Framework for a Multi-Residential Rental Property Licence

Similar documents
Rental Apartment Buildings: Results of Public Consultation and Proposed Regulatory Regime

Proposed Framework for Multi-Residential Rental Property Licence. Tenant Issues Committee Licensing and Standards Committee

There were 560 responses to the survey and the average completion time of the survey was approximately 18 minutes.

TORONTO MUNICIPAL CODE CHAPTER 354, APARTMENT BUILDINGS CHAPTER 354 APARTMENT BUILDINGS. ARTICLE 1 General. ARTICLE 2 Registration

Tenant Issues in the Geographic Area of Wentworth Street West and Cedar Street

STATE OF REPAIR THE TENANTS CASE FOR LANDLORD LICENSING IN TORONTO

COMMUNITY AND PROTECTIVE SERVICES COMMITTEE MAY 1, 2018

CITY OF NAPERVILLE MEMORANDUM

A Diagnostic Checklist for Business Inspection

RentSafeTO: Rental Apartment Building Registration Form

Chapter 14 Technical Safety Authority of Saskatchewan Inspecting Elevating Devices 1.0 MAIN POINTS

Short Term Rental Zoning Amendments & Enforcement Regulations. City of New Orleans December 1, 2016

C Secondary Suite Process Reform

Zoning By-law and Zoning By-law Amendments to Permit Short-term Rentals

1. Tools currently in use by the City of Lakewood are effective but limited in scope.

MANAGEMENT REVIEW QUESTIONNAIRE

Consultation on Increasing Housing Supply in Ontario: A guide for Ontario s co-op housing sector

REQUEST FOR PROPOSALS PEST CONTROL MANAGEMENT SERVICES Issued: September 20, 2017

CONDOMINIUM CORPORATION INFORMATION PACKAGE. A Guide to the Common Elements Warranty

ONTARIO S CONDOMINIUM ACT REVIEW ONCONDO Submissions. Summary

Regulating Vacation Rentals and Bed & Breakfasts Second Community Engagement

PART 2.7 DEPARTMENT OF GOVERNMENT SERVICES REAL ESTATE REGULATION

INTERNAL AUDIT DIVISION CLERK OF THE CIRCUIT COURT FOLLOW-UP AUDIT OF BUILDING PERMITS

Chapter 24 Saskatchewan Housing Corporation Housing Maintenance 1.0 MAIN POINTS

Suite Metering Provisions Under the Residential Tenancies Act, 2006 and the Energy Consumer Protection Act, Consultation Paper

Regulatory Proposals for Private Home Sharing and B&Bs

Report on FSCO s Compliance Reviews of Mortgage Brokerages

Testimony of Beth Mellen Harrison Supervising Attorney, Housing Law Unit Legal Aid Society of the District of Columbia

CONDOMINIUM LIVING IN FLORIDA. Department of Business and Professional Regulation Division of Florida Condominiums, Timeshares, and Mobile Homes

PLANNED AND RESPONSIVE MAINTENANCE POLICY

CONDOMINIUM CORPORATION INFORMATION PACKAGE. A Guide to the Common Elements Warranty

CITY CLERK. Protocol for Enforcement of Property Standards and Other By-laws in Residential Rental Apartment Buildings

Statement of principles for determining financial penalties

Performance, Audit and Review Group Strategy and Plans

Community Occupancy Guidelines

Houses in Multiple Occupation and residential property licensing reform. Guidance for Local Housing Authorities

City of Toronto Act, 2006 Public Notice

Report to: Development Services Committee Report Date: October 5, 2015

Enforcement of Ontario Municipal Board Decisions and Orders

Proposed Rules for Short-term Rentals in Toronto. Stakeholder meetings September 2017

Assets, Regeneration & Growth Committee 17 March Development of new affordable homes by Barnet Homes Registered Provider ( Opendoor Homes )

NEIGHBORHOOD SERVICES MEMORANDUM January 29, 2013

Business Plan Summary

Housing Commission Report

Dispute Resolution Services

AGENDA REPORT. Susan Healy Keene, AICP, Director of Community Development

Eligible and Non-Eligible Structures

Welcomes you! AMENITIES

Summary of Findings. Community Conversation held November 5, 2018

Short-Term Vacation Rental

PROGRAM PRINCIPLES. Page 1 of 20

Tenancy Management Policy

Changing a planning condition for delivery times January 2016

ATTACHMENT 1: Proposed Official Plan Amendment - Affordable Housing

SUBJECT: Status Report on Executive Order : DATE: June 27, 2017 Improving Safety of Non-Permitted Spaces While Avoiding Displacement INFORMATION

Why learn from others?

Policy date November 2015 Document version Version 3 National Operations Manager Review date November 2018

HUMAN SERVICES DIVISION MEMORANDUM

Building Permits & Inspections

Real Estate Acquisitions Audit (Green Line LRT Stage 1)

What would a tenant look for in a rental unit? What can you provide?

What We Heard Report Summary: Indigenous Housing Capital Program

Rental Housing Inspections. Meg McCarthy Environmental Health Division

Denver Short Term Rentals Proposed Zoning Code Text Amendment & Licensing Ordinance

What you need to know to rent your property

The standard lease and your rights

THAT Council receives for information the Report from the Planner II dated April 25, 2016 with respect to the annual Housing Report update.

Qualification Snapshot CIH Level 3 Certificate in Housing Services (QCF)

City of Oskaloosa Rental Housing Inspection Program Administrative Policy DEFINITIONS

Renting on PEI. Community Legal Information Association of PEI, Inc or

SPORTING AND COMMUNITY LEASING POLICY

HSEQ Regulatory Inspections

P a g e 1. Report on Landlord Focus Groups Conducted for Maine State Housing Authority October 22 (Augusta), 23 (Bangor), and 24 (Auburn)

City of Winnipeg Housing Policy Implementation Plan

Housing and Essential Needs Program (HEN) King County Landlord Habitability Standards Certification

Entering the Rental Unit. Do you know and understand the rules for entering a tenant occupied rental unit?

Terms of Reference for the Regional Housing Affordability Strategy

JURISDICTIONAL RUNOFF MANAGEMENT PROGRAM ENFORCEMENT RESPONSE PLAN

Dispute Resolution Services

COUNTY OF MONTEREY AUDITOR-CONTROLLER DEPARTMENT INTERNAL AUDIT DIVISION NATIVIDAD MEDICAL CENTER MEDICAL OFFICE BUILDING REVIEW

Sustainable Models for Energy Efficient Renovation of Condominium Housing

INFORMATION GUIDE SECOND DWELLING UNITS BUILDING CODE BASICS

PUBLIC OPEN HOUSE September 19, 2018

Together with Tenants

Allentown Housing Authority. Housing Choice Voucher Program Landlord Workshop September 6, 2016

Proposed Amendments Expediting Enforcement Options to Improve Single Room Occupancy (SRO) Hotels. September 17, 2014

Preferred Housing Provider and Landlord Commitment

Enabling Short-Term Rentals in Vancouver

Bulgarian Housing. Status and Prospectives

Strata Titles Act Reform Consultation Summary

AGENDA ITEM CITY COUNCIL MEETING DATE JUNE 20, 2017 BUSINESS ITEMS

Home Inspector Qualifications

An Audit Report on PROPERTY MANAGEMENT AND TENANT SERVICES. January 2019 Project #

B&NES Additional HMO Licensing Conditions

SUBJECT Housing Policy Ordinances establishing Minimum Lease Terms and Relocation Assistance

Dear MLA Spencer Chandra-Herbert; MLA Adam Olsen; and MLA Ronna-Rae Leonard

Overview of the Shared Housing Ordinance

Inspection & Audit Procedure

INCREASING HOUSING SUPPLY IN ONTARIO

PROPERTY ASSESSMENT KNOWLEDGE

Transcription:

TD4.1 Framework for a Multi-Residential Rental Property Licence Tenant Issues Committee Staff Presentation November 2, 2016

Presentation outline 1. Introduction 2. Consultation findings 3. Proposed Program o Building owner requirements o Implementation o Cost recovery 4. Future work 5. Next steps

Council and Committee Directives June 26, 2014: L&S Committee directed ML&S to review the feasibility of licensing landlords in Toronto June 25, 2015: L&S Committee directed ML&S to report on potential measures to encourage compliance with Property Standards bylaws relating to rental properties, including a Live Safe (Rent Safe) program June 25, 2015: L&S Committee requested ML&S to report on regulatory options for ensuring safe and adequate rental housing in Toronto, including next steps and consider whether a standard of rental properties with 6 units or greater is appropriate for a licensing regime. July 7, 2015: City Council directed ML&S to report on a cost recovery model for the MRAB program. June 7, 2016: City Council directed ML&S to conduct public consultation on the proposed framework for a multi-residential rental property licence.

Public Consultation July October 2016 7 public meetings 250 participants Online survey 560 respondents 9 stakeholder meetings Consultation results available: www.toronto.ca/mlshaveyoursay Tenant Issues Committee (November 2, 2016)

Stakeholders Public Consultation & Partners Staff consulted: Tenants Building owners and property managers Enforcement agencies (ESA, TSSA) Relevant City divisions Industry associations Social housing providers Ministry of Housing

Goals of Consultation Learn about the issues affecting living conditions in rental apartment buildings Identify solutions to improve the quality of rental apartment buildings Determine the type of building information the City should collect Identify ways to improve communication between landlords and tenants Collect feedback on the program proposed in June 2016 staff report

What we heard: Issues In buildings where issues were identified, some of the common problems include: Elevators are frequently out of service Issues with pests (bed bugs, cockroaches) and mould Lack of response from landlords/superintendents to repair requests Lack of cleanliness in common spaces such as hallways, staircases, garbage rooms etc. Inadequate heating due to outdated systems Weak communication between landlords/property managers and tenants related to service disruptions Tenants fear intimidation from landlords/property managers if they make complaints to the City Quality of repairs is poor

What we heard: Solutions Participants identified the following ways to improve living conditions in rental apartment buildings: Escalating penalties/fines for non-compliant landlords Regular building inspections by the City of Toronto Rating system for rental apartment buildings Information about buildings should be available to the public Property managers/maintenance staff need training in customer service and what to do during emergencies Require landlords to hire professionals to make repairs Engage tenants about their rights and responsibilities Require landlords to plan for future capital repairs

What we heard: Access to Information Example of building information that stakeholders want to access: contact information for building owner history of charges, complaints and work orders record of violations from other agencies (e.g. Toronto Fire Services) laundry room (hours of operation, number of laundry machines) history of mould and pest infestations type of amenities available description of accessibility features security systems (e.g. cameras) cleaning schedule restrictions (e.g. no pets) charges not included in the rent (e.g. parking) smoking/non-smoking status how often are appliances/cabinets replaced number of superintendents in the building

What we heard: Notification Landlords should notify tenants about events that may affect more than one unit including, service disruptions: water shut off, elevator maintenance, power outage fire alarm testing major repairs/maintenance work in common spaces change of ownership or property managers Information should be made accessible in various ways including, Posting information on bulletin boards on the main floor Email Notices should be made in writing and delivered to every unit. Some tenants do not have email accounts Notices of any disruption posted on every floor Translation in other languages should be available, if needed Superintendents could organize regular meeting with tenants, although respondents recognize that there is a lack of meeting spaces

What we heard: Concerns Costs of the program should not be passed on to tenants Efforts should be focused on penalizing bad landlords Minimize duplication of efforts between different levels of government Any changes must have a real impact on living conditions in rental apartment buildings

Proposed Program

Program scope All buildings with three or more storeys and ten or more units Private property owners and rental co-operative: 2,906 buildings, 275,409 units TCH buildings: more than 350 buildings Social housing providers: more than 200 buildings Excludes houses with rentals (i.e. secondary suites, etc.), condominiums

Program Goals promote preventative maintenance in rental apartment buildings strengthen enforcement of property standards violations enhance tenant engagement and access to information recover program costs

Building Owner Requirements Registration and Fee Tenant Service Request Pest Management Submit required information and pay fee Have a process for receiving and tracking tenant repair requests Retain records of repair requests for a minimum of 12 months Make records and process available for inspection, upon request Demonstrate that provincially licensed pest management company has been used for pest management, when required

Building Owner Requirements Waste Management Plan Have a waste management plan that addresses adequate storage, waste removal and waste diversion Make plan available to ML&S inspectors Cleaning plan Have a plan with regular cleaning of all common areas (both interior and exterior) Make plan available to ML&S inspectors Preventative Maintenance Demonstrate provincially licensed and qualified contractors have been used to maintain HVAC and plumbing systems

Building Owner Requirements Tenant notification Install notification board in central location for posting work orders, property standards appeals, vital service disruptions and cleaning plans State of good repair capital plan Have a state of good repair capital plan Make plan available to ML&S

Required Property Information Owner/representative contact information Year built Type of construction Availability of cooling spaces (interior or exterior) Accessibility features, if any Smoking status of the building Number of units & floors Number of occupied units Mechanical systems: heating system type cooling system type (if applicable) Year replaced, if at all

Required Property Information Available amenities: party room pool Laundry facilities Hours of operation Number of laundry machines Elevators (if applicable) Number of elevators Year they were replaced, if at all Parking structures (example of structure; including # of spots)

Program Implementation

Risk Assessment Initiative First year of program, MLS staff will conduct pre-audits of all rental apartment buildings in order to: Establish base line assessment of living conditions Prioritize buildings for audit based on risk assessment Determine frequency of site visits for the remaining buildings

Program Components Registration Pre-audit Building owners submit required information and pay fee ML&S staff conduct a risk based assessment of building to determine if an audit is needed Staff apply risk assessment tool, which focuses on health & safety, structural sufficiency, and building envelope Assessment includes background research and surface level observations of the property Audits Comprehensive inspection of all common areas in the building (e.g. garage, mechanical rooms) Mobile administrative office present during each audit for tenants to bring forward concerns Issue orders

Program Components Tenant & landlord information portal MLS will make building information and inspection data available on a user-friendly website Templates and resources will be available to building owners/property managers ML&S Site Visits Frequency of visits based on risk Site visit includes: Check compliance with required plans Check electrical work and elevator maintenance log book (refer to regulatory agency) Opportunity for landlord education Pre-audit assessment, if needed

Program Funding

Cost of program Existing MRAB program: $3.2 million 16 municipal standards officers, 1 supervisor, 1 support assistant 6 FTE municipal standards officers (District based) for in-suite complaints Overhead and indirect costs Enhanced Program (as per June report): $3.9 million Additional staff and associated overhead and indirect costs: manager, supervisor, support assistant Program implementation costs Stakeholder engagement budget Proposed program (November 2016): $4.4 million Additional staff and associated overhead and indirect costs: two municipal standards officers, data analyst

Paying for the program Existing program is fully funded by tax base ($3.2M) Directive from Council: explore options for full cost recovery for MRAB

Paying for the program Factors to consider in cost recovery analysis: Consider the ratio of benefits to the public compared to direct users of the program Ensure minimum level of reliable funding from tax base Ensure costs are not prohibitive to property owners and tenants Minimize costs for compliant property owners and recover costs from non-compliant property owners Consider unique needs of social housing providers, including Toronto Community Housing (TCH)

Paying for the program: Approach Cost of proposed program: $4.4 M Step 1: Determine the percentage of funding from fees vs. tax base Step 2: Determine the approach to cost recovery One fee for all buildings in program or One fee for all buildings AND fees for enforcement activity (i.e. audit)

Paying for program: Example 1 20% of budget recovered from tax base Covers cost of program for social housing providers, including Toronto Community Housing 80% of budget recovered from a registration fee Annual registration fee: $13.00 per unit per building Cost of building with 100 units: $1,300 70% of buildings in program have less than 100 units Paying for the program: Example 1 $3.580 M 80% $890 K 20% Tax base Registration fee

Paying for program: Example 2 40% of budget recovered from tax base Covers cost of program for social housing providers, including TCH Provides sustainable funding source for program 60% of budget recovered from fees 45% from registration fee 15% from enforcement activity fees Annual registration fee: $8.00 per unit per building Cost of building with 100 units: $800 70% of buildings in program have less than 100 units Enforcement activity fees: charge fee for audits and re-inspections Depends on size of building and time required for audit Average fee: $7,250 for audit, $750 for re-inspections Paying for the program: Example 2 $640 K 15% 2.030 M $ 45% $1.780 M 40% Tax base Registration fee Enforcement activity fee

Regulatory Options The program can be implemented through one of the following regulatory tools: a regulatory by-law or, a licensing by-law Measured each approach against the program s purpose, goals and outcomes Focused on outcome expectations of tenants Assessed against the requisite enforcement tools Reviewed the benefits and limitations of each approach with Legal Services

Regulatory Options Assessment revealed: Licensing is not needed to: impose the proposed requirements and conduct inspections collect building information create a system of administrative monetary penalties impose significant fines including special fines Licence revocation may not be achievable due to the impact on the landlord-tenant relationship

Future Projects Administrative Monetary Penalties (AMPs) Implementation Determine other inclusions or exclusions to the program or fees (i.e. condominiums, CRB program) Explore feasibility of facilitating public facing rating system for rental apartment buildings Review for quality assurance and update performance standards

Next Steps Licensing and Standards Committee November 30, 2016 City Council December 13, 2016 Implementation Spring/Summer 2017