Hamilton's Renoviction Bylaw: Renovation Licence and Relocation

Author
Jasmine Jasani
| Published at
November 25, 2024
| Updated on
November 25, 2024
Author
Jasmine Jasani
Published at
November 25, 2024
Updated on
November 25, 2024
Hamilton, ON, introduces new Renovation Licence and Relocation Bylaw requirements for rental property renovations effective January 2025.

KEY TAKEAWAYS

Understanding Renovictions: Renovictions occur when landlords misuse renovation claims to displace tenants, a growing issue in Ontario’s rental market.

Legal Protections Under the RTA: The RTA provides safeguards against bad-faith evictions, including notice requirements and tenant rights to challenge evictions.

Hamilton’s Leadership: Hamilton’s Renovation Licence and Relocation By-law enhances tenant protections by introducing municipal oversight and stricter enforcement measures.

In recent years, a new term has entered the Canadian housing lexicon: "renoviction”, a blend of renovation and eviction. Renoviction occurs when a landlord illegitimately evicts a tenant by claiming that the property needs to be vacant for extensive renovations. It is an eviction done in bad-faith. 

While Ontario’s Residential Tenancies Act (RTA) provides safeguards, challenges in enforcement have driven Hamilton to introduce Ontario’s first Renovation Licence and Relocation By-law. This article explores the renoviction phenomenon, the legal framework under the RTA, and how Hamilton's bylaw strengthens protections for tenants.

What is renoviction? 

Renovictions refers to situations where tenants are evicted under the guise of major renovations, often as a means for landlords to increase rents or attract new tenants. 

Legitimate renovations sometimes require tenants to vacate.These legitimate renovation-based evictions exist under Ontario's Residential Tenancy Act (RTA).  The term ‘renovictions’ specifically refers to the abuse of this process. 

 a picture of an eviction notice to illustrate renovictions in Hamilton, Ontario and the need for a renoviction bylaw

How can a landlord evict a tenant for renovation?

Under Ontario’s Residential Tenancies Act (RTA), landlords may evict tenants if the unit needs major repairs or renovations that cannot be completed while it is occupied. Read How Ontario’s Residential Tenancies Act Prevents Renovictions to learn more about this.

To initiate an eviction process, landlords must issue a Form N13: Notice to End your Tenancy Because the Landlord Wants to Demolish the Rental Unit, Repair it, or Convert it to Another Use.

The landlord must then follow the rules set by the Landlord and Tenant Board (LTB) to ensure compliance with the law. This legal framework provides tenants with safeguards, such as adequate notice and the right to challenge the eviction if it appears to be in bad faith.

Hamilton’s Renoviction By-Law

Hamilton is the first city in Ontario to pass a municipal bylaw to prevent renovictions. The city’s bylaw is modeled after legislation from New Westminster, B.C. 

[Read about the origin of renoviction bylaws in Canada]

Why did Hamilton introduce a renovictions bylaw?

Hamilton was losing more affordable housing than it could provide. Between 2017-2022, Hamilton observed a drastic increase in renoviction notices

Between 2016 and 2021, the city lost 5,500 affordable rental units, while only 500 new units were added through federal-provincial funding, according to a 2023 Canadian Housing Evidence  Collaborative research study

Hamilton develops Ontario’s first renoviction by-law

The city's proposed Renovation Licence and Relocation By-law introduces stricter regulations for landlords planning renovations that require tenants to vacate their homes. 

Hamilton City Council took action in April 2023 by directing staff to develop solutions for bad-faith renovictions. The process gained momentum in January 2024 when council unanimously approved the initial bylaw, which was modeled after New Westminster B.C.'s successful program. 

In June 2024, the city made an amendment to include specific provisions for buildings with six or more units. The bylaw, which includes licensing requirements and strict enforcement measures, is set to take effect on January 1, 2025.

This table is a summary of Hamilton’s bylaw. If you’d like to read the full bylaw, you can visit Hamilton’s website on their Renovation Licence and Relocation By-law.

Regulations Overview
Rental Regulations Overview
Category Details
License Fee $715 valid for one year, with an annual renewal fee of $125
Notice Requirements Landlords must provide tenants with clear and detailed written notice of any planned renovations, including the nature of the work and the expected duration.
Compensation for Tenants Tenants are entitled to compensation of three months' rent if they are evicted for renovations or make arrangements for the tenant’s temporary alternate accommodation.
Right of Return Onus on landlord to make arrangements for the tenant’s return to the unit at a rent of “no more than what the Landlord or Operator may have lawfully charged if there had been no interruption to the Tenant’s tenancy.”
Professional Assessment Landlords must provide a professional assessment report justifying the need for vacant possession to conduct the renovations.
Tenant Rights Tenants have the right to challenge the eviction notice through the City’s Municipal Licensing and Standards (MLS) and have access to dispute resolution mechanisms.
Fines $10,000 - $25,000 for individuals. $50,000 - $100,000 for corporations.

Conclusion

Ontario’s Residential Tenancies Act (RTA) provides a legal framework for addressing tenant evictions related to major renovations, requiring landlords to issue notices, offer compensation, and follow Landlord and Tenant Board (LTB) procedures.

Hamilton’s Renovation Licence and Relocation By-law enhances these protections by mandating renovation licenses, requiring tenant compensation, and granting the right of first refusal. Scheduled to take effect on January 1, 2025, this bylaw introduces municipal-level enforcement to complement the provincial law, ensuring stricter oversight and accountability for renovation-related eviction.

Styled FAQ Dropdown Menu
01.What is a renoviction?

A renoviction occurs when a landlord evicts tenants under the claim of performing major renovations. While legitimate renovations requiring vacant possession are allowed under Ontario's Residential Tenancies Act (RTA), renovictions specifically refer to cases where the process is abused to displace tenants and raise rents.

02. What are the key requirements for landlords under the new renoviction bylaw?

Under Hamilton's new bylaw, landlords must secure a renovation license within seven days of issuing an N13 eviction notice, pay a $715 per unit license fee with annual renewals of $125, and provide engineering reports proving that vacant possession is necessary for renovations. The bylaw also establishes substantial fines for violations, ranging from $500 to $50,000 depending on the entity involved.

03.How does Ontario's Residential Tenancies Act protect against renovictions?

The RTA mandates that landlords must issue a Form N13 for renovations, provide adequate notice, and allow tenants to challenge evictions at the Landlord and Tenant Board (LTB). Tenants are also entitled to compensation and the right of first refusal to return to the unit post-renovation if the eviction is legitimate.

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Jasmine Jasani
Growth Advisor

About the Author

Jasmine Jasani is the Growth Advisor at Openroom, specializing in strategic planning and customer retention. With a background in psychology, law, digital tools, and communication, she effectively leverages technology to drive organizational success.

As the Executive Director of Brockville’s Business Improvement Area (BIA), she spearheaded the city’s first digital gift card program and secured federal funding to support digital transformation initiatives for SMEs. Previously, at the United Nations High Commissioner for Refugees (UNHCR), Jasmine played a key role in implementing digital solutions to overcome COVID-19 challenges and streamlined intra-organizational case processing modalities.

Jasmine's belief in the power of knowledge was shaped by her personal experiences as a renter. While working as a legal assistant earlier in her career, she encountered issues with her landlord. Her boss, a partner at the firm, quickly assessed her situation and cited the relevant law, empowering her to assert her rights. This experience reinforced Jasmine's commitment to using knowledge to foster healthy and informed communities.

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