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Decentralized Democracy

Jessica Bell

  • MPP
  • Member of Provincial Parliament
  • University—Rosedale
  • New Democratic Party of Ontario
  • Ontario
  • Unit 103 719 Bloor St. W Toronto, ON M6G 1L5 JBell-CO@ndp.on.ca
  • tel: 416-535-7206
  • fax: t 103 719 Bl
  • JBell-QP@ndp.on.ca

  • Government Page
  • Apr/17/23 2:30:00 p.m.
  • Re: Bill 97 

It’s good to be standing here today to speak about Bill 97, the government’s Helping Homebuyers, Protecting Tenants Act. This bill was introduced last Thursday, the Thursday before, and it came as part of a flurry of announcements and proposals and decisions that the government introduced. Not only did we get this bill, which proposes eight regulatory changes to Ontario’s renting and planning laws, but it happened at the same time as this government’s decision to begin the process of merging the growth plan with the provincial policy statement to create a new provincial planning statement, and also to rewrite and redraw six new municipal official plans. So it was really a big week for the government’s insistence that doubling down on sprawl is the way out of our housing crisis, and I’m here to tell you loud and clear that it is not.

How I’m going to take up my hour today is that I’m going to give you my initial thoughts about what this bill means, what these proposed regulatory changes mean. Then I’m going to go into the proposed changes into some more detail, especially around Bill 97, and a little bit around the growth plan and the provincial policy statement, because they really are twinned with this bill and they’re very much related to the “helping homebuyers” statement in the title. And then I’m going to talk a little bit about some of the solutions that we are advocating for, which really focus on helping Ontarians get that home they can afford and a lot less on the Conservatives’ plan, which is really to help their developer donor friends make a whole lot of money—from renters, in particular.

The Conservatives have introduced and passed many housing bills and the take-home message for me is that what this government is doing right now is not working because buying and renting a home in Ontario has never been more expensive. It’s never been more expensive. And for a period of time, when your government got into power, it would have been very easy for you to turn to the Liberals and say, “Oh, look, that’s on you.” I get that. But now this government has been in power for five years and so those claims of blaming another party are ringing hollow, because this government has had five years to fix the housing affordability crisis and you haven’t. It’s never been more expensive to rent and it has never been more expensive to buy a home.

In this bill, the title is “protecting tenants,” and when I read through the details of the proposed changes that are being made, my initial thought was that this is certainly better than the status quo—and the status quo is pretty hard, is pretty bad for renters right now. But I would summarize it as saying that these changes certainly don’t go far enough. And when I really look into the details, the proposals that this government is making to protect tenants from illegal eviction are so flimsy to the point that they would not be effective at all. It’s not just me saying this; it’s leading housing stakeholders—ACTO, FMTA, housing advocacy groups—because you really don’t deal with the issue of enforcement, and I’m going to get to that when I go into the details.

The other thing I noticed here was around this government’s decision to look at what the Human Rights Tribunal ruled, to allow tenants to have an air conditioning unit so that they’re not miserably hot or at risk of heat stroke in our increasingly hot summers. And only this government could concoct a move where they could turn a Human Rights Tribunal ruling into a rent hike for renters. Only this government could think of a clever way of doing that, so well done for you.

My other key messages before I get into the details, the other key thoughts I had are that the decision to double down on sprawl and upend our planning, how we plan and how we build in this province, is just going to make it so much more expensive for municipalities to provide the services that these new developments are going to need, from daycares to roads to electricity to transit. All these services are going to cost more, because it costs so much more to service a low-density, single-family-home subdivision than it does to service and to provide the necessary infrastructure when you build in areas that are already zoned for development.

What this means on a practical level is that the tax hikes that Ontarians are seeing in their property tax bills—they’re getting these property tax bills now. They’re going to see another tax hike and another tax hike and another tax hike, coupled with service cuts, because it is so expensive to build this infrastructure and maintain this infrastructure for this low-density suburban sprawl, this very backwards approach to planning that you’re moving forward on in this misguided hope—it’s becoming very clear now—in a way that it’s not going to address the housing affordability crisis and not even the housing supply crisis.

The final note before I get into the details is that I was troubled to hear the Minister of Municipal Affairs and Housing refuse to admit that he will not commit any further encroachment to the greenbelt. He did that in question period, he did that in the press conference that took place immediately after the introduction of Bill 97, and that is a real shame, because Ontarians have been very, very clear—thousands and thousands of emails and calls and rallies have been organized on this—that they want this government to keep their promise and keep the greenbelt whole and to protect farmland. The Minister of Municipal Affairs and Housing cannot even commit to not encroaching on the greenbelt further, and I think that’s a shame.

We need real solutions to address our housing crisis, and that means not just talking about housing supply, which is absolutely essential, but also talking about housing affordability. I’m not seeing this government take housing affordability seriously or look at the relationship between housing supply and housing affordability. Sometimes I think the Minister of Municipal Affairs and Housing has difficulty saying the words “housing affordability.”

What I want to see this government move forward on is a commitment to build more homes by ending exclusionary zoning in a serious way—you’ve taken some half-hearted steps there, but need to go further—investing in the construction of affordable homes, clamping down on investor-led speculations so first-time homebuyers can buy the home, and making rent affordable again, making it so that people who rent can afford to live in this province, because right now they can’t, and they’re leaving. The trends for interprovincial migration right now are through the roof. It’s masked because immigration trends to Ontario are going up very fast, but young people, skilled people, people who work in these high-need sectors like construction and health care—they’re looking at our province, they’re looking at the cost of buying a home, they’re looking at how much it costs to rent, they’re realizing they’re not even able to save, and they’re saying, “I’m moving to Saskatchewan, I’m moving to Alberta. I’m getting out of here.” That’s a shame because they’re taking their talents with them.

That’s my overall assessment of the bill, and now I’m going to go into the details, and there are a lot of details. The first thing I’m going to talk about is municipal rent-protection laws. When I read this bill—it was very interesting—I noticed that schedule 2 and schedule 5 of Bill 97 allow the Ministry of Municipal Affairs and Housing to eliminate, weaken and alter municipal rental replacement bylaws. I must say, this is a slight improvement from Bill 23, which just gave the Conservatives the power to weaken or eliminate rental replacement bylaws, and now the Conservatives, the government of the day, is giving themselves the power to improve rental replacement bylaws as well. I would call that a step in the right direction.

I want to take a step back for those who are listening just to explain what rental replacement bylaws are. Essentially, these are the laws that govern what developers must do if they demolish a rental building and replace it with a condo. I heard the Minister of Municipal Affairs and Housing talk on and on about how developers are going to come in and they’re going to look at these mid-size rental buildings, they’re going to demolish them and then they’re going to replace them with big purpose-built rentals. That is not what is happening in Ontario today. What is happening is that developers are looking at these purpose-built rentals—some of them are mid-sized; some of them are really big—and they don’t want to turn it into purpose-built rentals. Some of them might be, but the vast majority of them are going to be condos. That’s what they are, so I’ll make sure to communicate with the minister about that fact.

There are a few municipalities that have these rental replacement bylaws—Mississauga, Hamilton and Toronto—and other cities were looking into it as well, such as Ottawa, although the minister has gutted Ottawa’s rental replacement bylaw in the rewriting of Ottawa’s municipal plan, which is a shame. Toronto’s is one of the best. Toronto’s bylaw requires developers to return that tenant to an equivalent rent-controlled apartment at about the same rent, after construction of the new, bigger condo is complete, and also compensate the tenant for the period of time they are out of their unit while the construction is taking place. That can take two, sometimes three, years—sometimes more.

The amount of money a tenant receives varies depending on what the city negotiates with each developer, and it is our position that a tenant shouldn’t be losing any money. That top-up should match what the tenant paid in the building that’s being demolished and what they have to pay for an equivalent unit in the nearby area while they’re waiting for construction to be complete.

We didn’t pull this out of the sky. This is what’s happening in Burnaby, BC, right now, and Burnaby, BC, has one of the highest rates of construction in the country—just to make that point.

So this is a very important bylaw, and when people, renters, are discovering that the Ontario government is wanting to gut this rental replacement bylaw, they are terrified. They are scared. They are losing sleep because they are fearful that this government is going to gut these rental replacement bylaws and make it very difficult for them to get back into their unit that they’ve held on to for many years.

I participated in a recent protest organized by tenants in some of the buildings that are slated for demolition in the city of Toronto, about two weeks ago. Those buildings include 25 St. Mary, 145 St. George and 55 Brownlow. These are big rental buildings. Over a hundred people came out, and they spoke one after the other about how scared they were, how long they’ve lived in the area, how they don’t know if they’ll be able to find another affordable rental apartment if they have to move out.

One person we’ve been working with for a while: Her name is Pat. She’s in her eighties. She’s on a fixed income. She has worked her entire life. She is terrified that if she is forced to move, she will never find an affordable unit in the Annex community that she calls home. I don’t want her to have to move out and never get back into a unit, and I don’t want her to say goodbye to her friends and family who live in the area, as well.

And it’s not just them. We asked the city of Toronto to give us an understanding of how many units are at risk right now, and there are 3,441 properties in the city of Toronto right now that are at risk of being demolished, and if this government doesn’t come up with strong rental protection laws, at risk of never being replaced. That’s a lot of responsibility on your shoulders, because these renters want to keep their homes.

What I also find concerning is that the number of deals that developers are making with the city to demolish these units under the city’s current strong rental protection laws have been stalled, because many of these developers are sitting back and saying, “Whoa, whoa, whoa. We shouldn’t make a deal now, under the city of Toronto’s really strong rental protection laws. We’re going to wait and see what happens with this provincial law, because maybe we’re going to get a good deal. So we’re going to wait and see, because maybe we won’t even have to move these tenants back, or we will, but the enforcement laws will be so weak that for all intents and purposes—ehh—they’ll have permanently lost their homes.”

That is exactly what’s happening. Since the passage of Bill 23, just one demolishing approval has been approved by the city of Toronto—just one. So you can imagine these tenants are pretty worried.

And it’s not just these 3,441 units that are at stake. If the Conservative government chooses to gut these municipal rental replacement bylaws, it will mean that this government is choosing to declare open season on these tenants who live in purpose-built-rental areas that are already zoned for height, because it means that it’ll be cheaper for developers to come in, knock these purpose-built rentals down and build very expensive condos that renters will not be able to afford. Someone like Pat is not going to be able to afford a $700,000 condo. They’re just not, not on a fixed income. These people will be priced out of their neighbourhoods.

That means so much is at stake. The future of private market affordable housing in the city is at stake. The affordability of our province is at stake. And there are so many private market affordable homes that are at risk because of this government’s enthusiasm to just listen to developers and not listen to what it’s like to be a renter in this city, in this province, and how they need to have affordable housing as well. I urge you to look hard at that and really come up with a provincial rental replacement law which is strong.

When I go and look at the regulation that the government has set up to get in feedback for what this provincial rental replacement bylaw will look like—which is where I think you’re going—I see some concerns. The one concern I see is that the government wants to give developers some flexibility on what kind of home a renter can return to, likely one that still has the same number of bedrooms but is likely smaller in size than the original. I think that’s concerning, that there is a move by this government to listen to developers but not to listen to renters.

It is a concern, because developers can get very creative when they’re looking at meeting the requirement of a two-bedroom unit. There are units that are being built in my riding of University–Rosedale right now that are three bedrooms plus a den, but they’re only 1,000 square feet. You need to be very careful about giving developers flexibility, because a renter might find out—if they get to move back into these units—that the unit is far smaller in size than the kind of unit they lived in in the purpose-built rental before it was demolished. I’m a little worried about that.

I want to be very clear, before I move into the next piece, about what we are advocating for. We look to what Burnaby, BC, is doing as a model. Like I said, housing construction in that area is extremely high. What we want to see is a strong commitment that renters can return to their rent-controlled unit after construction is complete; that there is a rent top-up equal to the difference in rent they paid at the home that they had—a home that they’ll have to find in the same area, during construction; and that there is a very firm commitment to guarantee that a tenant can come back into their rent-controlled unit. Renters didn’t cause this housing crisis, so renters shouldn’t be the victims of this housing crisis.

Interjection.

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