Item - 2022.PH30.9

Tracking Status

  • City Council adopted this item on February 2, 2022 without amendments.
  • This item was considered by Planning and Housing Committee on January 12, 2022 and was adopted with amendments. It will be considered by City Council on February 2, 2022.

PH30.9 - Zoning for Payday Loan Establishments

Decision Type:
ACTION
Status:
Adopted
Wards:
All

City Council Decision

City Council on February 2 and 3, 2022, adopted the following:

  

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 licensed establishments selling services involving lottery and gaming, cannabis, alcohol and horse racing;

 

b. pawnshops;

 

c. social services organizations serving low-come residents; and

 

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.

Background Information (Committee)

(December 15, 2021) Report from the Chief Planner and Executive Director, City Planning on Zoning for Payday Loan Establishments
https://www.toronto.ca/legdocs/mmis/2022/ph/bgrd/backgroundfile-174798.pdf

Background Information (City Council)

(January 28, 2022) Supplementary report from the Executive Director, Social Development, Finance and Administration, the Chief Planner and Executive Director, City Planning and the Executive Director, Municipal Licensing and Standards on Payday Loan Establishments (PH30.9a)
https://www.toronto.ca/legdocs/mmis/2022/cc/bgrd/backgroundfile-176525.pdf
Attachment 1 - Jurisdictional Scan of Regulations for Payday Loan Establishments
https://www.toronto.ca/legdocs/mmis/2022/cc/bgrd/backgroundfile-176526.pdf
Attachment 2 - Geographic Locations of Payday Loan Establishments
https://www.toronto.ca/legdocs/mmis/2022/cc/bgrd/backgroundfile-176527.pdf

Communications (Committee)

(February 17, 2021) Submission from ACORN (PH.New)
https://www.toronto.ca/legdocs/mmis/2022/ph/comm/communicationfile-143066.pdf
(January 8, 2022) Letter from Donna Borden, East York ACORN (PH.New)
https://www.toronto.ca/legdocs/mmis/2022/ph/comm/communicationfile-143104.pdf

Motions (City Council)

Motion to Adopt Item (Carried)

PH30.9 - Zoning for Payday Loan Establishments

Decision Type:
ACTION
Status:
Amended
Wards:
All

Committee Recommendations

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.

Decision Advice and Other Information

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.

Origin

(December 15, 2021) Report from the Chief Planner and Executive Director, City Planning

Summary

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.

Background Information

(December 15, 2021) Report from the Chief Planner and Executive Director, City Planning on Zoning for Payday Loan Establishments
https://www.toronto.ca/legdocs/mmis/2022/ph/bgrd/backgroundfile-174798.pdf

Communications

(February 17, 2021) Submission from ACORN (PH.New)
https://www.toronto.ca/legdocs/mmis/2022/ph/comm/communicationfile-143066.pdf
(January 8, 2022) Letter from Donna Borden, East York ACORN (PH.New)
https://www.toronto.ca/legdocs/mmis/2022/ph/comm/communicationfile-143104.pdf

Speakers

Rama Fayaz, Downtown ACORN
Sheila Prospere, Scarborough ACORN
Kiri Vadivelu, Scarborough ACORN
Councillor Paul Ainslie

Motions

1 - Motion to Amend Item moved by Councillor Paula Fletcher (Carried)

That:

 

1.  The item be forwarded to City Council; and,

 

2.  The Planning and Housing Committee request the Chief Planner and Executive Director, City Planning to report directly to City Council on a jurisdictional scan, including the cities of Ottawa and Hamilton, on the matter.


2 - Motion to Amend Item moved by Councillor Gord Perks (Carried)

That:

 

1.  The Planning and Housing Committee direct 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 - Motion to Amend Item moved by Councillor Kristyn Wong-Tam (Carried)

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.


4 - Motion to Amend Item moved by Councillor Ana Bail„o (Carried)

That:

 

1. The Planning and Housing Committee direct the Executive Director, Municipal Licensing and Standards to report directly to City Council on the minimum distance required between payday loan licences in order to prevent clustering.

Source: Toronto City Clerk at www.toronto.ca/council