6 SECOND SUITES IN YORK REGION

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1 6 SECOND SUITES IN YORK REGION (Regional Council at its meeting on June 19, 2008, referred this Clause back to staff to provide additional information and report back to the September 3, 2008 meeting of the Planning and Economic Development Committee.) The Planning and Economic Development Committee recommends the adoption of the recommendations contained in the following report dated June 11, 2008, from the Commissioner of Planning and Development Services: 1. RECOMMENDATIONS It is recommended that: 1. The Regional Clerk circulate this report to local municipal Planning Department Commissioners and Directors. 2. Regional staff be directed to collaborate with and encourage local municipalities to adopt by-laws permitting second suites as-of-right and a Regional Official Plan policy amendment to require second suite permissions in local municipal Official Plans and Zoning By-laws. 2. PURPOSE This report responds to Council s request for staff to develop a model, for use in cooperation with the local municipalities, of best practices for second suite policies in York Region. The status and development of second suite policies was examined for three municipalities, along with potential barriers for implementation and how they can be addressed. 3. BACKGROUND In late 2007, Council requested additional information about second suites On October 10, 2007 Regional staff presented a staff report to the Community Services and Housing Committee on second suites. This report provided an overview of existing Provincial and Regional legislation governing second suites. A rationale for permitting second suites was also included, discussing merits from community building, social,

2 safety, financial, and administrative perspectives. Staff were asked to report back with models or best practices for second suite policies. CURRENT STATUS OF SECOND SUITES The Province once mandated second suites as-of-right; now municipalities have the right to decide whether to permit second suites In 1994, the Province of Ontario s NDP government proclaimed Bill 120 (the Residents Rights Act), which amended the Landlord/Tenant Act, the Rent Control Act, the Rental Housing Protection Act, the Planning Act, and the Municipal Act. The Bill required municipalities to permit second suites in all single detached, semi-detached and town houses, subject to building and fire code provisions. In 1996, the new Conservative government passed Bill 20, which restored power to municipalities to decide if second suites would be permitted within their borders. All second suites that were occupied on or prior to November 16, 1995 were grandfathered and are considered to be legal nonconforming in those municipalities that do not permit them as-of-right. Two municipalities allow second suites as-of-right, however illegal units exist across all of York Region Currently, two out of York Region s nine municipalities permit second suites as-of-right the Town of East Gwillimbury and the Town of Newmarket. However, anecdotal information suggests that many homeowners have built illegal apartments in their homes. The classified section of the York Region Newspaper Group in late August 2007 and early May 2008 advertised second suites for rent in all nine local municipalities (See Table 1). Table 1 Second Suites Advertised by the York Region Newspaper Group Municipality Number of Suites August 2007 May 2008 Aurora East Gwillimbury 9 12 Georgina King 2 3 Markham Newmarket Richmond Hill Vaughan Whitchurch-Stouffville 8 8 York Region

3 Second suites are self contained units that have a private entrance, kitchen and bathroom facilities A second suite is an umbrella term that represents basement apartments, accessory apartments, or any other form of secondary residential unit in a house where the residence itself contains only two units (including the second suite). Second suites can be installed on any floor of a residence, but must have their own private kitchen and bathroom facilities, as well as a separate entrance (with a locked door) to the suite. Rooming, boarding, or lodging houses are not considered to be second suites. Some municipalities also define second suites by their size in proportion to the primary residence. PROVINCIAL AND REGIONAL POLICIES Provincial planning legislation permits official plan policies and zoning bylaws for second suites without appeal Among Provincial planning legislation, the Provincial Policy Statement, Planning Act as amended by Bill 51, and Places to Grow: the Growth Plan for the Greater Golden Horseshoe all contain policies that encourage the development and retention of rental housing, including second suites. In particular, Places to Grow stipulates that all municipalities must develop and implement an intensification strategy through their official plans that will, in part, encourage the creation of secondary suites throughout the built-up area. Bill 51, which contained changes to a number of statutes including the Planning Act was proclaimed on January 1, Sections 17(24.1) and 34(19.1), permit municipalities to adopt official plan policies and pass zoning by-laws to permit the erection or use of two residential units (second suites) in detached, semi-detached and row houses without appeal to the OMB. Regional policies promote a mixed housing stock, affordable housing options, and intensification The Region has prepared a number of documents related to housing, sustainability and growth management that comment on the need for rental housing and second suites. These documents include the Regional Official Plan, York Region Housing Supply Strategy, Human Services Strategy: Final Report and Recommendations, Sustainability Strategy, and Vision These

4 documents all highlight the need for a wide variety of housing options within the Region, an increase in the supply of affordable housing, and accessory apartments that meet rigorous safety standards. In particular, one of the housing objectives within the Regional Official Plan is to support zoning provisions that are flexible enough to permit a broad range of housing forms, types, sizes and tenures including second suites in houses In addition to the above documents, the Region is currently undertaking its Planning for Tomorrow: Growth Management initiative. One of the components of the Growth Management Strategy is to plan for intensification. Over the past year, the Region has developed an Intensification Matrix Framework (Figure 1) to identify key strategic areas how intensification can be best accommodated. It is notable that the matrix includes second suites and recognizes their role in contributing to the Region s intensification target. The section of the Planning Act dealing with Official Plan policies on second suites is not limited to area municipalities and when coupled with other Regional initiatives could permit the Region to adopt official plan policies requiring second-suites permission in all local municipalities. BENEFITS OF SECOND SUITES Second suites offer many potential benefits, including community building, social, safety, financial and administrative opportunities Places to Grow stipulates that 40% of all residential development occurring annually must occur as intensification within built-up areas. Second suites are one of the least intrusive ways to help achieve this intensification target. They have the potential to increase the density of existing communities without extreme changes to the physical appearance. It is anticipated that the demand for affordable housing will continue to increase. Second suites can provide affordable rental options for tenants, as well as provide an additional source of income for the owner, thus allowing for broader access to the home ownership market. Second suites allow for individuals to age in place, as seniors and others have reported that basement apartments contribute to both their financial security and their sense of safety. When second suites are not permitted as-of-right, there are no standards in place to ensure that these units are well maintained and safe. If a tenant has a complaint, the only recourse is to vacate the illegal unit. This is a large disincentive for tenants, who are typically financially vulnerable and do not have a lot of housing options. If these units were permitted, inspectors could work with the owner to bring the suite into compliance with zoning and property standards, as well as ensure that units adhere to building and fire code standards. Additionally, if second suites were permitted and registered, the

5 address information would assist Emergency Services in responding more effectively to distress calls. By imposing registration fees for second suites, municipal governments could recover the administrative costs associated with second suites. Administratively, permitting and registering second suites will allow for a centralized database within municipalities of the location and number of these units. This database can then be used for a variety of purposes, including enabling municipalities to create better forecasting and infrastructure models, resulting in more accurate planning of both hard and soft infrastructure. 4. ANALYSIS AND OPTIONS 4.1 MUNICIPALITIES PERMITTING SECOND SUITES Research has been completed to review the second suites policies of other GTA municipalities. Outside of York Region, approximately half of the municipalities within the GTA currently permit second suites as-of-right. These municipalities tend to have a by-law registration process for second suites, as well as restrictions relating to structure types and parking requirements. The Town of East Gwillimbury updated its planning policies to permit second suites in the mid-1990s The Town of East Gwillimbury began to permit second suites in 1994 following the Province s approval of Bill 120. In 1995, the Town formally updated its planning policies to conform with Provincial legislation, and kept these policies even after the Province gave municipalities back the right to choose whether to permit second suites. In 1998 the Town of East Gwillimbury passed By-Law under Section 34 of the Planning Act, which created a formalized registration process for second suites. Second suites within the Town of East Gwillimbury can only be built in single detached or semi-detached dwellings. A total of four on-site parking spaces must be available for the residence, as well as sufficient waste and water servicing. In addition, second suites must be 50% above grade, meaning basement apartments are not permitted. Through registration, all second suites are also inspected to meet the requirements of the Building Code, Fire Code, Zoning By-Law and Property Standards. The Task Force created by the Town of Newmarket to examine second suites was effective in identifying the issues of the public In 1998, the Town of Newmarket passed By-Law and began a registry for all second suites. At that time, second suites were not permitted as-of-right in the Town and the list only included units that had been grandfathered in from when the Province permitted them. In 2002 the Town began to investigate permitting second suites through

6 the creation of an Accessory Dwelling Unit Task Force. The Task Force spoke with professionals from a variety of agencies and disciplines to determine what issues surrounded the permitting of second suites. In October 2002, a public meeting was held to discuss second suites. All of the issues raised by attendees were in fact the same that the Task Force had identified and researched. Some of these issues included the safety of units, absentee landlords, and property standards. In 2003, Council approved By-Laws and that permitted second suites within the Town and created a new registry for keeping track of the units. Within the Town of Newmarket, second suites are only allowed in single detached or semi-detached dwellings that are not located within a floodplain. Second suites may be permitted in basements, but only if all other municipal codes are met. The residence must have four exterior, on-site parking spaces and not exceed a maximum driveway width. Within a residence, the second suite must be secondary to the primary unit, and must not change the residential character of the residence or adversely impact the surrounding neighbourhood. All units must be registered. Registration is subject to an inspection by Fire Services and the Electrical Safety Authority, and is valid for 10 years or until the property changes ownership, at which time the new homeowner must reregister. The Town of Markham is now considering permitting second suites; an open house was recently held to discuss this new policy The Town of Markham is currently reviewing its policies on second suites. In June of 2007, a subcommittee was created to review and comment on the Town of Markham s existing second suite policies. The subcommittee recommended that a new strategy be adopted, with wider zoning permissions for these units. Council has authorized staff to hold an open house, which occurred on April 16, 2008, and a statutory public meeting in May. Comments will be collected from the public regarding the proposed new policy on second suites. Leading up to April s open house, the Town of Markham released a Frequently Asked Questions document on Second Suites. One section of this document responds to some common issues regarding permitting secondary suites (Attachment 1). Issues of safety and affordability prompted the permission of second suites in the City of Pickering, providing the suites meet certain restrictions In 2004, the City of Pickering passed its Two-Unit Houses By-Law (No. 6399/04). The by-law permits the creation of second suites, provided certain criteria are met and the units are registered with the City. In particular, second suites are only permitted within single detached and semi-detached dwellings, the entire residence must have three on-site parking spaces, no home-based businesses are permitted in the residence, and the second suite must be smaller than the primary dwelling unit and no more than 100 square metres in size.

7 The issues of affordable housing and safety were the biggest motivations for the City of Pickering to review permitting second suites. Like many other municipalities across Ontario, a lack of new affordable dwelling unit construction, combined with low rental vacancy rates left the City with a shortage of affordable housing units. Many illegal second suites had been built and were helping to fill some of the gaps in the City s shortfall of affordable rental housing. However, with no registration or inspection program in place, these units were often not built to meet Fire and Safety standards. In these instances, tenants were forced to either live in unsafe conditions, or be evicted. Council began its review of second suites in 1997, however the first formal Statutory Public Meeting did not occur until 2002 and by-laws were not passed until The prolonged examination was primarily due to Council s anticipation that the public would react negatively to these units. However City staff noted that in reality, there were very few individuals who opposed the by-law. In November 2004, all necessary OPA, Zoning and Registration by-laws were passed with no appeals. Since that time, City staff have not heard much from the community regarding second suites. The biggest issue that the City has faced since permitting second suites has been getting unregistered units to register. This is why City staff believe the key to success is through proper enforcement. Not only does strong enforcement help to identify illegal and unsafe units who resist registration, but it can also help to minimize the impact second suites can have in communities. In particular, issues that a community may have over the maintenance and upkeep of properties with second suites can be addressed by enforcing the City s Property Standards By-Law. 4.2 OVERCOMING POTENTIAL BARRIERS Property standards and parking requirements are the primary issues for residents when considering permitting second suites Public reaction to second suites is one of the most significant barriers to introducing them to an area. The issues of property standards and parking requirements can dominate discussions and guide policy decisions. Many residents worry that permitting second suites will change the character of their single family neighbourhood, in both the type of tenants that will be introduced to the neighbourhood and the physical appearance of the residences. However, these are both issues that all neighbourhoods must deal with. Municipalities do not have control over the type of people who can live in households, and demographic trends within Canada have shown that a wider range of household preferences now exist. Even without permitting second suites, households within formerly single family neighbourhoods are likely to contain a range of tenants from single adults or elderly couples to multigenerational families.

8 Property standards exist within municipalities to address issues of property up-keep and help maintain the appearance of neighbourhoods. Effective enforcement of these standards will keep properties with second suites from becoming neglected. In addition, guidelines for the creation of second suites can be helpful in minimizing the visual impact of these units to the overall residence. This can include stipulations that second suite entrances be located on the side/rear face of a house, special garbage bag allocation for registered second suites, requirements for the number of on-site parking spaces, and restrictions for driveway width. Municipalities that have permitted second suites have not found property values decrease in communities that contain second suites. Issues associated with an increase of units and program cost can be addressed through registration of second suites An idea still remains that by permitting second suites as-of-right in municipalities, there will be a sudden influx in the number of suites that exist. However, no sudden increase was experienced by municipalities that began to permit second suites. It should be noted that many second suites already exist within communities and it is unlikely that permitting these units will cause a substantial increase in their creation. Some have questioned whether municipalities will be able to provide adequate hard and soft infrastructure to its communities if second suites are permitted. This stems from the idea that second suites will greatly increase densities within communities, increasing the use of hard infrastructure, such as wastewater and transportation services, as well as soft infrastructure like schools and daycares. However, as noted earlier, many second suites already exist within municipalities and only a marginal increase in new units is expected to occur if second suites were permitted. This means that the existing infrastructure systems are already servicing a majority of possible second suite units. It is more likely that by permitting second suites and creating a registration system, municipalities will have more accurate data regarding the densities of their communities, and be better prepared to plan for the infrastructure needs of its communities. A potential barrier for permitting second suites is the operational cost for maintaining a registration program including by-law and inspection officers. However, various municipalities have noted that minimal staff was required to implement their program. In addition, registration fees were used to recover some of the operational cost. It is likely that if second suites were permitted, the biggest barrier to a successful registration program comes from many landlords resistance to registering their unit. This can occur for a number of reasons, including fear of government control and the cost to register or retrofit their unit. The only way to address this issue is through education and strong enforcement.

9 4.3 PREPARING A SUCCESSFUL BY-LAW Municipalities have used various by-laws, including zoning and registration, in tandem to define specific restrictions for second suites The first step towards permitting second suites in municipalities lies in the creation of official plan policies. Policies within the official plan that permit second suites will set the stage for by-laws that define specific criteria for these units. A key aspect of this process is for municipalities to understand the issues their communities may have with such legislation. The Town of Newmarket was sufficiently prepared to address these issues through the creation of a Task Force and public consultation. To prevent confusion, successful by-laws need to clearly define what the municipality considers to be a second suite, including minimum/maximum size, location within a residence, and required amenities. Further restrictions can be made to minimize the impact second suites may have on the surrounding neighbourhood. These can include defining the number of required on-site parking spaces, maximum driveway width, location of entrances, and the number of garbage bags permitted for road-side pickup. Lessons learned from other municipalities show that many landlords may resist registering their unit. Strong and consistent enforcement is the key to successful implementation of second suite policies. The related by-laws for the Town of East Gwillimbury, the Town of Newmarket, and the City of Pickering can be found in Attachments 2, 3, 4 and NEXT STEPS Regional staff supports the creation of policies that will permit second suites as-of-right York Region s Housing Supply Strategy includes a number of action areas that will address housing affordability issues within the Region. One of these key actions is to work with area municipalities to encourage the creation of accessory apartments in all single and semi-detached dwellings subject to rigorous safety standards. Regional staff support permitting second suites as-of-right throughout the Region. Based on the permissions in the Planning Act as well as ongoing Regional initiatives, York Region can use its influence to encourage or require local municipalities to adopt policies to permit second-suites in appropriate areas in all area municipalities. Where possible, Regional staff can help guide local municipal staff through this process.

10 Relationship to Vision 2026 The provision of second suites as a viable affordable housing option supports every goal of Vision For example, second suites help provide Quality Communities for a Diverse Population by making communities liveable and affordable for all, including the economically vulnerable and seniors. They help promote Housing Choices for Our Residents by increasing options for lower income home owners and renters. Also, they support A Vibrant Economy by providing housing for the lower income households that contribute to our labour supply. Finally, second suites assist with the goal of providing Infrastructure for a Growing Region by increasing densities and making the provision of transit in ground related communities more viable and the provision of water and wastewater services more cost-effective. 5. FINANCIAL IMPLICATIONS If second suites were to be permitted in the seven local municipalities that do not currently permit them, there would be a number of financial implications. There may be financial gains through registration and inspection fees, as well as property taxes. There would also be a cost associated with administering and regulating the suites. 6. LOCAL MUNICIPAL IMPACT Permitting second suites as-of-right in those municipalities that do not currently permit them would have local municipal impact from an administration and growth management perspective. The registration and inspection of second suites would be a local municipal responsibility. Local municipal staff would define and regulate the precise provisions for their municipality. The population housed in second suites would feed into all local municipal and regional growth management work. The Growth Plan stipulates that 40% of all residential development occurring annually within each upper-and single-tier municipality will be within the built-up area. The introduction of second suites would help municipalities satisfy their 40% intensification targets. 7. CONCLUSION There is a clearly established need to increase the supply of affordable rental and ownership housing in York Region. Permitting second suites is one of the most straightforward and cost effective ways to increase our known supply of affordable housing units. Unfortunately, many illegal second suites currently exist within the

11 Region, often housing our most economically vulnerable residents. Illegal and unregulated, many of these units do not meet Fire and Building Codes and put tenants at risk of being harmed. The Planning Act and other Provincial and Regional policies consistently promote increasing densities in communities and the supply of affordable rental housing, possibly through permitting second suites. Bill 51, which contained changes to a number of statutes including the Planning Act was proclaimed on January 1, Sections 17(24.1) and 34(19.1), permit municipalities to adopt official plan policies and pass zoning by-laws to permit the erection or use of two residential units (second suites) in detached, semi-detached and row houses without appeal to the OMB. However, only two of the nine local municipalities in York Region permit these units asof-right. Municipalities that have undergone the process to permit second suites have created Task Forces, consulted the public, and generally found that most issues relating to second suites can be addressed through policy and strong enforcement. These municipalities use various by-laws in tandem to effectively regulate second suites. These by-laws cover areas such as property standards, parking requirements, and the registration process, in addition to defining what municipalities will allow as second suites. Strong enforcement of these by-laws ensures that illegal units are discovered, neighbourhoods are not negatively affected, and that residents live in safe and affordable housing. For more information on this report, please contact John Waller, Director of Long Range and Strategic Planning at Ext The Senior Management Group has reviewed this report. (The five attachments referred to in this clause are attached to this report.)