Ontario Caps Care Home Service Fee Hikes

Summary#

This bill changes Ontario’s housing law for people who live in retirement homes and other care homes. It aims to make service and meal fees clear, fair, and predictable, and to protect seniors from sudden or excessive increases.

• Requires clear, updated information packages that list all care and meal options and their prices.
• Forces itemized billing, “pick-and-pay” choice (no forced bundles), and the same price for the same service for everyone in the home.
• Lets tenants add services later, and then reduce or stop them with 10 days’ notice.
• Caps increases to care and meal charges to once per year and usually by no more than the province’s annual rent guideline; a limited exception process can allow up to 3% per year for up to three years if justified by costs.
• Requires fees to drop if a service’s quantity or quality is reduced, and makes discount terms clear.
• Clarifies that when a retirement home closes, residents still have tenant rights and closure notice is not an eviction.

What it means for you#

• Residents of care homes

  • You will get a clear package that lists accommodation types, service and meal packages, all prices, and any extra services with their fees.
  • Bills must be itemized. You can pick only the services you want and pay only for those.
  • The price for each service must be the same for every tenant in your home.
  • If a service is cut back or quality drops, your fee for that service must go down in the same way.
  • If you add services later, you can reduce or stop them with at least 10 days’ notice. You do not pay for the reduced or stopped portion after that date.
  • Service and meal fees can rise at most once every 12 months. In most cases, the increase cannot be more than the province’s rent guideline for that year. Any exception must be approved by regulation, be proven to match real costs, and is capped at 3% per year for up to three years.
  • Any discount must be written into your agreement, with an end date if there is one. If there is no end date, any increase from the discounted price is still capped by the annual limit.
  • With your consent, your family or a person important to you can receive updated information packages.
  • If your retirement home closes, you still have tenant rights under Ontario’s housing law. A closure notice is not a notice to end your tenancy.

• Families and caregivers

  • With the resident’s consent, you can see the information package and major updates, helping you compare options and watch for changes in fees or services.

• Landlords and operators of care homes

  • You must provide and keep current an information package that lists accommodation types, service and meal packages, all charges, and any extra services and fees. You must update tenants and make the current version easy to find in the home.
  • Prices in agreements must match the current information package, and the same service must have the same price for all tenants.
  • You may offer bundles, but tenants must be able to choose services individually.
  • If services are reduced, you must reduce the related charges accordingly.
  • Increases to care and meal charges are limited to once per year and to the annual rent guideline, unless an approved exception applies. Any exception cannot exceed actual service costs and is capped at 3% per year for up to three years, and you must prove it is justified.
  • Agreements for added services must be in writing and not coerced or misleading. Such agreements can include shorter or no notice for changing charges, but all caps on amount and timing still apply.
  • Increases that do not follow these rules are void.
  • Timing: The law takes effect one year after it receives Royal Assent, unless the government starts it earlier.

Expenses#

No publicly available information.

Proponents' View#

• Protects seniors on fixed incomes from sudden or excessive service and meal fee hikes.
• Stops “backdoor rent increases” by bringing service fees under clear annual caps and timing rules.
• Improves transparency with itemized bills, standard prices for services, and updated information packages.
• Prevents coercion and misleading add-on agreements; lets tenants cancel added services with simple notice.
• Ensures people are not charged full price when services are cut back.
• Clarifies tenant rights during retirement home closures to reduce fear and confusion.

Opponents' View#

• Caps tied to the rent guideline may not keep up with rising costs of food, staffing, and care, risking service cutbacks.
• Uniform pricing for each service removes flexibility to offer individualized pricing or income-based discounts.
• Requiring “pick-and-pay” and frequent updates to information packages adds administrative work and costs.
• Letting tenants stop added services with 10 days’ notice can make staffing and scheduling harder to manage.
• Tighter rules and limited room for fee growth could discourage investment in new or upgraded care homes.