Item - 2021.PH25.10

City Council recessed its public session and met as Committee of the Whole in closed session on October 4, 2021 to consider confidential information on this Item as it pertains to litigation that affects the City of Toronto and advice or communications that are subject to solicitor-client privilege and litigation privilege.

The Planning and Housing Committee recommends that:   

1. City Council enact zoning by-law amendments substantially in accordance with Attachments 1 and 2 to the report (June 15, 2021) from the Chief Planner and Executive Director, City Planning, the Executive Director, Municipal Licensing and Standards, the Executive Director, Housing Secretariat, the Executive Director, Toronto Building, the Acting Fire Chief and General Manager, Toronto Fire Services and the Medical Officer of Health.

2. City Council authorize the City Solicitor to make such stylistic and technical changes to each zoning by-law amendment as may be required.

New multi-tenant house licensing by-law 

3. City Council direct that, effective November 1, 2022, a new by-law titled Toronto Municipal Code Chapter 575, Multi-tenant Houses, be established substantially in the form attached as Attachment 4 to the report (June 15, 2021) from the Chief Planner and Executive Director, City Planning, the Executive Director, Municipal Licensing and Standards, the Executive Director, Housing Secretariat, the Executive Director, Toronto Building, the Acting Fire Chief and General Manager, Toronto Fire Services and the Medical Officer of Health and in accordance with City Council's decision to adopt the by-law.

4. City Council repeal former City of Toronto Chapter 285, Rooming Houses, and former City of Etobicoke Chapter 166, Lodging Houses effective November 1, 2022.

Definitions

5. City Council direct that the new by-law include the following definitions:

MULTI-TENANT HOUSE –

(1) A building with four or more multi-tenant house rooms, inhabited or intended to be inhabited by persons who do not live together as a single housekeeping unit.

For the purposes of this definition of a multi-tenant house, a “multi-tenant house room” is a room that:

(a) Is used or intended to be used for living accommodation and is used or intended to be used as a bedroom;

(b) Is available for rent; and

(c)  May include a bathroom or kitchen facilities for the exclusive use of the room's occupant but does not include both.

(2) A building located within the area bounded on the north by Dundas Street West, on the east by Dufferin Street and the rail lines, on the South by Lake Shore Boulevard West and on the west by Roncesvalles Avenue, where:

(a) The building is a converted house as defined in former City of Toronto General Zoning By-law 438-86;

(b) The building contains more than three dwelling units;

(c)  The average floor area of the dwelling units is less than 65 square metres; and

(d) One or more dwelling units are intended to be used in return for remuneration.

For the purposes of this definition of a multi-tenant house, a "dwelling unit" is living accommodation for persons living together as a single housekeeping unit, in which both food preparation and sanitary facilities are provided for the exclusive use of the occupants of the unit.

(3) A student fraternity or sorority house with four or more bedrooms, inhabited or intended to be inhabited by students who are members of an active chapter of a bona fide national or international student fraternity or sorority.

For the purposes of this definition of a student fraternity or sorority house, a “bedroom” is a room that:

(a) Is used or intended to be used as a bedroom; and

(b) May include a bathroom or kitchen facilities for the exclusive use of the room's occupant but does not include both.

(4) A multi-tenant house does not include:

(a) Residential premises licensed or similarly approved of by the Government of Ontario or the Government of Canada;

(b) Shelters operated by or on behalf of the City or a City agency which provide short-term emergency accommodation and associated services;

(c)  Student housing operated by a college or university;

(d) Co-operative student residences owned or leased by a non-profit, non-share corporation and providing housing accommodation on a co-operative basis; or

(e) Hotels or motels.

OPERATOR — A person who owns or controls the business of operating a Multi-Tenant House.

PERSONAL-CARE MULTI-TENANT HOUSE – A multi-tenant house where personal-care services are provided.

PERSONAL-CARE SERVICES –

(1) Services provided to tenants including but not limited to furnished multi-tenant house rooms, 24-hour urgent care response, safe storage and access to prescribed drugs, meals and snacks, personal laundry and opportunity to participate in social and/or recreational activities.

(2) Personal-care services do not include services provided by a regulated health professional

URGENT SERVICE REQUEST - Any tenant service request related to the discontinuance of the following vital services:

(1) Fuel;

(2) Electricity;

(3) Gas;

(4) Heat; and

(5) Hot or cold water.

Multi-tenant house licensing

6. City Council direct that no person operate without the appropriate licence and that all operators operate in compliance with the chapter, their licence, and any conditions added to their licence.

7. City Council direct that when a completed application to renew a licence has been provided to the Executive Director, Municipal Licensing and Standards, the existing licence does not expire until a final decision on the licence renewal has been made and the operator shall maintain their existing licence in good standing including remaining responsible for the operation of the multi-tenant house in compliance with the chapter at all times.

8. City Council direct that the following two licence categories be established for multi-tenant houses:

(1) Type A: Multi-tenant house (which is not a personal-care multi-tenant house); and

(2) Type B: Personal-care multi-tenant house.

9. City Council direct that the term of a multi-tenant house licence be 12 months unless otherwise provided for in the chapter, and that each operator must renew their licence each year by submitting a renewal application.

10. City Council require that an applicant for an initial licence provide the following information to the Executive Director, Municipal Licensing and Standards (MLS), as part of their application, and that the Executive Director determine what an applicant must submit as part of a licence renewal application:

(1) The name and contact information of the operator;

(2) The address of the property where the multi-tenant house is located;

(3) The name and contact information of the property owner;

(4) For multi-tenant houses that contain 10 or more multi-tenant rooms or dwelling units on first applying for a licence under this chapter, or for any multi-tenant house where required by the Executive Director, proof of an electrical evaluation by a licensed electrical contractor or qualified person; logs of service; and/or a certificate of inspection from the Electrical Safety Authority that confirms the multi-tenant house complies with the Ontario Electrical Safety Code;

(5) Proof of compliance with zoning when applying for an initial licence and a statement confirming no change to such compliance on renewal where appropriate;

(6) Plans showing: compliance with the Ontario Fire Code; the exterior and interior layout of the premises; the maximum number of tenants to be provided with living accommodation; and the processes for waste management, property management, tenant service requests and pest management;

(7) For Personal-care multi-tenant houses, the name and contact information for the person-in-charge and proof of the qualifications of the operator and their staff to ensure the proper care of tenants, including educational requirements and background checks.

(8) For Personal-care multi-tenant houses, a safety plan that describes the measures and procedures that are in place to protect the health and safety of the tenants in a form satisfactory to the Medical Officer of Health;

(9) For Personal-care multi-tenant houses, a personal care plan that describes how the operator will manage tenant admissions and tenant care in a form satisfactory to the Medical Officer of Health;

(10) The application or renewal fee for the licence set out in Chapter 441, Fees and Charges; and

(11) Any other information as required by the Executive Director, MLS, or the Medical Officer of Health.

11. City Council direct that on receipt of a complete application, the operator, Municipal Licensing and Standards, provide notice to the tenants of the multi-tenant house by posting the notice of application on the notice board in the multi-tenant house.

12. City Council direct that upon submission of a complete application, the Executive Director, Municipal Licensing and Standards, may cause an inspection to be made of the multi-tenant house by any authority having jurisdiction to determine whether the multi-tenant house complies with all applicable law, including the Ontario Fire Code and Ontario Building Code.

13. City Council direct that the Executive Director, Municipal Licensing and Standards, may issue a licence for a multi-tenant house where:

(1) The licence application is complete and in compliance with the chapter, including the payment of any required fee; and

(2) The required inspections have been completed and the results provided to the Executive Director, MLS, indicate that the premises complies with the applicable by-laws and laws, including the Ontario Fire Code and the Ontario Building Code.

14. City Council direct that the Executive Director, Municipal Licensing and Standards, may refuse an application for a licence where:

(1) The operator has not met one or more of the requirements under the chapter or one of more of conditions on their current licence;

(2) The operator has not complied with the chapter or applicable law, including the Ontario Fire Code and the Ontario Building Code;

(3) The licence applicant or the operator has provided information in an application or by other means that is false or misleading;

(4) The operator has not paid any fee to be paid under the chapter;

(5) The operator has not paid any fine or court awarded costs resulting from a legal proceeding related to the chapter;

(6) The operator has not complied with any prohibition or other court order resulting from any legal proceeding related to the chapter;

(7) The operation of the multi-tenant house:

(a) Would put the public safety at risk; or

(b) Is not or will not be carried on in compliance with the law.

(8) The conduct of the operator (including, in the case of partnership, the conduct of its partners, employees or agents or in the case of a corporation, the conduct of its officers, directors, employees or agents) affords reasonable grounds for belief that the operator will not operate the multi-tenant house in compliance with the law or with honesty or integrity.

15. City Council direct that where the Executive Director, Municipal Licensing and Standards, refuses an application for a licence, notice shall be provided to the applicant together with the reasons for the refusal.

16. City Council direct that an applicant may appeal a refusal of an application to the Multi-Tenant House Licensing Tribunal by filing an appeal in a form satisfactory to the Multi-Tenant House Licensing Tribunal to the tribunal by no later than 30 days from the date of the refusal.

17. City Council direct that where an applicant appeals a refusal of an application to the Multi-Tenant House Licensing Tribunal, the Tribunal will schedule a hearing, notifying applicant and the Executive Director, Municipal Licensing and Standards who will provide the Tribunal with the refusal on receiving the notice.

18. City Council direct that the Executive Director, Municipal Licensing and Standards may, at any time, refer a licence application or a licence to the Multi-Tenant House Licensing Tribunal with a recommendation that the licence be refused, revoked, suspended or continued with conditions, and that the referral include the reasons for that recommendation.

19. City Council direct that where an applicant appeals a refusal or a recommendation from the Executive Director, Municipal Licensing and Standards, is referred, the Multi-Tenant House Licensing Tribunal will preside over a hearing, after giving notice to the applicant or licence holder and the Executive Director, Municipal Licensing and Standards, where the Multi-Tenant House Licensing Tribunal, and render decisions based on the evidence presented in accordance with the Tribunal's Procedure By-law and the Statutory Powers Procedure Act and may:

(1) Uphold the recommendation of the Executive Director, Municipal Licensing and Standards;

(2) Issue (with or without conditions), refuse, suspend or revoke the licence; or

(3) Add conditions to the licence.

20. City Council direct that the Tribunal be authorized to attach conditions to a licence including, but not limited to requiring the operator to:

(1) Comply with by-laws or other laws or legal requirements and provide proof of such compliance;

(2) Pay a fine or other court awarded costs resulting from a legal proceeding related to this chapter and to provide proof of such payment;

(3) Comply with a prohibition or other court order resulting from a legal proceeding related to the chapter and to provide proof of such compliance;

(4) Supply additional information on convictions under federal or provincial legislation or periodic updates of such convictions or both to the Executive Director, Municipal Licensing and Standards;

(5) Supply information to verify evidence given at their hearing; or

(6) Ensure that the persons operating a multi-tenant house do so in compliance with the law and with honesty and integrity.

21. City Council direct that the Multi-Tenant House Licensing Tribunal shall have regard to the following matters when relevant, as may be raised at a hearing:

(1) The chapter and other applicable law;

(2) Circumstances and facts raised by the evidence of the parties;

(3) If the operation of the multi-tenant house puts or could put public safety at risk;

(4) If the operation of the multi-tenant house is or will be carried on in compliance with the law; and

(5) If the conduct of the operator (including, in the case of a partnership, the conduct of its partners, employees or agents or in the case of a corporation, the conduct of its officers, directors, employees or agents) affords reasonable grounds for belief that the operator will not operate the multi-tenant house in compliance with the law or with honesty or integrity.

22. City Council direct that the Executive Director, Municipal Licensing and Standards, may revoke a licence with no refund where:

(1) The licence has been issued in error; or

(2) The licence has been issued as a result of inaccurate, misleading or otherwise incorrect information provided by the applicant.

And the Executive Director, Municipal Licensing and Standards, shall give notice to the Operator of the revocation.

23. City Council require that an operator must notify the Executive Director, Municipal Licensing and Standards, at least 90 days in advance of a change in operator with the new operator applying for a new licence while the existing operator maintains the multi-tenant house in compliance with the chapter in the interim.

24. City Council direct that no licence under the chapter shall be transferred.

25. City Council direct that all operators of Multi-Tenant Houses:

(1) Only use, rent or permit the use or rent of a multi-tenant house or dwelling unit in compliance with the chapter and applicable law;

(2) Repair and maintain the multi-tenant house in compliance with the chapter;

(3) Ensure that the operator responds immediately on inquiries about the operations of the multi-tenant house;

(4) Maintain a notice board which posts conspicuously in the multi-tenant house documents as required by the Executive Director, including updated copies of the licence, contact information in the case of emergencies, and up-to-date plans submitted as part of their most recent application;

(5) Comply with the most recent plans approved as part of the operator's application; and

(6) Maintain records of all electrical work done at the multi-tenant house and all work demonstrating compliance with the most recent plans approved as part of the operator's application.

Ending operations

26. City Council direct that unless otherwise required by law (including decisions of the Multi-Tenant House Licensing Tribunal), if an operator is ending their operation of a multi-tenant house, an operator shall:

(1) Submit to the Executive Director, Housing Secretariat, for their approval, a transition plan at least 210 days in advance of ending operations;

(2) On receiving approval of a transition plan from Executive Director, Housing Secretariat, deliver to each tenant a written notice at least 180 days in advance Indicating the date on which operations will end; and

(3) If a tenant, so requests, take reasonable steps to find appropriate alternate accommodation for the tenant and meet all Residential Tenancy Act requirements.

27. City Council direct that a transition plan of an operator of a multi-tenant house shall include:

(1) A statement that the operator intends to end operations;

(2) The date on which the operator intends to end operations;

(3) The operator's reasons for ending operations;

(4) A description of how the operator intends to use the building after ending operations;

(5) The date by which the operator will give each tenant written notice of the date on which operations will end;

(6) A list of alternate accommodation that may be available to tenants; and

(7) A list of community organizations that may be affected by the end of operations.

Personal-Care Multi-Tenant HousesOperators, person-in-charge, and staff

28. City Council direct that an operator of a personal-care multi-tenant house, or, when the operator is a corporation, each director of the corporation, meet the following minimum qualifications, and on application and when requested by the Executive Director, provide documentation satisfactory to the Executive Director, Municipal Licencing and Standards, that they:

(1) Are least 18 years of age;

(2) Hold an Ontario Secondary School Diploma (OSSD), or evidence of equivalent standing as determined by the Minister of Education;

(3) Have three years employment experience in work comparable to the administration of personal-care multi-tenant houses; and

(4) Have undergone a Vulnerable Sector Screening that meets the Screening Criteria.

29. City Council direct that a person-in-charge of a personal-care multi-tenant house meet the following minimum qualifications, and on application, renewal, or any time the person-in-charge changes, provide documentation satisfactory to the Executive Director, Municipal Licensing and Standards, that they:

(1) Are at least 18 years of age;

(2) Have current CPR and first aid training, as set out by the Medical Officer of Health;

(3) Have completed Grade 10 in an Ontario Secondary School Certificate, equivalent standing or evidence of one year employment experience working in a personal-care setting, or other standard satisfactory to the Medical Officer of Health; and

(4) Have undergone a Vulnerable Sector Screening that meets the Screening Criteria.

30. City Council direct that the operator of a personal-care multi-tenant house have a person-in-charge on-site 24 hours a day. The person-in-charge shall be responsible for, but not be limited to, ensuring the following:

(1) No tenant is denied access to supports, including access to alternative housing options which maintain or enhance the health and welfare of the tenant;

(2) The tenants are safe and secure;

(3) Inquiries from the neighbourhood and others such as tenant families or friends, are responded to immediately;

(4) Emergencies are handled in compliance with by-laws or other laws or legal requirements that apply and otherwise effectively and efficiently including emergency services being contacted immediately by the operator or staff if a tenant experiences a medical emergency; and

(5) There are sufficient staff on duty at all times.

Tenant admittance

31. City Council direct that operators of a personal-care multi-tenant house obtain from tenants an up-to-date assessment by a regulated health professional (physician, nurse, occupational therapist, physiotherapist), which includes the level of personal-care that the individual requires, as part of the tenancy application.

32. City Council direct that operators of a personal-care multi-tenant house provide each tenant the personal-care services that are set out in their assessment form.

33. City Council direct that if a tenant's needs exceed the level of care available in the personal-care multi-tenant house, the operator of a personal-care multi-tenant house assist in arranging transfer to a long-term care facility or other appropriate living arrangement, with agreement from the tenant.

34. City Council direct that the operator of a personal-care multi-tenant house to enter into a written tenancy agreement with each tenant, specifying all ongoing care services that will be provided.

35. City Council direct that operators of personal care multi-tenant houses collect and maintain the following in accordance with applicable law, with each being available to the City for inspection upon request:

(1) A file for each tenant containing:

(a) The tenant's name, date of birth and gender;

(b) The date the tenancy started;

(c)  The tenant's assessment;

(d) The tenancy agreement;

(e) The name, address and telephone number of the attending personal physician, if any;

(f) The name, address and telephone number of the next of kin or other person to notify in case of an emergency;

(g) A list of medication and/or other care prescribed by a regulated health professional;

(h) A list of any other agencies or organizations providing support to the tenant;

(i)   The name, address and telephone number of the tenant's attorney for personal care and/or attorney for property; and

(j)   A list of dates and particulars of any significant incidents involving the tenant while in the personal-care multi-tenant house.

(2) Records of the following incidents:

(a) An emergency, including a fire or unplanned evacuation of tenants;

(b) A sudden death, including a death resulting from accident or suicide;

(c)  A tenant absence of 24 hours or more;

(d) An attendance by a law enforcement agency or emergency services provider that results in a criminal charge against the operator, staff or a tenant or their transportation to a hospital or other emergency care facility; or

(e) An allegation of abuse, threat of violence or danger to the life of the operator, staff or a tenant.

(3) The safety plan and personal care plan provided as part of the application, which have been updated annually to address changes in operations.

36. City Council direct that the operator of a personal care multi-tenant house provides each tenant with:

(1) Physician care;

(2) Personal-care services;

(3) Food and nutritional services;

(4) Prescription drug services;

(5) Bathroom, bedroom, linen and laundry services.

Transition

37. City Council direct that licences held under former City of Toronto Chapter 285, Rooming Houses or former City of Etobicoke Chapter 166, Lodging Houses continue subject to those by-laws until they expire, at which time the operator much submit a new application under the new chapter.

Chapter 441, Fees and Charges

38. City Council direct a licensing fee for all multi-tenant house operators of $25 per multi-tenant house room or dwelling unit or bedroom for a new application and for licence renewals.

39. City Council direct an inspection fee of $150.

40. City Council direct that the schedule of multi-tenant house licensing fees be included in Chapter 441 as set out in Table 1.

Table 1:

41. City Council direct that all fees in Table 1 above, be waived for:

(1) Toronto Community Housing Corporation; and

(2) A non-profit provider of multi-tenant housing, including non-profit housing providers under a program administered by the City of Toronto. 

Enforcement

42. City Council direct that the new chapter 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, including:

(1) Increasing the maximum fine to $100,000;

(2) Adding a special fine in an amount equal to any economic gain obtained from non-compliance;

(3) Including offences for obstruction and failure to provide information as required; and

(4) Designating each offence as a continuing offence.

43. City Council direct that for offences under the new chapter:

(1) The holding out, for example by advertising by any means, that a multi-tenant house is available for rent is, when entered as evidence, proof, in the absence of evidence to the contrary, that the building is a multi-tenant house; and

(2) When a building otherwise meets the definition of a multi-tenant house, the burden of proving that the persons using the building are living together as a single housekeeping unit is on the person charged.

Multi-Tenant House Licensing Tribunal

44. City Council direct that:

(1) A tribunal, composed of not fewer than six members, inclusive of a Chair and Vice-Chair, who are appointed by resolution of Council, is established under the name “Toronto Multi-Tenant House Licensing Tribunal” or "Multi-Tenant House Licensing Tribunal".

(2) The Multi-Tenant House Licensing Tribunal shall hear proceedings as a panel of three.

(3) The Multi-Tenant House Licensing Tribunal shall have the powers, duties and rights of a tribunal as applicable under the Statutory Powers Procedure Act.

(4) Court Services shall provide administrative support to the Multi-Tenant House Licensing Tribunal and shall attend all meetings of the Multi-Tenant House Licensing Tribunal and shall keep all necessary records and perform such other administrative duties as may be required.

(5) The Multi-Tenant House Licensing Tribunal does not have jurisdiction to consider questions relating to the validity of a statute, regulation or by-law or the constitutional applicability or operability of any statute, regulation or by-law.

Conflict with Other By-laws

45. If there is a conflict between a provision of this chapter and a provision of any other Chapter of the Toronto Municipal Code, the provision that establishes the highest standard to protect the health, safety and well-being of persons shall apply.

Implementation

46. City Council authorize the City Solicitor, in consultation with the Executive Director, Municipal Licensing and Standards, to make such clarifications, minor modifications, technical or stylistic amendments to the new multi-tenant house licensing by-law, former City of Toronto Chapter 285, Rooming Houses, and/or former City of Etobicoke Chapter 166, Lodging Houses as may be required to give effect to City Council's decision including any required transition provisions. 

Provincial Oversight of Personal Care Multi-tenant Houses

47. City Council request that the Province of Ontario establish a regulatory oversight framework for personal care multi-tenant houses, including oversight by regulated health professionals, and inspection and enforcement by provincial inspectors.

48. City Council request that, in the absence of a provincial framework regulating personal care multi-tenant houses, the Province of Ontario provide funding to cover the related costs of the City of Toronto's proposed interim licensing, enforcement and compliance program to ensure that protections are in place for these vulnerable tenants.

Supporting Tenants

49. City Council direct the Executive Director, Housing Secretariat, in consultation with the Chief Building Official and Executive Director, Toronto Building, the Chief Planner and Executive Director, City Planning, the Fire Chief and General Manager, Fire Services, and the General Manager, Shelter Support and Housing Administration, to report back by November 2021 with a set of recommendations aimed at supporting tenants in the event of required emergency relocations and/or unit closures.

50. City Council direct the Executive Director, Housing Secretariat, in conjunction with the Chief Planner and Executive Director, City Planning, the Executive Director, Toronto Building, the Acting Fire Chief and General Manager, Toronto Fire Services and the Medical Office of Health to re-evaluate and submit an enhanced funding request needed in the 2022 budget process to ensure effective and timely enforcement of the existing and new regulatory framework for multi-tenant houses to ensure safe and well-maintained housing for the tenants and the neighbourhoods that they are located in without exception.

51. City Council direct the Executive Director, Housing Secretariat, in conjunction with the Chief Planner and Executive Director, City Planning, the Executive Director, Toronto Building, and the Acting Fire Chief and General Manager, Toronto Fire Services to report annually throughout the implementation period to Planning and Housing Committee on multi-tenant houses, including but not limited to:

a. Applications for new multi-tenant houses;

b. Unlicensed multi-tenant houses that were successfully brought into licensing compliance with City by-laws;

c. Licensed multi-tenant houses that are not meeting the property standards and what is the interdisciplinary enforcement approach needed to bring them into compliance;

d. Data and statistics by ward regarding complaints for both licensed and unlicensed multi-tenant houses plus complaint outcomes and resolution rates;

e. Adequate funding resources needed to meet the intended and timely implementation of the new regulatory licensing and enforcement framework, as expected by City Council and the residents of Toronto.

52. City Council direct the Executive Director, Municipal Licensing and Standards to provide information about active and inactive multi-tenant houses through the Open Data Portal.

The Planning and Housing Committee:

1. Requested the Executive Director, Municipal Licensing and Standards consult further with the Sorority and Fraternity Association of Toronto to canvass their views and further review issues of concern with respect to the operation of their sororities and fraternities in the context of the new framework for multi-tenant housing prior to the City Council meeting of July 14 and July 15, 2021.

2. Requested the Executive Director, Municipal Licensing and Standards to provide a supplemental report in advance of the July 14, 2021 City Council meeting that outlines:

a. Opportunities to advance hiring of Municipal Licensing and Standards Officers in Year 1;

b. Additional resources that are needed for 311 and parking enforcement to complement the proposed increase in Municipal Licensing and Standards and Toronto Fire staff; and

c. How the licensing approach can limit oversea investors/operators and corporations and ensure that housing prices do not become even more unaffordable for families.

The Planning and Housing Committee held a statutory public meeting on June 28, 2021, and notice was given in accordance with the Planning Act.

The Manager, Zoning, City Planning, the Director, Policy and Strategic Support, Municipal Licensing and Standards, and the Policy Development Officer, Housing Secretariat gave a presentation on A New Regulatory Framework for Multi-tenant Houses.

The City of Toronto's quality of life, economic competitiveness, social cohesion, and its balance and diversity depend on current and future residents being able to access and maintain adequate, affordable and appropriate housing. This is critical now more than ever as the City is experiencing an affordable housing crisis that has been exacerbated due to the impacts of COVID-19. 

This report proposes the creation of a comprehensive city-wide regulatory framework for multi-tenant houses, one of the most affordable forms of housing, to respond to calls for deeply affordable and safe housing in all parts of the city. The framework uses a human rights lens and ensures regulatory oversight to protect tenant life safety and create liveable, well-maintained and affordable places to live that are part of complete communities. Multi-tenant houses are an important part of the housing stock in the city, and have provided affordable housing in Toronto for more than a century. 

Current zoning and licensing by-laws for multi-tenant houses are fragmented and have not been harmonized since amalgamation. The most current zoning regulations in the city-wide zoning by-law, 569-2013, remain un-harmonized and under appeal. Zoning only permits multi-tenant houses in the former City of Toronto and parts of the former City of Etobicoke, and former City of York. The zoning regulations and definitions for the use also vary across the different zoning by-laws.

Due to this lack of harmonization, people continue to operate unlicensed multi-tenant houses throughout the city, to meet demand. Residents are seeking affordable housing options where they work and have community ties, even if they are not permitted or in some cases are not safe. Unlicensed operations can result in inadequate and unsafe living conditions for tenants, as well as nuisance issues and wider community safety concerns for neighbours. The pathway to achieving safe, liveable and affordable multi-tenant houses starts with the recognition of these multi-tenant houses in zoning and licensing by-laws, which then enables regulatory oversight and effective enforcement. This recognition improves City zoning by-laws and reduces the risk of human rights violations and discriminatory actions. 

The need and demand for safe and affordable multi-tenant houses cannot be ignored. There are opportunities to broaden the permission for this use in a manner that is sensitive to community concerns, local context, and characteristics.  The proposed regulatory framework aims to balance the need for this type of affordable housing, the ability of the City to protect tenants and neighbours from unsafe living conditions, and reflect a sensitivity to the local context.

The report presents a comprehensive city-wide regulatory framework using a human rights-based approach, outlining the need for this affordable housing option city-wide and incorporating feedback from tenants, students, neighbours, operators, the public and other stakeholders.  It also provides a financial impact analysis of the proposed framework.

Human Rights-Based Approach

All orders of government have recently taken steps to apply a human rights lens to the development of housing legislation, policies and programs. In June 2019, the federal government enacted legislation which declared that it is the policy of the Government of Canada to recognize that the right to adequate housing is a fundamental human right affirmed in international law. As part of the HousingTO 2020-2030 Action Plan the City adopted a new Housing Charter with a specific principle that states "All residents have a right to a home in a complete community with equitable access to a range of opportunities to live, work, learn and play".  The proposed framework seeks to permit this affordable housing choice in all parts of the City and ensure they are operated safely for the benefit of tenants and their neighbours.

The Ontario Human Rights Commission (OHRC) states that municipalities not only have a responsibility to zone for land use and not people, they must “also take steps to apply a human rights lens to decisions that could result in the loss of affordable housing." The OHRC identifies multi-tenant houses as one form of affordable housing. It explicitly cites multi-tenant house zoning and regulations that act to reduce availability of affordable housing as an example of a municipal decision that may result in the loss of affordable housing. The Commission also states that unless municipalities take steps to mitigate the effects of this type of a decision on people who identify with Ontario Human Rights Code grounds (e.g. age, place of origin, family status and several other grounds), they may be at risk of human rights complaints.

The proposed framework aims to comply with federal, provincial and City policies related to human rights and housing.

Housing Affordability

Multi-tenant houses is one of the most affordable forms of housing in the city. According to an October 2020 report from the Maytree Foundation, the average market rent for a bachelor apartment in Toronto in 2019 was $1,148. While rents for multi-tenant homes vary across the city, they are generally between $400 to $700 for a room. In 2018, the most recent year the City's Street Needs Assessment was undertaken, 33 percent of people counted were recipients of Ontario Works (OW) and 21 percent were recipients of the Ontario Disability and Support Program (ODSP). The monthly housing benefit for an individual on OW is $390 and $497 for an individual on ODSP. This shows that over 50 percent of shelter users can only afford rent in shared accommodations such as multi-tenant houses. Before the COVID-19 pandemic, it cost approximately $3000 per month to support an individual in a shelter. This cost has since doubled. The report outlines that without the availability and an increase of safe, affordable and accessible options like multi-tenant houses city-wide, not only will Torontonians continue to suffer due to homelessness or unsafe living conditions, but it will cost all governments millions of dollars annually in shelter costs and housing allowances.

Public and Stakeholder Consultations

Since 2014, the City has held a number of public and stakeholder consultations on multi-tenant houses. In 2014, City Planning and Municipal Licensing and Standards (MLS) launched a multi-tenant house review to identify issues and opportunities related to multi-tenant houses in Toronto. Over the summer of 2017, City staff undertook public and stakeholder consultations on a proposed zoning approach for five pilot areas and licensing strategy as part of the second phase of the multi-tenant house review.

In November 2020, staff were directed to conduct city-wide public and stakeholder engagement on the new proposed regulatory framework. Public consultation was conducted in April and May 2021. City staff invited the public and key stakeholders from across the City to provide feedback on the proposed regulatory framework through the following initiatives:

Two virtual community meetings held on May 4 and May 11, 2021. 

Eleven virtual workshops with key stakeholder groups, such as tenants, students, owners and operators of multi-tenant houses, post-secondary institutions, ratepayer associations and housing-related organizations.

A questionnaire that could be completed online or by phone.

A Do-it-Yourself (DIY) Consultation Toolkit and grant program to encourage community groups to hold their own virtual workshop or consultation.
 

The feedback received from past and present consultations informed this report, the recommended zoning by-law amendments, and a new regulatory framework for multi-tenant houses.

Proposed Regulatory Framework

City staff reported to the Planning and Housing Committee on November 17, 2020 with preliminary recommendations on the proposed regulatory framework, and is reporting back with final by-law recommendations on the proposed framework after conducting consultations. This report summarizes the following components of a proposed regulatory framework:

1.  City-wide zoning standards that permit the use consistently and enable equal access to multi-tenant houses across the City.

2.  Enhanced multi-tenant operator licensing requirements to promote health and safety.

3.  A strategic inter-divisional enforcement and compliance program that will ensure effective enforcement of non-compliant operators.

4. Initiatives to support tenants and maintain affordability of housing.

5. A phased implementation to launch the new framework over a three-year period.

1. City-wide Zoning

This report recommends zoning by-law amendments for a harmonized approach to multi-tenant houses. The zoning amendments would establish city-wide permissions for multi-tenant houses, as well as introduce new, harmonized definitions for "multi-tenant house" and "dwelling room" that are consistent with the proposed licensing by-law.

Zoning regulations would set a maximum number of rooms that would vary by zone; a minimum parking standard, depending on proximity to transit, and a minimum number of washrooms.

From a planning perspective, there is no rationale to prohibit multi-tenant houses as a residential use on a geographic basis. City-wide zoning permissions for multi-tenant houses are necessary to implement licensing of multi-tenant houses city-wide and will enable more effective regulatory oversight by City staff. The recommended zoning by-law amendments include an in-force date of November 1, 2022, to fit within the overall implementation plan for the multi-tenant house regulatory framework.

The proposed zoning by-law amendments will replace zoning regulations adopted by Council on May 9, 2013 for rooming houses as part of the city-wide Zoning By-law 569-2013. City Council did not harmonize zoning regulations for rooming houses at that time. The un-harmonized zoning regulations adopted in 2013 remain under appeal.

2. New Multi-tenant House Licensing By-law

City staff are proposing the introduction of a new multi-tenant house licensing by-law. The proposed by-law will replace the existing fragmented by-laws, apply across the City wherever zoning permits, and introduce a number of harmonized and enhanced standards.

In conjunction with Toronto Public Health, MLS is also bringing forward proposed standards for personal care multi-tenant houses under the new by-law, in order to improve health and safety conditions for tenants and also support enforcement against non-compliant operators. Personal care multi-tenant houses are affordable housing options that provide support services beyond a typical multi-tenant house. 

3. Enforcement and Compliance Strategy

This report outlines a four-pillared approach to a multi-tenant house compliance enforcement strategy. The strategy seeks to address the challenges of compliance among operators, neighbourhood nuisance issues, and the promotion of health and safety standards for tenants. This approach is a collaborative effort between MLS, Toronto Fire Services, Toronto Building, Toronto Public Health, and Housing Secretariat. MLS is also leveraging its experiences in delivering the RentSafeTO program through a dedicated team and proactive inspections. The four pillars are:

Inter-divisional strategic enforcement efforts, with an expanded and dedicated MLS team, along with support from other divisions deployed as needed.

Education and outreach to unlicensed operators, tenants, and communities.

Compliance strategy including annual inspections of licensed multi-tenant houses and data-driven investigations of unlicensed operators.

Enforcement strategy that will include increased maximum fines, a modernized Multi-Tenant House Licensing Tribunal, and undertaking remedial action where appropriate to ensure by-law compliance.
 

4. Housing Affordability and Student Housing Proposals

Tenants of multi-tenant houses are often marginalized and vulnerable, and can include households with very low income, seniors on fixed incomes, immigrants, and students. Without the affordable housing offered through multi-tenant houses, many tenants could find themselves homeless and potentially end up utilizing the shelter system, as they may need to stay in their current communities to be close to employment, social services, school, and/or their support networks, including ethno-cultural community networks, but are unable to find or afford a self-contained home.

To assist non-profit and private multi-tenant house operators in complying with the enhanced licensing requirements around fire and life safety, the Housing Secretariat is developing a Multi-Tenant Housing Renovation and Retrofit Program. The goal of the program is to work with operators to offset the costs of compliance to maintain housing affordability for the tenant. Program elements include:

A combination of grants and fee exemptions in exchange for negotiated and guaranteed affordability periods.

Contributions towards funding for renovations to meet Ontario Building Code, Ontario Fire Code and accessibility upgrades.

Contribution agreement signed outlining affordable rent levels and conditions if home is sold.
 

Full details on the grant amount and program details such as eligibility will be determined during the first implementation phase in partnership with Toronto Building.

As part of the HousingTO 2020-2030 Action Plan the City has committed to approving 40,000 new rental homes by 2030. Work is underway to achieve this goal. A component of this commitment is to meet the housing needs of students. The multi-tenant house consultations highlighted the need to accelerate this goal to improve student safety and improve neighbourhood relations. Licensed multi-tenant houses will likely still play a role in student housing options but at lower occupancies than what are currently being observed to ensure safety. During the first phase of implementation the Housing Secretariat will work with post-secondary institutions to identify sites on or near campuses to build new affordable housing and better meet the housing needs of students. Considerations will also include affordable student housing plans as part of overall campus secondary plan development.

5. Phased Implementation Plan

City staff recommend adopting a phased and multi-year approach:

Year 1: Laying the Foundation (September 2021 – November 2022)  

In Year 1, the implementation will include expansion of a dedicated MLS enforcement team; establishment of an inter-divisional Project Management Team; the launch of a new multi-tenant house licensing system; and preparation for a new Multi-Tenant House Licensing Tribunal. In addition, staff will launch a focused education and outreach strategy; engage with community partners to mitigate tenant displacement; and seek partnerships with post-secondary institutions to identify sites on or near campuses to develop affordable housing.

Toronto Building will also hire a Building Code consultant to identify alternative options for operators to achieve compliance with the Ontario Building Code and Ontario Fire Code as applicable; and the Housing Secretariat will develop a new Multi-tenant Housing Renovation and Retrofit program to provide financial incentives to operators.

Year 2: Launch of New By-laws with a Focus on Existing Operators (November 2022 – November 2023)

The zoning by-law and licensing by-law will come into effect November 1, 2022 (if the zoning by-law is appealed to the Local Planning Appeal Tribunal, then the date that it comes in force could be delayed). City staff will focus on transitioning existing licensed operators to the new requirements, as well as existing unlicensed multi-tenant houses that have been issued Notices of Violations or Charges. City staff will also identify and enforce against high-risk operators that pose a risk to health and safety of tenants or are the subject of a significant number of community complaints. Concurrently, the Housing-at-Risk sub-group will work with identified operators to mitigate tenant displacement.  

Year 3: Focus of Licensing to New Operators (November 2023 – November 2024)

The third phase of implementation will focus on outreach to new operators to apply for licences. This phased approach to focusing on different groups will ensure that staff resources are first dedicated to bringing existing operators into compliance. This third phase will also include ongoing monitoring of impacts on housing affordability.

Throughout all three phases, City staff will take a tenants and communities-first approach that:

Promotes safe, affordable, and liveable houses for tenants.

Identifies high-risk operators.

Takes enforcement actions to address immediate risks to life and safety.

Works with operators to ensure compliance.

Mitigates negative impacts on neighbourhoods and third parties.
 

This report was developed by City Planning, Municipal Licensing and Standards, Housing Secretariat, Toronto Public Health, Toronto Fire Services and Toronto Building. Legal Services, Court Services, and Shelter, Support, and Housing Administration were consulted in the development of the report.