Last Updated on October 30, 2024 by CREW Editorial
Toronto City Council discussed a new Renoviction Bylaw at its October 30 meeting, responding to concerns over tenant displacement due to renovations. The bylaw is set to take effect on July 31, 2025. It aims to establish clear rules and tenant protections around eviction practices for renovations, addressing a gap in provincial regulations.
Background
The bylaw responds to tenant and community concerns about renovictions, which involve evictions under the claim that vacant possession is needed for significant repairs. Public engagement, including focus groups and surveys conducted between August 13 and September 30, 2024, was considered in the bylaw’s final form, reflecting feedback from various stakeholders.
Toronto’s bylaw was modelled after Hamilton City Council’s first-of-its-kind Renovation Licence and Relocation By-law, which was announced in April and will come into effect on January 1, 2025.
Key Provisions of the Renoviction Bylaw
Under the bylaw, landlords must meet specific requirements when planning renovations that involve evicting tenants.
Landlords must apply for a licence within seven days of issuing an N13 notice for eviction. Each Rental Renovation Licence will cost $700 per unit, covering part of the bylaw’s annual implementation cost.
A building permit must be secured before the licence application. Additionally, landlords must submit a report from a qualified inspector, confirming that renovations necessitate tenant relocation.
Landlords must also notify tenants about the licence application by posting a Tenant Information Notice, outlining tenant rights and next steps.
Tenant Rights and Compensation
The bylaw establishes tenant protections during and after the renovation period:
Return Accommodation or Rent-Gap Payments
Tenants who wish to return after renovations must be offered comparable temporary housing or monthly rent-gap payments to cover the cost difference of temporary accommodations.
Severance Compensation
For tenants who opt not to return, landlords are required to provide severance compensation.
Exemptions
The bylaw includes exemptions for multi-tenant housing operators, aligning with Toronto’s existing Multi-tenant Housing regulations to avoid duplicative fees for certain property types.
Public Education and Awareness Campaign
Toronto Building and the Housing Secretariat will implement a multilingual public education campaign before the bylaw’s launch. This campaign will help landlords and tenants understand their rights and obligations under the bylaw, rolling out in phases to ensure broad awareness by the July 2025 effective date.
Inspection and Enforcement
To oversee compliance, the bylaw designates 14 new city staff members, including eight for licensing inquiries and six for inspections and enforcement. Toronto Building will monitor renovations to ensure compliance with licensed timelines and facilitate timely tenant re-entry.
City Council mandated continuous oversight and will receive a comprehensive report in 2027. This review will measure the bylaw’s effectiveness through metrics such as licence issuance, tenant inquiries, and enforcement outcomes, along with recommendations for amendments as necessary.
Toronto’s Renoviction Bylaw aims to reduce tenant displacement risk and preserve affordable housing, while maintaining clear guidelines for landlords. The bylaw’s financial impact will be addressed in Toronto’s 2025 budget, with provisions for ongoing adjustments based on city feedback and program needs.
