Item - 2017.LS17.1

The Licensing and Standards Committee recommends that:

New bylaw

1. City Council direct that a separate Toronto Municipal Code Chapter be established for Apartment Buildings, in accordance with the following recommendations, that is applicable to rental properties with three or more storeys and ten or more dwelling units available for rent, and not applicable to long-term care facilities or licensed retirement homes.
 

Registration

2. City Council direct that the owner shall register with the City every 12 months. Registering shall consist of paying an annual registration fee and providing the following information:

a. Name of building owner. Where there are multiple owners, each person must provide their name and address.
b. Contact information of building owner.
c. Name of building operator. Where there are multiple operators, each person must provide their name and address.
d. Contact information of building operator.
e. Any other information as required by the Executive Director, Municipal Licensing and Standards.

3. City Council direct that the registration criteria include information related to:

a. Security features, e.g., locking systems, cameras and security services; and

b. Sub-metered electricity including name of local distribution company/provider servicing the building.

4. City Council direct that:

a. No owner shall operate an apartment building that is not registered.
b. No owner shall register information that is inaccurate, misleading or otherwise incorrect.
c. Information listed in recommendation 2 a, b, c, and d shall be updated within 30 days of any change. All other information required by the Executive Director, Municipal Licensing and Standards, must be updated every 12 months upon registration.
d. Where the Executive Director, Municipal Licensing and Standards determines that registration information is inaccurate, misleading or otherwise incorrect, the Executive Director, Municipal Licensing and Standards shall notify the owner.
e. If the owner fails to correct registration within 14 calendar days of receipt of the notice the Executive Director, Municipal Licensing and Standards shall remove the owner's registration from the registry without further notice to the owner.

Tenant service requests

5. City Council direct that the owner and operator shall develop a process for receiving and tracking tenant requests. The process shall include collecting the following information regarding the request and providing a copy of the information to the tenant upon request:

a. Date and time of service request
b. Location of issue (including unit number, if applicable)
c. Nature of issue
d. Tenant name and contact information
e. Determination of urgent or non-urgent request
f. Response from owner or operator

6. City Council direct that the owner or operator shall be required to demonstrate compliance with the tenant service request process that is created.  

7. City Council require owners or operators to respond to urgent requests within 24 hours and non-urgent requests within 7 days. Requests are urgent if they are related to the discontinuance of the following vital services: fuel, electricity, gas, heat, or hot or cold water.
 

Tenant notification

8. City Council direct that the owner or operator shall have a notification board in a central location and post the following information:

a. Information regarding planned or unplanned service disruptions, including disruption to heat, water, security, electricity, elevators (shall include nature of disruption, duration of disruption, units affected).
b. Information regarding major capital projects (shall include nature of project, duration of project, units affected).
c. Cleaning plan.
d. Emergency contact information as described in Municipal Code Chapter 629-5.1 B, C and D.
e. Information regarding the nearest cool location, including: (1) The location of an air-conditioned place in the building, if accessible to tenants; and (2) the name, address and map to location of a publicly accessible air-conditioned location.
f. All confirmed orders pursuant to Chapter 629, notices pursuant to pursuant to Chapter 485, Graffiti; and notices of non-compliance pursuant to Chapter 844, Waste, issued by Municipal Licensing and Standards that apply to common areas, if any.
g. Property standards appeals relating to common areas, if any.
h. Date of any Municipal Licensing and Standards audit, if any, upon receipt of notice from Municipal Licensing and Standards.
i. Any other documents as required by the Executive Director, Municipal Licensing and Standards.

Pest management

9. City Council direct that the owner or operator shall inspect:

a. Indoor and outdoor common areas of the building at least once every 30 days for the presence of pests.
b. Any area within 72 hours of the receipt of any information indicating the presence of pests.

10. City Council direct that the owner or operator who is aware of the presence of pests shall take adequate measures to:

a. Prevent the spread of the pests into other portions of the property.
b. Eliminate or exterminate the pests in all areas where the presence of the pests is detected.

11. City Council direct that the owner or operator shall retain a pest management operator licensed by the Ministry of Environment to conduct all pest extermination activity.

12. City Council direct that no owner or operator shall take any action or fail to take any action which is likely to:

a. Cause the spread of the pests into other portions of the property; or
b. Prevent the control or extermination of the pests.

13. City Council direct that no person shall take any action or permit any person to take any action intended to obscure or hide the presence of pests in any portion of a property or obstruct the extermination of the pests.

14. City Council direct that no person may rent a unit to a new tenant if the owner or operator is aware of the presence of pests in the unit.
 

Waste management plan and requirements

15. City Council direct that the owner or operator will have a waste management plan. A waste management plan shall include the following:

a. Information about how owners or operators will comply with the garbage and debris storage and disposal requirements outlined in Municipal Code Chapter 629.
b. Information about how owners or operators will comply with mandatory diversion requirements.

16. City Council direct that the owner or operator shall be required to demonstrate compliance with the waste management plan that is created.  

17. City Council direct that the owner or operator take the following actions relating to waste diversion information:

a. Post waste diversion literature (items accepted, location of collection bins) in at least one common area.
b. Identify clearly with stickers or posters the correct place to deposit waste, recycling and, if applicable, organic materials.

 
Cleaning plan and requirements

18. City Council direct that the owner or operator shall inspect common areas of the building at least once every day for cleanliness.

19. City Council direct that the owner or operator shall have a cleaning plan. A cleaning plan consists of:

a. A list of all areas accessible to tenants and the public and the frequency with which these areas will be cleaned. This list shall include but not be limited to the following areas: garbage storage area; walls; floors; laundry room and equipment, if present.
b. A process, including a timeline (in hours) for the owner or operator to clean unexpected or emergency situations that would cause all or part of the common areas to be in a state of uncleanliness.

20. City Council direct that the owner or operator shall be required to demonstrate compliance with the cleaning plan that is created.  

Licensed contractors for maintenance

21. City Council direct that the owners and operators must use a licensed or certified contractor where required by law for activities including but not limited to servicing heat, ventilation, air conditioning and plumbing systems.
                 

State of good repair capital plan

22. City Council direct that the owner shall have a current state of good repair capital plan and shall make the plan available to Municipal Licensing and Standards upon request. A state of good repair capital plan consists of a list of the capital elements of the buildings and date upon which the element will be scheduled to be replaced or updated. Capital elements shall include but not be limited to: roof, elevators, façade, windows, mechanical systems, underground garage, interior flooring, interior wall finish, balcony guards, and handrails.

23. City Council direct that the owner or operator provide the state of good repair capital plan to tenants and prospective tenants upon request.
 

Record keeping

24. City Council direct that the owner or operator shall create records and retain the records sufficient to demonstrate compliance with this chapter for a period of no less than 24 months. The records shall include but will not be limited to the following:

a. Information regarding tenant service request responses as outlined in recommendation 4.
b. Log of all scheduled or unscheduled cleaning activities that includes but is not limited to the nature of the activity and the date and location on which it occurred.
c. Log of all scheduled or unscheduled activities relating to the waste management plan, including but not limited to the nature of the activity and the date and location on which it occurred.
d. Log of all schedule or unscheduled pest inspections, including the date and location of all proactive and reactive pest inspections; the name of the pest management operator licensed by the Ministry of the Environment that conducts the inspection; the results of the inspection and the recommended treatment, if any.
e. Log of all pest treatment activities, including the date and location of treatment, the name of the pest management operator licensed by the Ministry of the Environment undertaking the treatment, the nature of the treatment.
f. Log of service and maintenance conducted on fuel burning appliances, heating systems, cooling systems, ventilation systems and plumbing systems, including but not limited to: date and nature of service and name of licensed contractor, if applicable.

25. City Council direct that owners or operators shall make the pest inspection and treatment records (as described in Recommendation 24 d and e) that pertain to common areas available to tenants and prospective tenants upon request.

26. City Council direct that owners or operators shall post information on the notice board regarding any pest treatment activities, including the date of the treatment, the name of the licensed pest management company undertaking the treatment, and the nature of the treatment. The notice shall not include the location of the treatment.
 

Renting a unit to a new tenant

27. City Council direct that no person may rent a unit to a new tenant if there is a confirmed property standards order pursuant to Municipal Code Chapter 629 related to the unit or if there is a discontinuance of any vital service (fuel, electricity, gas, heat, or hot or cold water) in the building.
 

Enforcement authorities

28. The bylaw will include provisions to enable the City to conduct inspections, issue orders for compliance, take remedial action and take any other enforcement activities consistent with the authorities in the City of Toronto Act, 2006.
 

Audits and regular site visits

29. City Council direct that Municipal Licensing and Standards shall have the authority to conduct routine site visits and pre-audits of all buildings to determine whether the buildings are in compliance with this and all other City by-laws.

30. City Council direct that Municipal Licensing and Standards shall have the authority to audit buildings that require further investigation and re-inspect buildings to confirm that the owners or operators are complying with any issued orders.
 

Registration, audit and enforcement activity fees

31. City Council amend Chapter 441 to include the user fees for audits, re-inspections and registration as outlined in Attachment 1 in the report (February 24, 2017) from the Executive Director, Municipal Licensing and Standards, and set out below:

32. City Council direct that all fees in Attachment 1 in the report (February 24, 2017) from the Executive Director, Municipal Licensing and Standards shall be waived for social housing providers. Social housing providers are:

a. Toronto Community Housing Corporation.
b. A non-profit provider of assisted or social housing under a program administered by the City of Toronto.
c. A dedicated supportive housing provider funded by the Province of Ontario.
 

Fines

33. City Council direct that anyone who contravenes any provision of this bylaw is guilty of an offence and upon conviction is liable to a fine of no more than $100,000.

34. City Council establish a system of fines that include fines for continuing and multiple offences and special fines where it is determined that the conduct could have resulted in economic advantage or gain to the party found to have breached the by-law.

35. City Council establish that directors or officers of a corporation knowingly concurring in the contravention of any offence under the by-law by the corporation are guilty of an offence.
 

Implementation

36. City Council direct that the bylaw come into effect July 1, 2017.

37. City Council authorize the City Solicitor to make stylistic and technical decisions in the drafting of the by-law.

38. City Council direct the Executive Director, Municipal Licensing and Standards to report back to the Licensing and Standards Committee after one year from the date of enactment of the new by-law, with an update on the implementation and outcomes of the by-law.

39. City Council direct the Executive Director, Municipal Licensing and Standards to review and report through the Tenant Issues Committee and the Licensing and Standards Committee in the third quarter of 2018, on the Certified Rental Building program and its relationship to the new apartment by-law.

40. City Council direct the Executive Director, Municipal Licensing and Standards to allocate $60,000 of the program budget for tenant engagement to be used for direct door-to-door engagement regarding tenant rights and responsibilities, and advice on how tenants can participate in Toronto's new by-law for apartment buildings.

41. City Council request the Executive Director, Municipal Licensing and Standards to give consideration to issuing a Request for Proposal for the implementation of the door-to-door tenant engagement process set out in Recommendation 40.

42. City Council request the Executive Director, Municipal Licensing and Standards, should she decide on a Request for Proposal process for the door-to-door engagement program set out in Recommendation 40, to give consideration to the following qualifications such as:

a. Experience engaging low and moderate income tenants in buildings across the city;

b. Experience engaging tenants in buildings with outstanding work orders and where Municipal Licensing and Standards (ML&S) and Multi-Residential Apartment Building (MRAB) have repeated problems;

c. A history of working in the many diverse communities in Toronto's rental market

d. Knowledge and experience with municipal licensing and standards staff and by-laws;

e. Membership base across the city that resides in apartment buildings across the city;

f. Experience and a commitment to engaging tenants at their homes, where they reside and are most comfortable discussing their issues;

g. Knowledge and experience working with tenants who face barriers around mental health, disability, poverty and language;

h. Knowledge and experience of the residential tenancies act;

i. History of working as a stakeholder on Municipal Licensing and Standards (ML&S) by-laws and enforcement in apartment towers where this bylaw is being applied; and

j. Ensuring no personal information is collected by the organization(s) conducting the door-to-door engagement.

43. City Council direct the Executive Director, Municipal Licensing and Standards to review and report back on the feasibility of requiring owners or operators to post on the notification board:

a. Certificate of pest control services;

b. Standardized treatment schedules for both demand and preventative services; and

c. Customer service expectations for pest control service

The Licensing and Standards Committee requested the Executive Director, Municipal Licensing and Standards to:

1. Report to the Licensing and Standards Committee on June 14, 2017 on the feasibility and implications of excluding housing cooperative buildings that are not-for-profit from the provisions of the by-law.

2. Report to the Licensing and Standards Committee on the feasibility of including, as a condition or approval, the provision of children's playground and dog meet-and-greet areas.

3. Report directly to City Council, if necessary, on the comments received regarding this matter.

At its meeting on December 13, 14 and 15, 2016, City Council approved, in principle, a new regulatory bylaw for apartment buildings. This report outlines the recommendations necessary to create the new apartment bylaw. The bylaw will impose standards for owners and operators of apartment buildings and is a component of a regulatory, audit and enforcement regime that aims to improve living conditions for tenants.

The proposed bylaw sets out management standards for apartment building owners and operators by requiring them to:

- Register annually with the City. Registration requires owners provide key information regarding their building and pay an annual fee.
- Have a process for receiving and tracking tenant service requests.
- Conduct regular inspections of the building for cleanliness and the presence of pests.
- Take action when pests are detected.
Develop and maintain a number of operational plans related to cleaning, waste management and capital planning.
- Use licensed contractors for mechanical systems repairs.
- Have a notification board in a central location in the building to communicate key information to tenants.
- Retain records relating to the operations of the building.
 

Owners and operators that do not comply with this bylaw may face fines, including certain special fines. The bylaw will also make it an offence for any owner or operator to rent a unit to a new tenant if there are confirmed property standards orders related to the unit.

The report also proposes new and increased fees for audits and re-inspections in apartment buildings that form part of the cost recovery model approved in December 2016. The revenue from these fees, in addition to that of the registration fee, will cover 65% of the costs of enforcing City bylaws in apartment buildings. The remaining costs will be funded by tax revenues. Toronto Community Housing and other social housing providers will be exempt from these fees.

It is recommended that the bylaw come into effect July 1, 2017. The report identifies a schedule for communicating the impacts of the proposed bylaw, launching registration and reviewing the bylaw one year after implementation.

The proposed bylaw is one component of a number of additions and improvements to the way Municipal Licensing & Standards (ML&S) enforces bylaws in apartment buildings that were approved at the December meeting. The other approved changes include creating an online information portal on apartment buildings, adding funding for improved communication to owners, operators and tenants and strengthening the proactive approach to enforcement. The goals of these changes, along with the proposed bylaw, are to promote preventative maintenance, enhance tenant engagement and access to information, strengthen enforcement, and recover the costs of bylaw enforcement in apartment buildings. The approved changes were developed by ML&S based on research and public consultation completed between June and October 2016

Legal Services, Shelter Support and Housing Administration (SSHA), Toronto Fire Services, Solid Waste Management Services, Transportation Services, Office of Emergency Management, Toronto Public Health, and Tower and Neighbourhood Revitalization Unit in Social Development, Finance and Administration were consulted in preparation for this report.