HomeMy WebLinkAboutPD-17-94Stabjeet: RENTAL HOUSING PROTECTION ACT, 1989
REQUEST FOR CONVERSION OF A RENTAL PROPERTY TO A CONDOMINIUM
Recommendations:
It is respectfully recommended that the General Purpose and
Administration Committee recommend to Council the following:
1. THAT Report PD -17 -94 be received;
2. THAT the attached amending By -law to By -law 91 -142, being a by -law
to prescribe a Fee Schedule for the processing of applications
made in respect of Planning and Development matters, be approved;
3. THAT the interested parties listed in this report and any
delegation be advised of Council's decision.
1 PURPOSE AND BACKGROUND
1.1 The Planning Department received a letter on October 5, 1993 from
Strike, Salmers and Furlong stating that they are the solicitors
for a property development /management company who has acquired a
rental property in Bowmanville. The solicitors requested
information with respect to the Municipality's approval procedure
for condominium conversion under the Rental Housing Protection
Act, 1989. Although the Rental Housing Protection Act was enacted
in 1989, there have been no enquiries with respect to condominium
conversion until this recent request. As a result, Staff have
undertaken the necessary research and have developed the necessary
procedures and forms to handle this type of application.
1.2 The purpose of this report therefore is to advise Committee of the
Municipality's responsibility under the Rental Housing Protection
Act, 1989, and to advise of the procedure by which applications
under the Act will be reviewed, including the establishment of
appropriate application fees. 4 ....2
PAPER AEA
C,CLt
THIS 6 PRIMED ON RECYCLED PAPER
• • PD-17-94 PAGE 19
1.3 Condominium conversion applications are quite different than the
other types of development applications in that the Municipal
Clerk is required under the Act to handle the initial receipt of
these applications. This will be explained in the description of
the duties of the Clerks Department later in the report (Section
8) .
2 SYNOPSIS OF THE RENTAL HOUSING PROTECTION ACT, 1989
2.1 All proposals to convert rental properties to condominium are
subject to the Rental Housing Protection Act, 1989, regardless of
the number of residential units on the property or the
municipality in which the property is located. The Act assigns
condominium conversion approval authority to all Local Councils.
2.2 An application for a condominium conversion must be submitted in
addition to an application for condominium approval. Presently,
applications for condominium approval are dealt with through the
Regional Planning Department and the Municipality acts as a
commenting agency. Applications for condominium conversions and
condominium approval can be dealt with simultaneously or
independently provided that final approval under the Rental
Housing Protection Act, 1989 is obtained from local Council before
granting approval under the Condominium Act.
2.3 Under Subsection 8(2) of the Rental Housing Protection Act, 1989,
Local Council may exercise the powers conferred on the Minister of
Municipal Affairs under section 50 of the Condominium Act with
respect to the approval or exemption of condominium descriptions.
If Council determines that there are no concerns, planning or
otherwise, Council can use the powers of the Minister of Municipal
Affairs and exempt the subject lands from the requirements of
obtaining draft approval of condominium. I This allows a
municipality the flexibility to decide whether a conversion
application should be granted under the Rental Housing Protection
f ....3
REPORT NO. PD -17 -94 PAGE 3
Act, 1989, without requiring the applicant to go to the expense of
preparing the draft condominium plan required for the application
under the Planning Act. However, final condominium approval must
still be obtained.
2.4 Section 6 of this Act states that if approval under the Rental
Housing Protection Act, 1989 is required, the following can not be
issued /approved:
• building or demolition permit under Section 5 of the Building
Code
• minor variance
• demolition permit under Section 33 of the Planning Act
• business license
Only when a certificate stating that approval has been given,
issued either by the Clerk or the OMB, will the above be
permitted.
2.5 The Regulations contained within the Rental Housing Protection
Act, 1989 explicitly set out that an application cannot be
approved unless:
i. The applicant must agree to provide:
(a) the same number of new rental units to replace the units
lost to the rental market, in the same area and with
similar rents; and
(b) alternate accommodation for existing tenants displaced
because of the proposal in the same area of similar
quality and rent either in the new rental units or in
other existing rental properties.
ZKOT11M
ii. Council must determine whether the proposal will adversely
affect the supply of affordable rental housing in the
municipality.
3 EXEMPTION
The Rental Housing Protection Act provides specific instances when
exemption would apply whereby a condominium conversion application
would not be required. They are as follows: ....4
16,
REPORT NO. PD -17 -94 PAGE 4
3.1 If, before any residential unit is occupied as a rental unit other
than by persons who, in good faith, have entered into an agreement
or an option to purchase their unit and meet one of the following
conditions:
(a) an application for conversion is made; or
(b) a prospectus containing a statement of intent to apply to
register the rental property as a condominium, prepared in
accordance with the Securities Act, is filed with the
Director of the Ontario Securities Commission and a receipt
is obtained for the prospectus; or
(c) an offering memorandum containing a statement of intent to
apply to register the rental property as a condominium is
prepared and delivered to the Ontario Securities Commission
in accordance with the Securities Act; or
(d) notification of commencement of construction of a condominium
project is given in accordance with the Ontario New Home
Warranties Plan Act.
3.2 Furthermore, exemptions would also apply if: a rental property has
received draft approval of a condominium description before June
30, 1989; or if application was made for approval of a
condominium description before October 13, 1989 and at the time of
application, not more than half the residential units in the
property had ever been occupied as rental units other than by the
prospective unit purchasers.
As such, it is the owner or owner's solicitor responsibility to
submit an affidavit declaring the legitimacy of a claim for
exemption to the Minister of Municipal Affairs or the delegated
approval authority. This affidavit is actually a statement of the
owner that the property is exempt for the Rental Housing
Protection Act, 1989 in accordance with subsection 4(3) of the
Regulations.
4 COST OF APPLICATION
4.1 Section 15 of the Rental Housing Protection Act, 1989 allows
....5
REPORT NO. PD -17 -94 PAGE 5
Municipalities to set fees by by -law for processing applications
made under the Act. The fees charged by a Municipality are
limited to the recovery of municipal costs incurred in carrying
out the Municipality's responsibilities under the Rental Housing
Protection Act, 1989. Factors to consider when establishing fees
would include:
• cost of designing or printing application forms
• mailing costs for notices of the application and of the
public meeting
• newspaper advertisement costs
• architect's or engineer's fees to prepare a structural report
if contracted out by the building department
• salary of additional clerical or professional staff hired to
handle applications
Fees can be charged on an application basis or by number of units.
4.2 Presently there is a large discrepancy in what differing
Municipalities charge for Condominium Conversion applications.
For example, the Town of Whitby charges $1000.00, and the City of
London charges $250.00. The Region of Durham charges $4000.00 for
an application for Condominium Approval and an additional $1000.00
for registration costs.
4.3 Based upon our analysis, Staff are of the opinion, an application
fee of $1000.00 for a Condominium Conversion application would be
appropriate. If an application for Condominium approval is
submitted at the same time, there will be no additional fee as
Staff could process the applications concurrently. If however,
application for Condominium Approval is made after the Condominium
Conversion application has been filed and processed, a fee of
$1000.00 would be applicable as the costs borne for processing
such an application would be similar to that of a Condominium
Conversion application. Attached to this Report (Attachment No.
1) is an amending by -law to change the current fee structure by
adding an application fee for condominium conversion and /or
approval. .... 6
REPORT NO. PD -17 -94 PAGE 6
An application for conversion to a condominium must contain
information such as location of property, name, address of owner
and applicant, number and type of units and their current rental
rate, number of units where tenants have expressed their interest
in purchasing a unit, type of repairs, renovations etc. proposed,
and a statement certifying the information is true. The
application form has been designed based on Ministry criteria and
is attached to this Report (Attachment No. 2) for information.
6 NOTICE REQUIREMENTS
6.1 The Rental Housing and Protection Act, 1989, requires Council to
hold a Public Meeting and provide adequate notice of said Meeting.
A Public Meeting must be held no sooner than 15 days after which
the public notice has been given.
6.2 Notice must be placed in the local newspapers and sent by prepaid
first class mail to the applicant and every tenant. Written
notice of Council's decision including reasons for the decision
and time limit for appeal period must be sent out within 5 days of
the decision to the applicant and everyone requesting notice and
any other prescribed person. An appeal to the Ontario Municipal
Board of Council's decision must be received within 20 days from
the date of the decision.
7 APPLICANTS RESPONSIBILITIES
7.1 Under Section 11 (2) of the Rental Housing Protection Act, 1989,
the applicant /owner must notify all tenants within 5 days of
submitting an application with the Clerk. It is the applicants
responsibility to ensure that the notice provided to the tenants
is correct as per the regulations within this Act.
7.2 The City of London has prepared a "Condominium Conversion Fact
Sheet" which briefly describes the Condominium Conversion process
....7
REPORT NO. PD -17 -94 PAGE 7
and is given to the applicant. It is the applicant's
responsibility to deliver these to the tenants. Staff felt that
the use of such a fact sheet serves a useful purpose in the
process and have prepared a similar Fact Sheet for the
Municipality's use as contained in Attachment #3. It is important
to note that this Fact Sheet is a supplemental to the official
notice. Nevertheless, it's an excellent tool to ensure the
tenants are informed at the early stage of the process.
7.3 If Council does not make a decision on a Condominium Conversion
application within 30 days of receipt of the application by the
Clerk, the applicant may file an appeal to the Ontario Municipal
Board with the Clerk.
8 INVOLVEMENT OF CLERKS DEPT
8.1 The Rental Housing Protection Act and regulations implementing the
Act, requires that all new applications must be checked by the
Clerk before it is processed. The Clerk must determine:
• whether the property is subject to the Rental Housing
Protection Act, 1989
• confirm that the proper type of application has been made
(demolition, conversion, etc)
• ensure that the application is complete
8.2 The Clerks Department shall assign each application a file number
-CD for condominium conversion. The last 2 digits represent the
year in which the application is received, and the first numbers
represent the order in which the application is received
commencing with 001. A new series of numbers shall be started
every year.
Staff propose that the file number for Condominium Approval
Application be CDM followed by the number of the application,
followed by the last 2 numbers of the year, followed by a slash
then a Capital "C ". A new series of numbers will be started every
year.
....8
2.
REPORT NO. • _ PAGE [4
8.3 When an application is received, the Clerk shall within 10
business days give notice and a copy of the application and
request for written comments to:
• Regional Clerk unless otherwise so advised by the Region
• the Regional Director of Ministry Transportation Ontario and
the District Engineer of Ministry of Transport if it abuts or
has access to a provincial highway
• the Director of Plans Administration Branch of the Ministry
of Municipal Affairs
• any department, ministry or agency of federal or provincial
government, any other municipality, any local board
commission or person who should receive notice
• the Co- ordinator of the Rental Housing Protection Program of
the Ministry of Housing
8.4 Once all the comments are received, a Staff Report will be
prepared and the decision of Council will be sought. All
interested parties including the Co- ordinator of the Rental
Housing Protection Program of the Ministry of Housing will be
notified of Council's decision.
8.5 If an appeal to the OMB is lodged, the Clerk must forward all
pertinent information to the OMB. If a decision is made by the
OMB, the Clerk shall issue the certificate of approval.
8.6 The complete condominium conversion procedure is summarized in the
flow diagram contained in part of Attachment #3.
8.7 Included at the end of this report for the Committee's information
are the forms and certificates that are required by the Rental
Housing Protection Act, 1989 (Attachment # 4).
9 CONCLUSION
9.1 Although the Department has yet to receive a single application
for condominium conversion, it is prudent to establish the
procedure, set the application fee as well as to develop all forms
REPORT NO. PD -17 -94 PAGE 9
to be used in the future. In any event, Staff do not expect any
significant volume for this type of application and it should have
minimal impact on the Department's workload.
Respectfully submitted,
Fra n Wu, M.C.I.P.
Director of Planning
and Development
HB *PB *FW *cc
Recommended for presentation
to the Committee,
Ma'r16 Marano, Acting
Chief Administrative Officer
Attachment #1 - Application form
Attachment #2 - Application fee by -law
Attachment #3 - Fact Sheet
Attachment #4 - Prescribed Forms and Certificates
February 10, 1994
Interested persons to be notified of Council and Committees decision:
Strike Salmers and Furlong
38 King St. W.
P.O. Box 7
Bowmanville, Ontario L1C 3K8
D 2
ATTACHMENT #1
THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON
BY -LAW NUMBER 94-
being a By -law to prescribe a Fee Schedule for the processing of
various applications made in respect of planning and development
applications.
WHEREAS Section 69, Subsection 1 of the Planning Act, 1990 provides
that by -laws may be passed by the Council of a Municipality to
prescribe a tariff of fees for the processing of applications made in
respect of planning notices;
WHEREAS the Council of the Corporation of the Municipality of
Clarington deems it necessary to amend By -law 91 -142, a by -law to
prescribe a Fee Schedule to meet the anticipated cost of the
Municipality in respect of the processing of each type of application
provided for in the Schedule of Fees;
NOW THEREFORE BE IT RESOLVED THAT the Council of the Corporation of the
Municipality of Clarington pursuant to Section 69, Subsection 1 of the
Planning Act, 1990 enacts as follows:
1. By -law 91 -142 is hereby amended by adding the following:
"L Condominium Applications
a) condominium conversion, only $1,000.00
b) condominium approval, only $1,000.00
C) condominium conversion and
condominium approval, jointly $1,000.00"
2. This By -law shall come into force and effect on the date of the
passing hereof.
BY -LAW read a first time this day of
1994.
BY -LAW read a second time this day of
1994.
BY -LAW read a third time and finally passed this day of
1994.
MAYOR
CLERK
523
I CA
MUNICIPALITY OF PLANNING AND DEVELOPMENT DEPARTMENT
uIrarington ATTACHMENT #2
Application Under Section 4(1)(b) of
ONTARIO The Rental Housing Protection Act, R.S.O., 1990
and Section 50 of the Condominium Act
APPLICATION FOR (Check Appropriate Boxes) »u
❑ CONDOMINIUM CONVERSION APPLICATION FILE: CD Room
❑ CONDOMINIUM APPLICATION FILE: CDM /C mom
7. APPLICANT INFORMATION
2. LOCATION
LEGAL DESCRIPTION: LOT: CONCESSION: FORMER TOWNSHIP/TOWN:
MUNICIPAL ADDRESS:
REGISTERED PLAN NO. & LOT NO(S): REFERENCE PLAN NO. AND PART NO.:
a) Is application a resubmission of an earlier proposed condominium plan?
Yes No
Indicate previous file number if available
3. CURRENT OCCUPANCY OF PROPERTY*
REGISTERED OWNER
AUTHORIZED AGENT
ONTARIO LAND SURVEYOR
NAME;
Date
Vacated
MAILING
ADDRESS:
Totals
may 5e a—u ched
[PHONE:
V -
O
R -
11.1
R -
C -
Other -
2. LOCATION
LEGAL DESCRIPTION: LOT: CONCESSION: FORMER TOWNSHIP/TOWN:
MUNICIPAL ADDRESS:
REGISTERED PLAN NO. & LOT NO(S): REFERENCE PLAN NO. AND PART NO.:
a) Is application a resubmission of an earlier proposed condominium plan?
Yes No
Indicate previous file number if available
3. CURRENT OCCUPANCY OF PROPERTY*
5-24' -
Vacant
Use prior
to vacancy
Unit
Number
Vacant (V)
Owner- Occupied (0)
Rented (R)
Use
(Commercial,
Residential, etc.)
If
Date
Vacated
Totals
may 5e a—u ched
No. of Units
as Rena —to
V -
O
R -
11.1
R -
C -
Other -
No. of
Vacant
Units
5-24' -
Vacant
Use prior
to vacancy
RA
4. EXISTING TENANTS AND RENTS IN PROPERTY*
List by unit number and type, (bachelor. one bedrnnm Pt,. �
S. PROPOSED USES
Indicate number of units of each type proposed:
Proposed
For Residential, indicate type of units proposed:
Unit Number Unit Type
Residential
Commercial
Other (describe)
6. FINANCING
Describe any Government sponsored financing for property:
Proposed financing
Approved financing
7. BUILDING DESCRIPTION
Date construction completed
Gross floor area
No. of storeys
Proposed density (units per hectare)
8. ESTIMATED SELLING PRICES
(after conversion) - List range by unit type (bachelor, one bedroom etc.)
Unit Type
Price
9. Number of units that tenants in possession have indicated (in writing) a wish to purchase as condominium
units.
-3-
10. FOR CONDOMINIUM APPLICATIONS ONLY
Has approval previously been given for conversion from rental to condominium under the Rental
Housing Protection Act.
❑ Yes ❑ No
Have there been any other development applications submitted.
❑ Yes ❑ No
If yes, please specify
11. Are any renovations, repairs or changes in use intended in conjunction with the conversion? Describe:
12. Have there been any convictions for harassment of tenants (under Section 20(2)) for this property?
If so provide details including the unit(s) involved and date of conviction(s).
13. AFFIDAVIT
1, of the
in the Region/
Metropolitan of hereby certify that all statements contained in
this application are true and have attached a list of all tenants in the subject rental residential property.
14. AUTHORIZATION FOR AGENT
1, being the registered Owner of
the subject lands hereby authorize
(type or print name of agent)
to prepare and submit this application for approval.
Signature
Declared before me at the _
in the Region/Metropolitan of _
this day of
day month year
A Commissioner of Oaths Applicant
ATTACHMENT #3
under
The Rental Housing Protection Act
Information for Tenants
MUNICIPALITY OF
M
rl"gto"
ONTARIO
52/
FACT SHEET
The Ministry of Housings' Rental Housing Protection Act (Bill 211) is designed to regulate the
removal of affordable rental units from the rental housing stock. In order for a property owner
to convert a residential dwelling unit from rental tenure to condominium tenure, an application
under the Rental Housing Protection Act is required. This application must be approved by City
Council before a building can be converted to condominium tenure.
APPROVAL CRITERIA
The Rental Housing Protection Act provides a framework for municipalities to follow when
reviewing applications for condominium conversion. Municipal Council must be satisfied that
at least one of the following criteria is met before approving an application.
1. The applicant must agree to provide:
(a) the same number of new rental units to replace the units lost to the rental market,
in the same area and with similar rents; and
(b) alternate accommodation for existing tenants displaced because of the proposal
in the same area of similar quality and rent either in the new rental units or in
other existing rental properties.
!i9]
2. Council must determine whether the proposal will adversely affect the supply of
affordable rental housing in the municipality.
CONDITIONS
The Rental Housing Protection Act provides for municipalities to attach their own conditions to
condominium conversion approvals. Typical conditions which may be attached to Council
approved condominium conversion applications include:
• an application for site plan approval providing improvements to landscaping, roads,
services, drainage and parking as may be required;
• site servicing plans and joint maintenance agreements as required;
• a building condition report prepared by an architect or a professional engineer;
• building must be upgraded to standards in the property standards by -law;
• lease extension which can be terminated by you but not the owner on 60 days notice;
• the right of first refusal for the tenants wishing to purchase a unit in the development;
• the owner must register this development as a condominium within 3 years after the date
of approval granted by Council or the approval granted by Council will become void and
the owner will be required to reapply.
APPROVAL PROCESS
Planning and Development Staff prepare a report and recommendation which is reviewed by the
General Purpose and Administration Committee at a public meeting prior to being forwarded to
Council for final decision. All tenants affected by the proposed conversion are invited to attend
the Public meeting to voice any comments or concerns.
An applicant or tenant who is not satisfied with Council's decision may appeal the decision to
the Ontario Municipal Board. Detailed information on the approval process is outlined below.
528
CONDOMINIUM CONVERSION APPROVAL PROCESS
Application to
Municipality (Clerk's
Within
To Tenants by Owner 5 days
Within 30 days
of application
Notice of Application Council refuse or neglect
to decide
To Co- ordinator, RHPP Within
by Clerk 10 days
Public Meeting
To Planning &
Development Dept. for —
review & processing Council Decision
Inspection Report
(Optional) if
Notice of Decision
including reasons to Co-
ordinator, RHPP, Clerk sends appeal
No Approval if Conviction Applicant and Others plus record to O.M.B.
for Harassment who requested notice
Within 20 days
of dbcision
Appeal to O.M.B. filed
with Municipal Clerk
If no appeals
to O.M.B. F O.M.B.
O.M.B. Decision
If approved, Clerk issues
certificate once all
conditions fulfilled
Applicant obtains other
permits and approvals
required
The preceding information is only a summary of provisions under the Rental Housing Protection
Act. For more specific information, please consult the legislation.
FOR FURTHER INFORMATION PLEASE CONTACT:
Planning and Development Department
Municipality of Clarington Phone: (905) 623 -3379
40 Temperance Street
BOWMANVILLE, Ontario L1 C 3A6 Fax: (905) 623-0830
S 2 9,
Form 1
ATTACHMENT #4
Rental Housing Protection Act, 1989
NOTICE OF AN APPLICATION
TAKE NOTICE that application has been made under
( subsection, clause, etc.)
of the Rental Housing Protection Act, 1989 to the council of the
for approval of
(name of municipal corporation)
(demolish; convert to a condominium, co- operative, apartment hotel,
use other than rental use; renovate; obtain consent, etc.)
the following property:
Municipality
Name of Street
Unit(s) No.
Name of Applicant
Dated at this
Street No.
day of 19,
(signature of owner, solicitor or authorized agent)
D') U
O. Reg. 586/89, Form 1.
Form 2
Rental Housing Protection Act, 1989
NOTICE OF MEETING TO CONSIDER AN APPLICATION
TAKE NOTICE that Council of the
(name of municipal corporation)
will hold a public meeting to consider the application of
(name of applicant)
for approval to
(demolish; convert to a condominium, co- operative, apartment hotel,
use other than rental use; renovate; obtain consent, etc.)
the following property:
Municipality
Name of Street
Unit(s) No.
On the day of
at
at
in
Street No.
19
o'clock (a.m., p.m.)
(street address)
(floor, room number)
AND TAKE NOTICE that the application and the report prepared under section
11 of the said Act (if any) will be available for inspection at the office of the clerk of the
said municipality until normal closing time of the municipal offices on the day of the
meeting.
AND TAKE NOTICE that anyone attending the meeting may make comments with
respect to the application.
AND TAKE NOTICE that if you do not attend the meeting, the council may
proceed in your absence and you will not be `entitled to any further notice in the
proceedings.
AND TAKE NOTICE that any person who wishes to receive notice of council's
decision should advise the clerk in writing.
Dated the
day of
, 19_.
Clerk
Name of the Municipal Corporation
O. Reg. 586/89, Form 2.
Form 3
Rental Housing Protection Act, 1989
NOTICE OF MEETING TO CONSIDER AN APPLICATION
TAKE NOTICE that there will be a public meeting to consider an application for
concerning the following property:
(Municipal Address)
on the day of 19
at
(street address, floor and room)
Further information is available at
during normal business hours.
Dated the day of .19
Clerk
Name of Municipal Corporation
O. Reg. 586/89, Form 3.
�i
Form 4
Rental Housing Protection Act, 1989
CERTIFICATE OF APPROVAL
Under section 13 of the Rental Housing Protection Act, 1989, I certify that the consent
of
(municipal corporation)
was given on the day of , 19 to a conversion
to condominium use of the lands described on these plans.
Dated at
Clerk
Name of Municipal Corporation
this day of , 19
O. Reg. 586/89, Form 5