Rent-setting Criteria Reform: The RQRA Calls for an Exemption for Private Seniors’ Residences (RPA)

April 16th 2025

MONTREAL, April 16, 2025 /CNW/ – The Quebec Seniors’ Residences Association (RQRA) is calling for the inclusion of an exemption in the draft regulation amending rent-setting criteria, published today by Minister France-Elaine Duranceau. The RQRA considers the measure inconsistent with the reality of private seniors’ residences (RPAs).

First, by capping rent increases at the general inflation rate, the CAQ government will further jeopardize the viability of both for-profit and non-profit seniors’ residences, which have been closing at a rate of two per week since 2018:

“In RPAs, over 40% of rental income on average is used to cover essential services for residents. These are primarily labor costs, food expenses, and supplies for senior care. But these costs don’t just rise by 1%, 2%, or 3%—they often double. In fact, service-related costs can increase by more than 20% in some cases, and the government itself is partly responsible,” explains Hans Brouillette, RQRA Director of Government Relations. He outlines several contributing factors:

• Wage increases in the public health sector put pressure on RPAs to raise wages beyond inflation ;
• Regulations mandate the hiring of trained staff to ensure resident safety;
• A surge in administrative requirements from the Ministry of Health and Santé Québec adds to staffing burdens ;
• RPAs are facing the erosion—and soon, the elimination—of the $4/hour wage transition program for care staff ;
• RPAs must hire more staff to serve a growing population of residents with decreasing autonomy, as the public healthcare network can no longer accommodate them.

Second, when RPAs invest significantly in renovations, purchase medical equipment, or innovate to improve seniors’ well-being or comply with new building standards, the useful lifespan of those investments is much shorter than the 20-year depreciation period set out in the draft regulation. In RPAs, facilities and equipment are used 24/7 by both residents and staff. Moreover, regulatory standards change frequently—every five to ten years at most.

Call to amend the Civil Code

The RQRA is requesting a temporary exemption from the proposed regulation while the government undertakes amendments to the Quebec Civil Code, and consequently to the Regulation on Rent-Setting Criteria, in order to reflect the specific nature of RPAs. When the legal and regulatory framework for rent and leases was established 50 years ago, this housing-with-services model didn’t exist.

Quebec has the most restrictive rent control system in the world, applying not only during a tenant’s occupancy but also between tenancies. In RPAs, landlords often choose not to increase rents for current residents, many of whom have low or fixed incomes. However, it is vital that rents can be adjusted to their fair market value when a resident moves out.

“There is no solution to the housing crisis without a massive push to build new housing units, including those needed to serve Quebec’s soon-to-be 2.2 million seniors. Yet the proposed tightening of rent control may have the opposite effect,” concludes Hans Brouillette.

The average rent in a Quebec private seniors’ residence is $2,300, and seniors aged 70 and older are eligible for a home-support tax credit. In Ontario, average rent exceeds $5,000 per month, and no such tax credit exists.

About the RQRA

The Quebec Seniors’ Residences Association (RQRA) is a non-profit organization whose mission is to represent and bring together private seniors’ residences across Quebec to ensure that seniors enjoy the quality of life they deserve. The RQRA has nearly 800 members among the 1,357 remaining private seniors’ residences, accounting for 108,000 (80%) of the province’s 135,000 RPA units. Its members provide high-quality living environments for independent seniors, as well as care and support services for those with reduced autonomy. RPAs employ 44,500 people and play a major social and economic role in communities throughout Quebec.

Source : RQRA