Item - 2024.PH10.2

The Planning and Housing Committee recommends that:

1. City Council authorize the Executive Director, Housing Secretariat, in consultation with the Executive Director and Chief Building Official, Toronto Building, Fire Chief and General Manager, Toronto Fire Services, and Executive Director, Municipal Licensing and Standards, to establish the Multi-Tenant Houses Renovation Program (the “Program”) and provide grant funding to eligible multi-tenant house operators (“Operators”) under the Program, in accordance with the Program guidelines as described in Attachment 1, to the report (February 13, 2024) from the Executive Director, Housing Secretariat, and such additional parameters as may be determined by the Executive Director, Housing Secretariat, and subject to available Council approved funding within the Housing Secretariat’s annual operating budget.

2. City Council authorize the Executive Director, Housing Secretariat to negotiate and execute, on behalf of the City, any agreements with eligible Operators selected under the Program to secure the financial assistance being provided and to set out the terms for the funding, renovation, and operation of multi-tenant housing, on terms and conditions satisfactory to the Executive Director, Housing Secretariat, and in a form acceptable to the City Solicitor.

3. City Council authorize up to 250 multi-tenant house rooms to be secured through the Program to be eligible for waivers of planning application and building permit fees, as outlined in the Financial Impact Section of the report (February 13, 2024) from the Executive Director, Housing Secretariat. 

4. City Council authorize the Executive Director, Housing Secretariat to support the selected Operators with any applications to the federal or provincial governments to secure funding to support the renovation of affordable rental housing under the Program, and to execute any agreements or other documents required with respect to same, on terms and conditions satisfactory to the Executive Director, Housing Secretariat and in a form acceptable to the City Solicitor.

5. City Council authorize the Executive Director, Housing Secretariat to execute, on behalf of the City, any security or financing documents or any other documents required to facilitate the funding process, including any documents required by  the selected Operators to complete third party financing and refinancing, when required during the term of the City's agreement with the selected Operators or their successors, as required by normal business practices, and provided that such documents do not give rise to financial obligations on the part of the City that have not been previously approved by City Council.

6. City Council reiterate requests to the federal and provincial governments to:

a. allocate new and enhanced investments to support repairs and modernization of the city’s existing multi-tenant housing stock; and

b. establish an acquisition program to support acquisitions and renovations/conversions for at-risk private market rental properties, including multi-tenant houses, or provide funding to augment the City’s Multi-Unit Residential Acquisitions (“MURA”) Program.

Multi-tenant houses (also known as rooming houses) are a critical component of the housing continuum and provide accommodation to diverse communities, including students, seniors, new immigrants, low-income residents, and people exiting homelessness. In recognition of the urgent need to protect this type of rental housing stock, in December, 2022, through Item 2023.CC2.1, City Council adopted the New Regulatory Framework for Multi-Tenant Houses (“Multi-Tenant Houses Framework”).

The Multi-Tenant Houses Framework will come into effect on March 31, 2024, and includes: an updated city-wide zoning approach to permit multi-tenant houses in all areas of the city, subject to zone-specific requirements; a new licensing by-law; and a phased and collaborative approach to licensing and enforcement. The framework is rooted in a human rights-based approach to housing and its implementation will help the City adhere to its commitments under the Toronto Housing Charter – Opportunity for All. Specifically, implementation of the new framework will extend consistent regulation of multi-tenant houses across the City, with the aim that more homes are being maintained in a state of good repair and living conditions are improved for tenants. Through implementation of the framework, the City also aims to secure affordability and availability of this type of rental housing stock.

To support implementation of the Multi-Tenant Houses Framework, in 2020 the Planning and Housing Committee directed the Housing Secretariat to develop and report back on a new incentives program to assist eligible property owners to comply with Ontario Building Code and Ontario Fire Code requirements that are needed to obtain a license. This report responds to the Committee’s request and recommends approval of a new ‘Multi-Tenant Houses Renovation Program’ (the “Program”) focused on improving living conditions and housing stability for tenants; preventing the loss of existing multi-tenant housing stock; and supporting eligible operators with complying with the new framework. 

To achieve the intended objectives, the proposed Program will provide grant funding and/or financial incentives (planning application and building permit fee waivers) to eligible property owners to address a broad range of costs directly related to improving safety and building conditions for tenants and bringing properties into compliance with the Zoning By-law, Ontario Building Code and Ontario Fire Codes. A funding allocation of $2 million for the first year of implementation has been approved in the Housing Secretariat’s 2024 Operating Budget and will provide staff with the flexibility to be responsive as issues arise during implementation. Additionally, where City funding and/or financial incentives are provided to support substantial repairs or renovations, the Program will require operators to operate as a licensed multi-tenant rental house for a minimum term of 15 years, and operators must not apply for any rent increases above the guideline as identified in the Residential Tenancies Act in connection with any of the improvements funded through the Program. Public investments will be secured through legal instruments and will be repayable by operators in the event of non-compliance.

The Program described in Attachment 1 is a preliminary model which will continue to be refined and improved based on qualitative and quantitative data and evidence, including feedback from tenants and operators. Staff will develop an evaluation framework, collect data and report back to Council by Q4 2024 with an interim Program update and recommendations to improve the program. An update will be provided to Council in 2025, concurrent with a report back on the first year of implementation of the Multi-Tenant Houses Framework and may provide additional recommendations.

The Program recommended in this report was developed in consultation with several City Divisions involved in the implementation of new Multi-Tenant Houses Framework, including City Planning, Municipal Licensing & Standards, Toronto Building, Toronto Office of Emergency Management, and Toronto Fire. It was also informed through engagement with housing operators, the City’s Tenant Advisory Committee, post-secondary institutions, and housing rights advocates. The Housing Secretariat will continue to engage with operators participating in the Program, tenants living in multi-tenant houses, housing advocates, the Tenant Advisory Committee, and the newly formed Housing Rights Advisory Committee, to ensure continued efficacy of the Program.

Implementation of the Program will support delivery of the City’s HousingTO 2020-2030 Action Plan and the Generational Transformation of Toronto’s Housing System to Urgently Build More Affordable Homes report (Item EX9.3), both of which are focused on increasing residents’ access to safe, secure and adequate homes in all neighbourhoods across Toronto.