November 18, 1998

To:Urban Environment and Development Committee

From:City Clerk

Subject:Official Plan Policies and Related By-laws Regarding the

Conversion to Condominium and Demolition of Rental Housing

Recommendation:

The York Community Council on November 12, 1998, having considered the motions moved by Councillor Moscoe at the Urban Environment and Development Committee on November 2, 1998 regarding the report (October 15, 1998) from the Commissioner of Urban Planning and Development Services, recommended to the Urban Environment and Development Committee that :

(1)Recommendation No. 2(a), Section 3.2.3 Conversion and Demolition of Rental Housing, with its amendments to paragraphs 135.1, 135.3, 135.4 and 135.5, be endorsed;

(2)paragraph 135.2 be amended by:

-deleting the words "including" and substituting the words "exclusive of" in lieu thereof; and

-deleting the words "containing six or more rented residential units" and by substituting the words "where 33 percent or more of the units are tenanted" in lieu thereof;

so that Recommendation No. (2)(a), paragraph 135.2 shall now read as follows:

135.2to restrict the conversion to condominium of any building, or any related group of buildings, exclusive of equity co-operatives, where 33 percent or more of the units are tenanted, as it would be premature and not in the public interest, unless the vacancy rate in the City of Toronto, as reported by Canada Mortgage and Housing Corporation, for private rental apartments and townhouses, respectively, has been at or above 2.5 percent for the preceding two-year reporting period;

(3)the addition of the following new Recommendations (12) and (13), be endorsed:

"(12)notification of applications involving the demolition of rental units be extended to all tenants, and the application fees be adjusted to cover the costs thereof; and

(13)the Commissioner of Urban Planning and Development Services be requested to submit a report to the Urban Environment and Development Committee on the feasibility of establishing a provision that no building permit be issued and no planning application be considered for properties which have outstanding City work orders against them."

Background:

The York Community Council had before it the following communications:

(i)(November 3, 1998) from the City Clerk advising that the Urban Environment and Development Committee on November 2, 1998 considered a report (October 15, 1998) from the Commissioner of Urban Planning and Development Services; and referring the motions of Councillor Moscoe to the Community Councils and the Commissioner of Urban Planning and Development Services for review and comment thereon to the November 30, 1998 meeting of the Urban Environment and Development Committee; and

(ii)(November 12, 1998) from Mr. Richard Kuchynski, Director of Planning and Development, Goldlist Properties, Toronto, advising of their concerns regarding the issue of affordable rental housing; that Goldlist has a solid record of working cooperatively with all stakeholders to address important issues; that application has been made to amend the Official Plan and Zoning By-law No. 1-83 of the former City of York, to permit the construction of two new 25-storey condominium buildings of 125 units each, and 36 townhouses for a total of 286 units; the development would entail the demolition of two existing high rise rental buildings containing a total of 148 rental units and 98 hotel suites; that the Urban Planning and Development Services Department has recommended that Council adopt new official plan polices to regulate the conversion to condominium and demolition of rental housing in response to the recent repeal of previous restrictions on conversion and demolition by the Province's new Tenant Protection Act; that the recommendations tabled by City staff are counterproductive and will not lead to enhancements in the quality or supply of Toronto's rental housing stock; urging the Community Council to reject staff's recommendations; and that in order to stimulate the development of more rental housing in Toronto, additional tools and initiatives are needed, and recommending that the City of Toronto:

(1)Establish an administrative structure to actively encourage partnerships to combine affordable (often municipally owned) real estate with investment capital to produce private sector market units.

(2)Pass resolutions and implement an action plan to press the provincial and federal governments to acknowledge the rental housing problem and contribute to a solution by allowing PST and GST exemptions on building materials and other development expenses (especially services) that are dedicated to production of rental units.

(3)Establish a task force to initiate dialogue with industry representatives about municipal assurances and incentives that will encourage them to build new units.

(4)Provide exemptions in any relevant municipal policy respecting buildings that require structural repairs and improvements that are not economically feasible; and

(5)Take action that will capitalize on low interest rates and the development of a new regulatory climate that has returned Ontario's rental housing industry to the brink of viability.

for Novina Wong

City Clerk

Glenda Jagai

Tel: 394-2516

York Supplementary Agenda Item No. 23