Landlord association warns of litigation if council enacts draft by-law intended to stop 'renovictions'

New details about city hall’s plan to crackdown on “renovictions” have triggered a firm response from an organization representing local landlords.

A report to the Community and Protective Services Committee (CAPS) recommends requiring that landlords obtain a special license from city hall if an N13 Notice is being used to remove a tenant because their unit will be undergoing extensive renovations.

So-called ‘renovictions’ occur when an unethical landlord takes advantage of the N13 process to evict low-income tenants whose rent is well below the market rate.

The staff report reads, “Unfortunately for some tenants, following the rules set out in the Residential Tenancies Act seems to have become optional for some landlords who use ‘bad faith’ evictions to get vacant possession of a unit, only to raise the rent.”

If approved by council, the draft licensing by-law would require landlords issuing N13 notices obtain a Rental Unit Repair License from the city.

The licenses would cost $400 per unit and require that a qualified professional (architect, engineer, or possessor of a Building Code ID Number) confirm that vacancy is required during the renovation.

Landlords would also have to provide an information package to tenants notifying them of their rights after receiving an N13 Notice.

Coun. Peter Cuddy wants steep fines for landlords who break the proposed licensing rules.

“If they’re going to be abusive or aggressive to our residents, then we have to be just as aggressive back to them. Fines of $5,000 or $10,000 just doesn’t do it. We have to really up the ante,” Cuddy told CTV News.

However, the draft by-law isn’t being well received by the city’s largest organization of landlords.

“They see this as largely a move by councillors to create some positive optics,” said Joe Hoffer, a lawyer speaking on behalf of the London Property Management Association (LPMA).

“From the industry’s perspective, the Residential Tenancies Act has full protections for tenants and it’s unfortunate that council is moving forward with this by-law,” Hoffer added.

Tyler Jollymore and his mother received an N13 Notice from their landlord in April 2023 to vacate their unit in the Webster Street Apartments.

At a hearing this August, they’ll fight what Jollymore believes is a renoviction.

“We’re going to be out on the street because we’re on ODSP, so we can’t afford anywhere else,” he explained. “We’ve looked at all the two-bedroom rentals [but] there’s nothing out there for what we’re paying.”

Cuddy maintains that the new licensing requirements would target unethical landlords, but not significantly impact the vast majority of landlords who follow the existing rules.

“We’re going to push it through as quickly as possible,” Cuddy said. “We need to get this in front of council as a final product and get it passed.

Hoffer warns that implementing the licensing by-law might land the city in court.

“To the extent that the by-law contains an excess of jurisdiction, there is a good likelihood that there will be litigation, and that is a waste of time and money,” he said.

London’s draft by-law to crackdown on renovictions is partly based on a policy already enacted in Hamilton.

Instead of requiring one license for an entire building, however, London would require a license for each individual unit to be renovated.

The report suggests, “This may reduce the number of tenants that are displaced and/or inconvenienced by repairs or renovations to larger buildings, as justification will need to be provided on a unit-by-unit basis prior to a licence being issued.”

The new licensing regime would require hiring six additional staff for enforcement, customer service, and program support at a cost of $581,000 per year.

“This is not going to be a burden to our taxpayers,” Cuddy assured. “This is going to be self-sufficient. It’s going pay for itself and that’s why we have to make sure that the penalties stick.”

The CAPS Committee will consider the licensing by-law on Monday.