Parliament: Assessors Can Specify Rental Exemption Amount For Tenants Based On Proposed Changes To The Covid-19 Act, Political News And Featured Stories



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SINGAPORE – Assessors appointed by the Ministry of Law (MinLaw) to deal with disputes under the rent relief framework will be given greater powers to specify the amount of rent to be waived in some cases, based on proposed amendments to Covid-19 (Measures temporary) Act.

This is the second time that amendments to the law have been proposed.

In June, the first amendments were passed requiring landlords to grant additional rental waivers to eligible tenants and subtenants of small and medium-sized businesses (SMEs) that have been severely affected by the coronavirus pandemic.

Landlords who are unable to reach an agreement with these tenants as to whether the latter are eligible for the rental exemptions, the part supported by government assistance and / or the part assumed by the owner, may request that the assessors make a determination .

Landlords can also have appraisers determine if they can provide tenants with a reduced amount of rental exemptions, based on financial hardship.

The proposed amendments, which were tabled in Parliament on Thursday (September 3), will allow advisers to specify the amount of rent that will be exempted to tenants under the framework.

This will apply when the amount is affected by maintenance and service charges, especially if they are not included in the lease or license; when the amount could be offset with assistance previously provided by the owner; when the tenant occupies the property for only part of the relief period; and when there are multiple subtenants on the same property.

Additionally, the amendment bill will also clarify existing Part 8 of the law, which is not yet in effect, which allows parties to some contracts to obtain relief if they are affected by non-compliances or delays in construction, supply or related contracts.

It will be specified that a request for redress cannot be submitted for such contracts if judicial, arbitration, or the Construction Industry Payment Security Act (Sopa) procedures related to the request have already been initiated.

Conversely, once a request for redress has been submitted, the other parties to the contract cannot initiate judicial, arbitration or Soup proceedings on the same matter, until a determination is made or the request is rejected or withdrawn.

If a determination is made and the terms of the contract are adjusted, any subsequent requests and determinations made under Sopa must be based on the adjusted terms of the contract.

In cases where an application for Soup is filed before the other party seeks redress under the Act, the adjudicator of the Soup will have powers to grant a remedy, similar to that of the evaluators, to account for the impact of Covid-19.

The amendments to the Covid-19 (Temporary Measures) Act will also include continuing to allow alternative meeting arrangements, such as annual general meetings, to prevent the spread of Covid-19, regardless of whether safe distancing regulations change or cease.

Currently, the Law allows organizations and entities to do so until September 30.

MinLaw said it will announce a deadline extension “soon” to give organizations greater certainty and confidence in calling or holding meetings using alternative arrangements.

He added that, if approved, the amendments tabled on Thursday will keep Singapore’s legal interventions relevant and responsive to the continued uncertainty brought on by Covid-19.

“More details of these amendments are still being worked out and will be announced separately,” MinLaw said, adding that it aims for the amendments and necessary changes to subsidiary legislation to come into effect before the end of this month.



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