Toronto is considering new regulations inspired by a recently adopted Hamilton bylaw to prevent “bad faith renovictions” and better protect vulnerable tenants.
Background: Hamilton’s Renovation Licence and Tenant Relocation Bylaw
In January 2024, Hamilton introduced a Renovation Licence and Tenant Relocation Bylaw, requiring landlords to obtain a renovation permit if issuing renoviction notices (N13s). This bylaw, officially enacted on April 10, 2024, aims to prevent landlords from using renovations as an excuse to evict tenants and subsequently rent out units at higher prices.
Toronto’s Response
On February 28, 2024, Toronto’s Planning and Housing Committee directed city staff to analyze Hamilton’s bylaw and explore how a similar approach could be implemented in Toronto. The proposed regulations aim to curb the practice of renovictions, where landlords evict tenants under the pretext of renovations but intend to increase rents significantly for new occupants.
Key Elements of the Proposed Bylaw
- Renovation Permits: Landlords must obtain a renovation permit before issuing an N13 notice.
- Scope of Work: Landlords must provide detailed information about the renovation work, including certification from an engineer stating the unit is inhabitable during renovations.
- Tenant Rights: Tenants must be informed of their rights, including the right of first refusal to return to the unit post-renovation.
Protecting Affordable Housing
Councillor Paula Fletcher, a strong advocate for the bylaw, emphasized its importance, stating, “Profit-driven renovictions are reducing our already limited supply of affordable housing and impacting many tenants across the city.” Fletcher praised Hamilton’s bylaw as an innovative example of how cities can protect renters from exploitative practices.
Next Steps for Toronto
According to the City Hall Watcher newsletter by Matt Elliott, Toronto city staff have recommended launching a consultation process to explore a Toronto version of the Hamilton bylaw. A report on this process is expected in the fall of 2024.
Impact on Toronto’s Rental Market
Toronto’s rental market statistics underscore the need for additional tenant protections. In 2023, average market rents increased by 10%, the highest annual rise since 2000. Two-bedroom units with new tenants saw rent hikes of 40%, compared to a 4% increase for rent-controlled units with consistent occupancy.
Future Considerations
If adopted by the city council, the implementation of this bylaw will depend on funding allocated in Toronto’s 2025 budget. The report’s timing coincides with the establishment of the Subcommittee on the Protection of Affordable Rental Housing, formed during the 2018-2022 City Council term to address renovictions specifically.
Conclusion
As Toronto grapples with a housing crisis, the proposed bylaw could play a critical role in safeguarding affordable housing and protecting tenants from exploitative renovictions. Will these landmark regulations be adopted, and can they effectively address the issue? Stay tuned for updates as Toronto moves forward with its consultation and decision-making process.
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