Rental Residential Housing: Licensing and Occupancy Standards
TownGown World Article
By: Jerry Conlin Director, Municipal Law Enforcement and Licensing Services
City of Oshawa, Ontario
April, 2008 CAN
In the Province of Ontario land use is regulated by the Planning Act through the enactment of Zoning By-laws. The development of land for commercial, institutional, industrial, residential and other land uses is guided and controlled by Zoning By-laws. Other types of municipal by-laws complement zoning by-laws more specifically by regulating the condition of land and activities related to land such as, property standards by-laws, noise by-laws and parking by-laws.
Municipal licensing by-laws are also significant tools for regulating business activities including activities on land. The process of applying for, obtaining and holding a licence for a fixed term requires a licensee to demonstrate compliance on a continuing basis. Historically, however, a regulation under Ontarios Municipal Act prevented municipalities from enacting licensing by-laws that regulated residential rental accommodation. This has changed with amendments to the Municipal Act effected January 1, 2007 by Bill 130, the Municipal Statute Law Amendment Act, 2006.
Bill 130 significantly amended the Municipal Act by conferring broad powers on municipalities to pass by-laws respecting things that municipalities consider necessary or desirable for the public. Consistent with those changes was the removal of the prohibition against licensing residential rental accommodation. Oshawa viewed this as an opportunity to enact a Rental Housing Licensing framework to address long standing city wide rental housing issues and more immediately the conflicts within neighbourhoods in the vicinity of Oshawas University of Ontario Institute of Technology and Durham College.
In 2008, the City of Oshawa became the first Ontario Municipality to pass a Licensing By-law to regulate the business activity of Rental Residential Housing. As a starting point the by-law only addresses specific neighbourhoods in north Oshawa, within close proximity to the University of Ontario Institute of Technology and Durham College. Under the new by-law the owners/landlords of rental residential dwellings now need to apply for an annual licence, comply with various standards, comply with other applicable law and provide for regular inspections.
A key feature of the licensing by-law is that the rental dwelling must first comply with the zoning of the property, property standards regulations, parking regulations, the Ontario Fire Code, and the Ontario Building Code before an application will be approved. In addition, the owner must also obtain clearance from the Electrical Safety Authority. A unique feature of the Licensing schedule for rental housing is that a rental dwelling has a restriction on the maximum number of bedrooms that may be rented in dwellings and shared accommodations at four. (A minor amendment was introduced by council to permit six bedrooms on certain streets for two to three years. This was intended to address houses that already had more than four bedrooms rented, and to provide time to bring the properties into compliance with the new standards while at the same time ensuring minimum safety standards are complied with.)
The bedroom limit of four was based on the typical original built form of the homes in the subject licensing area.
Other elements of the by-law include;
- Restricting the bedroom space on the main floor of a house to 40% of the gross floor area
- Restricting the bedroom space in the basement to 40% of the gross floor area
- Providing a Property Maintenance Plan as part of the application. This plan shall demonstrate how the property is being maintained. For example, grass cutting, snow clearing, debris removal, garden maintenance.
- Providing a Parking plan as part of the application. This plan will demonstrate where parking spaces are located on the property and ensuring that they comply with the zoning by-law.
By May 31, 2008, all owners of rental housing in the subject area must have submitted an acceptable Licence application for review and approval. Properties will be inspected in the following months.
Two other regulatory changes were made to complement the effectiveness of the new Licensing By-law. They are by-laws to implement Administrative Monetary Penalties and to create the appointed role of a Hearings Officer to consider appeals related to licensing and administrative penalties.
Enforcement of the Licensing By-law includes:
- Suspension of a Licence
- Revocation of a Licence
- Administrative Penalties
- Legal proceedings and fines
As we roll out the new rental housing licensing by-law the first year will be used to work through concerns and to educate owners, landlords, occupants and the community. In the fourth quarter of 2008 staff will be reporting to City Council on a broader plan to introduce the Rental Housing Licensing By-law to other areas of Oshawa.
Our objectives in this process continue to be;
- Occupant Safety
- Being able to better educate renters about lawful housing options
- Developing a registry of licensed rental housing
- Requiring owners/landlords to take more responsibility for their investments and their tenants, and
- Addressing land use and behavioural issues in neighbourhoods with rental housing in a more timely and effective manner.
As we move ahead we will continue to collaborate with all parties to create a seamless licensing process for rental housing, to develop a stock of rental housing which is properly managed and is safe and to eliminate rental housing which will not or cannot comply with community standards.
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