Dale Nally, Minister of Service Alberta and Red Tape Reduction (Government of Alberta)

By rdnewsNOW staff

Legislation Tabled

Alberta government aiming to protect Albertans in life leases

Mar 18, 2024 | 4:25 PM

The provincial government says it has tabled legislation to protect Albertans and ensure consistency in contracts with life lease housing operators.

Life leases are described an important, alternative form of housing aimed at supporting independent living that is often tailored toward seniors. In response to recent challenges faced by some life leaseholders and their families, provincial officials say proposed changes to Alberta’s Consumer Protection Act would increase consumer protection by providing consistency and ensuring timely repayment of consumer funds.

If passed, officials say the Consumer Protection (Life Lease Protection) Amendment Act, 2024 would address regulation gaps to help Albertans who choose this affordable housing option while also establishing clear and consistent criteria for life lease contracts. Currently, the government says life leases are unregulated in Alberta. By adding life leases to Alberta’s legislation, officials note, the province will join Saskatchewan and Manitoba as the only provinces to legislate them.

“When we heard some life leaseholders and their families were struggling to receive their money back from their entrance fees and that their contracts were unclear, we took action,” says Dale Nally, Minister of Service Alberta and Red Tape Reduction. “Albertans deserve to feel safe when entering into contracts and should be offered clear and fair agreements. That’s why we worked closely with leaseholders, their families, and operators to help shape this legislation.”

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If passed, the Consumer Protection (Life Lease Protection) Amendment Act, 2024 would:

• set out minimum requirements for what life lease contracts must contain,
• mandate the return of entrance fees to be within 180 days of termination of the lease,
• establish the ability to create interest penalties for entrance fees not repaid within the required 180 days,
• mandate a ten-day cooling-off period after contracts are signed,
• set out broad regulation making authority to further regulate the life lease industry, including the authority to establish security requirements for the life lease industry should additional rules become necessary, and
• establish that non-compliance with these new requirements will be deemed offences and will be subject to enforcement under the Consumer Protection Act’s existing framework.

“Life leases can be valuable for affordable, quality, supportive living when managed appropriately,” adds Michelle Charlesworth, Senior Director of Operations, Covenant Care & Covenant Living. “If not properly secured, they can be risky and potentially devastating to a senior’s financial well-being. We applaud the government for protecting seniors in our province.”

“With the growth of Alberta’s seniors expected to reach 20 per cent of the population by 2051, it is important that a full range of housing options are available to serve the diverse needs of our seniors,” shares James Nibourg, President, Alberta Seniors and Community Housing Association. “We look forward to working with Minister Nally and his team to ensure that life lease options are a safe, secure and viable choice for Albertans through the Consumer Protection Act with a sustainable development and operational model for providers.”

Related information

• Improving life lease protection
• Bill 12: Consumer Protection (Life Leases) Amendment Act, 2024

Parmeet Singh Boparai, Alberta NDP Critic for Service Alberta, issued the following statement in response:

“The UCP’s Bill 12 does nothing to allay the concerns of Albertans who have millions of dollars tied up in life leases.

“This legislation enables almost all the decisions to be made by regulation without democratic debate or discussion in the Legislature as would be appropriate on a matter as important as this.

“The Minister needs to be working closely with these life lease holders and strongly consider what oversight and enforcement role the government can play to ensure Albertans’ concerns are addressed adequately.

“It is important that the new legislation apply not only to future, but also to current life lease holders.

“Given the UCP’s track record of not listening to Albertans, but rather siding with for-profit entities, this leaves us with great concern for families who need this government to stand up for them.”

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