Seeking Feedback on Municipal Rental Replacement By-Laws
Bill or Act:
Municipal Act, 2001 and City of Toronto Act, 2006
Summary of Decision:
Bill 23, the More Homes Built Faster Act, 2022 was passed by the Legislature and received Royal Assent on November 28, 2022.
Bill 23 amends s.99.1 of the Municipal Act, 2001 (MA) and s.111 of City of Toronto Act, 2006 (COTA) to give the Minister of Municipal Affairs and Housing regulation-making authority to impose limits and conditions on municipal powers under those sections. Those municipal powers currently may be used to prohibit and regulate the demolition and conversion of residential rental properties of six units or more. This proposal does not change existing municipal bylaws.
Regulations made under the above new authority would not impact any renter protections or requirements under the Residential Tenancies Act (RTA). All existing RTA provisions around demolition would remain unchanged, including notice requirements, and depending on the circumstances, the landlord may be required to financially compensate the tenant or provide another rental unit acceptable to the tenant.
The legislation provides authority to the Minister to make regulations that may help standardize and provide consistency of municipal bylaws under the above-noted sections of the MA and COTA and enable the construction and revitalization of new housing supply.
The ministry also sought feedback through the Regulatory Registry on current municipal bylaw requirements that may limit access to housing or pose as barriers to creating housing supply, and sought input on future requirements, if any.
Some respondents noted that municipal bylaws may impede the construction or revitalization of new rental housing, and suggested that standardization of requirements may provide more clarity and certainty for landlords and tenants thereby increasing fairness and reducing conflict. Respondents noted that any future regulations will need to ensure a proper balance of tenant protections with reduced barriers for new construction/revitalization.
Feedback received raised concerns about potential impacts such as reduced tenant protections, decreased affordable housing supply, and/or increased homelessness, and some indicated municipalities are best positioned to understand local needs.
The government is considering the feedback received to inform the development of future regulations, if any, under this new authority. Regardless of any regulations made under the new authority, tenants will maintain all current protections under RTA.
Analysis of Regulatory Impact:
There are no anticipated regulatory impacts of this legislative proposal as it is only creating a regulation-making power. However, if the authority is utilized, the Minister's regulation-making authority to standardize municipal rental replacement bylaws could directly affect the bylaws of a very small number of municipalities that currently choose to have rental replacement bylaws.
The proposal would not create new requirements for municipalities, but rather, if any Minister's regulations are made in the future, would standardize municipal authority to create certain requirements, depending on the content of the regulation.
Any regulations made under this authority will not impact renter protections or provisions under the Residential Tenancies Act (RTA). Tenants and landlords will retain all existing rights and obligations pertaining to renovations, right to return, compensation and offences under the RTA.
Work is currently underway to analyze possible administrative and other costs to impacted municipalities. To inform this analysis, we encourage you to provide your feedback.
The proposal to create Minister's regulation-making authority will not create any fiscal impacts for the provincial government.
October 25, 2022
Summary of Proposal:
Bill 23, the More Homes Built Faster Act, 2022 was passed by the Legislature and received Royal Assent on November 28, 2022. We have extended the deadline of this posting to enable your feedback to continue to be submitted so that it can help inform the implementation of this proposal as well as future initiatives. You may also want to consider submitting comments on other related postings and/or providing your comments directly at Cristina.Dasilva@ontario.ca.
The government is exploring any and all ways to increase housing supply to reach its goal of building 1.5 million homes over the next ten years.
Under s.99.1 of the Municipal Act, 2001 (MA) and s.111 of City of Toronto Act, 2006 (COTA), municipalities may enact bylaws to regulate the demolition or conversion of multi-unit residential rental properties of six units or more.
Rental replacement by-laws vary among municipalities and currently include requirements around number, size, type, and cost of rental units, as well as right of first refusal for existing tenants. Only a small number of municipalities are known to currently have rental replacement bylaws.
The government is proposing to enact a Minister's regulation-making authority under the above Acts to enable the Minister to make regulations to standardize and clarify municipal powers to regulate the demolition and conversion of residential rental properties, in order to provide consistency and streamline the construction and revitalization of new housing supply.
For further clarity, legislative amendments to the above Acts will not impact renter protections or requirements under the Residential Tenancies Act (RTA). Tenants who must vacate a unit for extensive renovations will retain all existing rights to return to the unit at the same rent and terms as though there were no interruption to the tenancy, and landlords would maintain the same obligations to inform tenants of this right, and provide compensation to tenants as required by existing legislation. It remains an offence under the RTA:
-to evict a tenant so that major repairs or renovations can be made to the rental unit without compensating the tenant or offering them another acceptable place to live,
-fail to offer a tenant the right of first refusal after major repairs or renovations or when the building is changed to a condominium
Penalties for conviction of an offence under the Residential Tenancies Act, 2006, may include:
-a fine of up to $50,000 for an individual
-up to $250,000 for a corporation
Potential New Regulations
The Ministry of Municipal Affairs and Housing is also considering new regulations under this proposed authority to standardize rules and requirements municipalities may include in their bylaws (e.g., those that may be negatively impacting housing construction or renter protections).
To inform the content of these potential regulations, the government is seeking input on whether and how municipal rental replacement bylaws may be impacting housing supply and renter protections.
1. What types of requirements should municipalities be able to set around residential rental demolition and conversion?
2. What types of requirements should municipalities not be able to set (e.g., are there requirements that pose a barrier to creating new or renewed housing supply or limit access to housing)?
3. What impact do you think municipal rental replacement bylaws might have on the supply and construction of new housing?
Royal Assent Date:
November 28, 2012