c)  “Société” means the Société d’habitation du Québec;

(d)  (paragraph revoked);

(e)  “owner” means a non-profit organization as defined in the Act;

the owner of a residential building in which resides a handicapped person, so designated by a non-profit organization administering a program within the meaning of section 44 and created to provide material aid and housing services to the handicapped; or

the owner of a residential building in which a lessee who has received public rent reduction subsidies is living when the subsidy expires.

R.R.Q., 1981, c. S-8, r. 3, s. 1; O.C. 122-82, s. 1; O.C. 143-84, s. 1.

DIVISION II APPROVAL OF HOUSING PROGRAMS

2. Every application for permission to prepare a housing program must be accompanied by proof of the need for housing.

R.R.Q., 1981, c. S-8, r. 3, s. 2.

3. Every housing program under the Act must contain:

(a)  a description of the immovables to be acquired, made in accordance with article 3033 of the Civil Code;

(b)  the name of the owner and the estimated price of acquisition;

(c)  a copy of the zoning by-law relating to the immovables;

(d)  the steps to be taken to accommodate persons or families evicted for the carrying out of the program;

(e)  the proposed houses, with explanatory sketches and specifications;

(f)  the necessary equipment;

(g)  the organization which will be responsible for the construction, equipping, leasing and resale of housing accommodations;

(h)  the estimated cost for the carrying out of the program, the proposed methods of financing and the measures provided for such purposes;

(i)  the periods prescribed for the carrying out of the program;

(j)  the arrangements made for the administration of the housing accommodations;

(k)  the operating budget for housing accommodations and the economical housing accommodation rate;

(l)  (paragraph revoked);

(m)  a statement of the housing accommodations rates in force in the sector where the program is planned.

R.R.Q., 1981, c. S-8, r. 3, s. 3; O.C. 122-82, s. 1.

4. When a housing program provides for the sale of immovables, the program must indicate, in addition:

(a)  the criteria which must govern the selection of the purchasers;

(b)  the terms and conditions of sale, including the sale price; and

(c)  the proposed methods of financing.

R.R.Q., 1981, c. S-8, r. 3, s. 4.

5. When a housing program provides for the leasing of immovables or parts of immovables, the program must mention:

(a)  the designation of the immovables and their description;

(b)  the owner’s name and address;

(c)  the draft agreement to be concluded with the owner including the housing accommodations rate in force in the sector for similar housing accommodations and the proposed terms of leasing, a description of the services and equipment included;

(d)  the draft lease to be concluded between the owner and the tenants;

(e)  the organization which must assume the responsibility for the selection of tenants and for the administration of the program.

R.R.Q., 1981, c. S-8, r. 3, s. 5.

6. Any application for the approval of student housing accommodation programs must include a certificate of approval by the Ministère de l’Éducation, du Loisir et du Sport or the Ministère de l’Enseignement supérieur, de la Recherche, de la Science et de la Technologie.

R.R.Q., 1981, c. S-8, r. 3, s. 6; S.Q. 2013, c. 28, s. 205.

7. Any housing program submitted by a non-profit organization pursuant to section 64 of the Act, must include, in addition to the documents mentioned in sections 2 to 6, the following documents:

(a)  a copy of the charter or letters patent constituting the non-profit organization;

(b)  a copy of the by-laws of the non-profit organization;

(c)  the name, occupation and address of the administrators and members of the non-profit organization;

(d)  a report on the financial activities of the non-profit organization together with a financial statement duly certified by an accountant who is a member of a recognized association;

(e)  the arrangements made to ensure the availability of the necessary equity for the realization of the program and its interim financing;

(f)  the selection criteria for persons or families who occupy the dwelling units.

R.R.Q., 1981, c. S-8, r. 3, s. 7; O.C. 122-82, s. 2.

8. For the purpose of the Act, the Société may recognize as a non-profit organization, any housing cooperative association and any legal person no part of revenues or excess revenues of which are payable to an owner, member or shareholder of that legal person or put at his disposal for his personal benefit.

R.R.Q., 1981, c. S-8, r. 3, s. 8.

DIVISION III LOANS FOR THE CARRYING OUT OF A HOUSING PROGRAM

§ 1 . — Application for loan

9. An application to the Société for a loan for the financing of the construction or the acquisition and the conversion of an existing building for the carrying out of a housing program, in accordance with paragraph b of sections 60 or 64 of the Act, must be formulated by resolution to the Société together with the data required in sections 2 to 7.

R.R.Q., 1981, c. S-8, r. 3, s. 9.

10. Any application for a loan by a non-profit Société must be submitted together with a fee, payable to the Société, in the amount of $30 per dwelling unit or of $20 per hostel bed in the case of hostelry housing type. When the loan is granted, this fee is part of the cost of construction or the cost of acquisition and conversion. This fee is reimbursed to the borrower if the loan is not granted by the Société. However, it is forfeited if the borrower refuses the loan subsequent to a written commitment by the Société to make the loan or if the loan is cancelled according to section 11.

R.R.Q., 1981, c. S-8, r. 3, s. 10.

11. Any written commitment by the Société to make a loan to a borrower may be cancelled by the Société if the former has not started the realization of the housing program within a delay of 90 days from the date of the said commitment.

R.R.Q., 1981, c. S-8, r. 3, s. 11.

§ 2 . — Amount of loan

12. The amount of any loan that the Société may make, with the authorization of the Government, for the construction or the acquisition and conversion of low rental housing accommodation, must not exceed 95% of the cost accepted by the Société in the case of a loan made to a municipality or to a municipal housing bureau nor exceed the cost accepted by the Société in the case of a loan made to a non-profit organization.

R.R.Q., 1981, c. S-8, r. 3, s. 12.

13. The costs for the carrying out of a housing program for the purposes of this By-law include:

(a)  the cost of acquisition of the immovables or their value determined by the Société, whichever is the lesser, the cost of demolition, the option cost where applicable as well as the fees and costs for the examination of titles, the obtainment of legal documents and the execution and registration of any act of acquisition;

(b)  the cost of acquisition of any servitude, including the legal fees and costs for its establishing;

(c)  the actual costs for construction or conversion, for the development of the land and for the installation or repair of water, sewer and other services, in front of the immovables in the program;

(d)  the fees and costs for professional services;

(e)  administration costs relating to the construction or conversion of immovables;

(f)  the costs for financing the acquisition of immovables, their construction or conversion, until the date of completion of the works;

(g)  the fees prescribed in section 10, the insurance premiums and taxes due during the period of construction or conversion;

(h)  the purchase cost of the furniture for common rooms.

R.R.Q., 1981, c. S-8, r. 3, s. 13.

§ 3 . — Security and term of the loan

14. Any loan for the construction or acquisition and conversion of dwelling units must be secured by a first hypothec on the immovable for which the loan is made.

In the case of a loan to a non-profit organization, the Société may require any additional security it considers appropriate.

The Government may authorize the Société to make a loan for the purpose of student housing accommodation without the hypothecary security.

R.R.Q., 1981, c. S-8, r. 3, s. 14.

15. The term of the loan shall not exceed 50 years from the interest adjustment date.

R.R.Q., 1981, c. S-8, r. 3, s. 15.

§ 4 . — Deed of loan

16. Any borrower must execute before a notary, a deed of loan in the form and content as approved by the Société and he must, at his expense, supply to the Société, a certified copy of the deed.

R.R.Q., 1981, c. S-8, r. 3, s. 16.

17. If the loan is secured by an hypothec, the borrower must establish that he has a good title on the property and that the latter is free and clear of any prior claim, hypothec or other right that could affect the security of the Société.

R.R.Q., 1981, c. S-8, r. 3, s. 17.

18. When the loan is secured by hypothec, the borrower must supply to the Société, prior to the execution of the deed of loan, a certified list as determined by the Société of all the contractors, subcontractors, suppliers of materials participating in the construction or in the conversion of the dwelling units as well as consents from each of them to hypothecary priority.

R.R.Q., 1981, c. S-8, r. 3, s. 18.

§ 5 . — Loan disbursement

19. No loan disbursement shall be made unless the deed of loan and operating contract provided for in section 30 have been signed by the parties, and unless the deed of loan has been duly registered and the property insured against fire risks and other hazards.

R.R.Q., 1981, c. S-8, r. 3, s. 19.

20. The loan may be disbursed through progressive advances corresponding to the value of the work completed. On each advance an amount equal to 15% of the value of the completed work may be retained. The last loan advance shall not be made before the expiry of a 31 day period from the date of completion of the work.

R.R.Q., 1981, c. S-8, r. 3, s. 20.

21. The Société may also retain on each loan advance a sufficient amount in its own estimate to cover the cost of any corrections required following violations noted in the construction. The Société may also suspend the payment of any loan advance or cancel the loan if the borrower refuses to make the necessary corrections.

R.R.Q., 1981, c. S-8, r. 3, s. 21.

22. The Société shall not be required to make more than 5 loan advances during the construction period at various intervals it shall determine from time to time.

R.R.Q., 1981, c. S-8, r. 3, s. 22.

23. The Société shall not have to make any loan advances if the property is not free and clear of hypothecs and prior claims in favour of third parties.

R.R.Q., 1981, c. S-8, r. 3, s. 23.

§ 6 . — Standards of construction and inspections

24. The site development plan, the construction, the alterations to dwellings must be carried out in accordance with standards acceptable to the Société as well as with the approved plans and specifications.

R.R.Q., 1981, c. S-8, r. 3, s. 24.

25. The Société may at any time inspect the works to ensure that the standards are met and that they are carried out in accordance with the plans and specifications approved by the Société. However the Société shall not be required to make more than 6 inspections in the case of construction and 3 inspections in the case of alterations. The borrower shall not, on the other hand, proceed with the construction beyond each of the stages mentioned hereafter unless the Société has carried out an inspection. These stages are the following: excavation, foundations, framework or structure, insulation.

R.R.Q., 1981, c. S-8, r. 3, s. 25.

26. Any contract for construction or alteration works shall be granted following a call for public tenders. If the borrower wishes to carry out the works with his own forces, he must submit to the Société, for approval, a detailed estimate of the costs involved.

In the case of experimental or pilot projects or in emergency cases as well as in cases of loans granted under section 64 of the Act, the Government may authorize the granting of a contract for construction or alteration works without development projects or a call for public tenders.

R.R.Q., 1981, c. S-8, r. 3, s. 26.

§ 7 . — Administration of the loan

27. The Société may set the interest adjustment date at the first of the month following the date at which, in its opinion, the dwellings are substantially completed or occupied.

R.R.Q., 1981, c. S-8, r. 3, s. 27.

28. The first repayment on the loan, comprising principal and interest, shall become due 1 month, 3 months, 6 months or 12 months following the interest adjustment date depending if the loan is to be reimbursed by monthly, quarterly, semi-annual or annual repayments.

R.R.Q., 1981, c. S-8, r. 3, s. 28.

29. The borrower shall insure, for the amount specified by the Société, the dwellings against fire and other hazards with an insurance company duly recognized by the Autorité des marchés financiers. The Société shall not be obliged to accept any insurance contract comprising co-insurance or other forms of guarantee.

R.R.Q., 1981, c. S-8, r. 3, s. 29; O.C. 1124-87, s. 66.

DIVISION IV ADMINISTRATION OF HOUSING PROGRAMS

30. The Société and the borrower or an organization which administers a housing program carried out under the Act must conclude an operating contract determining leasing conditions, financial and administrative terms and conditions, conditions for the maintenance of immovables as well as any other matter of a nature to safeguard the destination and character of the immovables.

The contract must also determine the terms and conditions for the payments of the subsidy paid under section 33 or 34 as the case may be, and the control and verification by the Société.

R.R.Q., 1981, c. S-8, r. 3, s. 30.

31. (Revoked).

R.R.Q., 1981, c. S-8, r. 3, s. 31; O.C. 122-82, s. 3.

DIVISION V SUBSIDIES FOR THE OPERATION OF HOUSING ACCOMMODATIONS ADMINISTERED UNDER A HOUSING PROGRAM

32. An application from a municipality or an organization recognized by the Société requesting a subsidy to assist in defraying the operating cost of a housing program carried out under the Act must be made to the Société by resolution.

R.R.Q., 1981, c. S-8, r. 3, s. 32.

33. The Société may, when duly authorized by the Government, enter into an agreement with a municipality, or jointly with a municipality and a municipal housing bureau, for a period not exceeding 50 years, and providing for the payment of grants by the Société not exceeding 75% of the annual operating deficit incurred up to 31 December 1972 and not exceeding 90% of the annual operating deficit incurred upon and after 1 January 1973.

R.R.Q., 1981, c. S-8, r. 3, s. 33.

34. When duly authorized in accordance with section 64 of the Act, the Société may conclude with a non-profit organization an operating agreement for a period not exceeding 50 years and providing for the payment by the Société of subsidies up to 100% of the annual operating deficit recognized by it for a housing program carried out under the Act.

R.R.Q., 1981, c. S-8, r. 3, s. 34.

DIVISION VI RENTAL ALLOWANCES

35. The Société may, with the authorization of the Government, enter into an agreement with a municipality providing for the payment of rental allowances, jointly by the Société and the municipality, for a period not exceeding 12 months, for the occupancy of a decent dwelling unit by persons of low income evicted from their dwelling unit upon the demolition of a building through the carrying out of renewal or a low rental housing program. The amount of the Société’s contribution shall not exceed 50% of the joint rental allowance.

R.R.Q., 1981, c. S-8, r. 3, s. 35.

36. The amount of the rental allowance must not exceed the difference between the rental rate determined in accordance with the provisions of the By-law respecting the leasing of low-rental housing (O.C. 142-84, 84-01-18) and the average rental rate accepted by the Société of the district in which the dwelling unit to be occupied by the tenant evicted is located or the rate accepted by the municipality, if the latter is lower than the average rental rate.

R.R.Q., 1981, c. S-8, r. 3, s. 36; O.C. 122-82, s. 4; O.C. 2506-82, s. 1.

37. Any application from a municipality for paying jointly with the Société the rental allowances provided for in section 35, must be filed on the form supplied for this purpose by the Société together with all other documents and information that the Société may request.

R.R.Q., 1981, c. S-8, r. 3, s. 37.

38. Any agreement made pursuant to section 35 must determine the particulars of the payments of the rental allowances provided for in such an agreement as well as the norms of control and verification by the Société and the municipality.

R.R.Q., 1981, c. S-8, r. 3, s. 38.

39. The payment of a rental allowance must be discontinued when:

(a)  the agreement provided for in section 35 has expired;

(b)  the tenant receiving the rental allowance refuses to occupy a municipal low rental dwelling unit offered by the municipality or a municipal housing bureau;

(c)  the tenant vacates his dwelling unit without authorization from the municipality;

(d)  the tenant is evicted from his dwelling unit for a breach of contract of his lease;

(e)  the requirements of this By-law are not being adhered to.

Any dwelling unit occupied by a tenant who is receiving a rental allowance under this Division must comply with the standards accepted by the Société.

R.R.Q., 1981, c. S-8, r. 3, s. 39.

40. The Société may refuse to contribute to the payment of rental allowances when the rental rate, in its opinion, is too high in comparison with the average rental rate accepted by the Société for the district.

R.R.Q., 1981, c. S-8, r. 3, s. 40.

41. Any municipality wishing to renew an agreement executed pursuant to this Division must first establish to the Société’s satisfaction that it cannot realize a municipal low rental housing program.

R.R.Q., 1981, c. S-8, r. 3, s. 41.

DIVISION VII RENT SUPPLEMENT

42. The Société shall submit to the Conseil du trésor a complete annual program for each group of clients, including:

(a)  the estimated annual cost of carrying out the rent supplement program;

(b)  the provisions to be made for administering the program;

(c)  the criteria for selecting persons or families to occupy the dwellings;

(d)  the draft agreement by which the Société entrusts to a municipal housing bureau or a non-profit organization the partial or total management of a rent supplement program.

R.R.Q., 1981, c. S-8, r. 3, s. 42.

43. The Société may, to put into effect the programs described in section 42, make with any owner of rental lodgings an agreement providing for the payment of the rent supplement for persons and families with low income to enable them to occupy a dwelling that meets the standards prescribed in Division V of Schedule A to the By-law respecting urban renewal (R.R.Q., 1981, c. S-8, r. 9) and to satisfy their needs.

R.R.Q., 1981, c. S-8, r. 3, s. 43.

44. The Société may, to put into effect the programs described in section 42, entrust to a municipal housing bureau, a non-profit organization or one of its regional offices, through an agreement, the partial or total management of a rent supplement program.

R.R.Q., 1981, c. S-8, r. 3, s. 44.

45. The amount of rent supplement for each dwelling unit must not exceed the difference between the occupant’s rent determined for purposes of the program and the rent agreed upon from time to time by the owner and the Société.

R.R.Q., 1981, c. S-8, r. 3, s. 45; O.C. 122-82, s. 5.

46. An agreement contemplated in section 43 must indicate:

(a)  the number of dwelling units for which a rent supplement can be paid;

(b)  that the term of the agreement may not exceed 15 years;

(c)  the terms and conditions of payment of the rent supplement, and the supervision and inspections which may be carried out by the Société;

(d)  the frequency, time limits and conditions governing renegotiation of rents with the owner.

R.R.Q., 1981, c. S-8, r. 3, s. 46.

47. Every agreement contemplated in sections 42 and 44, must state, in addition to the requirements of section 46, that:

(a)  the Société’s contribution to the annual expenses incurred for payment of the rent supplement and administration of the program may amount to 90% of the expenses acknowledged by it;

(b)  the contribution of a municipality to the annual expenses incurred for payment of the rent supplement and administration of the program may amount to 10% of the expenses acknowledged by the Société;

(c)  when required by the Société, every agreement with an owner must be submitted for approval by the Société.

R.R.Q., 1981, c. S-8, r. 3, s. 47.

48. Where a person is the owner of a residential building in which a lessee who has received public rent reduction subsidies is living when the subsidy expires, the benefit granted is not transferable from one lessee to another.

R.R.Q., 1981, c. S-8, r. 3, s. 48; O.C. 143-84, s. 2.

DIVISION VIII SPECIAL PROVISION

49. When the Société believes it necessary to carry out a housing program in a municipality and that this municipality has insufficient financial resources, the amount of the loan and subsidies provided for in section 12 may rise to 100% of the costs recognized by the Société. Moreover, the lodging allotments provided for in section 35 may be entirely financed by the Société in the special cases mentioned in this Division and in Division VII of the By-law respecting urban renewal (R.R.Q., 1981, c. S-8, r. 9).

R.R.Q., 1981, c. S-8, r. 3, s. 49.

SCHEDULE 1

(Revoked)

R.R.Q., 1981, c. S-8, r. 3, Sch. 1; O.C. 256-82, s. 12.

REFERENCES

R.R.Q., 1981, c. S-8, r. 3

O.C. 122-92, 1982 G.O. 2, 251; Suppl. 1209

O.C. 256-82, 1982 G.O. 2, 625; Suppl. 1210

O.C. 2506-82, 1982 G.O. 2, 3382

O.C. 143-84, 1984 G.O. 2, 816

O.C. 1124-87, 1987 G.O. 2, 3139

S.Q. 2013, c. 28, s. 205