City Council Approves Measures to Improve Housing Stability

Toronto ON – Toronto City Council has approved a series of robust measures designed to bolster housing stability for renters, enhance the non-profit and community housing sector, and curb the rise of renovictions in the city. These initiatives mark a significant step toward addressing the city’s housing and homelessness crises.

Rental Housing Supply Program

The newly established Rental Housing Supply Program aims to support the creation and completion of a variety of rental homes, replacing the previous Open Door Affordable Rental Housing Program. The program’s ambitious goal is to develop 65,000 rent-controlled homes, including 6,500 rent-geared-to-income (RGI) homes, by 2030. Key actions include:

Capital Funding Allocation: $351 million will be allocated to 18 affordable rental housing projects, kickstarting construction in 2024 and 2025. This will enable the development of nearly 6,000 new rental homes, including 2,600 affordable rental and 3,380 rent-controlled homes.
Community Housing Pre-development Fund: A pilot fund to support non-profit, co-op, and Indigenous housing providers in advancing new projects.
Income-Based Definition of Affordable Housing: Shifting the definition of affordable housing from a market-based to an income-based approach.
Support for Rent-Controlled Homes: Facilitating the creation of homes with rents capped at no more than 150% of the City’s Average Market Rent, with limits on annual rent increases.
Capital Funding Framework: Establishing guidelines to allocate up to $260,000 per unit for new RGI and affordable rental homes.

Further information on the Rental Housing Supply Program report can be found here.

Community Housing Sector Modernization and Growth Strategy

The Community Housing Modernization and Growth Strategy aims to strengthen Toronto’s non-market housing sector, ensuring homes remain affordable and are adequately maintained. The strategy focuses on:

Acquisition and Conversion of Homes: Enabling the sector to acquire more homes and convert them to affordable housing permanently.
Capacity Building: Enhancing the sector’s ability to grow their housing stock in response to increasing demand for RGI and affordable rental homes.

City Council has also endorsed updates to the Multi-Unit Residential Acquisition (MURA) program, including a $30 million budget increase in 2024. These enhancements are expected to triple the program’s capacity, supporting the acquisition of an additional 1,000 rental homes.

The third annual Request for Proposals under MURA will be released in July 2024. More details are available here.

Renovictions Bylaw Implementation

In response to the growing trend of renovictions, where tenants are illegitimately evicted under the guise of renovations, City Council has adopted measures to protect tenants. The proposed renovictions bylaw will require landlords to:

Apply for a Renovation Licence: Before commencing renovations.
Submit a Report: Demonstrating the need for vacant possession of the unit.
Provide Compensation or an Accommodation Plan: For tenants, where applicable.

City Council has also called on the Province of Ontario to enact Bill 97, the Helping Homebuyers, Protecting Tenants Act, and amend the Residential Tenancies Act to reintroduce rent control for units first occupied after November 15, 2018.

For more information on the Renovictions Policy Implementation report, click here. The supplementary report is available here.

Statements from City Officials

Mayor Olivia Chow emphasized the transformative impact of these measures:

“Today we took big steps towards transforming our housing system to benefit the people of Toronto. We’re launching a program to start a non-profit and co-op housing boom. We’re expanding MURA to help purchase more affordable homes and keep them affordable forever. We’re moving forward on new policies to protect renters from renoviction. All these changes will help build more affordable homes and protect renters.”

Councillor Gord Perks (Parkdale-High Park), Chair of the Planning and Housing Committee, echoed this sentiment:

“I’m thrilled to see the City of Toronto addressing and prioritizing housing challenges. Today, we’re pioneering a path forward to achieve a more equitable and inclusive city. Implementing these systemic shifts in how we approach housing is the only way to truly support our residents.”

These initiatives underscore Toronto’s commitment to creating a city where all residents can live in safe, well-maintained, and affordable homes with dignity and respect.