Item - 2025.PH26.3

The Interim Executive Director, Municipal Licensing and Standards, the Chief Planner and Executive Director, City Planning, the Executive Director, Housing Secretariat, the Interim Chief Building Official and Executive Director, Toronto Building, and the Fire Chief and General Manager, Toronto Fire Services recommend that:

1. City Council amend Toronto Municipal Code Chapter 575, Multi-Tenant Houses as follows: 

a. Amend the definition of “Multi-Tenant House” in section 575-1.1 (1) as follows:

(1) Delete the word “building” in the first sentence of subsection [1] and replace it with “premises” so that it reads as follows:

[1] A premises 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.

(2) Add the following as subsection [3](g) in the list of what a multi-tenant house does not include:

(g) units and areas outside of units in an apartment building as defined in City of Toronto Zoning Bylaw 569-2013 or Chapter 354, Apartment Buildings, except for units that individually meet the criteria of subsection (1) or a building described in subsection (2).

b. Amend section 575-2.2A(1)(e) to read as follows:

(e) On first applying for an initial licence, a zoning review from Toronto Building and on a licence renewal, a statement of no change in use;

c. Amend section 575-2.2A(1)(f)[3] to read as follows such that floor plans provided as part of licence applications or renewals include dimensions:

[3] A floor plan of the building showing each multi-tenant house room or dwelling room, the dimensions of each multi-tenant house room or dwelling room, and the maximum number of tenants to be provided with living accommodation in each multi-tenant house room or dwelling room;

d. Amend section 575-2.2A(2) to add a new subsection (e) as follows:

(e) Despite Subsection A(2)(b)[1], when the operator is a corporation, a person authorized to bind the corporation may submit the following in lieu of the documentation required in Subsection A(2)(b)[1]:

[1] A declaration in a form satisfactory to the Executive Director confirming that:

[a] each director of the corporation meets the requirements in Subsection A(2)(b)[1];

[b] the operator will maintain satisfactory documentation to show each director’s compliance with the requirements in Subsection A(2)(b)[1] at all times; and

[c] the operator will provide the documentation described in subsection [b] to the City at any time upon request.

e. Amend section 575-3.1H(1)(b) so it reads as follows such that an operator must provide the City’s approval of a transition plan as part of the notice to tenants:

(b) On receiving approval of a transition plan from the Executive Director, deliver to each tenant a written notice along with the Executive Director’s approval at least 180 days in advance indicating the date on which operations will end.

f. Amend section 575-4.1 to add a new paragraph C as follows:

C. Where a declaration was submitted in accordance with § 575-2.2A(2)(e), the operator of a personal-care multi-tenant house shall ensure that documentation showing each director’s compliance with the requirements in Subsection § 575-2.2A(2)(b)[1] is provided forthwith to the City at any time upon request.

2. City Council direct that the amendments to Toronto Municipal Code, Chapter 575, Multi-Tenant Houses come into force on February 15, 2026.

3. City Council amend Zoning Bylaw 569-2013, as amended, substantially in accordance with the draft Zoning Bylaw Amendment attached as Attachment 2 to this report and direct that the amendments come into force and effect on February 15, 2026.

4. City Council authorize the City Solicitor to make any necessary clarifications, refinements, minor modifications, technical amendments, or bylaw amendments as may be identified by the City Solicitor, the Chief Planner and Executive Director, City Planning, and the Interim Executive Director, Municipal Licensing and Standards.

5. City Council adopt the revised Multi-Tenant Houses Renovation Program (“the Program”) in accordance with the Program guidelines provided in Attachment 8 to this report and such additional parameters as may be determined by the Executive Director, Housing Secretariat, and subject to available City Council approved funding within the Housing Secretariat’s annual operating budget.

6. 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 referenced in Recommendation 5 above 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.

Multi-tenant houses (also known as rooming houses) are one of the most affordable forms of housing and have long provided accommodation to diverse communities across Toronto, including students, seniors, newcomers, low-income residents, and people exiting homelessness. To preserve this type of affordable housing and ensure it is safe and secure across all neighbourhoods in Toronto, City Council adopted the New Regulatory Framework for Multi-Tenant Houses (“the framework”) on December 14, 2022 (2023.CC2.1). The framework came into effect on March 31, 2024, and introduced a city-wide zoning approach to permit multi-tenant houses in all areas of the city (subject to zone-specific requirements), a new licensing bylaw (Toronto Municipal Code, Chapter 575, Multi-Tenant Houses) and a phased, interdivisional approach to licensing and enforcement. The framework also established the Multi-Tenant House Licensing Tribunal, a renovation and repair program, and a communications and engagement program to inform tenants, operators, and the broader public.

The framework was adopted to advance key actions under the HousingTO 2020-2030 Action Plan ("HousingTO Plan") and other core policy objectives: to harmonize zoning permissions across Toronto; improve tenant safety and housing conditions; preserve and expand deeply affordable housing; and apply an equity lens to the regulation of multi-tenant houses. The framework is also one of many concrete steps the City has taken to advance the progressive realization of the right to adequate housing, a commitment made by City Council in adopting the Toronto Housing Charter. Staff have been monitoring progress toward the framework’s objectives through indicators such as licensing uptake, compliance with property and safety standards, tenant protection measures, and the legal, safe, and equitable integration of multi-tenant houses into all neighbourhoods. 

This report responds to City Council’s direction to provide an implementation update on the framework, and assesses the activities and outcomes between March 31, 2024, and July 31, 2025. The report includes operational insights, licensing and enforcement data, interdivisional collaboration updates, findings from a land economics study, and community engagement activities, including an online feedback form for the public and a targeted survey of operators. 

Implementation of the framework is progressing in line with the planned phased rollout. Licensing activity to date indicates that most operators previously licensed under legacy bylaws have transitioned to the new framework, which applies higher standards. At the same time, implementation has highlighted challenges, particularly when it comes to bringing unlicensed operators into the framework.

To build on progress achieved during the initial phases of implementation and advance policy objectives, this report highlights and recommends targeted refinements and stronger supports to respond to some of the challenges experienced since implementation began.

The City remains committed to increasing participation in the framework, protecting tenants, and advancing the long-term goals of safety, affordability, and equitable housing access across Toronto. To support these objectives, staff introduced an Operator Concierge service in September 2025 to guide operators through the licensing process and are proposing enhancements to the Multi-Tenant Houses Renovation Program. Staff also recommend a set of technical and administrative refinements to both licensing and zoning bylaws, recommended to come into effect on February 15, 2026, that would clarify applicable standards, including for buildings upon multiple properties or containing both dwelling rooms and dwelling units.

There is no financial impact resulting from the recommendations in this report.

This report (Recommendation 5) proposes changes to eligibility and implementation of the Multi-Tenant Houses Renovation Program as approved by City Council in March, 2024, which will be applied within existing funding. No incremental impact beyond the currently budgeted annual funding is expected. $5 million is available within the Council-approved 2024 Housing Secretariat Capital Budget and Plan, and is anticipated to be sufficient to cover increased Program demand arising from the changes recommended in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial implications as identified in the Financial Impact section.