Toronto ACORN Supports the City of Toronto Draft Rental Renovation Licence Bylaw to Address Renovictions

Today, the City of Toronto released its draft bylaw to address the issue of renovictions. Renovictions have become a popular tool in the hands of predatory landlords to evict long term tenants. Toronto ACORN has been fighting for a anti-renoviction bylaw for years to ensure the city passes a law to protect tenants. Modelled on the Hamilton Anti-Renovictions Bylaw that ACORN won early this year, Toronto ACORN supports this proposed renovation licence bylaw.

The draft bylaw disincentivizes landlords to evict tenants under the guise of doing renovations. Renovictions have seen an alarming increase and it is about time to stop landlords from using this predatory practice.

The bylaw, if approved, will come into force on 31st July, 2025.

Key features of the bylaw include:

Landlord requirements

• Apply for a Rental Renovation Licence within seven days of issuing an N13 notice to end tenancy. Licence will be valid for a 12 months after which the landlord will have to apply for a new licence.
• Pay a Rental Renovation Licence fee of $700.00 per unit
• Post the Rental Renovation Licence on the door of the unit.
• Obtain a building permit before applying for the Rental Renovation Licence
• Submit a report from a qualified person saying that the renovation or maintenance work is so extensive that the tenant must leave the unit
• Post a Tenant Information Notice (TIN) on the door of each tenant’s unit to inform them of the licence application and to enable the tenant to seek information about their rights. This TIN will be provided to the landlord by the city within two days of receiving a complete licence application.
• After posting the TIN, the landlord must submit a declaration form stating whether the tenant wishes to return to their rental unit after the renovation is complete.
• Submit a Tenant Accommodation Plan or a Tenant Compensation Plan that is signed and agreed to by the tenant.
• For tenant(s) who choose to return to their units: Provide temporary, comparable housing at similar rents, OR provide monthly rent-gap payments to cover the rent difference, with tenants finding their own temporary housing.
• For tenant (s) who choose not to return: The landlord will make arrangements to provide severance compensation that is equal to the rent gap payments for three months.
• Provide moving allowance to all tenants regardless of whether they choose to return to the unit after the renovation is complete. This will be a one-time allowance and adjusted annually based on the annual Consumer Price Index change for Toronto.

Information about tenants’ rights
The City will send a hard copy of the Tenant Handbook directly to the rental units which will have accessible information on tenants’ rights, tenant support organizations, and legal resources and contact information.

Public registry
A public registry for Rental Renovation Licences will include aspects such as the status of the renovation licence, the expected timeline for the renovation work, and updates related to licence issuance or inspections.

Enforcement

• Financial penalty for non-compliance can reach up to $100,000.
• Special fines, equal to the economic advantage gained from bylaw contravention, have no maximum limit, and would be determined by provincial courts.
• Continuing offences can incur fines of up to $10,000 per day, potentially exceeding $100,000 in total.
• Use of Tickets up to $1000 per ticket.

Status update on the bylaw:
The council will assess the implementation of the Rental Renovation Licence Bylaw by July 31, 2027.