Item - 2022.PH35.18

The Planning and Housing Committee recommends that:  

1. City Council approve the proposed Renoviction Policy in Attachment 1 to the report (June 20, 2022) from the Executive Director, Housing Secretariat, as amended by Recommendation 2 below, as a broad framework to guide the development of a new by-law to preserve affordable and mid-range rental housing in the city and deter renovictions.

2. City Council amend the draft Renoviction Policy, attached as Attachment 1 to the report (June 20, 2022) from the Executive Director, Housing Secretariat by adding the words "preventing homelessness and/or to achieving the City’s vision of homelessness being rare, brief, and non-recurring" to the list of Intended Outcomes so that it now reads:

"This Policy is intended to support:

- Preservation of Affordable and Mid-range rental housing;

- Housing stability;

- The City's commitment to the progressive realization of the right to adequate housing;

- Social and racial equity;

- Tenant education/awareness of their rights and responsibilities;

- Property Owners/Landlords who need/want to undertake repairs/renovations;

- Delivery of the HousingTO 2020-2030 Action Plan;

- Other City programs, policies and initiatives aimed at preserving the city's affordable rental housing stock and supporting renters; and

- Preventing homelessness and/or to achieving the City’s vision of homelessness being rare, brief, and non-recurring."

3. City Council direct the Executive Director, Housing Secretariat, in consultation with the Executive Director, Municipal Licensing and Standards, the Executive Director, Building and Chief Building Official, other relevant divisions, to report back to the Planning and Housing Committee by the second quarter of 2023 with a new regulatory by-law to protect affordable and mid-range rental housing stock, along with a detailed implementation plan to phase in the by-law, including required resources, and a coordinated approach to compliance and enforcement, and investigate the possibility of including in such by-law the right of return provisions, a requirement for Landlords to provide rental top-up payments and pay for moving costs and other support to help tenants find a nearby unit.

4. City Council authorize the Executive Director, Housing Secretariat to establish a Housing At-Risk Table as set out in Attachment 2 to the report (June 20, 2022) from the Executive Director, Housing Secretariat, subject to the proposed Housing At-Risk Table being subject to a review and assessment by the City Clerk to confirm compliance with respect to the City's obligations under the Municipal Freedom of Information and Protection of Privacy Act and other Information management obligations, and include in their efforts developing a program to track the sale of rental buildings and when the City has information that a rental building is sold, or other information steps will be taken to obtain vacant possession of a rental building or unit for the purpose of renovations or repairs, there is an immediate outreach campaign by the City to the tenants involved informing them of their rights and of the Renoviction By-law.

5. City Council request the Government of Ontario to amend the Residential Tenancies Act, 2006, and/or related regulations to:

a.  require landlords to provide a copy of a building permit to the Landlord and Tenant Board as part of an N13 Notice, and require evidence that the permit was delivered with the N13 Notice as part any L2 application filed on that basis;

b.  require landlords of residential units to be responsible for finding temporary accommodation for their tenants if they need to leave a unit so that it can be repaired or renovated, and the tenants intend to move back post-repair/renovation;

c.  provide the same rights afforded to tenants in buildings with five (5) or more units to those in buildings with less than five (5) units;

d.  re-introduce rent control to cover units occupied after November 15, 2018;

e.  amend Above Guideline Increase rules to make expenditures that are necessary to address non-compliance with municipal property standards/municipal orders around health, safety or maintenance standards to be ineligible for Above Guideline Increases; and

f.  require landlords to provide tenants with clear, detailed information about the scope of work to be performed on a rental unit well in advance of it being carried out, and to provide evidence of actual costs incurred, in order to be eligible for an Above Guideline Increase.

6. City Council request that the Government of Ontario, work with the City of Toronto to identify specific opportunities within the Building Code Act, 1992, S.O. 1992, to ensure that it aligns with the Residential Tenancies Act, 2006 (and/or related regulations) in providing protection to tenants from renoviction as a result of maintenance, repair and renovation undertaken by a property owner or landlord through a building permit.

7. City Council request the Government of Ontario to enhance investments in the provincial Rental Housing Enforcement Unit to establish an after-hours emergency line for tenants or landlords needing help outside of regular office hours, add more inspectors, and increase the frequency of site visits to investigate complaints about alleged offences under the Residential Tenancies Act, 2006.

8. City Council request the Government of Ontario to make the Landlord and Tenant Board more accessible to individuals and groups of tenants seeking reduction in rents when their rental units fall into disrepair.

9. City Council request the Government of Ontario to introduce vacancy control legislation which ties rents to residential units rather than tenants.

10. City Council request the Government of Ontario to create a centralized data system and registry to:

a. register all rental properties in Toronto including purpose-built rentals, secondary suites, condominiums in rental tenure, and multi-tenant homes;

b. include the owners of rental properties, including details of beneficial ownership if the property is held in trust for another entity;

c. make owners of rental properties, including corporations and their beneficial owners, publicly accessible and searchable; and

d. make the data available to the public.

11.  City Council reiterate its request to the Government of Ontario to:

a.  identify tenants in need of housing support services through the eviction process and provide these services for every household that is evicted through the Landlord and Tenant Board, with a goal of timely re-housing;

b.  provide and fund emergency shelter spaces and related supports for households evicted through the Landlord and Tenant Board, at no cost to municipalities, until housing can be provided for those households; and

c.  invest in the development of new affordable rental homes and housing benefits in municipalities, commensurate with population and core housing need, and prioritize access for tenants who have been evicted as well as those who are paying more than 30 percent of income on rent and may be at risk of being evicted.

12. City Council re-iterate its request to the Province of Ontario to improve the adequacy and structure of social assistance by using data and evidence to increase social assistance rates so that recipients are better able to meet their basic needs, including the cost of living (including housing) in Toronto, equalize the benefit rate across the Ontario Works and the Ontario Disability Support Program, and adjusts utility scales and social assistance rent scales for residents living in social housing who are in receipt of Ontario Works or Ontario Disability Support Program supports.

13. City Council request the federal and provincial governments to fund eviction support and prevention programs that build on successful City of Toronto’s programs such as Eviction Prevention in the Community, Rent Bank, Housing Stability Fund and Toronto Tenant Support programs, or to provide funding to the City to enhance these programs to address the growing rate of evictions.

14. City Council request the provincial and federal governments to provide funding to support tenant education, advocacy and organizing efforts, and legal clinics to help tenants maintain their housing.

15. City Council request the federal government, through the Minister of Housing and Diversity and Inclusion and in collaboration with the City of Toronto, to advance commitments outlined in the Minister's mandate letter to address renovictions and expedite the development and/or implementation of policies, programs and investments including to:

a. prevent renovictions;

b. amend to the Income Tax Act to require landlords to disclose in their tax filings the rent they receive pre- and post-renovation and to pay the taxing authority a proportional surtax proportional surtax if the increase in rent is excessive;

c. introduce an anti-flipping tax on residential properties, requiring properties to be held for at least 12 months;

d. impose a temporary ban on foreign buyers of non-recreational residential property in the Canadian housing market so that housing does not sit vacant and unavailable to Canadians;

e. review and reform the tax treatment of Real Estate Investment Trusts;

f. develop policies to curb excessive profits in investment properties while protecting small independent landlords;

g. increase the down payment requirements for investment properties; and

h. respond to housing price fluctuations.

16. City Council re-iterate its requests to the federal and provincial governments to establish acquisition programs that would support the acquisitions and renovations/ conversions for all types of private market residential properties and other properties, to create new permanent affordable rental and supportive homes.

17. City Council reiterate its requests to the federal and provincial governments in invest in the HousingTO 2020-2030 Action Plan which will increase the supply of new affordable and supportive homes, protect existing rental stock including through retrofit programs, and help residents across the city to maintain their existing homes. 

18. City Council direct that the confidential information contained in Confidential Attachment 1 to the supplementary report (June 28, 2022) from the City Solicitor, remain confidential in its entirety, as it contains advice which is subject to solicitor-client privilege.

Three key strategic priorities identified in the HousingTO 2020-2030 Action Plan ("HousingTO Plan") are to: prevent homelessness and improve pathways to housing stability for residents across the city; ensure well-maintained and secure homes for renters; and to maintain and increase access to affordable rents. The City's Housing Charter: Opportunity for All, also states that, "the City will take action to prevent arbitrary eviction, homelessness and other threats to human security and dignity, ensuring that City policies and programs are designed to avoid residents from being made homeless." Residential evictions pose a direct challenge to realizing these goals, and puts the housing stability of over half a million tenant households in Toronto at risk.

As a result of various factors impacting Toronto's housing market (including low vacancy rates, lack of purpose-built affordable rental homes, wages that have not kept pace with the increased cost of living and the financialization of housing) many low-income and marginalized residents, including those from equity-deserving groups, are struggling to find and maintain safe, secure and affordable homes. These conditions have resulted in increased rates of evictions.

In particular, there has been a growing trend of "renovictions" in Toronto whereby a landlord illegitimately evicts a tenant by alleging that they need vacant possession of a residential unit to undertake renovations or repairs. Evictions, including renovictions, result in the displacement of tenants, housing instability, increased rates of homelessness and the permanent loss of affordable and mid-range rental homes.

To address this issue, in December, 2019, through Item PH11.11, the Planning and Housing Committee directed staff to: explore an approach to coordinate City processes to identify and prevent potential instances of illegitimate evictions; potential mechanisms and data sources to track and monitor data on evictions; and make improvements to City programs, policies and processes to address evictions. In May, 2021, through Item PH23.20, the Committee also directed staff to report back with a proposed Renovictions Policy, having regard for best practices from other jurisdictions, as applicable. This report responds to the Committee's requests.

The proposed Renoviction Policy (Attachment 1) sets out a framework to help preserve affordable and mid-range rental homes across the city. This report also recommends that staff report back to Council by the second quarter of 2023 with a new regulatory by-law to protect affordable and mid-range rental homes, a detailed implementation plan to phase in the by-law, including required resources, and a coordinated approach to compliance and enforcement.

While this Policy and companion future by-law cannot stop renovictions, as this is within the jurisdiction of the Province, they do leverage the City's authorities under the City of Toronto Act, 2006 to deter the practice of renovictions which negatively impact the health, social and economic well-being of the city and its people.

To support implementation of the proposed Renovictions Policy and future companion by-law, this report also seeks Council authority for staff to establish a Housing At-Risk Table (Attachment 2) which will review eviction data, analyse the data and report regularly on identified trends; review complaints received from residents; and connect people to supports as needed. The primary objectives of these activities are to preserve the city's affordable and mid-range rental housing supply and help support tenants who are at risk of being evicted.

Successful implementation of this Policy and future by-law will support delivery of the HousingTO Plan and help improve health, social and economic outcomes for tenants across Toronto. However, successful implementation will require a coordinated approach across various City divisions and programs plus additional dedicated resources in order to achieve the intended outcomes.

Furthermore, recognizing that addressing evictions (including renovictions) requires a whole-of-government approach, and that the levers to effect the systemic and structural changes to address the issue exist outside municipal jurisdiction, this report recommends that City Council request the federal and provincial governments to take a number of actions to enhance existing legislations or introduce new policy and financial tools to complement the City's efforts.

This report is supplementary to the report from the Executive Director, Housing Secretariat entitled "Renoviction Policy - Creating a Framework to Protect Affordable and Mid-range Rental Homes and Deter Renovictions" (June 20, 2022) - "the "Housing Secretariat Report". This report provides legal advice on the new by-law proposed as part of the Renovictions Policy contained in the Housing Secretariat Report.