ACT No. XXIV of 2021 AN ACT to amend the laws relative to protected residential leases.

I assent.

(L.S.)

GEORGE VELLA

President

28th May, 2021

ACT No. XXIV of 2021

AN ACT to amend the laws relative to protected residential leases.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in the present Parliament

assembled, and by the authority of the same as follows:-

The short title of this Act is the Controlled Residential Leases

Reform Act, 2021.

PART I

Amendments to the Civil Code

This Part amends the Civil Code and it shall be read and

construed as one with the Civil Code, hereinafter in this Part referred

to as "the Code".

In article 1531B of the Code, the words "1531F," and

"1531G," shall be deleted.

In sub-article (1) of article 1531C of the Code, the words "The

rent of a residence" shall be substituted by the words

"Without prejudice to the rights of the lessor in

accordance to article 4A of the Reletting of Urban

Property (Regulation) Ordinance and article 12B of the

Housing (Decontrol) Ordinance, the rent of a

residence".

Article 1531F of the Code shall be deleted.

Deletion of

article 1531F of

the Code.

Article 1531G of the Code shall be deleted.

Deletion of

article 1531G of

the Code.

Article 1531K of the Code shall be substituted by the Substitution of

article 1531K of

the Code.

"1531K. In the case of a property leased before the

1st June 1995 which is used both as a dwelling-house

and as a commercial premises and for which only one

(1) rent is payable, this shall be considered as a

dwelling-house and it shall be regulated by the

conditions which concern dwelling-houses

Provided that with regard to the rate of the

rent, the rent shall be that established for a commercial

premises as stipulated in this Code or article 4A of the

Reletting of Urban Property (Regulation) Ordinance,

whichever rent is higher.".

In paragraph (e) of article 1622A of the Code, the words Amendment of

article 1622A of

"1531F" shall be substituted by the words

the Code.

"4A of the Reletting of Urban Property

(Regulation) Ordinance and article 12B of the Housing

(Decontrol) Ordinance".

PART II

Amendments to the Reletting of Urban Property (Regulation)

Ordinance

This Part amends the Reletting of Urban Property Amendments of

(Regulation) Ordinance and it shall be read and construed as one with the

Urban Property

the Reletting of Urban Property (Regulation) Ordinance, hereafter in (Regulation)

Ordinance.

this Part referred to as "the Ordinance".

The definition "tenant" in article 2 of the Ordinance shall be Amendment of

article 2 of the

substituted by the following

Ordinance.

"the expression "tenant" means also

(a) in the case of a dwelling-house

(i) that person who has been

recognised as a tenant in accordance with

any law validly applicable before the 1st

June 2021;

(ii)

the widow or widower of a

tenant

Provided that the widow or the

widower shall not have the right to be

considered a tenant if he did not inhabit the

dwelling-house for four (4) out of the last

five (5) years prior to the 1st June, 2008

and, in the case of this sub-paragraph did

not continue living with the tenant until the

date of his death;

(iii) the siblings of the tenant who

have continued the lease in solidum together

with him

Provided that the siblings shall

not have the right to be considered as

tenants if they did not inhabit the dwelling-

house for four (4) out of the last five (5)

years prior to the 1st June, 2008, and, in the

case of this sub-paragraph did not continue

living with the tenant until the date of his

death

Provided further that following the

coming into force of the Controlled Residential

Act No. XXIV of

Leases Reform Act, 2021, no person who has not

yet been recognised as the tenant of a dwelling-

house up to that date shall qualify as a tenant of a

dwelling-house in terms of this definition, except

for those who qualify in accordance with sub-

paragraphs (ii) and (iii)

Provided further that persons who do

not qualify under sub-paragraphs (i), (ii) and (iii)

and have lived in the dwelling-house for four (4)

out of the last five (5) years before the 1st June,

2008 and have continued to live with the tenant

until the date of the demise of the tenant shall

continue occupying the dwelling-house for a

period of five (5) years from the date of death of

the tenant, at the end of which period they shall

vacate said dwelling-house. The compensation for

the occupation of the dwelling-house that shall be

payable to the lessor during the aforementioned

period shall be equal to the highest rent amount

that may have been payable by the tenant

Provided further that following the

death of the tenant the lessor may file an

application in accordance with the provisions of

article 4A and if these persons who do not qualify

under sub-paragraphs (i), (ii), and (iii) do not

satisfy the income and capital assets criteria of the

means-test, the Board shall make a decision in

terms of sub-article (4) of article 4A;

(b) in the case of a shop, where the tenant

leaves no widow or widower, such persons as are

related to the tenant by consanguinity or affinity

up to the degree of cousin inclusively, provided,

in the latter case, such persons are the heirs of the

tenant;

(c) in the case of a club, the person or

persons from time to time succeeding in the

management or direction thereof,

that it includes any sub-tenant in relation to the

tenant.".

Article 4 of the Ordinance shall be amended by the following: Amendment of

article 4 of the

Ordinance.

(a) in sub-article (1) thereof, the words "in the following

cases" shall be deleted;

(b) paragraph (b) of sub-article (1) thereof shall be

substituted by the following new paragraph

"(b) if the new lease established in accordance with

the provisions of this Ordinance is not more than two per

cent (2%) per annum of the freehold value of the tenement

on the open market."; and

(c) sub-article (2) thereof shall be deleted and sub-article

(1) shall be renumbered as article 4 in its entirety.

Immediately after article 4 of the Ordinance, there shall be Addition of new

article 4A to the

Ordinance.

added the following new article

" Continuation of a

4A. (1) When a person is in occupation of a

lease of a dwelling-

d

w

elling-house on the basis of a lease which

commenced before 1 st June 1995 through the

application of the provisions of this Ordinance, the

following conditions shall, provided they are

inconsistent with the provisions of the said articles of

this Ordinance, apply in respect of such lease from 1 st

June 2021 notwithstanding the provisions of the said

articles of this Ordinance or of any other law.

(2) The lessor shall be entitled to file an application

before the Board requesting that the rent be reviewed to

an amount not exceeding two percent (2%) per annum of

the free and open market value of the dwelling-house on

1st January of the year in which the application is filed

and in order to establish new conditions regarding the

lease.

(3) (a) When the request is made by the lessor in

accordance with sub-article (2) and the leased tenement

is a dwelling-house, the Housing Authority shall be

notified with the application and shall have the right to

participate fully as intervenor in the proceedings;

(b) the tenant shall in any case be entitled

to the benefit of legal aid provided by the Housing

Authority in proceedings filed in terms of this

article

Provided that this shall not prejudice

the rights of the lessor who shall be entitled to the

benefit of legal aid provided by the Legal Aid

Agency in proceedings filed in terms of this article

if he is not in full-time gainful employment;

(c) at the initial stages of the proceedings,

the Board shall conduct a means test of the tenant,

which shall be based on the means test provided for

in the Continuation of Tenancies (Means Testing

Criteria) Regulations issued under article 1622A of

the Civil Code and any regulations that may from

time to time replace them. The means test shall be

based on the income of the tenant between the 1 st

January and the 31 st December of the year

preceding the year in which the proceedings are

commenced and the capital of the tenant on the 31 st

December of the said year. The means test shall be

conducted with particular reference, inter alia, to

regulations 4 to 8 of the Continuation of Tenancies

(Means Testing Criteria) Regulations which shall

apply mutatis mutandis

Provided that when the lessor has the

suspicion that the tenant may have transferred his

property, both movable or immovable, with the

intention of hiding these assets, he shall have the

right to request that the means test on the capital

assets shall go back to the 1 st January 2021 or

according to sub-regulation (5) of regulation 4 of

the Continuation of Tenancies (Means Testing

Criteria) Regulations, whichever date comes

earlier, and when it is established that the tenant

has disposed of these assets for malicious

purposes, the Board shall nonetheless take them

into consideration in its means test.

(4) Where the tenant does not meet the income and

capital criteria of the means test the Board shall, after

hearing any evidence and submissions produced by the

parties, give judgement allowing the tenant a period of

two (2) years to vacate the dwelling-house. The

compensation for occupation of the dwelling-house

payable to the lessor during the said period shall be

determined by the Board as the case may be.

(5) Where the tenant meets the income and capital

criteria of the means test the Board shall proceed

according to the following sub-articles.

(6) The Board, in any case, after summarily hearing

the parties and examining any evidence which it

considers relevant, may also order that an increased

amount of rent be paid during the hearing of a pending

application filed in terms of sub-article (1).

(7) When the rent amount is established in

accordance with sub-article (2), that rent may increase

according to the regulations published by the Minister

responsible for housing from time to time

Provided that the demand for this increase shall

be without prejudice to the lessor’s right to request the

revision of the rent in accordance with sub-article (2),

after a period of six (6) years from when the new rent

would have been fixed in accordance with the same sub-

article (2), unless an agreement is reached between the

parties.

(8) The lessor may, whenever it transpires that the

economic circumstances of the tenant have changed, file

a new application before the Board wherein he requests

that a new means test of the tenant is conducted

according to paragraph (c) of sub-article (3) and if the

tenant does not satisfy the income and capital assets

criteria of the means test, the Board shall decide the case

in terms of sub-article (4).

(9) The provisions of this article shall also apply to

cases wherein a community of property on the dwelling-

house exists and the tenant is a co-owner of the same

dwelling-house. When this is the case the Board shall

consider the tenant’s share in the leased dwelling-house

and subtract any part of the new rental amount payable

by him to the other co-owners proportionally.".

Paragraph (b) of article 9 of the Ordinance shall be substituted

by the following

"(b) if the lessor requires the dwelling-house for his own

residence or for that of any of his ascendants or descendants,

whether by consanguinity or affinity, and the Board is satisfied

that the tenant has alternative accommodation, holding it in title

of ownership, which is reasonably suitable to the means of the

tenant and his family as regards size and state of repair and

proximity to his place of work (if he is employed)

Provided that the Board shall also consider properties

of the tenant which despite being in the possession or detention

of third parties, may be recovered by the tenant within a short

period of time

Provided further that the Board shall also consider

properties, the use of which would have been granted to third

parties under any other title including lease for the malicious

purpose of evading the effects of this article

Provided further that this article shall not be

applicable where the tenant is sixty-five (65) years of age or

Provided further that this article shall be without

prejudice to the lessor’s right to obtain the termination of the

lease in the case that the tenant does not meet the income and

capital criteria of the means test mentioned under article 4A.".

In article 11 of the Ordinance the words "four hundred and Amendment of

sixty-five euro and eighty-seven cents (465.87)" shall be substituted by article

Ordinance.

the words "ten thousand euro (€10,000)".

Article 14 of the Ordinance shall be deleted.

Deletion of

article 14 of the

Ordinance.

Article 15 of the Ordinance shall be substituted by the Substitution of

article 15 of the

Ordinance.

" Clauses which are

15. Clauses that bind the tenant to conditions

advantageous to the which are significantly less advantageous than those

provided in this Ordinance, whether such clauses have

been stipulated prior to the 1st June 2021 or afterwards,

shall be considered null and void.".

Immediately after article 46 of the Ordinance there shall be Addition of new

article 47 to the

added the following new article

Ordinance.

For the purposes of the provision of the benefit

documents from the

applicable to tenants who satisfy the means test criteria

Housing Authority. contemplated in article 4A, the Board shall send a copy

of all the documentation gathered by it for the purposes

of said means test and the Housing Authority shall have

the right to retain this information for the purpose of

research

Provided that the Board and the Housing

Authority shall in any case effect such transfers of

information in full conformity with the provisions of the

Data Protection Act and any regulations issued under

the auspices of that Act from time to time.".

18. Immediately after the new article 47 of the Ordinance there Addition of new

article 48 to the

Ordinance.

shall be added the following new article

(1) All parties to a lease agreement, which

was entered into after the 1st June 1995, although

originating from a controlled private residential lease

relationship, may register an agreement by providing

evidence of a contract

Provided that the registration of a lease

agreement according to this sub-article shall not

prejudice the right of the lessor to file an application in

terms of article 4A whenever the rights emanating from

t hi s O r d i n a n c e e xc e e d t ho s e s t i p u l a t e d by t h e

agreement.

(2) Any party to a decision of the Board, even if

such decision is appealed, wherein the lessor was given

the permission to increase the rent amount of the

controlled residential lease by virtue of the law as

applicable between April of 2018 and May of 2021,

may register the agreement in terms of the provisions of

sub-article (1).".

PART III

Amendments to the Housing (Decontrol) Ordinance

19. This Part amends the Housing (Decontrol) Ordinance and it

shall be read and construed as one with the Housing (Decontrol)

Ordinance, hereinafter in this Part referred to as "the Ordinance".

20. The definition "tenant" in article 2 of the Ordinance shall be

substituted by the following

" "tenant" means also

(a) in the case of a dwelling-house

(i) that person who has been

recognised as a tenant in accordance with

any law validly applicable before the 1st

June 2021;

(ii) the widow or widower of a

tenant

Provided that the widow or the

widower shall not have the right to be

considered a tenant if he did not inhabit the

dwelling-house for four (4) out of the last

five (5) years prior to the 1st June, 2008

and, in the case of this sub-paragraph did

not continue living with the tenant until the

date of his death;

(iii) the siblings of the tenant who

have continued the lease in solidum together

with him

Provided that the siblings shall

not have the right to be considered as

tenants if they did not inhabit the dwelling-

house for four (4) out of the last five (5)

years prior to the 1st June, 2008, and, in the

case of this sub-paragraph did not continue

living with the tenant until the date of his

death

Provided that following the coming

into force of the Controlled Residential Leases

Act No. XXIV of

Reform Act, 2021, no person who has not yet

been recognised as the tenant of a dwelling-house

up to that date shall qualify as a tenant of a

dwelling-house in terms of this definition, except

for those who qualify in accordance with sub-

paragraphs (ii) and (iii)

Provided further that persons who do

not qualify under sub-paragraphs (i), (ii) and (iii)

and have lived in the dwelling-house for four (4)

out of the last five (5) years before the 1st June,

2008, and have continued to live with the tenant

until the date of the demise of the tenant shall

continue occupying the dwelling-house for a

period of five (5) years from the date of death of

the tenant, and at the end of which period they

shall

vacate

said

dwelling-house.

The

compensation for the occupation of the dwelling-

house that shall be payable to the lessor during

the aforementioned period shall be equal to the

highest rent amount that may have been payable

by the tenant

Provided further that following the

death of the tenant the lessor may file an

application in accordance with the provisions of

article 12B and if these persons who do not

qualify under sub-paragraphs (i), (ii) and (iii) do

not satisfy the income and capital assets criteria

of the means-test, the Board shall make a decision

in terms of sub-article (4) of article 12B;

(b) any sub-tenant in relation to the

tenant;".

21. Article 12B of the Ordinance shall be substituted by the

" Continuation of a

12B. (1) When a person is in occupation of a

lease of a dwelling-

dwelling-house

on the basis of a title of lease, which may

have also been established on the basis of a preceding

title of emphytheusis or sub-emphyteusis, which

commenced before 1 st June 1995 through the application

of the provisions of this Ordinance, the following

conditions shall, provided they are inconsistent with the

provisions of the said articles of this Ordinance, apply in

respect of such lease from 1 st June 2021 notwithstanding

the provisions of the said articles of this Ordinance or of

any other law.

(2) The lessor shall be entitled to file an application

before the Board requesting that the rent be reviewed to

an amount not exceeding two percent (2%) per annum of

the free and open market value of the dwelling-house on

1st January of the year in which the application is filed

and in order to establish new conditions regarding the

lease.

(3) (a) When the request is made by the lessor in

accordance with sub-article (2) and the leased tenement

is a dwelling-house, the Housing Authority shall be

notified with the application and shall have the right to

participate fully as intervenor in the proceedings;

(b) the tenant shall in any case be entitled

to the benefit of legal aid provided by the Housing

Authority in proceedings filed in terms of this

article

Provided that this shall not prejudice

the rights of the lessor who shall be entitled to the

benefit of legal aid provided by the Legal Aid

Agency in proceedings filed in terms of this

article if he is not in full-time gainful

employment;

(c) at the initial stages of the proceedings

the Board shall conduct a means test of the tenant,

which shall be based on the means test provided for

in the Continuation of Tenancies (Means Testing

Criteria) Regulations issued under article 1622A of

the Civil Code and any regulations that may from

time to time replace them. The means test shall be

based on the income of the tenant between the 1 st

January and the 31 st December of the year

preceding the year in which the proceedings are

commenced and the capital of the tenant on the 31 st

December of the said year. The means test shall be

conducted with particular reference, inter alia, to

regulations 4 to 8 of the Continuation of Tenancies

(Means Testing Criteria) Regulations which shall

apply mutatis mutandis

Provided that when the lessor has the

suspicion that the tenant may have transferred his

property, both movable or immovable, with the

intention of hiding these assets, he shall have the

right to request that the means test on the capital

assets shall go back to the 1 st January 2021 and

when it is established that the tenant has disposed

of these assets for malicious purposes, the Board

shall nonetheless take them into consideration in its

means test.

(4) Where the tenant does not meet the income and

capital criteria of the means test the Board shall, after

hearing any evidence and submissions produced by the

parties, give judgement allowing the tenant a period of

two (2) years to vacate the dwelling-house. The

compensation for occupation of the dwelling-house

payable to the lessor during the said period shall be

determined by the Board as the case may be.

(5) Where the tenant meets the income and capital

criteria of the means test the Board shall proceed

according to the following sub-articles.

(6) The Board, in any case, after summarily hearing

the parties and examining any evidence which it

considers relevant, may also order that an increased

amount of rent be paid during the hearing of a pending

application filed in terms of sub-article (1).

(7) When the rent amount is established in

accordance with sub-article (2), that rent may increase

according to the regulations published by the Minister

responsible for housing from time to time

Provided that the demand for this increase shall

be without prejudice to the lessor’s right to request the

revision of the rent in accordance with sub-article (2),

after a period of six (6) years from when the new rent

would have been fixed in accordance with the same sub-

article (2), unless an agreement is reached between the

parties.

(8) The lessor may, whenever it transpires that the

economic circumstances of the tenant have changed, file

a new application before the Board wherein he requests

that a new means test of the tenant is conducted

according to paragraph (c) of sub-article (3) and if the

tenant does not satisfy the income and capital assets

criteria of the means test, the Board shall decide the case

in terms of sub-article (4).

(9) The provisions of this article shall also apply to

cases wherein a community of property on the dwelling-

house exists and the tenant is a co-owner of the same

dwelling-house. When this is the case the Board shall

consider the tenant’s share in the leased dwelling-house

and subtract any part of the new rental amount payable

by him to the other co-owners proportionally.

(10) The provisions of this article shall also apply in

every case when the lessor has commenced proceedings

with the aim of requesting an increase in the rent under

this law, as was applicable before the 1st June 2021.".

22. Immediately after article 12B of the Ordinance there shall be

added the following new article

12C. The Board shall allow the lessor to resume

possession of the dwelling house if the lessor requires

the dwelling-house for his own residence or for that of

any of his ascendants or descendants, whether by

consanguinity or affinity, and the Board is satisfied that

the tenant has alternative accommodation, holding it in

title of ownership which is reasonably suitable to the

means of the tenant and his family as regards size and

state of repair and proximity to his place of work (if he

is employed)

Provided that the Board shall also consider

properties of the tenant which despite being in the

possession or detention of third parties, may be

recovered by the tenant within a short period of time

Provided further that the Board shall also

consider properties, the use of which would have been

granted to third parties under any other title including

lease for the malicious purpose of evading the effects of

this article

Provided further that this article shall not be

applicable where the tenant is sixty-five (65) years of

age or older

Provided further that this article shall be

without prejudice to the lessor’s right to obtain the

termination of the lease in the case that the tenant does

not meet the income and capital criteria of the means

test mentioned under article 12B.".

23. Immediately after the new article 12C of the Ordinance there Addition of new

article 12D to

shall be added the following new article

the Ordinance.

" Penalty in case of

12D. Where the lessor has resumed possession of

simulation or fraud.

the dwelling-house under the provisions of article 12C

and it is proved that there has been simulation or fraud,

the lessor shall be bound to pay, in lieu of damages, to

the tenant who has quitted the dwelling-house a penalty

not exceeding ten thousand euro (€10,000) to be fixed

by the Board.".

24. Article 14 of the Ordinance shall be substituted by the Substitution of

article 14 of the

Ordinance.

" Clauses which are

14. Clauses that bind the tenant to conditions

which

are significantly less advantageous than those

provided in this Ordinance, whether such clauses have

been stipulated prior to the 1st June 2021 or afterwards,

shall be considered null and void.".

25. Immediately after article 16 of the Ordinance there shall be

added the following new article

17. For the purposes of the provision of the benefit

documents from the

applicable

to tenants who satisfy the means test criteria

Housing Authority. contemplated in article 12B, the Board shall send a

copy of all the documentation gathered by it for the

purposes of said means test and the Housing Authority

shall have the right to retain this information for the

purpose of research

Provided that the Board and the Housing

Authority shall in any case effect such transfers of

information in full conformity with the provisions of the

Data Protection Act and any regulations issued under

the auspices of that Act from time to time.".

26. Immediately after the new article 17 of the Ordinance there

shall be added the following new article

18. (1) All parties to a lease agreement, which is

on the basis of a title of lease, which may have also

been established on the basis of a preceding title of

emphytheusis or sub-emphyteusis, which was entered

into after 1st June 1995, although originating from a

controlled private residential lease relationship, may

register an agreement by providing evidence of a

contract

Provided that the registration of a lease

agreement according to this sub-article shall not

prejudice the right of the lessor to file an application in

terms of article 12B whenever the rights emanating

from this Ordinance exceed those stipulated by the

agreement.

(2) Any party to a decision of the Board, even if

such decision is appealed, wherein the lessor was given

the permission to increase the rent amount of the

controlled residential lease by virtue of the law as

applicable between April of 2018 and May of 2021,

may register the agreement in terms of the provisions of

sub-article (1).".

PART IV

Amendments to the Mediation Act

27. This Part amends the Mediation Act and it shall be read and Amendments of

construed as one with the Mediation Act, hereinafter in this Part the

Act.

referred to as "the principal Act".

28. Article 34 of the principal Act shall be deleted.

Deletion of

article 34 of the

principal Act.

29. Article 35 of the principal Act shall be renumbered as article Renumbering of

article 35 of the

34. principal Act.

PART V

Amendments to the Continuation of Tenancies

(Means Testing Criteria) Regulations S.L. 16.11.

30. This Part amends the Continuation of Tenancies (Means Amendments to

Testing Criteria) Regulations and shall be read and construed as one the

of Tenancies

with the Continuation of Tenancies (Means Testing Criteria) (Means

Criteria)

Regulations, hereafter in this Part referred to as "the principal Regulations.

31. In sub-regulation (1) of regulation 2 of the principal regulations Amendment of

the words "in terms of article 1531F of the Civil Code by a person with a regulation

the principal

claim to the continuation of a tenancy under the said article" shall be regulations.

substituted by the words

"in terms of article 4A of the Reletting of Urban

Property (Regulation) Ordinance and article 12B of the

Housing (Decontrol) Ordinance by a person with a

claim to the continuation of the tenancy under the said

articles".

32. Regulation 3 of the principal regulations, shall be amended by Amendment of

regulation 3 of

the following

the principal

regulations.

(a) the figure "(1)" thereof, shall be deleted and

regulation 3 shall therefore be renumbered as regulation 3 in its

entirety;

(b) in paragraph (a) thereof, the words "preceding the

year of death of the tenant" shall be substituted by the words

"preceding the year in which the application is filed

in terms of article 4A of the Reletting of Urban

Property (Regulation) Ordinance and, or, article 12B of

the Housing (Decontrol) Ordinance"; and

(c) in paragraph (b) thereof, the words "with regard to

the capital criterion, the capital on the date of death of the

tenant" shall be substituted by the words

"with regard to the capital criterion, the capital as of

the 1 January 2021, or five (5) years prior the filing of

the application before the Rent Regulation Board in

terms of article 4A of the Reletting of Urban Property

(Regulation) Ordinance and, or, article 12B of the

Housing (Decontrol) Ordinance, whichever date comes

earlier".

33. Regulation 4 of the principal regulations shall be amended by

the following

(a)

sub-regulation (1) thereof and its proviso shall be

deleted;

(b) sub-regulation (2) thereof shall be renumbered as

sub-regulation (1);

(c) sub-regulation (3) thereof shall be renumbered as

sub-regulation (2);

(d) in sub-regulation (2) thereof, as renumbered, the

words "shall be carried out only once" shall be substituted by the

"may be repeated only in accordance with the

provisions of sub-article (8) of article 4A of the

Reletting of Urban Property (Regulation) Ordinance

and of sub-article (8) of article 12B of the Housing

(Decontrol) Ordinance";

(e) sub-regulation (4) thereof shall be renumbered as

sub-regulation (3); and

(f) sub-regulation (5) thereof shall be renumbered as sub-

regulation (4).

34. Regulation 5 of the principal regulations shall be substituted Substitution of

regulation 5 of

by the following

the principal

regulations.

"5. (1) For the purposes of the part that deals

with the income criteria of the means test, "income"

means income derived from any of the sources

mentioned in article 5 of the Income Tax Act and in the

following provisions of article 4 of the Income Tax Act

(a) in paragraph (a) of sub-article (1), in

paragraph (b) of sub-article (1), in paragraph (c)

of sub-article (1) excluding the proviso thereto, in

paragraph (d) of sub-article (1), in paragraph (e)

of sub-article (1) and in paragraph (g) of sub-

article (1) excluding the proviso thereto and

excluding capital gains; and

(b) in sub-article (2), in paragraph (a) of

sub-article (3) excluding the proviso thereto, and

in paragraph (b) of sub-article (3).

(2) For a person who is younger than thirty-six

(36) years old to meet the income criteria of the means

test, the income of the said person during the relevant

period shall not exceed twenty-eight thousand and five

hundred euro (€28,500).

(3) For a person who is between thirty-six (36)

years old to forty-five (45) years old to meet the income

criteria of the means test, the income of the said person

during the relevant period shall not exceed thirty-eight

thousand euro (€38,000).

(4) For a person who is between forty-six (46)

years old to fifty-five (55) years old to meet the income

criteria of the means test, the income of the said person

during the relevant period shall not exceed forty two

thousand euro (€42,000).

(5) For a person who is between fifty-six (56)

years old to sixty-five (65) years old to meet the income

criteria of the means test, the income of the said person

during the relevant period shall not exceed forty-four

thousand and five hundred euro (€44,500).

(6) For a person who is between sixty-six (66)

years old to seventy-five (75) years old to meet the

income criteria of the means test, the income of the said

person during the relevant period shall not exceed

forty-six thousand and five hundred euro (€46,500).

(7) For a person who is seventy-five (75) years of

age or older to meet the income criteria of the means

test, the income of the said person shall not exceed fifty

thousand euro (€50,000).

(8) The Rent Regulation Board shall have the right

to fix higher levels of income from those contemplated

under this regulation when the person with a claim to

continue the tenancy is a person with disability who is

registered with the Commission for the Rights of

Persons with Disability and the type of disability is

considered to be of a severe nature.

(9) For the purposes of determining the severity of

disability of such person and subsequently fix an

appropriate level of income, as required in sub-regulation

(8), such assessment shall be carried out in the same

manner as that applicable in the case of claims for an

invalidity pension under paragraphs (e) and (f) of the

first proviso to article 106 of the Social Security Act,

with the involvement of the Commission for the Rights

of Persons with Disability.".

35. Regulation 6 of the principal regulations shall be substituted

by the following

"6. (1) For a person who is younger than thirty-

six (36) years old to meet the capital criteria of the

means test, the capital of the said person shall not

exceed sixty thousand euro (€60,000).

(2) For a person who is between thirty-six (36)

years old to forty-five (45) years old to meet the capital

criteria of the means test, the capital of the said person

shall not exceed ninety thousand euro (€90,000).

(3) For a person who is between forty-six (46)

years old to fifty-five (55) years old to meet the capital

criteria of the means test, the capital of the said person

shall not exceed one-hundred and eighty-five thousand

euro (€185,000).

(4) For a person who is between fifty-six (56)

years old to sixty-five (65) years old to meet the capital

criteria of the means test, the capital of the said person

shall not exceed two hundred and thirteen thousand

euro (€213,000).

(5) For a person who is between sixty-six (66)

years old to seventy-five (75) years old to meet the

capital criteria of the means test, the capital of the said

person shall not exceed two hundred and forty-five

thousand euro (€245,000).

(6) For a person who is seventy-five (75) years of

age or older to meet the capital criteria of the means

test, the capital of such person shall not exceed six

hundred thousand euro (€600,000).

(7) The Rent Regulation Board shall have the right

to fix higher levels of capital from those contemplated

under this regulation when the person with a claim to

continue the tenancy is a person with disability who is

registered with the Commission for the Rights of

Persons with Disability and the type of disability is

considered to be of a severe nature.

(8) For the purposes of determining the severity of

disability of such person and subsequently fix an

appropriate level of income, as required in sub-regulation

(7), such assessment shall be carried out in the same

manner as that applicable in the case of claims for an

invalidity pension under paragraphs (e) and (f) of the

first proviso to article 106 of the Social Security Act,

with the involvement of the Commission for the Rights

of Persons with Disability.".

36. Regulation 7 of the principal regulations shall be amended by Amendment of

regulation 7 of

the following

the principal

regulations.

(a) the figure "(1)" thereof, shall be deleted and

regulation 7 shall therefore be renumbered as regulation 7 in its

entirety; and

(b) in paragraph (h) thereof, the words "financial

product." shall be substituted by the words "financial product:"

and immediately thereafter there shall be added the following

new provisos

"Provided that for the purpose of paragraph (a),

where the Board finds that the possession of dwelling-

house would not be vacant because its use would have

been granted to third parties under any title including

lease, the Board shall consider the conditions at which

the tenant may recover the possession of the dwelling-

house, and if such repossession may be made in the

short term, that dwelling-house shall be included

anyway in the calculation of the capital criteria of the

means test

Provided further that in the case mentioned in the

first proviso, if as a result of the inclusion of the

dwelling-house in the calculation the tenant does not

meet the capital criteria of the means test, the Board

shall have the power to extend the period mentioned

under sub-article (4) of article 4A of the Reletting of

Urban Property (Regulation) Ordinance and article 12B

of the Housing (Decontrol) Ordinance

Provided further that in the scrutiny mentioned in the

second proviso, the Board shall have the power to

consider whether the tenant would have disposed of his

rights maliciously, and in such case include the

dwelling-house in the calculation of the capital criteria

of the means test anyway.".

37. Regulation 8 of the principal regulations shall be substituted

by the following

8. Where several persons have a claim to the

tenancy in solidum in accordance with the provisions of

the Reletting of Urban Property (Regulation) Ordinance

and the Housing (Decontrol) Ordinance, it shall be

enough if one (1) of the said persons satisfies the

income and capital conditions of the means test

provided for in these regulations

Provided that in the case of the death of the

person or persons who would meet the income and

capital criteria of the means test, and who would have

continued the lease in solidum with other persons, the

latter shall not have the right to continue the lease insofar

as they do not also satisfy the income and capital

conditions of the means test.".

38. Immediately after regulation 8 of the principal regulations Addition of new

regulation 9 to

there shall be added the following new regulation

the principal

regulations.

" Means test in

9. In the case that the tenant is married, the means

cases of married

test shall include the income and capital of the spouses

persons.

jointly.".

PART VI

Consequential Amendments

39. The Minimum Compensation for Requisitioned Buildings Repeal of the

Minimum

Regulations are hereby repealed.

Compensation

for

Requisitioned

Buildings

Regulations.

40. Without prejudice to the other provisions of this Part, the Rent Repeal of the

Regulation Board (Mediation) Regulations are hereby repealed, without Rent

Board

prejudice to anything done or omitted to be done thereunder.

(Mediation)

Regulations.

S.L. 69. 03.

41. In article 16 of the Rent Restriction (Dwelling Houses) Amendment of

Ordinance the words "(Regulation) Ordinance." shall be substituted by article

Rent Restriction

the words "(Regulation) Ordinance:" and immediately thereafter there (Dwelling

Houses)

shall be added the following new proviso

Ordinance.

"Provided that no provision of this Ordinance shall

b e in t e r p r e t e d i n s u c h a w a y as t o p r e v e n t th e

application of the Controlled Residential Leases

Act No. XXIV of

Reform Act, 2021.".

42. Article 11 of the Housing Act shall be amended by the Amendment of

article 11 of the

following

Housing Act.

(a) in sub-article (1) thereof, immediately after the

words "the requisition of a building" there shall be added the

words ", except for buildings used for a residential purpose,";

and

(b) immediately after sub-article (4) thereof there shall

be added the following new sub-article

"(5) The compensation that shall be payable in

respect of the requisition of a building used for a residential

purpose shall, upon the demand by the person holding a

title over the building, be reviewed to an amount not

exceeding two percent (2%) per annum of the free and open

market value of the dwelling-house on 1 January of the

year in which the application is filed.".

43. Article 12 of the Housing Act shall be amended by the

following

(a) in sub-article (1) thereof, the words "under article

11(1)(a)" shall be substituted by the words "under articles

11(1)(a) and 11(5)"; and

(b) in the proviso to sub-article (1) thereof, immediately

after the words "Provided that," there shall be added the words

"without pr e judic e to th e a pplic a tion of th e

Controlled Residential Leases Reform Act, 2021,".

Act No. XXIV of

44. In article 13 of the Housing Act the words "in article 12(1)"

shall be substituted by the words "in articles 12(1) and (5)".

45. Regulation 2 of the Mediation Act (Tariff of Fees) Regulations

shall be amended by the following

(a)

paragraph (b) thereof shall be deleted; and

(b) paragraph (c) thereof shall be renumbered as

paragraph (b).

46. Without prejudice to the other provisions of this Part, the

Tariff of Fees for Advocates and Professional Counsel regarding

Mediation relative to the Rent Regulation Board Regulations are

hereby repealed, without prejudice to anything done or omitted to be

done thereunder.

Passed by the House of Representatives at Sitting No. 462 of the

18th May, 2021.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€2.16