Item - 2022.PH30.9

The Planning and Housing Committee recommends that:

1. City Council direct the Chief Planner and Executive Director, City Planning and the Executive Director, Municipal Licensing and Standards to report back on the feasibility of prohibiting predatory lenders such as payday loan companies from locating anywhere on or within 500 metres from:

a. Alcohol and Gaming Commission of Ontario (AGCO) licensed establishments selling services involving lottery and gaming, cannabis, alcohol and horse racing;

b. pawnshops;

c. social services organizations serving low-come residents;

d. social housing including Toronto Community Housing Corporation.

2. City Council request the Executive Director, Social Development Finance and Administration and the Chief Planner and Executive Director, City Planning to meet with the Canadian Bankers Association to discuss the service gaps in the banking sector affecting underserved low-income individuals and the role of banks and their relationships with payday loan companies and to report back as soon as possible on key findings and recommendations on how to reduce the concentration of predatory lenders located in the City of Toronto.

The Planning and Housing Committee:

1. Requested the Chief Planner and Executive Director, City Planning to report directly to the February 2, 2022 City Council meeting on a jurisdictional scan, including the cities of Ottawa and Hamilton, on the matter.

2. Directed the City Manager to report directly to the February 2, 2022 City Council meeting on advocacy undertaken by the City on Payday lending, and the responses from relevant governments and industry organizations.

3. Directed the Executive Director, Municipal Licensing and Standards to report directly to the February 2, 2022 City Council meeting on the minimum distance required between payday loan licences in order to prevent clustering.

On December 16, 2020, City Council adopted GL19.3 with respect to updates to the licensing for payday loans. Council also requested the Chief Planner to report to the Planning and Housing Committee on the necessary steps required to amend the zoning classification for payday loan establishment to remove it from the category governing banks and credit unions, and that the report include consideration for regulations related to the location and spacing of this use.

This report responds to the direction from the December 16, 2020 City Council meeting, and was prepared with input from the Municipal Licensing and Standards Division.