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HomeMy WebLinkAboutPD-84-92 THE CORPORATION OF THE TOWN OF NEWCASTLE DN: HOUSING.GPA REPORT Meeting: General Purpose and Administration Committee File# Date: Monday, April 6, 1992 Res. ##L PD-84-92 PLN 11. 10 By-Law# Report#: File#: Subject: TOWN OF NEWCASTLE MUNICIPAL HOUSING STATEMENT CORRESPONDENCE ON ACCESSORY APARTMENTS Recommendations: It is respectfully recommended that the General Purpose and Administration Committee recommend to Council the following: 1. THAT Report PD-84-92 be received for information; 2 . THAT the Town of Newcastle Municipal Housing Statement prepared by J.L. Cox Planning Consultants be adopted and forwarded to the Ministry of Municipal Affairs for approval; 3 . THAT the Town of Newcastle request concurrence regarding the Municipal Housing Statement from the Region of Durham; 4. THAT subsequent to Provincial approval, Staff be authorized to advertise and hold a public meeting to present the Town of Newcastle Municipal Housing Statement; 5. THAT the correspondence dated April 15, 1991, from the City Clerk of the City of Scarborough be received and filed; and 6. THAT a copy of this report and the Municipal Housing Statement be circulated to the Ministry of Housing, the Ministry of Municipal Affairs, the Region of Durham, the City of Scarborough and the Durham Region Access to Permanent Housing Committee. 1. BACKGROUND 1. 1 Planning Staff in conjunction with J.L. Cox Planning Consultants Ltd. , have been working to complete the Town's Municipal Housing Statement (MHS) . The MHS is a background study whose purpose is to undertake an analysis of the local housing market and to develop a housing strategy to meet local housing needs. Information gathered for the MHS is 2 REPORT NO. PD-84-92 PAGE 2 used to fulfil the requirements of the Provincial Land Use Planning for Housing Policy Statement. After completion of the MHS, the Town will consider amendments to the Official Plan and the Zoning By-law. 1. 2 Much of the work completed thus ,far on the MHS has been presented to Council. The results of the assisted housing survey were presented to the General Purpose and Administration Committee through Report PD-40-91 dated February 4, 1991. Later on April 8, 1991, the GPA received an interim report on the MHS Study. Mr. John Cox of J.L. Cox Planning, made a presentation to Committee at that time. The interim MHS document was presented at a Public Forum for agencies and the general public on April 15, 1991. Comments generated by the public and various agencies attending the Forum were summarized in Report PD-109-91 and presented for the Committee's information on May 6, 1991. 1. 3 A Draft Municipal Housing Statement was presented on September 9, 1991 through Report PD-200-91. This report was tabled to allow for clarification from Staff with regard to Residential Intensification. An addendum to Report PD-200- 91 dealing with residential intensification was presented to the General Purpose and Administration Committee on January 6, 1992 . At that time, the Committee and subsequently Council, endorsed the Draft MHS. 1.4 As required by MHS guidelines, the Draft MHS has been circulated to the Ministry of Housing and the Region of Durham for review. In addition, it was also circulated to the Permanent Access to Housing Committee. At this time the consultant has produced a final Report which was forwarded to Council under separate cover. . . . . 3 REPORT NO. PD-84-92 PAGE 3 1.5 During the preparation of the Town's MHS, the Town received correspondence from the Durham Region Access to Permanent Housing Committee (Attachment # 1) and the City of Scarborough (Attachment # 2) with regard to accessory apartments. The latter was referred to Staff for consideration in the context of the MHS Study. This matter is addressed in Section 3 . 2. PROPOSED HOUSING STRATEGY 2.1 The proposed housing strategy is contained in Section 7 .5 of the Report. The MHS identified eleven housing issues facing the Town of Newcastle. Objectives arising from the identified issues, as well as, policies which can be employed to achieve the objectives in the Town of Newcastle are discussed, in detail in the report. However, to briefly reiterate, the issues facing the Town are as follows: • changing housing requirements in the Town • availability of affordable housing • limited supply of apartment rental units • need for more assisted housing units • growing need for seniors housing • requirement for special needs housing • existing housing stock is a valuable resource • roles of local and upper tier governments • integration of housing intensification within existing neighbourhoods • local housing market is constantly changing • necessity for public education on housing issues 2 . 2 In preparing a strategy for housing in the Town of Newcastle, the following objectives are recommended: 1. To encourage an adequate variety of housing across the Town which will accommodate the growing diversity of housing needs. 2 . To ensure a wide selection of housing types of different affordability levels are made available throughout the Town of Newcastle. . . . .4 _ -7 - REPORT NO. PD-84-92 PAGE 4 3 . Encourage the creation of additional rental housing units and provide greater housing options to more of the residents in Newcastle. 4 . To encourage the provision of additional assisted housing to those groups requiring financial assistance. 5. To provide a greater range of housing options and support services for seniors. 6. To provide a greater range of housing options and services within the Town for those residents with special needs. 7. To maintain the present housing stock of Newcastle. 8. To ensure a co-operative and efficient effort between various levels of government. 9. To maintain the stability and character of established residential neighbourhoods through clear direction regarding the introduction of new development/intensification. 10. To ensure an on-going and current understanding of the changes and trends occurring in the housing market through monitoring. 11. To encourage a greater understanding by the public of housing issues. 2 . 3 Under each objective, there are a number 'of recommended policies - 63 in total. Once adopted, this would become the Town's housing strategy. (See Section 7 . 5 of the Town of Newcastle MHS. ) The policies vary in complexity and detail. Among the significant recommendations is a recommendation for housing production targets. Generally housing targets indicate to a municipality how many units will be required to be constructed to house the forecasted population. These targets then become the basis for evaluating the type of residential development to be considered in the review of plans of subdivision and other applications. . . . .5 REPORT NO. PD-84-92 PAGE 5 2 .4 Other policies in the MHS deal with such matters as: monitoring housing activity; public education; maintaining the current housing stock; encouraging a range of housing types and tenure; and the question of intensifying existing residential areas through such means as infill, redevelopment, and the creation of accessory apartments. 3. ACCESSORY APARTMENTS 3 . 1 Residential intensification has been the centre of much attention. For example, the Sewell Commission on Planning and Development Reform addressed residential intensification in its March 1992 newsletter. Accessory apartments is one form of intensification, although there are more. Generally, accessory apartments are defined as self- contained apartments created through converting part of or adding on to existing homes (single detached, semi-detached, duplexes, triplexes, row houses, etc. ) 3 . 2 In a letter dated December 20, 1990, Ms. Joan Skelton from the Durham Regional Access to Permanent Housing Committee, asked Staff to consider allowing accessory apartments in owner occupied dwellings provided that the minimum Building Code, fire, health and safety standards are met (see Attachment #1) . She considered accessory apartments to be of benefit because they added to the supply of rental housing stock without requiring large capital expenditures by various governments. 3 . 3 In a similar vein, Council received a copy of a Resolution adopted by Scarborough Council on March 20, 1991 to request provincial government action on accessory apartments (see Attachment #2) . The Town of Newcastle and other Councils in the Regional Municipalities of Durham, Halton, Hamilton- . . . . 6 '� 7 � REPORT NO. PD-84-92 PAGE 6 Wentworth, Metropolitan Toronto, Niagara, Ottawa-Carleton, Peel, Waterloo, and York and the municipalities within the Census Metropolitan Areas of London, Toronto, and Windsor. were requested to comment on the subject Resolution. 3 . 4 The Scarborough Council resolution requested the Provincial government to give consideration to the following: 1. Amend the Development Charges Act to permit Municipalities to levy Development charges on additional dwelling units. 2. Ensure that all second units are assessed for property taxes as duplexes in comparison with other duplexes under the Assessment Act. 3 . Amend the Assessment Act to provide that the units in absentee-owned houses with second units be assessed as businesses. 4. Create a Municipal By-Law Court to deal with all By- law infractions and Building Code violations; 5. Amend the Planning Act and The Municipal Act to provide that the cost of work carried out under municipal order shall be recovered "as taxes" ; 6. Amend the Metropolitan Toronto Act to provide that fines payable upon conviction in court belong to the municipality that originated the prosecution; 7. Amend the Court Procedures to permit a Prohibition Order to be enforced by the Court granting such an order; 8. Provide zoning by-law inspectors, property standards inspectors, and building code inspectors with reasonable and effective rights of access to dwellings, for purposes of inspection for compliance with the Ontario Building Code and municipal by-laws without undue delay or expense; 9. Amend the Landlord and Tenant Act and the City of Scarborough Act to provide that a landlord's refusal to comply with the Building Code, the Fire Code and municipal by-laws may result in the relocation of the tenant and/or the municipality undertaking needed repairs and maintenance, with all costs being recovered as taxes; ) / o REPORT NO. PD-84-92 PAGE 7 10. Amend the Landlord and Tenant Act to provide the ability for a homeowner to evict expeditiously an incompatible tenant from a second unit; 11. Amend Sections 38 (Temporary Use By-laws) and 44 (Minor Variances) of the Planning Act to permit Municipalities to enter into agreements with owners as a condition of permission granted under the authority of those Sections, and provide that these agreements are able to be registered against the land to which they apply and enforceable against any and all subsequent owners of the land; and 12 . Amend The Municipal Act to permit Municipalities to pass By-laws licensing and regulating units in houses with second units. 3 . 6 The City of Scarborough requested the province to amend its current legislation regarding the regulation of accessory apartments. The responses of the Ministries of Revenue and Housing were generally negative, or at best, neutral. Some municipalities responded while others did not. 3 . 6. 1 Ministry of Revenue Response The Minister responded to two requests - that all second units be assessed as duplexes in comparison with other duplexes, and that those in absentee- owned houses be assessed as businesses. The response was: 1) second units in residences will continue to be assessed according to the value each adds to the residence; 2) there is no promise of a special effort to identify and re-assess all houses with second units not now assessed as such; and, 3) the Minister is not prepared to support the request that units in absentee-owned houses with second units be assessed as businesses. 3 . 6.2 Ministry of Housing Response The Minister of Housing was not willing to . . . . 8 REPORT NO. PD-84-92 PAGE 8 entertain any of Scarborough Council's requests except "those suggestions for future improvement to the planning and development framework which will facilitate municipal administration while respecting the equality of all residents. " The Minister further rejected "discriminatory zoning, i.e. , owner-occupancy regulations. " and "amendments to legislation which would enable the arbitrary eviction of tenants. " 3 . 6. 3 Municipal Responses Scarborough Council's resolution was sent to 104 municipalities in Ontario. As of October 2, 1991, 10 municipalities had endorsed the resolution. A further 16 municipalities had indicated that they had received the resolution for information or had passed it to staff for further comment, or review. Other municipalities had not yet responded. 3 . 7 The Town of Newcastle Municipal Housing Statement has addressed accessory apartments in Section 7.5.9 of the MHS. Two specific recommendations are made: i) That the Official Plan be changed to include a policy allowing accessory apartments which are subject to a number of criteria (refer to Staff Report PD-86-92) . ii) That the Town encourage the Province to amend current legislation to allow right-of- entry for regular inspections to ensure that building and fire code regulations are met in accessory apartments. It was noted earlier that the Durham Regional Access to Permanent Housing Committee had stated that accessory apartments should be allowed only in owner occupied dwellings. Town Staff concur that it is neither legal nor . . . .9 REPORT NO. PD-84-92 PAGE 9 desirable to allow accessory apartments for only owner occupied dwellings. However, specific site criteria like parking requirements, lot size, etc. are appropriate. Moreover, Staff will be recommending a limit of one accessory unit per dwelling. 4. APPROVAL PROCEDURE FOR THE TOWN'S MUNICIPAL HOUSING STATEMENT 4. 1 Final Municipal Housing Statement The MHS guidelines require that the final MHS document be forwarded to Council for its adoption. It is also necessary for Council to receive concurrence from the Region of Durham. A copy of Council's resolution and eight copies of the final document are then forwarded to the Provincial Housing Analyst. Upon receipt of the final document, the Ministry of Housing issues a letter of final approval and final payment. (The remaining 50% of Study costs) . 4. 2 Public Presentation of Municipal Housing Statement After the MHS is approved by the Ministry of Housing, the Town of Newcastle is required to arrange a public presentation of the report. All interested parties, particularly those that contributed to the preparation of the report, should be invited. 4. 3 It should be noted that Staff are working towards the implementation of the MHS Study. In particular, a monitoring report for 1991 has been prepared. Similarly, a draft amendment to the Town of Newcastle Official Plan has been prepared and is subject to a separate report (see Report PD-86-92) . . . . . 10 REPORT NO. PD-84-92 PAGE 10 5. CONCLUSION The Town of Newcastle Municipal Housing Statement identified eleven housing issues facing the Town. From these issues, a number of objectives and polices have been developed to formulate a housing strategy for the Town. It is recommended that the Town of Newcastle Municipal Housing be adopted and that a copy of the appropriate resolution and eight copies be forwarded to the appropriate agencies. It is also recommended that Staff be authorized to advertise and hold a public meeting to arrange for a public presentation of the report. Respectfully submitted, Recommended for presentation to the Committee JA,--,U Franklin Wu, M.C. I.P. Lawrenc . Kotseff Director of Planning Chief ffnistrative and Development Office TH*DC*FW*cc Attachment #1 Correspondence from the Durham Regional Access to Permanent Housing Committee Attachment #2 Correspondence from the City of Scarborough Interested parties to be notified of Council and Committee's decision: Ms. Valerie Reid Durham Regional Access to Permanent Housing Committee 132A Commercial Avenue Ajax, Ontario. LlS 2H5 Ms. Dan Nichalson Mr. John Koopmans Housing Analyst Senior Planner Central Regional Housing Programs Office Durham Region Planning Madison Centre, Lang Tower, West Bldg. 4950 Yonge Street 4th Floor Willowdale, Ontario. M2N 6K1 1615 Dundas Street East Whitby, Ont. L1N 2L1 1 THE CASE FOR ACCESSORY APARTMENTS A report of the Durham Regional Access to Permanent Housing Committee The Case for Accessory Apartments A report of the Durham Regional Access to Permanent Housing Committee November 1990 There is no question there is a tremendous demand for low cost rental accommodation . No single option is going to solve the housing crisis . It will take concerted effort in a number of directions , including a commitment to fund more non-profit and co-operative housing . There also has to be an increase in the number of rental apartments available in the private sector . One way of achieving this is through the creation of Accessory Apartments . An Accessory Apartment is a private self-contained apartment (with a bathroom, kitchen, livingroom and bedroom(s ) ) created within an existing dwelling (single detached houses, semi- detached houses , or townhouses ) or built into new dwellings . A study released by the Ministries of Housing and Municipal Affairs states "More than half a million homes in Ontario could physically accommodate an extra self-contained dwelling within the existing structure without compromising current space standards . " The document also stated that Canadian and American surveys show between 12 and 16 per cent of homeowners would be interested in converting part of their homes, if they could . (Neighbours : Parking and Accessory Apartments A Metro Toronto Case Study) (1 ) Municipal zoning bylaws often restrict where Accessory Apartments can be located and make requirements governing them so stringent that they are in effect next to impossible to have legally, without going through a municipal Committee of Adjustment , Planning Committee and/or Council . We recognize the Provincial Policy Statement on Land Use Planning for Housing approved by the previous government in 1989 addresses the issue of Residential Intensification . The Policy Stat.ement said municipalities have to identify opportunities to increase the supply of housing through better use of existing resources , buildings or serviced sites and adopt a strategy to - make use of those opportunities by designating areas in the official plan where each form of Residential Intensification will be permitted and include zoning provisions to permit Accessory Apartments as-of-right where they are permitted uses in the official plan . (2) -2- However , the Durham Regional Access to Permanent Housing Committee wants municipalities to be more permissive in the area of Accessory Apartments . The Committee is asking municipalities to allow an Accessory Apartment in an owner-occupied dwelling (as outlined above ) provided minimum Building Code, fire, health and safety standards are met . We are suggesting that one Accessory Apartment be permitted per owner-occupied dwelling anywhere in the municipality- without requiring a rezoning . Demographic Trends : A number of demographic factors have developed which have had and will continue to have tremendous impact on housing . These Include : -An increasing elderly population . . . In Durham Region alone, the number of people aged 66 and over is expected to increase from 32, 470 in 1990 to 73, 640 in 2011 (Ministry of Treasury and Economics ) . ( 3) -A decline in the size of households . . .The average household in Ontario dropped from 3 to 4 people in 1961 to 2 to 3 people in 1981 . (Canada Mortgage and Housing Corporation) . (4) The average household size is expected to be lower still by the turn of the century . Several things account for this trend including longer life spans , more single parent families and fewer or no children per family. -An increase in the number of households due to such things as divorce, migration, and new households forming as people move out on their own away from their families . Housing trends : Changes In the Housing industry in recent years have affected the supply of affordable rental housing . These include : -3- -A decline in private rental apartment construction . . .Canada Mortage and Housing Corporation figures show the number of private rental apartments built in Ontario ( in apartment nuidlings of three units or more) declined from 9, 132 in 1985 to 9046 in 1989. Although at first glance this may seem like only a small drop, it must be considered that the decline occured at a time of boom in the residential construction industry. It should be noted that over the same period, condominium construction went from 3, 956 to 16, 894. -The high cost of purchasing a house . . .Oshawa and District Real Estate Board figures show that in the City of Oshawa, the average selling price, of a house went from $101, 268 in 1986 to $185, 417 In 1989 . The cost of purchasing a house (including high mortgage Interest rates ) keeps many first time home buyers out of the market , thus affecting the supply of rental accommodation . -The high cost of renting . . .According to CMHC' s October 1990 Rental Market Survey, the average rent for a vacant two bedroom apartment in private buildings in the Oshawa Census Metropolitan Area (Oshawa, Whitby and Newcastle ) was $743 per month . (6) The high cost of renting a house in Durham Region is reflected in figures from the housing registry operated by the Social Development Council of Ajax-Pickering, which show three bedroom homes renting for from $950 to $1, 200 a month, plus utilities . -Low apartment vacancy rates . . .The CMHC October 1990 Rental Market Report showed the vacancy rate in private rental apartments ( in buildings of three or more units ) was 1.. 7 per cent in the Oshawa CMA. (6) Although there has been an improvement in the vacancy rate recently, many of the available apartments are at the higher end of market rents . -The existing housing stock . . .Most of the existing housing stock In the Region of Durham is single-detached dwellings . A report from Durham Region ' s Planning Department says that 66 per cent of the housing stock in the Region in 1986 was single-detached dwellings . This type of housing is forecast to reach 69 per cent by 2001 . (6) X85 -4- From the above demographic and housing trends it is easy to see why there is a shortage of affordable rental accommodation. Accessory Apartments in owner-occupied dwelling units would contribute significantly to the supply of rental accommodation . There are many benefits associated with Accessory Apartments . Benefits to the homeowner include: -Revenue to help with mortgage payments for existing home owners . . .With the high carrying costs of home ownership, renting a flat can provide much-needed additional income . -Revenue for the potential home buyer —The money received from renting an apartment in a house can make the difference between being able to afford home ownership and not being able to, or purchasing a larger house . -Security and companionship. .With an increasing number of elderly people living alone in their own homes, having tenants can provide someone closeby in case . of emergency while still maintaining privacy and independence . Tenants can also assist with chores in exchange for lower rent . A study (Neighbours : In Your Neighbourhood ) commissioned by the Ministries of Municipal Affairs and Housing states that "49. 7 per cent of the existing houses which have potential for conversion across Urban Ontario are presently owned by people who are over 55 years of age" . (7 ) Benefits to renters include : -An increase in the supply of rental accommodation . With the number of single detached dwelling units in the Region of Durham, the potential for adding to the rental housing market through Accessory Apartments is enormous . -Lower cost for rental accommodation . As the number of apartments increases, the cost of accommodation should be reduced . ") 86 -6- -Less costly alternative to institutionalization for the elderly . An Accessory Apartment can be created in a house for an elderly relative . The concept of Accessory Apartments is in line with other Ontario Government policies such as "Aging in Place Benefits to the community include : -An increased variety of housing choices available to existing and future residents . This is particularly important for low to moderate income wage earners such as those in the retail , service and small business sectors . -Creation of housing at little or no expense to government . -Better use of existing housing stock . There is increasing concern about the preservation' of agricultural land and the natural environment . Accessory Apartments are an excellent means of helping achieve sustainable development . -More cost-effective municipal services . A Regional Planning staff report on "Shared Accommodation in Single-Detached Residential Dwellings " noted that transit , water and sewer services would be more cost .efficient for municipal governments with increasing densities . (8) We have demonstrated there are definite advantages to Accessory Apartments . We recognize however , some concerns have traditionally been associated with this type of accommodation . Parking: The most common argument used by those opposed to residential Intensification, including Accessory Apartments , is that there will be parking problems . The previously referenced study of parking and housing Intensification in Metro Toronto demonstrated that Accessory Apartments . . . .can be successfully camouflaged in existing single family housing providing little or no neighbourhood debate about parking problems . The study also "demonstrated that Accessory Apartments do not necessarily result in on-street parking problems . In all but one of the (seven) case study areas , there was sufficient off-street parking capacity on an area-wide basis to accommodate the actual number of vehicles in the area" (Neighbours : Parking and Accessory Apartments , a Metro Toronto Case Study) (9) , -6- A consultants ' report prepared for the Town of Penetanguishene noted that "the concern about traffic and parking seems to have little basis in fact . When 186 municipal officials were asked how they located conversions, only one replied that increased cars and traffic indicated converted homes " . There are also parking options such as tandem parking and on- street parking permits , which can be explored to accommodate any Increase in the number of cars caused by the creation of Accessory Apartments . (10) In areas where parking could be a potential problem, options such as widening driveways , rear-lot parking and off street parking in nearby school , mall or church lots could also be considered . If there are to be regulations on parking, we suggest one space per Accessory Apartment unit . Landlord Rights : Some potential and existing landlords express concerns about the difficulty in evicting undestreable tenants . In order to encourage more people to put Accessory Apartments in their homes consideration should be given by the Province to changes to the Landlord and Tenant Act to provide the homeowner with more eviction rights . CONCLUSION: We believe the case in favour of Accessory Apartments is clear . We are calling on municipalities to allow Accessory Apartments in owner-occupied dwellings provided minimum Building Code, fire, health and safety standards are met . As stated previously, increasing the number of apartments available in private homes will contribute significantly to solving the housing crisis . A8 Bibliography 1 . Ministry of Housing and Ministry of Municipal Affairs : "Neighbours : Parking and Accessory Apartments , A Metro Toronto Case Study 1987 2. Ministry of Housing and Ministry of Municipal Affairs : "Policy Statement . Land Use Planning for Housing" 1989 3. Ministry of Treasury and Economics : "Projected Population, Components of Change and Age Structure by Sex, Durham, 1987-2011 1989 4. Canada Mortgage and Housing Corporation : "New Made-to- Convert Housing" 1988 5 . Canada Mortgage and Housing Corporation : "Rental Market Survey Oshawa CMA" October 1990 6 . Region of Durham Planning Commissioners Report to Planning Committee . Report # 90-204 September 1990 7 . Lewinberg Consultants Ltd : "Neighbours : In Your Neighbourhood" 1984 S . Region of Durham: "Planning Commissioner ' s report 81-273" December 1981 9. see #1 10. McNair ar Marshall, Planning and Development Consultants : "Residential Conversions Background Report " 1985 ) 89 Attachment #2 tv17YOFSCARBOROUGH J.W. Nigh A.M.C.T.,C.M.C. City Clerk pp {� q �PR 22 J 51 `"� 150 Borough Drive S.F. Brickell,A.M.0.T. -- Deputy City Clerk Scarborough,Ontario Canada M11?4N7 TO THE REGIONAL MUNICIPALITIES OF DURHAM, HALTON, HAMILTON- WENTWORTH,METROPOLITAN TORONTO,NIAGARA,OTTAWA-CARLETON,PEEL, _ WATERLOO,AND YORK AND THE MUNICIPALITIES WITHIN THOSE REGIONS, AND TO MUNICIPALrI1ES IN THE CENSUS METROPOLITAN AREAS OF LONDON, TORONTO AND WINDSOR. April 15, 1991 To the Municipal Clerk: Re: Second Units: Requested Provincial Government Action Enclosed for your comments is a copy of a Resolution adopted by Scarborough Council on March 20, 1991. A copy of a report dated February 28, 1991 of the Commissioner of Planning and Buildings, relating to the Study, is also enclosed for your information. Council would appreciate receiving the comments of your Council on the subject Resolution. Yours truly, " r g iC)N CL�RK� ------------------- - - ---- pRI 4_I_._�1_ 4J. W. Nigh - City Clerk SFB:il Enclosures -- --- SCARBOROUGH PLANNING DEPARTMENT TO: CMIRMAN AND FR M ERS OF THE SCARBOROUGH PLAIMM COMMIrIEE RE: Housing Intensification Study File: W87052 February 28, 1991 Agenda: March 7, 1991 On February 21st, while discussing the Housing Intensification Study, Planning Committee directed the Commissioner of Planning to bring forward to Planning Camuttee on March 7th a report setting out the issues requiring provincial remedies. As well as outlining the issues, this report sets out options for Council action, and provides the context for its consideration of these options. Council commissioned the Housing Intensifications Study in 1988, to enable it to decide if the zoning regulations should be changed to permit basement apartments. "Basement Apartment" is the term ccmmnly used in Scarborough to cover all second units, or accessory units in houses. To avoid confusion, we will use the term second units. 1. CON=: SBC1CW UNITS IN THE BOUSIM MAMW Second units account for less than 10 per cent of Scarborough's dwelling units. This relatively low proportion can be expected to continue in the future, as long as Scarborough continues to provide alternative opportunities to meet the housing needs of a growing population in Scarborough and the Greater Toronto Area. 1.1 Opportunities for New Housing In the 1980's and so far in the 19901s, Council decisions have significantly increased housing opportunities, and indicated a desire to further increase the city's housing stock. approximately 3200 additional units per year through Official Plan Amendments in the period 1980-1989. permission for another 5000 units in late 1990 and early 1991 (Sheppard/Markham, and City Centre Fast Expansion) t Because the direction for this report was to set out the things the Province should do, we deal with then in detail. 3. PAYING FC R,.SERVICES 3.1 Development (urges The City can require that new units in infill development or redevelopment pay development charges to account for their "share" of the capital costs of new services. This includes new units in older neighbourhoods with declining. population. The Provincial Government apparently intended to exclude second units from the Development Charges Act, although the wording of the regulations is confusing and leaves room for doubt in some cases. The Regulation reads: 112) a development charge by-law shall not impose a development charge with respect to the creation of, (a) one or two additional dwelling units in an existing single detached dwelling; or (b) one additional dwelling unit in any other existing residential building." 3) A development charge may be imposed under clause (2) (a) if-the total gross floor area of the additional one or two units exceeds the gross floor area of the existing dwelling unit. 4) A development charge may be imposed under clause -(2) (b) if the additional unit has a gross floor area greater than, (a) in the case of a semi-detached or raw dwelling, the gross floor area of the existing dwelling unit; and (b) in the case of any other residential building, the gross floor area of the smallest dwelling unit contained in the residential building. Gross floor area is defined as "the total area of all floors above grade of a dwelling unit. . ." Any new dwelling unit in a basement is automatically excluded, through the definition of gross floor area. 2. Levy charges on all new units, whether or not additional floorspace is being built. The first alternative penalizes owners not creating a second unit; the second penalizes those who are not effectively increasing demand for services. 'In both cases, however, second units could be exempted from paying development charges in areas where new capital services will not be needed. They could be required to pay in areas where capital upgrading is required. To enable Council to keep all its options open, the Act could be amended to allow development charges to be levied on both additional units and additional floorspace. 3.2 Taxes Many second units in Scarborough do not pay their fair share of taxes, because they are not assessed. Second units add value to a house. That added value should be recognized in the realty assessment on the house, so that the property taxes it pays will be commensurate with its value - including the value of the second unit. About 4,200 houses in Scarborough are identified by the Ministry of Revenues assessment files as having second units. Up to 10,000 units in Scarborough are not being fairly taxed. According to a Ministry of Housing pamphlet providing advice to homeowners thinking of putting in a second unit, they add about 10% to the value of a house - or an additional 10% in property taxes. The 10,000 untaxed units represent about $2 million in taxes. To ensure that all second unit pay their fair share of taxes, Council could request the Provincial Government to ensure that all second . .units in Scarborough are assessed for property taxes. 4. ENFORCING NEIGHBOURHOM STANDARDS There is a strong perception that many tenants "do not care" about the neighbourhood, or their neighbours. This attitude is reflected in their behaviour and in poor property maintenance. 4.1 More Effective Enforcement The Property Standards By-law and the Noise By-law endeavour to deal with these problems. They are susceptible to abuse, however. Cases take a long time to get to court, fines or other costs can't be collected, or enforcement of prohibition orders requires a laborious trek through the courts. Council could request some changes to existing enforcement regulations and procedures could give these by-laws more teeth and result in a more expeditious and cost - effective resolution of some local problems: Current Provincial legislation does not allow us to prohibit absentee owners. That is "people zoning. " Any changes to Provincial Legislation to permit us to prohibit absentee owners could run afoul of Section 15, of the Charter of Rights and Freedcros. For such provisions to withstand a charter challenge, the Province would have to defend them in the Supreme Court of Canada as being "demonstrably justified in a free and democratic society." This may be difficult. Based upon what we understand is the leading Supreme Court of Canada decision on this matter, it is unlikely that a court would find that the province was justified in so restricting the rights of absentee landlords. Section 33 of the Charter of Rights and Freedcsns permits the Province to declare that certain Acts apply notwitstanding the Charter of Rights and Freedoms. This is an extra power, and to our knowledge the Province of Ontario has never exercised it. It is most unlikely that the Province would consider such a declaration for dealing with absentee landlords. If Council requests the Provincial Government to make changes that would enable Council to prohibit absentee owners, it is very unlikely that such changes would be sustainable in court. 5. ENfIORCM ZCNIM AND BUIIDIM STANDARDS: POWERS OF ENTRY FOR INStPF7CIClRS One of the main reasons Council authorized its Housing Intensification study was because the existing zoning regulations prohibiting second units can't be enforced. Zoning inspectors have very limited powers of entry into the units. This is also an important issue for residents. "Why have a by--law you can't enforce?" was a constant derisive refrain at the Housing -Intensification Study Ccminity meetings last spring. Building Code and Property Standards Inspectors also` have similarly limited powers of entry into dwelling units. An effective, responsible, equitable second units policy requires more effective enforcement - including the ability to identify units. The Provincial Government's Housing Policy Statement requires municipalities to permit second units. But it also clearly implies that municipalities can prohibit second units fram some areas, if the existing services cannot support new households in the affected area, or if the existing development can't accc:madate additional parking or is otherwise unsuited to second units. If second units are to be permitted in some areas, but not others; if one parking space is to be provided for each unit; then zoning inspectors must be able to identify units. °� 0 s �7� �! 8. GRANNY F.LA`IS On December 17, 1990, Council referred back to the Planning Department for further consideration with the Housing Intensification Study, a Repo:�k requesting direction for the appropriate way to deal with granny flats. Granny flats are a special class of second units. They are temporary, freestanding second units occupied by elderly relatives of the hc6_ er. In dealing with granny flats, Council faces three major issues: (i) should they be permitted as a land use? (ii) how can their temporariness be assured? and (iii) should they be restricted to senior citizens? 8.1 The band Use If Council were to decide that granny flats were an acceptable land use, across the whole city, it could amend the Official Plan and Zoning By-laws to provide for them. If it were to approve them on a site-specific basis, it can use either a Temporary Use By-Law, or a Minor Variance. No changes to Provincial legislation are needed to accommodate the use. 8.2 T oTamri nes To ensure that a granny flat is temporary and must be retx)ved at the end of a specified period, the City requires a legally binding agreement with the owner which can be registered against the land and be binding on any and all subsequent owners of the land. Such 'agreements are explicitly provided for in Sections 28 (Community Improvement), 36 (Increased Height or Density), 40 (Site Plan Control) and 50 (Subdivision of Land) in The Planning Act, but not in Sections 38 (Temporary Use By-laws) or 44 (Minor Variances) . Council could request amendments to The Planning Act to provide for such agreements in Section 38 and 44 of The Planning Act. 8.3 Occupants Council has no ability to restrict the occupancy of granny flats to Senior Citizens, or elderly relatives. In fact, Section 34a of The Planning Act specifically prohibits the use of relations between people as a way of regulating use. Restricting occupancy of granny flats to Seniors could be viewed as positive discrimination, however,in that it is a program or policy for the benefit of a disadvantaged group. 1. Amend the Development Charges Act to permit municipalities to levy Development charges on additional dwelling units or additional floorspace in all existing residential buildings. 2. Ensure that all second units in Scarborough are assessed for property taxes. 3. Create a Municipal By-Law Court to deal with all By-law infractions and Building Code violations. 4. Amend The Planning Act and the Municipal Act to provide that the costs of work carried out under municipal order may be recovered "as taxes". 5. Amend the Metropolitan Toronto Act to provide that fines payable upon conviction in court belong to the municipality that originated the prosecution. 6. Amend the Court Procedures to permit a Prohibition Order to be enforced by the Court granting such an order. 7. Amend The Planning Act to enable Municipalities to require that second units only be permitted in houses where the owner lives in the principal unit. 8. Provide zoning by-law inspectors, property standards inspectors, and building code inspectors with rights of access to dwellings, so that they can identify second units and enforce municipal by- laws and the Ontario Building Code without undue delay or expense. 9. Amend The Landlord and Tenant Act to provide that a landlord's contravention of zoning regulations can be a legitimate cause . for eviction; and provide that in cases of such evictions the landlord be liable for damages and other costs to the tenant. 10. Amend Sections 38 (Temporary Use By-laws) and 44 (Minor Variances) of The Planning Act to permit municipalities to enter into agreements with owners as a condition of permission granted under the authority of those sections, and provide that these agreements are able to be registered against the land to which they apply and enforceable against any and all subsequent owners of the land. 5 99 rJ ;i s SECOND UNITS: REQUESTED PROVINCIAL GOVERNMENT ACTIONS (Resolution Adopted by Scarborough Council, March 20, 1991) WHEREAS The Provincial,Government's Policy Statement, "Land Use Planning for Housing", requires Municipalities to provide for future housing needs; and WIGS The City of Scarborough has provided for an additional 12,000 units in the past 3 years by using the powers available to it under the Planning act; and WHEREAS The Provincial Government requires Municipalities to permit second units in existing houses to help meet future housing needs; and WHEREAS The City conducted an extensive public involvement process for its Housing Intensification Study, consisting of: 1. A brochure sent to all 171,000 Scarborough households in Fall 1989, inviting them to participate in the discussion of a policy for basement apartments and which led to the establishment of a mailing list of 5,400 respondents to the brochure; 2. Preparation of readily accessible background information on the issue to provide better public understanding, which was sent to all those on the mailing list; 3. 14 Community Meetings on the Basement Apartments issue, attended by 750 Scarborough residents, and held in Spring, 1990, notice of which was given to all those on the mailing list and to a wide range of community groups, and which were also advertised 4 in local newspapers and on the Community T.V. channel; 4. 1,800 responses to an Opinion Survey which was sent to all those on the mailing list; 5. Presentation of the Provincial Government's Housing Policy Statement to 22 Community Meetings examining Scarborough's Official Plan; and WHEREAS The City requires additional powers to enable it to adopt a responsible, fair, comprehensive policy for second units; and WHEREAS Second Units may create demand for additional municipal services; and n !� 9. Amend the Landlord and Tenant Act and the City of Scarborough Act to provide that a landlord's refusal to comply with the Building Code, the Fire Code and municipal by-laws may result in the relocation of the tenant and/or the municipality undertaking needed repairs and maintenance, with all costs being recovered as taxes; W. Amend The Landlord and Tenant Act to provide the ability for a homeowner to evict expeditiously an incompatible tenant from a second unit; 11. Amend Sections 38 (Temporary Use By-laws) and 44 (Minor Variances) of the Planning Act to permit Municipalities to enter into agreements with owners as a condition of permission granted under the authority of those Sections, and provide that these agreements are able to be registered against the land to which they apply and enforceable against any and all subsequent owners of the land; 12. Amend The Municipal Act to permit Municipalities to pass By-laws licensing and regulating units in houses with second units; and THEREFORE This request is made so that the Provincial goal of providing additional affordable housing can be achieved in a safe, financially responsible fashion, that respects the quality of life for existing and future residents in our neighbourhoods; and THEREFORE Council directs that this request be circulated to all Municipalities subject to the August 1, 1991, deadline for the implementation of the Provincial Housing Policy Statement, and the Association of Municipalities of Ontario; and THEREFORE Council directs that a copy of this request be sent to all those on the Housing Intensification Mailing List held in the Planning and Buildings Department, and to all Community Associations, as well as the list of Special Interest Groups that would be specifically affected by any decisions that this Council makes on housing intensification and basement apartments, the Seniors Groups, Multicultural Groups and the Ethnic Press. i