The language matters more than it might appear.
When a housing co-operative calls its members "tenants," it signals — to the members, to the board, and to anyone advising the co-operative — that the governing framework is the Residential Tenancies Act, 2006. It is not. Housing co-operatives in Ontario are governed by the Co-operative Corporations Act, their letters patent, and their by-laws. The distinction is not semantic. It has direct consequences for how arrears are handled, how members can be terminated, and what rights each party holds.
The legal relationship
A housing co-operative member occupies their unit pursuant to an occupancy agreement — sometimes called an internal occupancy agreement or a licence — with the co-operative. The member is not a tenant. The co-operative is not a landlord. The Residential Tenancies Act does not apply to most housing co-operatives in Ontario, with narrow exceptions that do not apply to the vast majority of non-profit and non-share-capital co-operatives.
This means that the Landlord and Tenant Board — the administrative tribunal that handles residential tenancy disputes — generally has no jurisdiction over disputes between a housing co-operative and its members. A co-operative that attempts to evict a member using the LTB process is proceeding under the wrong legislation.
The correct process for terminating a member's occupancy is governed by the Co-operative Corporations Act (specifically sections 171.1 through 171.9, added by the Co-operative Corporations Amendment Act, 2013) and the co-operative's by-laws. This is a distinct process with its own notice requirements, hearing rights, and timelines.
What this means for arrears
Housing charges — the co-operative equivalent of rent — are set by the board and approved through the co-operative's governance process, not by the market and not by the Residential Tenancies Act rent increase guidelines.
When a member falls into arrears, the co-operative's remedy is not an application to the LTB. It is a process under the co-operative's by-laws and the Co-operative Corporations Act, which may include a notice of termination of occupancy if the arrears are not resolved. The specific process depends on the co-operative's by-laws, which should set out notice periods, cure periods, and hearing rights.
A housing co-operative that is managing arrears as if the Residential Tenancies Act applies — serving "N4" notices, filing LTB applications — is not just using the wrong form. It may be pursuing a remedy the LTB cannot grant, while failing to take the steps that would actually be enforceable.
What this means for governance
The member-co-operative relationship is a membership relationship, not a landlord-tenant relationship. Members of a housing co-operative are members of a non-profit corporation who hold an occupancy right as part of their membership. They elect the board. The board sets housing charges and policy. The manager implements policy and reports to the board.
This structure means that a co-operative's management firm needs to understand co-operative governance — how decisions are made, how members participate, how the board's authority is structured under the Co-operative Corporations Act and the by-laws — rather than treating the co-operative as a multi-unit residential building with a landlord and tenants.
Practical implications for boards
A board that understands the member relationship correctly is better positioned to:
- Set housing charges through a transparent, by-law-compliant process
- Handle arrears through the correct legal mechanism
- Communicate with members about their rights and obligations accurately
- Select a management firm that knows the difference
A management firm that calls your members "tenants" in its internal communications, or that manages your co-operative as if the Residential Tenancies Act applies, is signalling a misunderstanding of the structure it is managing. That misunderstanding has real operational consequences — in how arrears are pursued, in how member terminations are handled, and in the advice the board receives.
The language your co-operative uses internally shapes the decisions it makes. Getting it right is not pedantry — it is governance.