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June 22, 1999

To:Planning and Transportation Committee

From:Commissioner, Urban Planning and Development Services

Subject:Registration of Second Suites

Purpose:

To report on implementation options for the registration of second suites including a draft by-law and outlining the resources required to support the implementation plan.

Funding Sources, Financial Implications and Impact Statement:

If Council institutes a program for the registration of two-unit houses, and endorses a strategy that relies solely upon complaints and voluntary compliance, the impact on staffing should be minimized. In this case the greatest impact will be in those former municipalities where second units were dealt with solely as a zoning issue, and housing and property standards within the illegal unit were not actively enforced. With the legalization of the units, the issues of housing and property standards within the unit will have to be addressed. However, if Council adopts a strategy that includes proactive enforcement, the need for additional staffing will be significant.

Recommendations:

It is recommended that:

  1. Council decide whether to adopt a program for registration of two-unit houses or not.
  2. If Council decides to adopt a program for registration of two-unit houses, then

a) a by-law, substantially in the form of the draft by-law attached to this report, be approved, and that authority be granted to introduce the necessary Bill in Council to give effect thereto;

b) Council decide whether fees should be charged for the registration of a two-unit house and, if so, the appropriate amount of the fees; and

c) Council endorse an enforcement strategy based upon responding to complaints and voluntary compliance by homeowners.

3. If Council decides not to adopt a program for registration of two-unit houses, then receive this report for information.

Council Reference/Background/History:

Council, at its meeting of May 11 and 12, 1999, requested that the Commissioner of Urban Planning and Development Services and the City Solicitor report on an implementation plan for the registration of second suites, including a draft by-law and outlining what resources may be required, if any, to support the plan.

Section 207.3 of the Municipal Act, R.S.O., 1990, c.M45, as amended, authorizes the municipality to pass by-laws providing for the registration of two-unit houses or such classes of them as are set out in the by-law.

The purpose of such a by-law is to institute a registration program to better assure compliance with all by-laws, codes and regulations applicable to two-unit housing within the City. The implementation of such a program may also serve to promote safe, healthy, and habitable housing conditions in rental housing units, to reduce deterioration of rental housing units and to encourage responsible management, maintenance and use of rental housing units by the inspection and inventorying of these units.

Comments and/or Discussion and/or Justification:

It should be noted that the former City of Toronto, with the longest history and experience with second units, as well as the former Cities of North York and Scarborough, had no registration by-laws.

The former City of Etobicoke Official Plan permits second units provided they are registered. However, no registration by-law was developed in Etobicoke to implement this policy.

In 1997, the former Borough of East York and the former City of York enacted registration by-laws and initiated registration programs. These programs were suspended in June of 1998 because of changes to the work program as a result of new municipal priorities, and staff reassignments.

The Draft By-law

The draft by-law attached to this report provides for:

d. the registration of two-unit houses, and the revocation of the registrations, when necessary; and

e. the appointment of a registrar to register two-unit houses, to revoke registrations and to perform such other related duties.

The draft by-law:

a. prohibits any person from operating or permitting the occupancy of more than one residential unit in a two-unit house unless the house is registered;

b. specifies the standards which must be met to register a two-unit house;

c. requires such inspections of two-unit houses as are necessary to determine, before registration, if they comply with the prescribed standards;

d. designates the inspectors for the purposes of the by-law; and

e. fixes fees for the registration and inspection of two-unit houses.

It is important to note that the Act specifically provides that a two-unit house, once registered, remains registered without payment of any renewal or other fees, unless the registration is revoked.

As noted, the fees for registration and inspection may be fixed in the by-law.

In the former City of York By-law the fee schedule was as follows:

I Inspection Fees

(A)Unit for which application for a Building Permit under the Building Code Act also submitted:

(payable at time of application)$150.00

(B)Unit not requiring application for a Building Permit under the Building Code Act:

        • for Zoning Compliance Review $100.00
        • for Development Services inspection (up to and including 2 inspections)$ 50.00
        • for Fire inspection (up to and including 2 inspections)$100.00

(payable at time of application)TOTAL$250.00

If additional inspections are required, an additional fee of $50.00 per inspection will be charged and will be payable at the time of registration.

II Registration Fee

A Registration Fee of $400.00 is payable at time of registration and prior to registration.

In the former Borough of East York By-law the fee schedule was as follows:

INSPECTION FEES

  1. Inspection Fee for a Two-Unit House for which a building Permit has also been submitted
$ 0.00



  1. Inspection Fee for a Two-Unit House which does not require a building permit:

a) For Zoning compliance;

b) for Property Standards/Regulations Compliance (up to and including two (2) inspections).

If additional inspections are required, an additional fee of $50.00 per inspection will be charged and will be payable at the time of registration.

$ 50.00

$100.00

Registration Fee $150.00

For comparison purposes, in the City of Brampton By-law the fee schedule is as follows:

Registration Fee:

PART IApplication Processing (due upon initial application)$450.00

PART IIFinal Inspection and Registration (due upon final sign-off and registration)$450.00

TOTAL $900.00

Enforcement Strategy

  1. Applicable Legislation

Prior to registration, every residential unit in a two-unit house shall be inspected to ensure it complies with all relevant standards set out in,

  1. the Ontario Building Code;
  2. the Ontario Fire Code;
  3. the applicable zoning by-law; and
  4. the applicable Property Standards By-law or Housing By-law.
  1. Inspection/investigation

The enforcement of this by-law and the registration program requires inter-departmental coordination among the inspectors and officers of the Building Division, the Municipal Licensing & Standards Division of Urban Planning and Development Services, and the Fire Services Division of Works and Emergency Services.

Approaches to initiate inspections/investigations to identify two-unit houses include:

    1. complaints;
    2. voluntary compliance (requests for registration by homeowners);
    3. sweeps; and
    4. city-wide surveys.

Complaints

    1. Normal first step in a compliance program.

II.Reactive, not proactive.

III.Limited impact on total community.

IV.Addresses individual concerns at an individual property.

    1. Lowest impact on staffing

Voluntary Compliance (Requests for Registration by Homeowners)

    1. Normal first step in a registry program.
    2. Reactive, not proactive.
    3. Limited impact on total community.
    4. Addresses individual concerns at an individual property.
    5. Ensure safe, healthy and habitable housing conditions prior to occupancy.
    6. Low impact on staffing
    7. Voluntary compliance rates could be low

Sweeps

    1. Proactive program specifically targeting defined areas.
    2. Aids in public education/information regarding applicable standards.
    3. Large resource commitment across departmental lines.
    4. Results in targeted neighbourhood can be significant; however limited rights of access into occupied units will impact on success.

City-wide Surveys (active, ongoing enforcement)

    1. Proactive program.
    2. Highest level of staffing required.
    3. Eases necessity for neighbourhood complaints.
    4. Enforcement process can be equitably applied throughout the City.
    5. Limited rights of access into occupied units will impact on success.

In 1996 the Fire Chief in Scarborough initiated a formal inspection program. The Fire Department did a house by house survey (inspected second suite if the owner indicated they had one). Owners were given six weeks to start on required upgrades. A report outlining requirements was left with the owner. It indicated if a building permit was necessary. The onus was on the owner to contact Buildings as Fire did not contact Buildings. Fire officials returned six weeks later and granted an extension if work was underway. If the owner could not be convinced and refused to do the work, Fire took legal action. If convicted in court, the owner was fined up to $25,000 and/or a year in jail, and there were convictions. Fines increase significantly with additional convictions.

In 1996 the Scarborough Fire Department visited 2803 homes - 155 had two units. The program was revised because of residents' complaints about the intimidating nature of four fire fighters showing up at the door. In the revised program that targeted known or suspected properties with second suites, the Fire Department visited 416 homes - 197 had two units. The program was terminated in 1997.

The former City of York policy was not to be pro-active on illegal units. With the enactment of the registration by-law, property standards sent out letters to the known illegal properties (about 700). There were 42 registrations in 1997, and 1998 buildings staff stopped registering second suites to cut costs (high administrative costs for inspections and registration, budget and staff cut backs).

Increase awareness/knowledge

A key component to the success of the registration program will be the development of a campaign to increase the knowledge and awareness of the tenants, landlords, mortgage lenders and insurance companies, and the public in general of the new requirements and obligations associated with a second suite in a two-unit house.

This can accomplished by a coordinated approach using several communications tools including:

a.Press releases and information published in local newspapers;

    1. Mass mailing of information in conjunction with tax bills directed at property owners;
    2. Bus shelter advertising program directed at second unit tenants;
    3. Public service announcements on community cable TV;
    4. Community meeting with community associations and tenant advocacy groups; and
    5. The development of a small landlord education program.

Compliance/Prosecution

Rights of Entry

The rights of entry and inspection are specifically delineated in s. 207.3 (6), (7), and (8) of the Municipal Act. These rights of entry mirror those provided in the Building Code Act for enforcement of Property Standards By-laws. An inspector may, at all reasonable times, and upon producing proper identification, enter upon land and into buildings without warrant to inspect a building for compliance. However, an inspector shall not enter any room or place actually used as a dwelling without requesting and obtaining consent of the occupier, having first informed the occupier that the right of entry may be refused.

Actions to Gain Compliance:

    1. A verbal request to correct violations, explaining the benefits of compliance and risks of non-compliance.
    2. A first letter is a written request to correct violations. It does not legally bind the responsible party to carry out the work but it does point out to the contravenor that this is initial action and continued non-compliance will result in further action.
    3. An order is a formal legal request to correct violations within a stated time limit. Non-compliance with the Order results in fines, either using the Provincial Offences Ticket (provided short form wording and set fine amounts have been approved) or legal action through the Provincial Court.

Resources

Staffing impacts, as noted in Inspection/investigation, will vary with the strategy for enforcement that Council endorses.

If the strategy endorsed is the one which relies solely on complaints and voluntary compliance, the impact on staffing should be minimized, with the greatest impact in those former municipalities where second units were dealt with solely as a zoning issue, and housing and property standards within the illegal unit were not actively enforced. With the legalization of the units, the issues of housing and property standards within the unit will have to be addressed.

If the strategy adopted is more proactive in nature, such as employing sweeps of designated areas or a city-wide survey, the staffing impact would be very significant with an estimated 100,000 existing units to be inspected and registered. Ongoing active enforcement of the entire city (door to door inspections) would have a major staffing impact well beyond current capacity.

In addition to the staff time involved in responding to the complaints, and/or going door to door in any area sweep or city-wide survey, the Chief Building Official has indicated that each unit, whether existing or new, that requires a building permit, would require approximately two-person days to complete the necessary reviews to issue the building permit and the necessary inspections to confirm the work is completed in accordance with the approved drawings and the Ontario Building Code.

In the case of pre-existing units, a Fire Prevention Officer would also have to inspect to determine compliance with the Ontario Fire Code. This would require an additional one to two-person days to complete the necessary reviews and inspections.

If an average of four-person days is used as an estimate of the staff time involved in the investigation, inspection and registration of an existing unit, and it is assumed that one FTE works 235 days in a year, one person/year would be required for approximately 60 units to be registered. If just one percent of the existing stock, 1000 units, came forward for registration in the year, it would require approximately 16 person/years to process the work load.

If an average of two-person days is used as an estimate of the staff time involved in the building permit plan review, inspection and registration of a new unit, and it is assumed that one FTE works 235 days in a year, one person/year would be required for approximately 120 units to be registered. If 1000 new units were created in the year, it would require approximately eight person years to process the work load.

Conclusions:

The adoption of a by-law to institute a registration program may better assure compliance with all by-laws, codes and regulations applicable to two-unit housing within the City. The implementation of such a program may also serve to promote and ensure safe, healthy and habitable housing conditions in rental housing units,

to prevent deterioration of rental housing units and to encourage responsible management, maintenance and use of rental housing units by the inspection and inventorying of these units. However, the costs associated with the staffing requirements needed to deliver the program may make it prohibitive to operate other than on a complaint and/or voluntary compliance basis.

Contact Name:

Frank Weinstock

22nd Floor, Metro Hall

fweinst@toronto.ca

Reviewed by:

______________________________________________________________

James RidgeVIRGINIA M. WEST

Executive DirectorCommissioner

Municipal Licensing and StandardsUrban Planning and Development Services

 

   
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