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←Toronto City Council · 2019-11-26 · 2019.MM12.33

The filed record

Protecting Tenants from unfair rent increases in new builds - by Councillor Frances Nunziata, seconded by Councillor Brad Bradford

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The decision

2019-11-26 · Toronto City Council · adopted

As filed

City Council on November 26 and 27, 2019, adopted the following: 1. City Council request the Province of Ontario to reinstate rules limiting rent increases, as prescribed in Sec. 120 (1) of the Ontario Residential Tenancies Act, 2006, for all new rental units occupied for residential purposes. 1. City Council request the City Manager to report to the January 22, 2020 meeting of the Planning and Housing Committee on requiring that landlords in new developments, where incentives from the City of Toronto have been provided, be prevented from increasing rents by more than the Guideline, as prescribed in Sec.

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120 (1) of the Ontario Residential Tenancies Act, 2006, and that no further Requests for Proposals for Housing Now sites be issued until the report is received.

The vote

Adopt Item · Carried, 23-2

For (23)Ana Bailão, Anthony Perruzza, Brad Bradford, Cynthia Lai, Denzil Minnan-Wong, Frances Nunziata, Gary Crawford, Gord Perks, James Pasternak, Jennifer McKelvie, Jim Karygiannis, Joe Cressy, John Filion, John Tory, Josh Matlow, Kristyn Wong-Tam, Mark Grimes, Michael Thompson, Mike Colle, Mike Layton, Paul Ainslie, Paula Fletcher, Shelley Carroll
Against (2)Michael Ford, Stephen Holyday
Absent (1)Jaye Robinson
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On the agenda

As the city filed it

Last week, tenants of a new build in Ward 5 received notice of rent increases. For month-to-month tenancy, their rent would increase by over 25 percent; six percent for year-long leases. Through my efforts and advocacy by the building's tenants' association, the decision to apply an exorbitant 25 percent rent increase was reversed however, tenants will still be facing a six percent rent increase. How was this possible? On November 15, 2018, the Government of Ontario announced reforms to the Residential Tenancies Act, 2006 ('the Act') exempting new rental units from rent control.

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Landlords of new rental units would no longer have to adhere to the rent increase guidelines stipulated under Sec. 120(1) of the Act. For 2019, the rent increase guideline was 1.8 percent; for 2020 it will be 2.2 percent. With the provincial reforms, tenants in new rental units are not protected from rent increases in excess of these guidelines. Approximately 50 percent of households in Toronto are renters. This number is expected to grow. Without limits to rent increases many Torontonians will be at risk of being priced out of their homes. We must demand better protection for current and future tenants. While the City of Toronto cannot implement rent control, we can and should ensure that when financial incentives are provided for the construction of affordable housing as was the case with the building in Ward 5, all residential units, including those at market rent, are protected from unfair rent increases. This Motion is urgent as there are many City initiatives underway to incentivize the development of affordable housing in Toronto.

Staff recommended

Councillor Frances Nunziata, seconded by Councillor Brad Bradford, recommends that: 1. City Council request the Province of Ontario to reinstate rules limiting rent increases, as prescribed in Sec. 120 (1) of the Ontario Residential Tenancies Act, 2006, for all new rental units occupied for residential purposes. 1. City Council request the City Manager to report to the January 22, 2020 meeting of the Planning and Housing Committee on requiring that landlords in new developments, where incentives from the City of Toronto have been provided, be prevented from increasing rents by more than the Guideline, as prescribed in Sec.

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120 (1) of the Ontario Residential Tenancies Act, 2006, and that no further Requests for Proposals for Housing Now sites be issued until the report is received.

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