Item - 2025.PH20.2

The Planning and Housing Committee recommends that:

1. City Council adopt the Rental Replacement Handbook, in Attachment 1 to the report (March 27, 2025) from the Chief Planner and Executive Director, City Planning, as the guidelines for Rental Housing Demolition applications and direct the Chief Planner and Executive Director, City Planning, in consultation with the Executive Director, Development Review, to use the Guidelines in the evaluation of new and under review Rental Housing Demolition applications.

2. City Council request the Chief Planner and Executive Director, City Planning, report to the Planning and Housing Committee prior to January 23, 2026 on potential additional measures and resources to support tenants facing Demovictions, including:

a. The outcome of stakeholder consultation related to designing an updated process for vulnerable tenants; 

b. An assessment of divisional resourcing supporting Rental Housing Demolition applications; and

c. Approaches to comprehensively distribute the Rental Replacement Handbook,  including requiring Landlords to post on the Handbook on tenant boards where applicable, and providing physical copies at local housing help centres, community centres, libraries, and other public spaces. 

3. City Council direct the City Solicitor, in consultation with the Chief Planner and Executive Director, City Planning, to include requirements in Section 111 agreements for owners to provide tenants copies of the agreement at no cost.

4. City Council request the Executive Director, Housing Secretariat, in consultation with tenant organizations and Councillors, to report to Planning and Housing Committee prior to January 23, 2026 on a review of the adequacy of funding for the Tenant Support Program, including but not limited to, increasing access to pro bono legal representations, defending tenants from Above Guideline Rent Increases, and advocacy support.

This report responds to City Council’s request for the Chief Planner and Executive Director, City Planning to evaluate the current approach to calculating rent gap assistance, report back on compliance with tenant assistance policies, and publish updated implementation guidelines for Rental Housing Demolition applications submitted under Chapter 667 of Toronto Municipal Code (“Chapter 667”) that require replacement of existing rental housing.

Throughout November and December 2024, staff undertook consultations with tenants, development industry and tenant advocacy stakeholder groups. This report provides an overview of consultation feedback, highlights areas of implementation that stakeholders identified for improvement, and outlines recent and ongoing rental replacement process changes to address stakeholder feedback, including continuous engagement with tenants, data collection practices, and enforcement of the rental demolition policy framework.

Staff have drafted a Rental Replacement Handbook (the "Handbook"), which sets out updated rental replacement implementation practices and is included as Attachment 1. It will be posted on the City’s website following review by key stakeholders. The Handbook is a new plain-language resource that will provide transparency and guidance to members of the public and the development industry. Staff will continue to consult on the Handbook with stakeholders for ongoing improvement.

Staff have evaluated and consulted on the current approach for calculating rent gap assistance. Based on the analysis and consultations, staff recommend maintaining the current approach of using use Canadian Mortgage and Housing Corporation data for average market rents for rental units built in or after 2015, with an adjustment to use zone specific data where available.

Legal Services, Housing Secretariat, and Toronto Building were consulted in the preparation of this report.