Item - 2020.PH19.6

The Planning and Housing Committee recommends that:

Apartment Building Rating System

1.  City Council amend Toronto Municipal Code Chapter 354, Apartment Buildings, as follows:

a.  Require apartment building owners and operators to post a rating sign in a form satisfactory to the Executive Director, Municipal Licensing and Standards, displaying the evaluation score of the apartment building near the entrance and in a prominent location visible from the outside the apartment building to those entering or passing by the apartment building.

b.  Require apartment building owners and operators to ensure the rating sign is well-maintained, secured, and posted at all times.

2.  City Council direct the Executive Director, Municipal Licensing and Standards to develop colour-coded rating signs to include red, yellow, light green, and dark green based on the evaluation score of the building.

Fees

3.  City Council establish a fee to be applied when an application to re-evaluate an apartment building is submitted as detailed in Table 1 and amend the Toronto Municipal Code, Chapter 441, Fees and Charges accordingly.

Table 1: Chapter 441 Apartment Building Re-evaluation Application Fee

4.  City Council establish a fee for the replacement of an apartment building rating sign, as detailed in Table 2 and amend the Toronto Municipal Code, Chapter 441, Fees and Charges accordingly.

Table 2: Chapter 441 Apartment Building Rating Sign Re-issuance Fee

5.  City Council waive the fees in Recommendations 3 and 4 above for the following social housing providers:

a.  Toronto Community Housing Corporation;

b.  Non-profit providers of assisted or social housing under a program administered by the City of Toronto; and

c.  Dedicated supportive housing providers funded by the Province of Ontario.

Additional Amendments

6.  City Council direct that the following changes be made to the Toronto Municipal Code Chapter 354, Apartment Buildings:

a.  Amend Section 354-3.2 to require apartment building owners/operators to post their waste management plan on the tenant notification board.

b.  Amend Section 354-3.7 to clarify that the state of good repair plan for each apartment building must be developed and maintained in a form and manner satisfactory to the Executive Director, Municipal Licensing and Standards.

c.  Add a provision that the mailing address, email address, and phone number provided to Municipal Licensing and Standards through the registration and renewal process is up to date at all times, and that any written communication to an apartment building owner/operator from Municipal Licensing and Standards shall be deemed received by the owner/operator when delivered to the mailing address or email address on file.

d.  Add a provision that in addition to services required by statutory authority, notice may also be given by email as it relates to the property of a registered apartment building owner/operator.

Technical Amendments

7.  City Council amend Section 442-6 of the Toronto Municipal Code, Chapter 442, Fees and Charges, Administration of, to state that a service set out in Appendix C, Schedule 12 of Chapter 441, Fees and Charges that has been provided by the City or on the City's behalf shall be paid for by the person or persons receiving the service whether or not they requested the service.

8.  City Council direct that the following changes be made to the Toronto Municipal Code Chapter 354, Apartment Buildings:

a.  Amend Section 354-2.1 to require that building owners and operators provide an email address as part of the apartment building registration and renewal processes.

b.  Delete Section 354-7-1F and replace with the following: "When a corporation fails to comply with an order or other direction made under this Chapter, every director or officer who concurs in such contravention is guilty of an offence and on conviction is liable to a fine of no more than $100,000." 

Effective Dates for By-law Changes

9.  City Council direct that the changes to the Toronto Municipal Code Chapter 354, Apartment Buildings, and Toronto Municipal Code Chapter 441, Fees and Charges come into effect on June 1, 2021.

10.  City Council direct that the changes to the Toronto Municipal Chapter 442, Fees and Charges, Administration of, come into effect once adopted by City Council.

11. City Council request the Executive Director, Municipal Licensing and Standards to provide annual reporting with available data on RentSafeTO, broken down by year and category of request (heat, pests, etc.), including but not limited to:

a.  Number of service requests by category;
b.  Average and median initial investigation response time;
c.  Average and median total investigation time;
d.  Number of remedial actions taken;
e.  Number of times fines were imposed and the amounts
f.  Number of service requests outstanding;
g.  Number of service requests closed;
h.  Number of building audits performed;
i.  Number of orders to comply issued as a result of service requests;
j.  Number of orders to comply issued as a result of audits;
k.  Number of orders submitted to the courts; and
l.  Number of orders resolved by the courts.

The Planning and Housing Committee:

1.  Requested the Executive Director, Municipal Licensing and Standards to report to the December 16, 2020 meeting of City Council with available data on RentSafeTO, broken down by year and category of request (heat, pests, etc.), including but not limited to:

a.  Number of service requests by category;

b.  Average and median initial investigation response time;
c.  Average and median total investigation time;
d.  Number of remedial actions taken;
e.  Number of times fines were imposed and the amounts
f.  Number of service requests outstanding;
g.  Number of service requests closed;
h.  Number of building audits performed;
i.  Number of orders to comply issued as a result of service requests;
j.  Number of orders to comply issued as a result of audits;
k.  Number of orders submitted to the courts; and
l.  Number of orders resolved by the courts.

The Executive Director, Municipal Licensing and Standards gave a presentation on RentSafeTO: Colour-coded Rating System, By-law Amendments, and Program Updates.

As directed by City Council in November 2019, this report proposes the creation of a colour-coded rating system for apartment buildings in Toronto and responds to outstanding directives related to the RentSafeTO program. This report was initially expected at the Planning and Housing Committee in April 2020, but was delayed as a result of the COVID-19 pandemic.

The RentSafeTO program is the first of its kind in Canada and builds on the City's previous Multi-Residential Apartment Buildings program. The objectives of the program are to strengthen enforcement of City by-laws, enhance tenant engagement and access to information, and promote proactive maintenance in apartment buildings to prevent the deterioration of critical housing stock. The program applies to all apartment buildings with 3 or more storeys and 10 or more units; this accounts for 30% of Toronto's residents who live in approximately 3,500 apartment buildings across the city.

The proposed apartment building rating system is modeled after the City's DineSafe program administered by Toronto Public Health, and the RentLogic program in New York City. The rating system would require apartment building owners/operators to display a colour-coded rating sign near the entrance in a prominent location visible to both tenants and the public. The rating sign would display the building's most recent evaluation score, provide information on the next evaluation or audit, and explain how to submit a service request to the City. All apartment building ratings will also be easily accessible on the City's webpage.

Buildings that score 50% or below would receive a red rating sign and the City would complete a full audit of the building. Buildings with a score between 51% and 65% would receive a yellow rating and be re-evaluated within a year. Buildings with a score between 66% and 85% will receive a light green rating and be re-evaluated within two years. Buildings with a score of 86% and above will receive a dark green rating and will be re-evaluated within three years. The majority of buildings currently fall into the light green rating category.

The proposed apartment building rating system also introduces a process to allow building owners to apply for a re-evaluation. This is intended to encourage apartment building owners/operators to make improvements, and supports the overall objective of the RentSafeTO program to ensure apartment building owners/operators comply with building maintenance standards and continuously improve the quality of rental housing stock in Toronto. This process will be new and separate from existing standard protocols (that is, where By-law Enforcement Officers follow up on Orders to Comply or Notices of Violation issued to property owners to confirm compliance). A process to address downward movement in a rating (for example, a high-scoring building develops deficiencies prior to the next scheduled evaluation) is currently being designed.

To support the implementation of the colour-coded rating system, this report recommends a cost-recovery fee of $316.06 for a re-evaluation application, as well as a $26.88 fee for the cost to re-issue a rating sign. These fees would be waived for social housing providers, as defined in this report.

In February 2020, staff undertook a public consultation process to gather feedback on a potential rating system and fees. This included an online survey that had 1,930 respondents and a public consultation meeting with approximately 100 attendees. Residents were generally supportive of the proposed rating system, with higher support among renters in apartment buildings. Owners/operators of apartment buildings were generally not supportive of the proposed rating system. Survey respondents liked the readability of the signs and commented that the proposed system may increase accountability and transparency. Respondents highlighted concerns about the evaluation criteria that informs the rating score and the potential of colour-coded signs to shame or stigmatize tenants living in low-scoring buildings.

This report addresses other outstanding directives related to Chapter 354, Apartment Buildings. This includes an update on changes to the criteria and approach used to evaluate apartment buildings, the feasibility of mandating insurance coverage, increased fines for non-compliance with the Apartment Buildings By-law, and an update on the Voluntary Tenant Contact List related to heat in apartment buildings.

This report also provides updates on divisional initiatives that will have an impact on the RentSafeTO program, such as improvements to internal processes to better undertake remedial action, standard operating procedures and service standards, and details on the planning and implementation of an administrative penalty system.

Last, this report outlines the City's COVID-19 pandemic emergency response efforts as they relate to the RentSafeTO program, including the enforcement of temporary health and safety measures in apartment buildings, and provides an update on recent operational improvements.

This report was written in consultation with Shelter, Support and Housing Administration (SSHA), Social Development, Finance and Administration (SDFA), Housing Secretariat, Legal Services, Solid Waste Management Services, and the Resilience Office.