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Landlord licensing in Toronto?

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Landlord licensing in Toronto?

The City has published theirRental Apartment Buildings: Results of Public Consultation and Proposed Regulatory Regimereport online.  

Please click HERE to access it.

The following is a summary:

  • Licensing is not recommended;
  • Staff instead recommend using a “regulatory by-law” via the tools available under the City of Toronto Act;
  • This would include legal requirements for building owners;
  • CASH GRAB  ranging from $8 – $13 per unit per year.

Here are some selected excerpts from the report:
 
“a regulatory approach through licensing does not present any advantages over other regulatory tools authorized by the City of Toronto Act, 2006 and may actually create additional complexities that would not contribute to the programs goals of bringing rental apartment buildings into compliance.”
 
“enactment of a regulatory bylaw, instead of a licensing bylaw, would provide the City with the necessary authorities to accomplish the City’s mandate of consumer protection, safety and well being of its citizens, and fulfill public expectations, while avoiding potential hindrances to obtaining compliance.”
 
“creation of a regulatory by-law, which would impose legal requirements for rental building owners, improved access to information about the quality of rental apartment buildings and new opportunities for higher fines.”
 
“report also identifies additional inspection activities to help benchmark the quality of the housing stock in rental apartment buildings and enhance the proactive enforcement of property standards. Lastly, the report outlines a process for recovering the costs of existing and proposed inspection and enforcement activities based on a combination of tax revenues, rental apartment building registration fee and user fees for non-compliant building owners.”

Report Recommendations:

The Executive Director, Municipal Licensing and Standards recommends that:

  1. City Council approve a new regulatory by-law for rental apartment buildings that requires property owners to:
    1. register the building with the City of Toronto and submit required information;
    2. have a process for receiving, tracking and responding to tenant repair requests;
    3. notify tenants of service disruptions, property standards appeals, work orders andc leaning plan,
    4. install notification board in central location;
    5. use licensed pest management professionals;
    6. have a waste management plan;
    7. have a cleaning plan;
    8. use contractors with certification from Ontario College of Trades to conduct maintenance of HVAC and plumbing systems
    9. have a state of good repair capital plan; and
    10. pay all applicable fees.

and direct the Executive Director, Municipal Licensing and Standards to report to the March 6, 2017 meeting of Licensing and Standards Committee with the new regulatory by-law.

  1. City Council direct that the program be funded as follows:

Option A: Program budget of $4,442,904, funded:

  • 80% from a $13.00 registration fee per unit per year ($3,580,317);
  • 20% from the tax-base ($888,580)

Option B: Program budget of $4,442,904, funded:

  • 65% from a $11.00 registration fee per unit per year ($2,917,123),
  • 15% from revenues from enforcement action ($637,200)
  • 20% from the tax-base ($888,580)

Option C: Program budget of $4,442,904, funded:

  • 60% from a $10.00 registration fee per unit per year ($2,665,742),
  • 40% from the tax-base ($1,777,161)

Option D: Program budget of $4,442,904, funded:

  • 45% recovered from a $8.00 registration fee per unit per year ($2,028,542)
  • 15% recovered through revenues from enforcement action ($637,200)
  • 40% recovered from the tax-base ($1,777,161)

Toronto’s Licensing & Standards Committee meets on Wednesday November 30 at 9:30 AM to discuss this report.  GTAA will be submitting a formal response with recommended changes in advance of this meeting, with specific focus on the reductions any associated fees.  Please forward any suggestions to GTAA.