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HomeMy WebLinkAboutPD-144-96THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON DN:APARTMEN REPORT Meeting: General Purpose and Administration Committee File # F Gr Date: Monday, October 21, 1996 Res. `7 Report #: PD- 144 -96 File #: Subject: APARTMENTS IN HOUSES FILE: 11.15 Recommendations: By -law # It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD- 144 -96 be received; 2. THAT Staff be authorized to proceed to take all necessary action to: a) bring forward an amendment to the Zoning By -Law with respect to apartments in houses; and b) to subsequently implement registry system for apartments in houses. 1. PURPOSE 1.1 The legislation concerning apartments in houses has undergone various changes over the past several years and as a result, Clarington has had to respond differently with each new change. Now with the passage of Bill 20 on May 22, 1996, Clarington will once again have to introduce new policies to deal with apartments in houses. This report will provide a brief synopsis of the legislative changes that have happened over the last few years and the action that Clarington took to implement these changes. Most important, this report will examine the actions that will be required to address the entire issue of apartments in houses. REPORT NO. PD- 144 -96 PAGE 2 2. PROVINCIAL POLICIES - PAST AND PRESENT 2.1 1989 Land Use Planning for Housing Policy Statement 2.1.1 In order to encourage municipalities to make apartments in houses a permitted use for planning purposes, provisions related to this form of housing were included in the 1989 Land Use Planning for Housing Policy Statement. This document directed municipalities to amend their official plans and zoning by -laws to make apartments in houses a permitted use in appropriate areas, based upon the criteria of physical capacity, service capacity, and need. Municipalities were also to ensure that performance standards did not have the effect of precluding the creation or legalization of apartments in houses in those areas. 2.1.2 "Priority area" municipalities (those with the greatest need for affordable housing) including Clarington, were identified and were required to comply with the Housing Policy Statement by August 1, 1991. To facilitate compliance, financial assistance was made available to municipalities under the Ministry of Housing's Municipal Housing Statement program, and the Ministry of Municipal Affair's Community Planning Grant program. 2.1.3 As a result, Clarington received a grant to complete a Municipal Housing Statement which was completed in March of 1992 and resulted in a housing amendment to the Clarington Official Plan. The amendment contained various policies which encouraged the creation of an adequate and accessible supply of affordable housing including apartments in houses. Clarington's housing amendment did not allow accessory apartments "as -of- right" in any residential area, but restricted them to single and semi - detached units only by amendment to the zoning by -law. It also required homeowners to meet a number of criteria including parking, access and lot size. 2.1.4 Clarington submitted the housing amendment to the province for approval, but the province did not process it, probably due to the arrival of new legislation - Bill 120 (Residents Rights Bill). REPORT NO. PD- 144 -96 PAGE 3 2.2 Residents Rights Act (120) 2.2.1 Due to what the province called "a disappointing degree of municipal compliance with the apartments in houses provisions of the Housing Policy Statement ", the province introduced new legislation called the "Residents' Rights Act" (Bill 120). Bill 120 became law on July 14, 1994 and it allowed self- contained, second units in houses, provided that building, fire and applicable planning standards were met. The law applied to detached, semi - detached and row houses located in zones allowing residential use and connected to municipal sanitary sewers. It covered such standards as; size, unit density, age of structure, units below grade, amenity areas, flood plains, parking, etc. 2.2.2 Secondary objectives of the legislation were to encourage the creation of garden suites, improve municipal powers of entry and enforcement, and clarify that for planning purposes, distinctions should not be made based upon the relationship of members of a household. 2.2.3 Bill 120 took away municipal authority under zoning by -laws to decide where new accessory apartments could be located and the planning standards that apply to these units. Essentially the Bill provided the Province with the power to establish regulations for apartments in houses including setting maximum municipal zoning standards and prohibiting other standards. 2.2.4 In conjunction with Bill 120, the Ontario Fire Code was also changed in 1994 to include safety requirements for apartments in houses. Homeowners were given a two -year compliance period to upgrade their houses up to July 14, 1996. Owners could apply to the fire department for an extension of time for up to two years beyond that date. The requirements cover matters such as adequate fire exits, fire separations and an electrical inspection to be done by Ontario Hydro. Smoke alarms have been mandatory in apartments since August 13, 1994. REPORT NO. PD- 144 -96 PAGE 4 2.2.5 To implement Bill 120, various Clarington departments took a number of actions which are described below. a) In July 1994, the Fire Department placed an ad in the local newspapers informing residents of the new requirements. The ad stated that smoke alarms had to be installed by August 13, 1994 and that other minimum fire safety requirements had to be met. b) In August 1994, the Planning Department, Building Division and Fire Department together placed an ad outlining the new legislation and the requirements that needed to be met for Clarington. c) Various departments handled public inquiries regarding apartments in houses. d) Several inspections were made to determine if existing and new apartments complied with the Ontario Building Code and Fire Code. Between July 14, 1994 and May 22, 1996, the Clarington Building Division issued three building permits for second units in houses. During this same period the Clarington Fire Department made four inspections of second units. e) A policy was included in the draft Clarington Official Plan which allowed apartments in detached or semi - detached houses in urban residential areas subject to certain criteria. (Note: This policy remains in the Council adopted Official Plan which was approved by Durham Region on September 25, 1996.) 2.3. Land Use Planning And Protection Act (Bill 20) 2.3.1 As part of its "municipal empowerment strategy ", the current government through the Land Use Planning and Protection Act (Bill 20 was proclaimed on May 22, 1996) returns to municipalities the authority to regulate the creation of new apartments in houses. As a result, apartments in houses created after proclamation are only permitted if they are permissable under the Municipal By- law. (Note: The Former Town of Newcastle Zoning By -law does not permit apartments in houses.) 649 REPORT NO. PD- 144 -96 PAGE 5 2.3.2 Under Bill 20, there are essentially three categories of apartments in houses that can be identified in Clarington. a) Illegal Apartments - Under Bill 120 any apartments that were not inspected for conformity with safety standards were considered illegal and are still considered to be illegal under Bill 20. Staff have no way of knowing how many illegal apartments exist in the Municipality of Clarington and it would be hazardous to even guess. Many of these apartments could potentially be identified through implementation of actual market value assessment in the future. However, at this time Staff have no way of knowing whether or not it will involve an inspector assessing every single property. b) Legal Apartments - Legal apartments can be subdivided into two sub- categories. i) Building permits issued for new apartments under Bill 120 - Only three building permits were issued for new apartment units between July 14, 1994 and May 22, 1996. ii) Existing apartments - Those property owners who requested that their existing apartments be inspected when Bill 120 was in effect to determine if they met requirements, will be considered legal provided they upgraded their apartments to conform with the Fire Code under Bill 20. The Clarington Fire Department has made fourteen (14) inspections of second units in houses to determine conformity with the Fire Code. However, follow up inspections have not all been completed to ensure that the required work was completed by the homeowners. c) Future Apartments - The third category of apartments involves apartments that will be created in the future. What actions the Municipality should take to address this matter will be discussed in detail in the latter part of this report. 3. SUGGESTED MUNICIPAL ACTION 3.1 The most important policy direction coming from Bill 20 is the right for municipalities to once again regulate apartments in houses. In this regard, the KI REPORT NO. PD- 144 -96 PAGE 6 policies of the Municipality are found in Section 6.3.7 of the Clarington Official Plan as follows: One apartment -in -house is permitted in a detached or semi- detached house in urban residential areas subject to the following: a) one parking space per apartment; b) structural suitability of building to accommodate alterations for an additional unit; and c) compliance with building and fire regulations and other municipal regulations, including registration. 3.2 To the extent the Municipality now permits apartments in houses under certain circumstances, it should therefore develop an implementation program to control and regulate apartments in houses. Regulation of apartments in houses can be done through the following actions: • amending the Zoning By -law to bring it into conformity with the Clarington Official Plan; and, • implementing a registration system. The next section will discuss these items in more detail. 3.3 Amendment to Zoning By -law 3.3.1 Since the Clarington Official Plan has policies allowing apartments in houses, it is necessary to amend the Zoning By -law to bring it into conformity with the Clarington Official Plan. An amendment to the Zoning by -law will provide the Municipality of Clarington with a mechanism to regulate apartments to ensure that they meet safety standards. 3.3.2 A proposed amendment to the Zoning By -law would permit the creation of one self- contained apartment per single and semi - detached units provided they are on full municipal services and are located in a residential zone. This will exclude the rural area and Orono which are on private waste disposal systems. In addition, one parking space must be provided for each apartment unit and the W REPORT NO. PD- 144 -96 PAGE 7 unit must meet the requirements of the Ontario Building and Fire Codes. 3.3.3 As for existing apartments in houses, the proposed amendment would "grandfather" these apartments as legal apartments provided: the propety owners have their apartments inspected and have upgraded their units to comply with the Fire Code and the Property Standards By -law; the property is zoned residential and is on full municipal services; and • the property is duly registered with the municipality. 3.4 Registration 3.4.1 The new act (Bill 20) allows municipalities the authority to require that houses with two residential units be registered, and that an inspection for compliance with safety standards be a precondition for registration. Registration may apply to either new units, existing units, or both, depending upon the municipality. At this time, many municipalities are now examining the implementation of a registration system for apartments in houses. Some municipalities like the City of Brampton and the Town of Halton Hills have already implemented a registration system. 3.4.2 Staff believe that it would be advantageous for Clarington to implement a registration system for a number of reasons: 1. Without registration, there is no legal requirement for owners to come forward and have the municipality inspect their apartments in houses to ensure that the units have complied with building, fire and planning standards. Registration provides a mechanism for ensuring that the health and safety of the inhabitants is protected. 2. As mentioned earlier, the Zoning By -law needs to be brought into conformity with the Official Plan. This amendment will finally allow apartments in houses for the first time in Clarington's history. As part of the implementation it will be necessary to know where the apartments are located, and which apartments meet standards. The orderly and logical way of obtaining this information and ensuring that standards are met is through a registration system. 652 REPORT NO. PD- 144 -96 PAGE 8 3. By instituting a registration system, Council will be dealing with the apartments in houses issue in a responsible manner. Since apartments are now allowed, the Municipality could be held liable for any accidents involving apartments (ie. fire). By implementing the registration system, the Municipality will be making it clear to the residents that their units must comply with standards and that these units need to be inspected to be considered legal. The registration requirement will thus reduce the risk of liability for the Municipality in the event an accident happens. If a resident chooses not to meet the standards, the Municipality has the right to take the person to court. The Municipal Act provides for a fine of up to $5,000. In addition, a judge could apply an order prohibiting the continuation of the offence. Persons who violate such orders could be cited for contempt, with additional fines or imprisonment possibly being imposed. 3.4.3 The registration system will unlikely capture all of the houses with apartments in the Municipality. The best that the Municipality can do is implement a registration system and encourage people to register apartment units and have them inspected to make them safe for both the owners and the tenants. Staff propose a one time $100.00 registration fee to cover our administrative costs. 3.4.4 Some residents may be resistant to registering their units because they may perceive the registration system as another example of government trying to make a "tax- grab ". Residents may be fearful of coming forward because of two possible causes: a) Residents will be fearful of possible property tax reassessment which will result in higher property taxes. Staff do not propose to notify the assessment office of existing apartments which are identified through the registration system unless asked to do so by the Ministry of Finance. However, the assessment office is automatically notified whenever a person is granted a building permit to create a new apartment in a dwelling. b) Some residents may also fear that the Municipality may notify Revenue Canada about possible income tax evasion because of unclaimed income sources from tenants living in second units. Once again, Staff do not propose to notify Revenue Canada about the location of apartments unless asked to do so by Revenue Canada. REPORT NO. PD- 144 -96 PAGE 9 3.4.5 Subsequent to Council's approval of the recommendations contained in this Report, Staff will commence work on the details in setting up a registry system. A report on the registry system for apartments in houses will be presented to Council at a later date. 4.1 Bill 20 has become law and as a result, various departments serving the Municipality of Clarington will be required to carry out certain tasks. It is recommended that as a first step, the Zoning By -law be amended to bring this document in conformity with the Clarington Official Plan. Once this is done the various departments should cooperatively hold public information seminars informing residents of the new legislation and the impact on the homeowner. 4.2 After the seminars are completed, Staff will place an advertisement in local newspapers informing residents of the required date to register their units. This advertising should increase the number of inquiries which will be handled by the appropriate departments. Planning Staff will work with the Computer Services Division to set up a computer program to register and track apartments in houses. 4.3 Inspections for new and existing apartments will be provided by the Building Division, Fire Department and By -law Enforcement. In addition, these departments will deal with any grievances concerning apartments in houses on a written complaint basis only. We anticipate there will be moderate to heavy activities at the early stage of the registration. To cope with this, Staff will work out a timetable to "phase in" the additional overload. 4.4 As the prime objective of the Municipality is to ensure the health and safety of the inhabitants in apartments in houses, Staff respectively recommend to Council to endorse the recommendations of this report. W REPORT NO. PD- 144 -96 PAGE10 Respectfully submitted, W E r P._ JI Franklin Wu, M.C.I.P., R.P.P., Director of Planning and Development FW *TH *km Interested Parties 1. Mr. John Hill 159 East Haven St. Oshawa, Ontario L1 G 6K4 2. Bonita Cunningham 1545 Stephenson Road Newcastle, Ontario L1B 1L9 Reviewed by, W. H. Stockwell Chief Administrative Officer