Ontario Announces New Legislation to Build More Homes, Support Renters

Houses under construction in Toronto in a file photo. (Graeme Roy/The Canadian Press)

The Ontario government introduced new housing legislation on April 6 that it says aims to support renters, strengthen homebuyer protections, reduce the cost of building new homes, and streamline rules around land use planning.

“Our goal remains the one that I committed to last summer, which is to get 1.5 million homes built by 2031,” Housing Minister Steve Clark said at a press conference on the afternoon of April 6. “That’s why we understand that it will take time for the impact of the changes we have made to date to be fully felt.”

Clark said that in 2022, housing starts in Ontario surpassed 96,000—the second highest number since 1988—while purpose-built rental construction reached a record at 15,000 starts. But he said “progress and more action” are required for the province to meet its housing goals, especially given increased inflation, economic uncertainty, and higher interest rates.

The legislation, known as the “Helping Homebuyers, Protecting Tenants Act,” if passed, will provide $6.5 million to appoint 40 more adjudicators—more than double the current number—and hire five staff members to improve service standards and reduce decision timeframes at the Landlord and Tenant Board.

The act will provide changes to protect renters from so-called renovictions, requiring landlords to give tenants 60 days to move back in after renovations are done and pay the same rent as before.

If a landlord doesn’t comply, the tenant would have two years after leaving or six months after the renovations are done to apply to the Landlord and Tenant Board.

Under the act, the Ontario government will also be holding consultations on a cooling-off period for freehold homebuyers, including how long customers have to cancel their purchase agreements if they change their minds, and whether there should be a purchaser cancellation charge.

“Finally, we’re proposing to double maximum fines for offences under the Residential Tenancies Act to make them the highest in Canada,” Clark said.

Under current rules, the penalties are a fine of up to $50,000 for individuals and up to $250,000 for corporations for offences such as charging more rent than is allowed under the act, trying to stop a tenant from forming or participating in a tenants’ association, or taking back possession of a rental unit without following the proper process.

Other measures in the legislation include freezing 74 provincial fees such as building code fees, giving tenants the right to install air conditioners under certain rules, and strengthening protections against no-fault evictions, “such as those due to renovations, demolitions and conversions.”

The Ontario government also said the legislation could include “tools to support growth” near transit stations and allowing more homes to be built in rural areas. Moreover, municipalities would have “more flexibility” to decide when and where to expand their settlement area boundaries, providing more land for housing.

When asked about whether the changes would encroach on Ontario’s Greenbelt, Clark said that all existing Greenbelt protections are maintained and there is “nothing we’re announcing today in this bill that should cause concerns for Ontarians.”