(Report dated June 24, 1998, addressed to Etobicoke Community Council, from the Commissioner of Urban Development, Etobicoke.)

Subject:Interim Policy: Conversion to Condominium Applications and the Demolition of Rental Housing

File No: 300.12.3.1

Purpose:

To advise the Etobicoke Community Council of the interim policy and process for dealing with applications to convert rental housing to condominium and loss of rental housing due to demolition.

Funding Sources, Financial Implications and Impact Statement:

Not applicable.

Recommendation:

That consideration be given to designating areas with high concentrations of rental housing as demolition control areas.

Background:

At its meeting of May 27, 1998, the Etobicoke Community Council deferred consideration of a report, dated May 20, 1998, from the City Clerk, forwarding, for its review, the recommendations of the Urban Environment and Development Committee, from its meeting on May 19, 1998, regarding condominium conversion and the demolition of rental housing before and after the proclamation of the Tenant Protection Act. The recommendations provide that:

• staff review and report back on appropriate Official Plan condominium conversion and demolition control policies, including the establishment of an appropriate vacancy rate, and a respective procedural process that can be applied uniformly on a city-wide basis;

• all Community Councils strictly apply existing policies/by-laws, in the interim, in order to minimize the loss of affordable rental housing units;

• Community Councils hear deputations and provide notification to the tenants of such meetings, at the expense of the applicant;

• the City solicitor review the feasibility of a city-wide extension of the provisions of the former City of Toronto=s demolition control by-law; the former Metro Toronto delegation by-law (No. 61/95) be amended such that Council will continue to be the decision-making authority on rental housing conversion applications to condominium; and,

• additional informational requirements be requested in conjunction with future applications for condominium conversion.

Discussion:

The current Rental Housing Protection Act (RHPA), enacted in 1986 and amended in 1989, regulates the conversion of rental housing to condominium by establishing stringent criteria that a municipality must consider when considering conversion applications. The Act also requires the applicant to notify tenants and requires the municipality to hold a public meeting. Council=s decision can be appealed to the Ontario Municipal Board.

The anticipated proclamation of the Tenant Protection Act (TPA) on June 17th, 1998, and repeal of the RHPA, will remove the legislation that empowers municipalities to regulate condominium conversions and rental housing demolition. While the TPA does include provisions to prevent existing tenants from being evicted from a building that has been converted and provides the right of first refusal to purchase the unit, it does not prevent the conversion from taking place or allow for approval subject to conditions. The repeal of the RHPA will eliminate legislative requirements for a public meeting on a conversion application as such applications would be subject to Planning Act regulation requirements (Ontario Regulation 196/96) which do not require a public meeting for a plan of condominium application. In the interim, municipalities will have to rely on their Official Plan policies and Planning Act regulations to process condominium conversion and demolition of rental housing applications once the RHPA is repealed.

As most of the former local area municipalities have Official Plan policies regulating the conversion of rental housing, a staff team is currently developing more consistent policies and procedures on the subject of condominium conversions and the demolition of rental housing, including how notification is to be achieved and related costs assigned, that will support harmonization across the city. Staff expect to report to Council on these issues, including new policies and by-laws, special legislation, if necessary, by the fall of this year.

Etobicoke Official Plan

Etobicoke=s Official Plan currently contains policies related to condominium conversion in addition to the RHPA. Policy 2.2.13 states AIn addition to applicable Provincial legislation, Council shall not permit the conversion of rental housing to condominium unless the overall vacancy rate for the City as reported by CMHC, exceeds 2 percent. However, such conversion may proceed where Council is satisfied that the vacancy rate for the type of development proposed to be converted exceeds 2 percent across the Housing District in which it is located. Applications for condominium conversion shall also be in accordance with Section 11.15.@ According to the most current CMHC information available (October, 1997), the apartment vacancy rate in Etobicoke is 0.7% and the townhouse vacancy rate is 1.0%.

Section 11.15 provides further policies related to conversions requiring the applicant to post notice in a central area regarding the application and submitting a report regarding the structural stability and general maintenance of the structures and associated facilities, as well as adherence to Council=s adopted standards and specifications for condominium housing (Appendix III to the Official Plan).

Given current rental apartment and townhouse vacancy rates in Etobicoke, any proposal to convert rental housing to condominium, which is made in the foreseeable future, will necessitate two approval processes which involve both an application to amend the Etobicoke Official Plan and an application for plan of condominium approval.

Interim Policy

Until such time as a city-wide approach is developed, the interim approach would consist of circulation of the Official Plan Amendment application, in accordance with s.17 of the Planning Act, to all affected public agencies and departments for comment. The application would identify the form of tenure as condominium, in accordance with Etobicoke Official Plan policy requirements. The application would be the subject of staff review and evaluation, in terms of its conformity to applicable Official Plan policies and Council=s adopted standards and specifications for condominium housing as well as the potential impact of the proposed rental housing conversion on tenants, and, a report to the Etobicoke Community Council.

A public meeting would be held by the Community Council to consider such an amendment application in accordance with Planning Act requirements; it could also serve as a forum to ensure that the tenant views respecting any proposed conversion are identified, prior to making a recommendation to the Toronto Council. In the event Toronto Council approves the application, the requisite Official Plan Amendment is then forwarded for approval.

In terms of appropriate notice of application and notification of meeting date to hear deputations and consider the staff report and written submissions, the current practice employed by the Clerk, i.e. newspaper advertisement/direct mailing to tenants and owners, should suffice for this purpose, along with adequate on-site signage in accordance with current Planning Act regulations.

In addition, the applicant would need to apply for condominium approval under s.51 of the Planning Act. The current condominium approval process would continue to apply. Part of the evaluation process would consist of ensuring that the Plan of Condominium conforms to the condominium policies (s.11.15) of the Etobicoke Official Plan, including Council=s adopted standards and specifications for condominium housing (Appendix III to the Official Plan). A recommendation report would be prepared by staff to be signed by the Etobicoke Planning Commissioner and forwarded to the former Metropolitan Planning Commissioner requesting draft plan approval. Upon fulfillment of the conditions to approval, final approval would be granted and the Plan released for registration.

Demolition Control

Once the TPA is proclaimed, municipal councils will no longer have the authority under the RHPA to prohibit the demolition of rental housing. Demolitions can be regulated somewhat, however, through the use of Section 33 of the Planning Act or other special legislation, such as the City of Toronto Act, 1984, which is currently being reviewed as to the benefits of its application on a city-wide basis, since it allows for Council to refuse a demolition permit for up to one year after a building permit is issued. In the former local area municipalities, a permit to demolish all or part of a residential building (including units within equity co-operatives/co-ownership housing) can only be refused until a building permit is issued.

Etobicoke=s Official Plan (s.2.2.15) provides for Council to pass a Demolition Control by-law pursuant to s.33 of the Planning Act, to require applications for demolition of residential property to receive Council approval. Such approval may be granted only when the demolition can be approved in accordance with the provisions of applicable legislation and when: redevelopment is imminent; or, the demolition would not result in the loss of dwelling units in good structural repair or serving a necessary housing need; or, refusal of such demolition is unlawful. The Plan also requires that, where appropriate, development, which will remove existing housing units, will provide at least the same number of new units and wherever possible, at the same level of affordability.

Interim Policy

In terms of an interim policy, as with plan of condominium and official plan amendment applications, the current process would remain unchanged with respect to an application requesting issuance of a demolition permit for a rental building. Staff would review the application in terms of its conformity to s.2.2.15 of the Official Plan, and, if deemed appropriate, recommend to the Etobicoke Community Council that a demolition control by-law be enacted with respect to the site, in accordance with s.33 of the Planning Act, and, that certain conditions to approval be satisfied prior to issuance of the demolition permit. The Community Council would then make a recommendation to the Toronto Council.

Unlike some of the other former area municipalities, Etobicoke implements demolition control through the use of site specific by-laws as opposed to on an area-wide basis (designated demolition control area). As it is difficult, at this time, to predict how many applications may be received for condominium conversion and demolition following the repeal of the RHPA, it may be prudent to give consideration to designating areas with high concentrations of rental housing within the former City of Etobicoke, such as the Mimico Apartment Strip, Kingsway/Anglesey, Berry Road, as demolition control areas, similar to other former area municipalities, in order to recognize this large stock of rental housing.

Conclusions:

With the repeal of the RHPA, the Etobicoke Official Plan will continue to guide applications for condominium conversions and demolition of rental housing until new policies and procedures are approved by Toronto Council. In the interim, Community Councils are requested to continue to hold public meetings when considering conversion applications in the absence of such a requirement in the TPA. Additional reports should be forthcoming in the near future to address any outstanding matters relating to public notification policies and procedures. Consideration should be given to designating areas with high concentrations of rental housing in the former City of Etobicoke as demolition control areas.

Contact Name:

L. Gary DysartTel: (416) 394-8233

Principal Planner, Policy and Information ServicesFax: (416) 394-6063