HomeMy WebLinkAboutDSD-2024-282 - Proposed Rental Replacement By-LawStaff Report
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Development Services Department www.kitchener.ca
REPORT TO: Planning and Strategic Initiatives Committee
DATE OF MEETING: June 17, 2024
SUBMITTED BY: Rosa Bustamante, Director Planning and Housing Policy, 519-519-
741-2200 ext. 7319
PREPARED BY: Natalie Goss, Manager Policy & Research, 519-741-2200 ext. 7648
Lucas Van Meer -Mass, Senior Planner (Housing), 519-741-2200 ext.
7069
Tanya Roberts, Project Manager (Planning), 519-741-2200 ext. 7704
WARD(S) INVOLVED: ALL
DATE OF REPORT: June 6, 2024
REPORT NO.: DSD -2024-282
SUBJECT: Proposed Rental Replacement By -Law
RECOMMENDATION:
That the proposed Rental Replacement By-law, be approved in the form shown in
Attachment `A' to report DSD -2024-282; and,
That City initiated Official Plan Amendment OPA24/007/K/NG, for the purposes of
administering a Rental Replacement By-law, be adopted in the form shown in the
Official Plan Amendment attached to Report DSD -2024-282 as Attachment `C', and
accordingly forwarded to the Region of Waterloo for approval; and,
That By-law 2013-093, being Chapter 620 — Demolition Control of the Municipal Code,
be amended by the "Proposed By-law" attached to Report DSD -2024-282 as Appendix
`D', to enable the administration of a Rental Replacement By-law; and further,
That staff be directed to continue to work towards a tenant assistance policy as
outlined in Kitchener's Housing for All Strategy.
REPORT HIGHLIGHTS:
• The purpose of this report is to seek Council's approval of a proposed Rental
Replacement By -Law and related amendments to Kitchener's Official Plan and
Demolition Control By-law.
• The proposed Rental Replacement By-law is a tool designed to provide stability and
compensation to tenants displaced by redevelopment and to create a transparent and
predictable Rental Replacement permitting regime.
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• The proposed Rental Replacement By-law balances interrelated policy goals of creating
new housing supply and preserving the health and diversity of the city's most affordable
rental housing.
• The By-law will require landowners seeking to demolish or convert six or more rental
units to provide alternative housing or compensation to tenants and require the provision
of replacement rental housing in new developments.
• Staff will undertake further analysis to determine if a new fee should be added to
Kitchener's Fee Schedule as part of Budget 2025 to cover administrative costs in the
processing of the Rental Replacement Permit.
• This report supports Building a Connected City Together: Focuses on
neighbourhoods; housing and ensuring secure, affordable homes; getting
around easily, sustainably and safely to the places and spaces that matter.
EXECUTIVE SUMMARY:
The proposed Rental Replacement By-law is a tool designed to provide stability and
compensation to tenants displaced by redevelopment, and to create a transparent and
predictable rental replacement permitting regime that ensures that new development does
not occur at the expense of existing rental housing. It balances the interrelated policy goals
of creating new housing supply and preserving the health and diversity of the city's most
affordable rental housing, its existing purpose-built rental housing stock. The proposed
Rental Replacement By-law builds on policy direction in the Regional Official Plan, Official
Plan, and Kitchener's Housing for All Strategy, and direction provided by Council in
December 2023.
The Rental Replacement By-law will not stand in the way of the large-scale redevelopment
of existing rental housing properties, so long as compensation to tenants and the
replacement of rental units occurs. Under the proposed Rental Replacement By-law, tenants
would be offered the choice of a replacement unit, a rent waiver or compensation, and
replacement units would be required to be provided at affordable rents for 10 years. The
proposed Rental Replacement By-law disincentivizes proposals to redevelop existing rental
properties without contributing substantially to housing supply.
This report details staff's efforts, in keeping with Council direction, to provide rental
protection to as many tenants as possible, within the limitations of the legal authority within
the Municipal Act for rental replacement by-laws. As such, the proposed Rental
Replacement By-law will apply only to evictions through demolitions and cannot apply to
evictions through renovations. Additionally, no legal powers exist for the City to intervene in
informal evictions or those proceeding under the Residential Tenancies Act. The City,
moreover, has no authority to make the issuance of a Rental Replacement Permit a
condition for issuing building permits.
The development of the proposed Rental Replacement By-law involved consultation with
tenant advocates, individuals affected by rental displacement, and development industry
partners. It is recommended that Council approve the proposed Rental Replacement By-
law and companion Official Plan amendment and Demolition Control By-law amendment
and continue work on a tenant assistance policy as outlined in Kitchener's Housing for All
Strategy.
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BACKGROUND:
This Report is one of many housing -related reports considered by Council since Council's
endorsement of Kitchener's Housing Pledge in March 2023 as shown on Figure 1.
Municipal Housing Pledge
Eviction &
Missing Middle and
Displacement
Affordable Housing Study
Webpage & Online
Update
Reporting Update
Lived Expertise Working
Rental Replacement
Groupyear 2 Work Plan
By-law Directions
Development
Report
Lower Doon Land Use
Study Implementation
official Plan Review Launch
Growing Together
Implementation
Inclusionary Zoning
Implementation
Enabling Four Units
Shared Accommodations 1 Official Plan Review
Licensing By-law progress report
Lodging House official Plan
and Zonirig Amendment
Decision
I Rental Replacement By-law I
Implementation'
Lived Expertise Working
Group Next Steps
Gro wingTogether East
Project Launch
Not For Profit Affo rdable
Rental and Co-op Housing
ncentive ( Pilot)
Figure 1: Housing Related Studies and Initiatives
On January 30, 2023, Council directed staff to prepare a rental housing, eviction and
displacement study that explored tools that the city can use to support the transitioning of
displaced residents. This direction emerged from the findings of the City's Housing for All
Strategy, which recommended finding innovative tools to preserve and increase housing
supply. The study that was prepared in response to Council direction included a financial
feasibility assessment of a rental replacement by-law by Parcel Economics. In December
2023, Council directed staff to prepare a rental replacement by-law.
Since December 2023, a core group of staff from across the corporation, including staff from
Building, By-law Enforcement, Legal, Planning & Housing Policy, as well as Housing &
Development Approvals have worked collaboratively on the proposed Rental Replacement
By-law. Staff have engaged with development industry partners, housing advocates and
non -profits, and community members who have or are experiencing displacement.
REPORT:
Evictions and Displacement
The Residential Tenancies Act, 2006 (RTA), is the Provincial legislation which governs
rental housing in Ontario, including matters related to evictions. The RTA outlines rules for
tenancy agreements and other matters such as requiring that landlords maintain their
properties in a good state of repair and comply with health, safety, housing, and
maintenance standards. Generally, when a tenant is evicted from their home, they must be
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provided with an N12 or N13 notice from the landlord which provides the landlord's reason
for the eviction. These notices are filed with the Landlord and Tenant Board (LTB). The LTB
enforces the RTA. Conflicts between tenants and landlords are handled by the Landlord and
Tenant Board (LTB). A landlord may apply to the LTB to end a tenancy for reasons ranging
from non-payment of rent, use of the unit for illegal activities, or occupancy of the owner,
among others. Tenants may, likewise, file grievances with the LTB regarding issues such
as above guideline rent increases, property maintenance or bad faith evictions.
While the LTB clearly outlines rights and responsibilities, obtaining a hearing can take
upwards of 10 months. It is acknowledged that evictions may also occur informally and
without proper notice.
Legislative and Policy Context
Staff report DSD -2023-486, outlined the tools available at the municipal level to directly
regulate evictions — a Rental Replacement By-law under section 99.1 of the Municipal Act.
The Municipal Act allows municipalities to pass by-laws to prohibit or regulate the demolition
and conversion of residential rental properties containing six or more units. The mechanism
used to regulate the demolition or conversion is a permit, often called a s.99.1 permit, issued
with conditions and secured by an agreement that is registered on the title of the property.
The triggering mechanism for the implementation of the Rental Replacement By-law is a
Demolition Control Permit. The Demolition Control Permit process, authorized by section 33
of the Planning Act, allows municipalities to prevent demolition of residential properties in
the City pending a plan being put in place for building replacement.
The Region of Waterloo's Official Plan includes policies that support the retention of rental
housing stock and encourage the development a rental replacement by-law. Policy 3.A.15
requires that area municipalities develop Official Plan policies and zoning regulations
regarding the demolition of existing residential rental units for buildings with six or more
units. This policy includes criteria on comparable bedroom mix and affordability for
replacement units and tenant compensation in accordance with the RTA.
Kitchener's Official Plan includes many policies encouraging the provision of new and
retention of existing rental housing. The following policies were considered in the
preparation of the proposed Rental Replacement By-law and companion amendments to
the Official Plan and Demolition Control By-law:
4.C.1.22 The City will encourage the provision of a range of innovative
housing types and tenures such as rental housing, freehold ownership and
condominium ownership including common element condominium, phased
condominium and vacant land condominium, as a means of increasing
housing choice and diversity.
4.C.1.10 Where appropriate, and without limiting opportunities for
intensification, the City will encourage and support the ongoing maintenance
and stability of existing housing stock in the city by:
a) supporting the reuse and adaptation of the housing stock through
renovation, conversion and rehabilitation,
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b) supporting community access to funding programs for the rehabilitation
and repair of housing
4. C. 1.11 A demolition control application will be required for any requests to
remove residential dwelling units from the housing supply in accordance with
the Demolition Control Policies in Section 17.E.25.
Further, Kitchener's Housing for All Strategy identifies strategies for supporting the equitable
provision of housing across the city, including inclusionary zoning, lodging house licensing,
tenant support programs, affordable housing incentives, and measures for increasing
housing and supply opportunities.
Concern about the loss of rental housing has become a focus of city initiatives across
Southwestern Ontario. Communities such as Toronto, Mississauga, and Oakville have
enacted rental housing protection by-laws under the express authority under section 99.1 of
the Municipal Act to regulate the demolition and conversion of residential rental properties.
These by-laws established a permit system requiring an applicant to apply for a permit to
carry out the demolition or conversion of a rental property, subject to the by-law's conditions.
Proposed Rental Replacement By-law Rationale and Objectives
The proposed Rental Replacement By-law was developed to strike an appropriate balance
between three interrelated policy goals: increasing housing supply, preserving existing
rental homes, and protecting tenants. The proposed Rental Replacement By-law focuses
specifically on purpose built multi -unit rental properties, that are of critical value to the health
and diversity of the city's housing stock. It will ensure that when development does occur on
existing rental properties, the results contribute to both to the supply and affordability of
housing city-wide.
Through Kitchener's housing pledge, Kitchener committed to accelerating housing supply
and taking necessary steps to facilitate 35,000 additional homes by 2031. Kitchener has
already approved updates to its land use framework within its Protected Major Transit
Station Areas (Growing Together) enabling up to 100,000 new homes. Additionally,
Kitchener has approved updates to its zoning by-law to allow 4 units as of right on
approximately 68 percent of residential lots within Kitchener. Balancing the supply of new
housing while maintaining existing rental housing stock is a key consideration of Kitchener's
growth. Existing rental housing is the most affordable form of market housing available and
makes up 55 percent of the city's rental housing stock. The proposed Rental Replacement
By-law would encourage the retention of existing rental housing where the parameters of
the by-law would make the financial viability of redevelopment unsuccessful. The proposed
Rental Replacement By-law is, moreover, supported by a full complement of City incentives
and policies that promote development across a variety of sites across the city. These
objectives formed the basis for the key aspects of the proposed Rental Replacement By-
law.
Proposed Rental Replacement By-law
Staff is recommending a Rental Replacement By-law that is like those in effect in the cities
of Toronto, Mississauga, and Oakville and includes matters that are permitted to be
regulated by section 99.1 of the Municipal Act (Attachment A). The proposed Rental
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Replacement By-law includes rules for tenant compensation and rental replacement units.
It also includes key definitions such as "dwelling unit", "lodging unit", "comparable rental
unit", and "residential rental property" to capture a broad, but within the limits of the Municipal
Act, application of the by-law.
Applicability
The proposed Rental Replacement By -Law establishes a Rental Replacement permit
process whereby applications requiring Planning Act approval that will result in the
demolition or conversion of six or more rental units are required to replace those units onsite
and provide compensation to displaced tenants. The proposed Rental Replacement By-law
would also apply to planning applications that relate to a property or multiple properties that
contain six or more residential units, whether they are contained on one parcel or several.
This includes apartment buildings as well as townhomes, semi-detached and single -
detached homes, whether those homes have been subdivided into apartments or not. The
six unit minimum is set by the Municipal Act.
Units in the secondary rental market, such as rented condominiums, are not included as
stipulated by section 99.1 of the Municipal Act. Rental units that would also be exempt
include equity co-operatives, co -ownership properties, and designated and non-profit
housing projects owned, operated, or managed by the Region of Waterloo.
Tenant Compensation
When a Planning Act application proposes to demolish or convert an eligible residential
rental building, the proposed Rental Replacement By-law includes three options for
compensation:
• Temporary Offsite Replacement Unit: A comparable rental unit rented at the same
price as their existing unit until construction of the new unit is complete at which point
the tenant is given first right of replacement to occupy a new unit.
• Rent Waiver: The option of remaining in their unit for 12 months rent-free with the
obligation to vacate thereafter. Additionally, the developer will be required to provide
a unit in the new building at affordable rents for a period of 10 years.
• Cash Payout: The option of receiving the cash equivalent of 10 months of rent and
an agreement to vacate the property in two months. Additionally, the developer will
be required to provide a unit in the new building at affordable rents for a period of 10
years.
Rental Replacement Units
In any development subject to the proposed Rental Replacement By-law, applicants are
required to build affordable rental units equal in number and size to those demolished or
converted. These units are then occupied by either tenants that selected the Temporary
Offsite Replacement Unit at the outset of the process, or by other tenants through a tenant
selection process that is envisioned at this time to be similar to the process being developed
as part of Kitchener's Inclusionary Zoning program. These units are required to remain
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rented at an affordable rent for a period of ten years, with these obligations secured through
an agreement registered on the title of the property.
The proposed Rental Replacement By -Law in the Context of Local Development and
Investment Opportunities
The proposed Rental Replacement By-law has been structured in a way to ensure that the
city can balance two interlocked policy objectives: the creation of new housing supply and
the preservation of existing rental supply.
The proposed Rental Replacement By-law was informed by the Rental Replacement By-
law Financial Feasibility Study prepared by Parcel in November 2023 as well as an update
to that work also prepared by Parcel in June 2024 (Attachment B). The June 2024 report
focused on potential challenges a rental replacement by-law could have on enabling missing
middle housing supply. Through this report Parcel confirmed that the introduction of the
proposed Rental Replacement By-law is not expected to — in and of itself — render missing
middle projects infeasible. Further it reiterated that market conditions continue to be
challenging, but that the City continues to have several policy levers to improve the feasibility
of missing middle housing including adopting flexibility in density calculations and reducing
parking requirements. The City has already made great strides in these areas through the
approval of the Growing Together land use and zoning framework which saw the elimination
of maximum densities and minimum parking requirements. Additionally, further flexibility in
land use permissions city-wide is being explored through the City's in progress Official Plan
review.
Kitchener has approximately 21,400 primary rental units. Units eligible for rental
replacement have been estimated at approximately 20,500 units (i.e., 96% of the total
primary rental units in Kitchener in buildings with a minimum of 6 units). However, in light of
other practical limitations to implementation — including conditions for financial feasibility —
less than one fifth of the total supply of primary rental units in the city are actually likely to
be redeveloped (i.e., approximately 3,600 units representing 17% of the existing primary
rental supply). Properties with redevelopment potential are ones with lower existing unit
totals, with land use permissions that permit more than what exists, and on lots that have
the space to accommodate far more units.
The purpose of this by-law is to ensure that, if development occurs on these properties, it
does not come at the expense of existing rental units that form the pillar of the City's
affordable housing. As land use permissions continue to become more flexible, there will be
opportunities to better absorb the conditions of the proposed Rental Replacement By-law
into proformas.
While the proposed Rental Replacement By-law places new requirements on the
redevelopment of certain existing rental properties, it will not affect the ability of landowners
to profitably operate existing rental properties, or increase yields on existing properties
through renovations, rent increases, or site intensification. Neither does the proposed Rental
Replacement By-law affect opportunities for investment outside existing rental properties,
which continue to be abundant.
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Staff will monitor the implementation of the proposed Rental Replacement By-law to ensure
that it is striking the right balance between the creation of new housing supply and providing
for tenant protection and compensation.
Other Matters Considered
Staff examined numerous avenues for using a Rental Replacement By-law under the
authority of the Municipal Act to provide rules around evictions resulting from renovations
Staff concluded that no such blanket protections were possible, and that a proposed Rental
Replacement By-law that focused on displacement resulting from Planning Act applications
was the only method of implementation given current legislative powers.
Evictions due to renovations are one of the most common forms of eviction in Kitchener. So-
called `renovictions' are typically pursued using one of two methods: informally, outside of
any government processes such as permits, tribunals, or Planning Act applications, or
through formal Residential Tenancies Act process, which remain the only formal means of
evicting tenants. Informal evictions are not illegal, but in practice are those in which tenants
most commonly encounter disinformation, and coercion to get them to move. Approximately
29% of respondents to the City's online eviction stated that they were evicted because their
home was going to be renovated. They shared that they are struggling to find alternative
affordable rental units.
In the proposed Rental Replacement By-law staff have utilized the powers provided by
Section 99.1 of the Municipal Act to their greatest extent. Staff extensively tested and
explored how Section 99.1 could be implemented to protect tenants from displacement,
focusing specifically on how potential cases of informal evictions, or displacement involving
only building permits could be brought under the control of the powers the City has under
the Planning Act and Municipal Act. Nevertheless, due to the limits in existing municipal
powers, the proposed Rental Replacement By-law is not a tool that can be used to protect
tenants from evictions from renovations. Currently, municipalities have no explicit tools at
their disposal to protect tenants from evictions due to renovations.
Staff explored whether it was possible to withhold building permits. Through the powers
afforded by Section 99.1 Municipal Act, section 33 of the Planning Act, which covers
demolition control, and the Building Code Act, staff looked at withholding building permits
until a Rental Replacement Permit was issued. Staff found that the Municipal Act is not
applicable law under the Building Code, and any requirements thereunder cannot be used
as conditions for the issuance of a building permit.
Staff also explored the possibility of redefining `demolition' to have it apply to any material
changes to a dwelling unit and use existing powers to then transfer the responsibility to
approve a demolition permit to the administrator of the Demolition Control By -Law in cases
where the application would affect six or more rental dwelling units. In consultation with the
Building Division, it was ultimately concluded that the redefinition of `demolition' to a meaning
that deviated so greatly from standard building code practices could not be supported. A
change in the definition of `demolition' would moreover, result in the Building Division being
responsible for issuing demolition permits for the thousands of applications that met the
expanded definition of `demolition', but not the six rental dwelling unit threshold.
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Staff also explored nesting the Rental Replacement Permit process in the Site Plan Approval
process, making a Rental Replacement Permit a condition for the issuance of Site Plan
Approval. Section 41(7) of the Planning Act outlines matters which may be conditioned by a
site plan approval process. The Planning Act does not permit a rental replacement permit
as a condition of site plan approval.
Proposed Official Plan Amendment
To enable the administration of the proposed Rental Replacement By-law, staff are
proposing an amendment to the Official Plan. The proposed Official Plan amendment
(Attachment C) includes modifications to section 17, specifically demolition control policies
to enable demolition control to be used as a tool to protect existing rental housing stock.
The Planning Act, R.S.O. 1990, c. P.13.25
Section 2 of the Planning Act establishes matters of provincial interest and states that the
Minister, the council of a municipality, a local board, a planning board, and the Tribunal, in
carrying out their responsibilities under this Act, shall have regard to, among other matters,
matters of provincial interest such as the following relevant matters related to housing:
• The orderly development of safe and healthy communities;
• The adequate provision of a full range of housing, including affordable housing, and;
• The appropriate location of growth and development.
These matters of provincial interest are addressed and are implemented through the
Provincial Policy Statement, 2020, as it directs how and where development is to occur. The
City's Official Plan is the most important vehicle for the implementation of the Provincial
Policy Statement, 2020 and to ensure Provincial policy is adhered to.
Planning staff are of the opinion that the proposed Official Plan amendment has regard for
the matters of Provincial interest outlined in section 2 of the Planning Act as the proposed
amendment clarifies that a demolition control by-law can be used to assist with the
implementation of the proposed Rental Replacement By-law which is a tool under the
Municipal Act that will assist with the provision of a full range of housing including affordable
housing. It does this by ensuring that tenants continue to have affordable housing options.
The Provincial Policy Statement, 2020
The Provincial Policy Statement (PPS) provides direction on matters of provincial interest
related to land use planning and development. Policy 1.1.1 speaks to the ways in which
healthy, liveable and safe communities are sustained, including accommodating an
appropriate affordable and market-based range and mix of residential types. Policy 1.1.3.3
promotes transit -supportive development, accommodating a significant supply and range of
housing options through intensification and redevelopment where this can be
accommodated, considering existing building stock or areas, including brownfield sites, and
the availability of suitable existing or planned infrastructure and public service facilities
required to accommodate projected needs. And finally, policy 1.4.3b) permits and facilitates
all housing options required to meet the social, health, economic and well-being
requirements of current and future residents, including special needs requirements and
needs arising from demographic changes and employment opportunities.
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Planning staff are of the opinion that the proposed Official Plan amendment is consistent
with the PPS as it enables the use of demolition control to assist with the implementation of
a Rental Replacement By-law. The proposed Rental Replacement by-law will assist with
providing housing options for current and future residents.
A Place to Grow: Growth Plan for the Greater Golden Horseshoe, 2020 (Growth Plan)
The Growth Plan supports the development of complete and compact communities that are
designed to support healthy and active living, make efficient use of land and infrastructure,
and provide for a range, and mix of housing types, jobs, and services. Policy 2.2.6.1 a)i)
supports housing choice by identifying a divers range and mix of housing options and
densities including affordable housing to meet projected needs of current and future
residents. Further, policy 2.2.6.3 acknowledges that to support the achievement of complete
communities municipalities will consider the use of available tools to require that multi -unit
residential developments incorporate a mix of unit sizes to accommodate a diverse range
of household sizes and incomes.
Planning staff are of the opinion that the proposed Official Plan amendment is consistent
with the Growth Plan as it enables the use of demolition control to assist with the
implementation of a Rental Replacement By-law. The proposed Rental Replacement By-
law includes provisions that enable replacement rental units to be at comparable sizes to
existing rental units contributing to a diverse range of household sizes and a mix of unit
sizes in multi -unit residential developments.
Region of Waterloo Official Plan
The Region of Waterloo Official Plan (ROP) sets a high-level direction for growth and change
across the Region. Regional Official Plan Amendment Number 6 (ROPA 6) was adopted by
the Region of Waterloo Council on August 25, 2022, and approved in full with modifications
by the Province in May 2024. ROPA 6 introduced policies that support the retention of rental
housing stock and encourage the development a rental replacement by-law. Policy 3.A.15
requires that area municipalities develop Official Plan policies and zoning regulations
regarding the demolition of existing residential rental units for buildings with six or more
units. This policy includes criteria on comparable bedroom mix and affordability for
replacement units and tenant compensation in accordance with the RTA.
Planning staff are of the opinion that the proposed Official Plan amendment conforms to the
ROP as it directly enables the implementation of a Rental Replacement By-law through
demolition control.
City of Kitchener Official Plan, 2014
The City of Kitchener Official Plan (2014) provides the long-term land use vision for
Kitchener. The vision is further articulated and implemented through the guiding principles,
goals, objectives, and policies which are set out in the Plan. The vision and goals of the Plan
strive to build an innovative, vibrant, attractive, safe, complete, and healthy community.
Kitchener's Official Plan includes many policies encouraging the provision of new and
retention of existing rental housing. Policy 4.C.1.22 encourages the provision of a range of
housing types and tenures including rental housing. Policy 4.C.1.10 acknowledges that the
City will encourage and support the ongoing maintenance and stability of existing housing
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stock by, among other things, supporting the reuse and adaptation of the housing stock
through renovation, conversion, and rehabilitation. Further, policy 4.C.1.11 states that a
demolition control application will be used for any requests to remove residential dwelling
units from the housing supply.
Planning staff are of the opinion that the proposed Official Plan amendment conforms to the
general intent and purpose of the Official Plan. Specifically, it clarifies that a demolition
control by-law can be used to protect existing rental stock in accordance with the Municipal
Act.
Based on the above -noted policies and planning analysis, planning staff are of the opinion
that the proposed Official Plan amendment has regard for matters of Provincial interest
under the Planning Act, is consistent with the Provincial Policy Statement, conforms with,
and does not conflict with A Place to Grow: Growth Plan for the Greater Golden Horseshoe
and the Region of Waterloo Official Plan and Kitchener Official Plan, and represent good
planning.
Proposed Demolition Control By-law Amendment
To facilitate the implementation of the proposed Rental Replacement By-law, staff are
recommending amending the Demolition Control By-law to provide greater clarity that it will
be used in conjunction with a section 99.1 Rental Replacement Permit (Attachment D). The
amendment does not change how demolition control works, rather it allows for its use as a
companion to the Rental Replacement Permit.
Through the pre -submission process, staff will advise applicants of the Rental Replacement
By-law requirements and will recommend early discussions with affected tenants prior to
filing their first development application (Official Plan Amendment, Zoning By-law
Amendment, Site Plan). Staff will provide details of any known Rental Replacement By-law
arrangements when reporting a recommendation on a development application to Council.
Rental Replacement Permit Application Fee
Staff are recommending that further review be undertaken prior to Budget 2025 to determine
the appropriate fee to cover administrative costs in the processing of the Rental
Replacement Permit.
Implementation and Next Steps
Staff are recommending that the proposed Rental Replacement By-law come into effect on
the day that it is passed. This will enable applications for demolition control, where an
approval has not already been granted within the timeframe provided for under the Planning
Act, to be included within the proposed Rental Replacement By-law. Given the
recommended effective date, staff have already begun preparing an implementation guide
to ensure that quick and successful implementation of the proposed Rental Replacement
By-law can occur in collaboration with industry partners.
The proposed Rental Replacement By-law capitalizes on the powers provided by the
Municipal Act but, due to legislative limitations, leaves many forms of tenant displacement
unaffected. Discussions with housing advocates and the results of our ongoing online
eviction survey, have indicated that displacement resulting from scenarios such as
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landowner pressure or bad faith eviction applications, represent the most harmful forms of
tenant displacement. It is for this reason that staff seeks to continue to develop a tenant
assistance policy as outlined in Kitchener's Housing for All Strategy, being mindful of current
legislative limitations, which will identify new strategies and opportunities for protecting
tenants that complement the proposed Rental Replacement By-law.
Additionally, staff will continue to work with community stakeholders and other orders of
government on shared solutions to rental housing, eviction and displacement. To this end,
should Council wish to advocate to other orders of government on matters related to eviction
and displacement, there may be opportunities to do so in the areas of "renovictions" as there
are currently no legislative tools for municipalities to pass by-laws in this area.
Staff went to considerable lengths to create a By-law that is a strong and legally defensible
tool for protecting renters and existing rental housing, but the relatively untested nature of
this legislation will require staff to monitor, document and refine the by-law as it is applied.
STRATEGIC PLAN ALIGNMENT:
This report supports Building a Connected City Together: Focuses on
neighbourhoods; housing and ensuring secure, affordable homes; getting around
easily, sustainably and safely to the places and spaces that matter.
FINANCIAL IMPLICATIONS:
At this time, it is expected that the implementation of the proposed Rental Replacement By-
law can be accomplished with existing resources. Any expansion of this by-law beyond the
scope recommended, such as its application to evictions due to renovations, if that is
determined to be possible through future legislative changes should they occur, will include
consideration of staff resourcing to implement.
Operating Budget - Staff are recommending that further review be undertaken prior to
Budget 2025 to determine the appropriate fee to cover the administrative costs in the
processing of the Rental Replacement Permit.
Capital Budget — The recommendation has no impact on the Capital Budget
COMMUNITY ENGAGEMENT:
CONSULT - Consultations with affected tenants, the precariously housed, and tenant
advocates highlighted the emotional and financial cost of rental displacement. The lack of
alternate housing, the pressure and coercion they have experienced, and the destabilization
that occurs when one loses a home provided vivid illustration of the hardships from which
rental protection measures seek to protect tenants. Discussions with development industry
partners stressed the burden of the additional costs that a proposed Rental Replacement
By-law would apply. Representatives from the development industry expressed a desire for
clarity, simplicity and predictability if a by-law were passed, and expressed outstanding
frustration with the obstacles they already face in vacating buildings for new development
or renovation.
Page 122 of 174
Staff also met with the Lived Expertise Working Group (LEWG), which expressed support
for the concept of a rental replacement by-law, but doubt that the by-law would provide
sufficient protections to the most vulnerable of tenants and the most tenuously housed.
Staff also met with the following representatives from the tenant advocacy and protection
field, who expressed strong support for a rental replacement by-law and urged staff to
consider the strongest measures possible to protect tenants:
• The Social Development Centre's Eviction Prevention Peer Support Program
• ACORN Waterloo Region
• Waterloo Region Yes In My Backyard
These advocates stressed that rental replacement alone would not stop the displacement
they witness occurring across Kitchener, and that additional measures were necessary.
Staff also presented to the Kitchener Development Liaison Committee (KDLC) on the
proposed Rental Replacement By-law. KDLC representatives expressed concern about the
cost of the by-law, and the potential exploitation of the by-law to further delay development
projects. Staff followed up with a KDLC representative for a more in-depth discussion of
their outstanding questions and provided a follow up presentation to the KDLC on May 24.
A statutory public meeting on the companion Official Plan amendment is being held at the
Planning and Strategic Initiatives Committee meeting on June 17, 2024. The statutory public
meeting was advertised in the Waterloo Region Record on May 24, 2024 (Attachment E).
Online Eviction Survey Results
To further engage with residents across Kitchener and to help staff better understand the
number and nature of evictions and displacements in Kitchener, an online eviction survey
was launched in February 2024. There have been approximately 130 survey responses
received as of the date of this report. The majority of responses have been from people
living in developments with under 5 rental units or 11 or more rental units in 2 or 3+
bedrooms. The cost of rent listed by most survey respondents was $1400 or more and
represented 26-50% of their total income. Approximately 29% of respondents shared that
the reason they were evicted was because their home was being renovated and another
approximately 35% said that they were being evicted because the landlord/owner's family
member wanted to move in. Other reasons included the desire to increase rents and/or sell
the property. Many survey respondents had a formal lease and were notified through an
N12 Notice or by phone/in-person from the landlord. Many survey respondents had lived in
their rental unit for 5+ years and many were only offered the equivalent of 1 month's rent in
compensation, if anything.
The survey included an opportunity for respondents to share about their eviction
experiences. Many shared that they felt that they were discriminated against or that they felt
bullied into paying more rent or face eviction, others shared a concern over demand for
international student housing and challenges with mortgages increasing rents. Many
expressed worry and stress over being able to find another similar affordable unit. The
information and stories shared through the survey underline the significance and magnitude
of eviction and displacement in Kitchener and further highlight that although our tools are
limited, now is the right time to implement a Rental Replacement By-law and continue to
work together with all orders of government on solutions.
Page 123 of 174
INFORM — This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
• DSD -20-214 — Housing for All — City of Kitchener Housing Strategy
• COR -2022-104 — Housing for All Program Update — 2022 Year in Review
• DSD -2023-160 — Enabling Missing Middle and Affordable Housing
• DSD -2023-295 — Housing for All Strategic Lived Expertise Working Group — First
Year Review and Rental Housing, Eviction and Displacement Study Update
• DSD -2023-446 — City-wide Lodging House Review
• DSD -2023-486 - Rental Housing, Eviction and Displacement Study
• Municipal Act, 2001
• Planning Act
REVIEWED BY: Garett Stevenson, Director, Development and Housing Approvals
APPROVED BY: Justin Readman, General Manager, Development Services
ATTACHMENTS:
Attachment A — Proposed Rental Replacement By-law
Attachment B — Rental Replacement Financial Feasibility Updates — Parcel (June 2024)
Attachment C — Proposed Official Plan Amendment
Attachment D — Proposed Amendment to Chapter 620 of the Municipal Code (Demolition
Control)
Attachment E — Waterloo Region Record Statutory Public Meeting Notice (May 24, 2024)
Page 124 of 174
PROPOSED BY-LAW
, 2024
BY-LAW NUMBER xx
OF THE
CORPORATION OF THE CITY OF KITCHENER
(Being a by-law to establish a Rental Replacement By-law)
WHEREAS subsection 8(1) of the Municipal Act, 2001, S.O. 2001, c. 25, as amended
("Municipal Act, 2001") provides that the powers of a municipality shall be interpreted
broadly so as to confer broad authority on a municipality to enable it to govern its affairs
as it considers appropriate;
AND WHEREAS subsection 11(2) of the Municipal Act, 2001 provides that a local
municipality may adopt by-laws for the economic, social and environmental well-being of
the municipality and for the health, safety and well-being of person;
AND WHEREAS under sections 20 to 24 of the Municipal Act, 2001 the City may delegate
its powers and duties under the Act to an officer or employee of the City;
AND WHEREAS, without limiting the broad municipal powers, section 99.1 of the
Municipal Act, 2001 provides municipalities with the authority to prohibit and regulate the
demolition of residential rental properties and the conversion of residential rental
properties to a purpose other than the purpose of a residential rental property;
AND WHEREAS the City wishes to exercise its powers under section 99.1 of the
Municipal Act, 2001 to protect residential rental housing in order to meet the needs of
current and future residents;
AND WHEREAS under sections 425 and 429 of the Municipal Act, 2001 the City may
pass by-laws to create offences and a system of fines for offences, that are designed to
eliminate or reduce any economic advantage or gain from contravening the by-law;
AND WHEREAS section 436 of the Municipal Act, 2001 provides that a municipality may
pass by-laws to authorize inspections to determine compliance with a by-law;
AND WHEREAS subsection 391 (1) (a) of the Municipal Act, 2001 provides that the City
may pass by-laws imposing fees or charges on Persons for services or activities provided
or done by or on behalf of it;
NOW THEREFORE the Council of the Corporation of the City of Kitchener ENACTS as
follows..
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PART 1 - DEFINITIONS
1) For the purposes of this By -Law, the following definitions and interpretations shall
govern:
"Applicant" means the registered owner of the property or properties subject to the
Rental Replacement Permit application or Person or Persons designated by the
owner to act on their behalf.
"Building Code Act, 1992" means the Building Code Act, 1992 S.O. 1992, c. 23 as
may be amended.
"Cash Payout" Means payment of the cash equivalent of the ten (10) months of rental
payments made to a tenant when the tenant's choice of Cash Payout from among
the Tenant Compensation Options is secured through a Rental Replacement
Agreement.
"City" means The Corporation of the City of Kitchener.
"City Solicitor" means the Director of Legal Services/City Solicitor, their designate,
or any successor thereto.
"Conversion" or "Convert" means converting a Residential Rental Property to a
purpose other than a Residential Rental Property and includes:
a) Conversion as a result of a consent to sever land under section 53 of the
Planning Act.
b) Conversion to:
i. A non-residential use.
ii. Living accommodation other than Dwelling Units or Dwelling Rooms.
iii. A Co -ownership, a condominium or a building organized as a Life
Lease Project.
"Co -ownership" means an equity co-operative or other co -ownership form of housing
where the residential property is ultimately owned or leased or otherwise held, directly
or indirectly by more than one Person where any such Person, or a Person claiming
under such Person, has the right to present or future exclusive possession of a
Dwelling Unit in the residential property. Co -ownership does not include a
condominium, a residential building that is organized as a Life Lease Project, or a
non-profit housing Co-operative under the Co-operative Corporations Act, R.S.O.
1990, c. C. 35.
"Comparable Rental Unit" means a rental unit with a quantity of rooms generally
equal to the unit from which the tenant is displaced, offered to the tenant at their
existing rent and shall include, at minimum, access to reasonably comparable
amenities to those included with their existing rental unit.
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"Council" means the Council of the Corporation of the City of Kitchener.
"Demolition" or "Demolish" means to do anything in the removal of a building or any
material part thereof and includes (but is not limited to) interior renovations or
alterations that will result in a change to the number of:
a) Dwelling Units or Dwelling Rooms
b) Dwelling Units or Dwelling Rooms by bedroom type
"Dwelling Unit" means the use of a building that contains a room or suite of habitable
rooms which:
a) is located in a dwelling or mixed use building;
b) is occupied or designed to be occupied by a household as a single,
independent and separate housekeeping establishment;
c) contains both a kitchen and bathroom used or designed to be used for the
exclusive common use of the occupants thereof; and,
d) has a private entrance leading directly to the outside of the building or to a
common hallway or stairway inside the building.
"Existing Rent" means the rent a tenant is paying at a building subject to a Rental
Replacement Permit Process on the date that an application is made to the City
pursuant to this By-law.
"Director" means the Director of Development and Housing Approvals for the City,
their designate, or successor thereto.
"Guidelines" means the document titled `Rental Replacement Guidelines' which shall
be published details the process, conditions, and requirements for permitting the
Demolition or Conversion of dwelling units and lodging houses under this By-law.
"Ontario Heritage Act" means Ontario Heritage Act, R.S.O. 1990, c. 0.18, as
amended.
"Life Lease Project" means a life lease project as described in paragraph 1 of
subsection 3(1) of Ontario Regulation 282/98, under the Assessment Act, R.S.O.
1990, c. A. 31.
"Lodging House" means a dwelling unit where five or more Persons, not including
a resident owner of the property, may rent a Lodging Unit and where the kitchen and
other areas of the dwelling unit are shared amongst the Persons occupying the
Dwelling Unit. Lodging house can include student residences but shall not include
a group home; hospital; and small residential care facility or large residential care
facility licensed, approved, or supervised under any general or specific Act; or a hotel
as defined in City of Kitchener Zoning By-law 2019-051.
"Lodging Unit" means a room or set of rooms located in a Lodging House or other
dwelling designed or intended to be used for sleeping and living accommodation
which:
a) is designed for the exclusive use of the resident or residents of the unit;
Page 127 of 174
b) is not normally accessible to Persons other than the residents or residents of
the unit; and,
c) does not have both a bathroom and kitchen for the exclusive use of the resident
or residents of the unit.
"Non-profit Housing Co-operative" means a non-profit housing co-operative under
the Co-operative Corporations Act, and "co-operative" has the same meaning.
"Person", or any expression referring to a person, means an individual, sole
proprietorship, partnership, limited partnership, trust, or body corporate, or an
individual in his or her capacity as a trustee, executor, administrator or other legal
representative.
"Planning Act" means the Planning Act, R.S.O. 1990, c. P.13, as may be amended.
"Related Buildings" means:
a) Buildings that are under the same ownership and on the same parcel of
land as defined in section 46 of the Planning Act; or
b) Buildings that form part of the same application under this By-law or under
a Related Planning Application.
"Related Planning Application" means
a) an application that provides for the Demolition of Residential Rental Property
or the Conversion of Residential Rental Property to a purpose other than a
Residential Rental Property, expressly or by necessary implication.
b) For greater certainty, paragraph (a) includes but is not limited to an application
for the following:
A permit under section 8 or 10 of the Building Code Act, 1992.
ii. A consent or permit to alter part of a property or to demolish or remove
a building or structure under section 33, 34, 34.5 or 42 of the Ontario
Heritage Act.
iii. Approval or registration of a description for a proposed condominium or
exemption from approval for a condominium, under section 9 of the
Condominium Act.
iv. An amendment to the Official Plan under section 22 of the Planning
Act.
V. A zoning by-law amendment under section 34 of the Planning Act.
vi. A minor variance under section 45 of the Planning Act.
Page 128 of 174
vii. Approval of plans and drawings under subsection 41(4) of the Planning
Act.
viii. Approval of a plan of subdivision under section 51 of the Planning Act.
ix. A consent under section 53 of the Planning Act.
X. A demolition permit under s. 33 of the Planning Act.
c) Despite subparagraph b)v., paragraph a) does not include City -initiated zoning
by-law amendments made pursuant to section 34 of the Planning Act to
implement land use studies and other policies, except for any site specific
exemptions or other site specific provisions at the request of an Applicant.
"Rental Replacement Agreement" means the agreement reached between the
Applicant, the City, and the Tenant detailing the form of compensation agreed to in
order to vacate a Dwelling Unit or Lodging Unit in accordance with this By-law.
"Rent Waiver" means the agreement reached between the tenant and the Applicant
through the Rental Replacement Agreement to allow the tenant to remain at their
existing Dwelling Unit or Lodging Unit without paying rent for twelve months and to
vacate the Dwelling Unit or Lodging Unit at the end of that period.
"Rental Replacement Permit" means the permit issued by the Director after the
approval of an application under this By-law.
"Rental Unit" means a Dwelling Unit or Lodging Unit used, or intended for use, for
residential rental purposes, including:
a) A Dwelling Unit or Lodging Unit that has been used for residential rental
purposes and is, according to the definitions contained in the Guidelines,
vacant, and
b) A Dwelling Unit or Lodging Unit in a Co -ownership that is or was last
used for residential rental purposes but does not include a Dwelling Unit
or Lodging Unit in a condominium registered under section 2 of the
Condominium Act, 1998 or in a building organized as a Life Lease
Project where the right to occupy the Dwelling Unit or Dwelling Room is
based on a life lease interest.
"Residential Rental Property" means a building or Related Buildings containing
one or more Rental Units and includes all common areas and services and facilities
available for the use of its residents.
"Residential Tenancies Act, 2006" means the Residential Tenancies Act, 2006,
S.O. 2006, c.17 as may be amended.
Page 129 of 174
"Temporary Offsite Rental Replacement Unit" means a Comparable Rental Unit
provided to a Tenant displaced by a Rental Replacement Permit process by the
Applicant, either through a lease or sublease agreement.
"Tenant" includes a Person who pays rent in return for the right to occupy a Rental
Unit and includes the Tenant's heirs, assigns and personal representatives, but does
not include a Person who has the right to occupy a Rental Unit by virtue of being,
a) a co-owner of the Residential Rental Property in which the Rental Unit is
located, or
b) a shareholder of a corporation that owns the Residential Rental Property.
PART II — SCOPE
2) This By-law shall apply to all Residential Rental Properties in the City containing six
or more Dwelling Units or Lodging Units and all Related Planning Applications.
3) Notwithstanding section 2, this By-law does not apply to a Residential Rental
Property that is:
a) a condominium governed by the Condominium Act, 1998; or
b) organized as a Life Lease Project; or
c) described in section 5 (Exemptions from Act) of the Residential Tenancies Act,
2006 other than subsection 5(c), a member unit of a Non -Profit Housing Co-
operative; or
d) described in section 7 (Exemptions related to social, etc., housing) of the
Residential Tenancies Act, 2006.
PART III — DEMOLITION & CONVERSION PROHIBITED WITHOUT A PERMIT
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4) No person shall Demolish, or cause to be demolished, the whole or any part of a
Residential Rental Property unless the person has received a Rental Replacement
Permit and except in accordance with the terms and conditions of the Rental
Replacement By -Law and Rental Replacement Permit.
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5) No Person shall Convert a Residential Rental Property, or cause a Residential
Rental Property to be converted, to a purpose other than a Residential Rental
Property unless the Person has received a Rental Replacement Permit and except
in accordance with the terms and conditions of this By-law and Rental Replacement
Permit.
When Permit Not Required
6) Notwithstanding sections 4 and 5 of this By-law, a Rental Replacement Permit is not
required if only a part of a Residential Rental Property is proposed for Demolition
Page 130 of 174
or Conversion and that part does not contain any part of a Dwelling Unit or Lodging
Unit.
7) Notwithstanding section 5 of this By-law, a Rental Replacement Permit is not
required if a Residential Rental Property is subject to an application for a consent to
sever under section 53 of the Planning Act and, if after the proposed conveyance:
a) Each parcel of land resulting from the severance will have six or more Rental
Units; or
b) One or more parcels of land resulting from the severance will have six or more
Rental Units and all the other parcels of land at the time of the application
contained no Dwelling Units or Lodging Units.
PART IV — APPLICATION FOR RENTAL REPLACEMENT PERMIT
8) An Applicant, who wishes to Demolish or Convert a Residential Rental
Property shall submit an application for approval in writing on a form prescribed
by the Director and shall supply any additional information or documentation
relating to the application as required by the Director.
9) The Director is delegated the authority to develop and publish the Guidelines and
to periodically review and amend the Guidelines from time to time where deemed
appropriate to do so by the Director.
10)An application made under section 8 of this By-law shall include the following
information:
a) description of the proposed Demolition or Conversion;
b) the number of existing Dwelling Units and/or Lodging Units;
c) the number of existing and proposed Rental Units by unit type, including number
of bedrooms and floor area;
d) the rents roll(s) including utilities for the Residential Rental Property, categorized
by unit type;
e) a list containing the names and mailing addresses of the Tenants of the
Residential Rental Property proposed for Demolition or Conversion;
f) identification of any Related Planning Applications;
g) where applicable, a proposal for the replacement or retention of the Rental Units
proposed for Demolition or Conversion;
h) a proposal for Tenant engagement by the Applicant, including consultation and
education;
i) any additional information or documentation required to evaluate the application,
as specified by the Director; and
j) the applicable fees.
Notice of Application to Tenants
11)An Applicant for a Rental Replacement Permit shall provide proof of notice of the
application to the Tenants of the Residential Rental Property to the satisfaction of
Page 131 of 174
the Director within 14 days after the Director has advised that the application is
complete or within such other time period as determined by the Director.
Related Planning Application
12)lf a Person makes a Related Planning Application, then that Person shall also file
an application under this By-law at the same time.
13)lf a Related Planning Application is made with respect to a Residential Rental
Property for which a Rental Replacement Permit is required, the Applicant shall
provide written notice to the applicable approval authority and, in the case of an appeal
or referral, to the Ontario Land Tribunal or Court, as the case may be.
14)The notice required under section 13 of this By-law shall be filed at the time the
application for a Rental Replacement Permit is filed with the approval authority, or
at the same time the referral or appeal of a Related Planning Application is filed with
the Ontario Land Tribunal or the Court, as the case may be.
15)The notice required under section 13 of this By-law shall include a statement that the
Demolition or Conversion is not permitted unless a Rental Replacement Permit
has been given for the Demolition or Conversion pursuant to this By-law.
Withdrawal of Application
16)lf an Applicant for a Rental Replacement Permit does not provide all the required
documentation to the Director within two years from the date the application is
received by the City, the Applicant shall be deemed to have withdrawn their
application and shall not be entitled to any refunds of any payments made in respect
of such application.
17)Notwithstanding section 16 of this By-law, the Director may extend the timeframe for
an application where the Director determines that the Applicant is actively taking
steps to move the application forward.
PART V — APPROVAL AND ISSUANCE OF RENTAL REPLACEMENT PERMIT
Approval by Director under Delegated Authority
18)AII authority of Council to approve an application for a Rental Replacement
Permit under section 99.1 of the Municipal Act is delegated to the Director.
Delegated authority to the Director shall include the authority to impose the any
of following conditions on the Rental Replacement Permit as further detailed in
the Guidelines:
a) Requirements to provide every Tenant with compensation as determined by the
Guidelines which shall include but not be limited to a Temporary Offsite
Replacement Unit, Rent Waiver, and Cash Payout;
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b) Requirements to replace an equal number of Rental Units to those Demolished
or Converted as part of the Related Planning Application to which the Rental
Replacement Permit relates, as determined by the Guidelines;
c) That the Applicant for the Rental Replacement Permit notify in writing any
Tenants who reside in Rental Units affected by the approval of the relevant
provisions in the Residential Tenancies Act, 2006;
d) Requirements that the registered owner of the Residential Rental Property
and/or the Applicant provide information, as determined by the Guidelines, from
time to time sufficient to verify that the terms of a Rental Replacement Agreement
are being met;
e) Provisions concerning the Applicant's entitlement to claim or act under any of the
following until the conditions imposed have been satisfied or secured, to the
satisfaction of the Director:
i. A permit under subsection 8(1) or section 10 of the Building Code Act, 1992
for construction, Demolition or Conversion of a building;
ii. A consent or permit to alter part of a property or to demolish or remove a
building or structure under section 34, 34.5 or 42 of the Ontario Heritage Act.
iii. Approval or registration of a description for a proposed condominium under
section 51 of the Planning Act, or an exemption from approval for a
condominium, under section 9 of the Condominium Act, 1998; and/or,
iv. A consent under section 53 of the Planning Act, except for provisional consent
that is conditional on receiving a Rental Replacement Permit under this By-
law.
f) Such other conditions, requirements, or provisions reasonably related to
minimizing the impact of the Demolition or Conversion on the City's rental
housing supply as determined by the Director.
19) Where conditions are imposed under section 18 of this By-law, the registered owner
of the Residential Rental Property shall, as a condition of obtaining a Rental
Replacement Permit, enter into to a Rental Replacement Agreement with the City
securing conditions to the approval of the Rental Replacement Permit.
20)The Rental Replacement Agreement shall be registered on title to each property to
which the Rental Replacement Agreement applies and may be enforced against the
owner and any subsequent owners of the Residential Rental Property. The
preparation and registration of the Rental Replacement Agreement shall be to the
satisfaction of the City Solicitor. The registered owner of the Residential Rental
Property or Applicant may, at the discretion of the City Solicitor, be required to
provide such registerable postponements of interest as may be required to ensure
that the agreement is registered in such priority as may be required to ensure its
proper enforcement by the City.
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21)At the discretion of the Director, the City may register an Application to Annex
Restrictive Covenants pursuant to section 118 of the Land Titles Act, R.S.O. 1990, c.
L.5, as amended on the title to the property which is subject to the Rental
Replacement Agreement to impose restrictions on the transfer or charge of such
property until confirmation is received from the City that the obligations imposed by
the Rental Replacement Agreement have been met and/or that the Rental
Replacement Agreement is in good standing.
22)The restrictive covenants imposed in accordance with section 21 of this By-law will
not be released, waived, or otherwise lifted until such time as the registered owner
comes into compliance with the obligations set out in the Rental Replacement
Agreement.
23)No decision shall be made regarding any application made pursuant to this By-law
until the notice provisions set out in section 11 of this By-law have been complied with
and have been served on the Tenants in accordance with the Guidelines.
24)Where the provisions of Part V of this By-law have been met, the Director shall
approve a Rental Replacement Permit.
Referral to Council by Director
25)The Director may refer an application to Council for a decision if, in the Director's
opinion, the application should be considered by Council with a Related Planning
Application, or if in the opinion of the Director, the application requires Council
consideration.
26)lf a decision regarding an application has been referred to Council by the Director
under section 25 of this By-law, the Director shall submit a report respecting the
application to Council.
27)Council may refuse the application or approve the application subject to any of the
conditions set out in section 18 of this By-law.
Rental Replacement Permit Issuance
28)Subject to section 33 of this By-law, if Council or the Director approves a Rental
Replacement Permit, the Director is authorized to issue the Rental Replacement
Permit after all the conditions have been satisfied or secured by a registered Rental
Replacement Agreement, to the satisfaction of the Director.
Application for Revision to Conditions
29)lf the Applicant applies for revisions to the conditions on a Rental Replacement
Permit, the Director may treat the request as a new application under this By-law or
may otherwise require the Applicant to comply with the notice requirements of this
By-law.
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Revocation of Rental Replacement Permit
30)The Director may revoke a Rental Replacement Permit if:
a) The Rental Replacement Permit was issued on mistaken, false or incorrect
information;
b) The conditions to the Rental Replacement Permit are not complied with; or
c) The Applicant or registered owner of the Residential Rental Property or other
holder of a Rental Replacement Permit has contravened this By-law.
31)Where a Rental Replacement Permit for Demolition has been issued under this By-
law and the building permit for the new construction is revoked under the Building
Code Act, 1992, the Rental Replacement Permit shall be deemed to be revoked
and this By-law shall apply to any subsequent application for a Demolition of the
Residential Rental Property for which the original Rental Replacement Permit was
issued.
32)Section 31 of this By-law does not apply if the Residential Rental Property has been
demolished under a Rental Replacement Permit before the building permit for the
new construction was revoked.
Council or Director Decision Final
33)Council's or the Director's decision to approve, refuse or revoke a Rental
Replacement Permit, or impose or revise conditions on a Rental Replacement
Permit in accordance with this By-law is final, without any further right of appeal.
PART VII — ENFORCEMENT
Harassment of Tenant
34)No owner of Residential Rental Property or Person acting on the owner's behalf
shall interfere with a Tenant's reasonable enjoyment of a Rental Unit in the
Residential Rental Property with the intent of discouraging the participation of the
Tenant in the application or approval process described herein or with the intent of
otherwise facilitating the obtaining of the approval of Council or the Director on an
application made under this By-law.
Powers of Entry and Inspection
35)Any City official may at any reasonable time enter upon any land for the purpose of
carrying out an inspection to determine whether the following are being complied with:
a) this By-law;
b) any direction or order issued under this By-law;
c) any Rental Replacement Permit condition imposed under this By-law;
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d) an order issued under section 431 of the Municipal Act, 2001.
36)Subject to the requirements under section 437 of the Municipal Act, 2001 related to
entry to dwellings, submission of an application for a Rental Replacement Permit is
deemed to be the consent of the owner for any City official to enter at any reasonable
time onto the Residential Rental Property for the purpose of carrying out an
inspection.
37)Where an inspection is conducted under this By-law, any City official may:
a) require the production of documents and things that may be relevant to the
inspection;
b) inspect and remove documents or things which may be relevant to the inspection
for the purpose of making copies;
c) require information from any Person concerning a matter related to the inspection,
including but not limited to name(s), address(es), contact information, and proof of
identity or other identification; and
d) alone or in conjunction with a Person possessing special or expert knowledge,
make examinations or take photographs necessary for the purpose of the
inspection.
e) No Person shall hinder or obstruct, or attempt to hinder or obstruct, any City
Official from exercising any power or authority, or performing a duty as permitted
under this By-law.
f) No Person shall decline or neglect to give, produce or deliver any access,
information, document or other thing that is requested by any City Official pursuant
to this By-law.
g) Every Person from whom information, or any other thing, has been requested in
relation to an inspection conducted under this By-law shall identify themselves to
any City Official and failure to identify shall constitute hindering and/or obstructing
under section 34.
Offences
38)Every Person who contravenes any section of this By-law, including an Order issued
pursuant to this By-law or sections 444 or 445 of the Municipal Act, 2001 is guilty of
an offence and is liable to a fine, and such other penalties, as provided for in the
Provincial Offences Act, R.S.O. 1990, c. P.33, as amended and the Municipal Act,
2001.
39)Every director or officer of a corporation who knowingly concurs in a contravention of
this By-law by the corporation is guilty of an offence.
40)Every Person who fails to comply with a term or condition of a Rental Replacement
Permit under this By-law is guilty of an offence.
41)AII contraventions of this By-law or an Order issued pursuant to this By-law are
designated multiple and continuing offences pursuant to subsection 429(2) of the
Municipal Act, 2001.
Page 136 of 174
Penalty
42)Every Person who is charged with an offence under this By-law upon conviction is
liable as follows:
a) the maximum fine for an offence is $100,000;
b) in the case of a continuing offence, in addition to the penalty mentioned in
subsection 50(1), for each day or part of a day that the offence continues, the
maximum fine shall be $10,000, and the total of all daily fines for the offence is not
limited to $100,000;
c) in the case of a multiple offence, for each offence included in the multiple offence,
the maximum fine shall be $10,000 and the total of all fines for each included
offence is not limited to $100,000; and
d) if a Person is convicted of an offence under this By-law, the potential for economic
advantage acquired by or that accrued to the Person as a result of the commission
of the offence may be considered an aggravating factor for sentencing purposes
which may attract a special fine and the maximum amount of the special fine may
exceed $100,000 or such other maximum amount permitted by the Municipal Act,
2001.
e) If any section of this By-law is contravened and a conviction entered, in addition to
any other remedy and to any penalty imposed by this By-law, the Court in which
the conviction has been entered and any Court of competent jurisdiction thereafter
may make an order prohibiting the continuation or repetition of the offence by the
Person convicted.
PART VIII — TRANSITION
Effective Date
43)This By-law shall come into effect on the date of passage.
Applicability
44)This By-law applies to a proposal for Demolition or Conversion of a Residential
Rental Property in any Related Planning Application except where:
a) an application in respect of the Demolition has been issued under section 8 of
the Building Code Act, 1992 or section 33 of the Planning Act before the
effective date.
PART IX — GENERAL
45)Any section of this By-law, or any part thereof, that is found by a court of competent
jurisdiction to be invalid shall be severable, and the remainder of the By-law shall
continue to be valid.
46)ln this By-law, unless the context otherwise requires, words imparting the singular
number shall include the plural, and words imparting the masculine gender shall
Page 137 of 174
include the feminine and further, the converse of the foregoing also applies where the
context so requires.
47)References in this By-law to any legislation (including but not limited to the Guidelines
and by-laws) or any provision thereof include such legislation or provision thereof as
amended, revised, re-enacted and/or consolidated from time to time and any
successor legislation thereto.
48)This By-law may be referred to as the "Rental Replacement By-law".
Page 138 of 174
J U N E 2 02 4
RENTAL REPLACEMENT:
FINANCIAL FEASIBILITY
UPDATES
Parcel
KEY FINDINGS
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
CHALLENGING MARKET CONDITIONS
Current macroeconomic conditions necessitate
trade-offs and prioritization among multiple
municipal priorities (e.g., preservation of renta
supply,
enabling
missing
middle
typologies,
increasing
are
total
housing
supply,
etc.)
BASELINE UPDATES (2023 - 2024)
The findings and key takeaways from our 2023
analysis remain relevant in the context of
updated inputs and assumptions as a baseline
condition (i.e., 2024 costs, revenues, etc.).
TYPOLOGY & TENURE
Mid -rise typologies and rental tenures cannot
feasibly accommodate rental replacement units.
However,
feasibility
of
these
developments
FSI),
are
to
constrained
by multiple
among
others.
factors
independent
of
rental replacement requirements.
P ariv, I
"LEVERS" AVAILABLE
There are multiple "levers" available to the City
to improve feasibility, including adopting
flexibility in density calculations (e.g.,
exempting
replacement
units
from
FSI),
adjustments
to
parking,
among
others.
LIMITATIONS
Among these other "levers", however, many do
not directly support identified policy objectives
- particularly those relating to preserving rental
housing supply (e.g., reduced duration of
replacement requirements, increased unit
replacement thresholds, etc.). These will need to
be carefully balanced with the underlying
intent and desired outcomes of the bylaw.
9
Page 140 of 174
N T R 0 D C T 1 0 N
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
ACKG ROU N D
P ariv, I
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
Pri*q*inal Research Orogram(s)
• Parcel Economics Inc. (" Parcel") was originally retained bv the City of Kitchener in 2023 to
prepare a more comprehensive Rental Replacement By-law Financial Feasibility Study
(dated November 22, 2023)
• This work also built upon the analytical foundation and supporting research program
established as part of an earlier Enabling Missing Middle &Affordable Housing Feasibility
Study (dated April 11, 2023), which
serves as a "
companion"
document to the above.
Purpol-ft"I
• Since delivery of our original reporting, the City has continued to advance a draft Rental
Replacement By-law. Parcel has since been asked to prepare selected updates and additions
to our original analyses to further test
implementation.
and refine the proposed by-law for
Page 142 of 174
CONTEXT
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
Research Taski&
P ariv, I
1. Updated Baseline Financial Analysis - Selected updates to establish more relevant models
reflecting ongoing changes in market conditions since previous reporting, among other factors.
2. Response to Supplementary Research Questions*
What is the minimum density at which a develill.pment can fasiebly
accommodate replacement units (@ 6 -unit minimum threshold)? How will
this impact "Missing Middle" development proposals?
What other "levers" are available to improve feasibility ? Do they effectively
satisfy identified policy objectives?
Page 143 of 174
ASSUMPTIONS & MODEL PARAMETERS
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
P ariv, I
Notes About Mo d-011*ing (Caution & Limitations)
• The financial feasibility results presented herein represent an updated "base case" only to show
the general relationships among / between different options identified.
• The results of this analysis will undoubtedly change as a function of both: (a) broader s
macroeconomic conditions that are beyond the immediate control of the City; and (b)
by -s
ite basis, where conditions could deviate from those modelled in this tvt)e of
prototypical analysis.
hilts in
on a site-
Feasibility
modelling is designed to be dynamic / "evergreen" and will continue to evolve with
other parallel housing initiatives by the City (e.g., other financial, policy and process -based
incentives to encourage preferred housing outcomes).
Page 144 of 174
ASSUMPTIONS & MODEL PARAMETERS
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
Key Updated Inputs
• Affordable Rents - Updated CMHC 100% AMR (October 2023)
0
P ariv, I
Hard Construction osts -Updated �itus,,���Construction,,���Cost:3uide����2,il�ID24) +CAnnualGrowth
reduced from 7.5°/a to 5.0%
•Planning Fees
current rates
ding Permits, Development Charges + Property Taxes - Updated to
other Parameters (Baseline Analysis)
• Replacement units delivered on-site only (i.e., no off-site, cash -in -lieu options)
0
0
Assumed
Additiona
1 0 -year period for
I waivers / subsidie
maintaining pre-developmen
s identified for tenant relocati
t rental rates
on during construction
Page 145 of 174
ASSUMPTIONS & MODEL PARAMETERS
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
Typology
ivloc;els for Updating
P ariv, I
• As confirmed with City staff, we have focused our updated models for the 20 -Storey High -Rise
typology in the Central neighbourhood
• All concept informati
including for
both condo and rental tenures.
on and assumptions relating to built -form parameters are consistent with
previous reporting based on preli
urinary concepts prepared by Smart Density and parallel
market-based inputs provided by Parce
is The four (4) baseline models selected
Model 1.1 -
• Model 1.2 -
I.,
for updati
ng are:
20 -Storey High -Rise Condo Central (No Re
20 -Storey High -Rise Condo Central (Reel
Model 2.1 - 20 -Storey High -Rise Rental Cen
Model 2.2 - 20 -Storey High -Rise Rental Cen
lacement)
acemen
tral (No Re
trai Kepiacemen
t @ 1
lacement)
t @ 1
5 Rental Units)
5 Rental Units)
Page 146 of 174
TASK #1 RESULTS:
UPDATED BASELINE
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
TASK #1: UPDATED BASELINE
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
.:ond(k Tenure
P ariv, I
• Rental replacement of up to 15 units remains viable for a condo development in the Central Neighbourhood, though it does
reduce developer profit and other return metrics
Model 1.1 : No Replacement
Land Costs
$6.7M
Model 1.21.o With Replacement
Land Costs
$6.7M
Revenues Costs Revenues Co sts
Profit IRR EMx Prod
$27.5M 26.2% 2.00x $22.5M
IRR
19.3%
EMx
1.81x
In
Page 148 of 174
TASK #1: UPDATED BASELINE
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
Rental T�nu..j
P ariv, I
• Return metrics are insufficient to encourage development for rental tenures (with and without rental replacement policies)
Model 2.1 : No Replacement
Land Costs
$6.7M
Model 2,,2*. With Replacement
Land Costs
$6.7M
Revenues Co sts Revenues Co sts
Profit IRR EMx Prod. IRR EMx
$45.7 M 4.8% 1.78x $39.2M 4.3% 1.67x
11
Page 149 of 174
TASK #1: UPDATED BASELINE
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
P ariv, I
• Overall, the results of our original 2023 analysis remain accurate and relevant in the context of current market conditions and
prevailing rate / fee structures in Kitchener.
• Specifically, we can confirm that a rental replacement by-law is likely to deter all types and tenures of intensification of existing
rental buildings across the city (especially while alternative, non -rental apartment redevelopment sites remain available and
viable, as highlighted in our previous reporting).
No Replacement
(Baseline)
Ownership
Renta
With Replacement
0 Infeasible Unlikely 0 Possible
1)
Page 150 of 174
TASK #2 RESULTS:
SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
TASK #2.0 SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
P ariv, I
bl-.,ns***to
Reducing Dens*
ty from 20 -Storeys ... How Low is Still Feasible?
• A minimum density of 145 units is required to accommodate rental replacement units while achieving a target IRR of 15%.
• At approximately 11 units per floor (consistent with the original building typologies established for testing as part of our origina
2023 and updated 2024 baseline analyses, this translates to a 14 -storey building.
Land Costs
$6.7M
Revenues Costs
Profit IRR
$13.2 M 15.4%
Page 152 of 174
TASK #2.0 SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
P ariv, I
• At 14 storeys, we note that this amount of height and density would exceed categories relating to "Missing Middle" -and
specifically "Mid -Rise" -developments in the Kitchener context altogether (regardless of the exact definition used*). That said, per
previous reporting by Parcel, many of the developments in this typology range are already infeasible as a function of broader
market conditions and macroeconomic factors. The introduction of a rental replacement bylaw is not expected to -in and of
itself -render Missing Middle projects infeasible.
*As -of -right @ 6 -storeys / latest municipal policy direction @.8 -storeys / Parcel recommendation via 2023 Enabling Missing
Middle & Affordable Housing work @ - 12 -store.
• More specifically, it is likelythatadditional
incentives and/or
supports will be
required to encourage
the development of
Missina Middle projects in
other development contexts across
the Citv (i.e., sites
without existina rental
units). As identified
through previous work undertaken by Parcel on behalf of the City, this could include a mix of Financial, Process and Policy -based
incentives, as applicable.
Financial
Process
Policy
Page 153 of 174
TASK #2.0 SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
.nsitivity: Parking Adjustments
Pare I
• A development could feasibly
replace 6 units in a 12 -storey building if
50% of parking
is provided as surface parking.
However, site dimensions and
density may constrain the ability of a site
to accommodate
surface parking.
12 -Storey Building w/ 50% Surface Parking
Revenues
Profit
$12.4M
IRR
15.4%
Land Costs
$6.7M
Co sts
EMx
1.80x
Page 154 of 174
TASK #2.0 SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
�l.nsitivity: Exempting Replacement Units from Density Calculations
Pare I
• Exempting replacement units from density calculations improves return metrics, but still not as strong as without rental
replacement.
Model 1 .1: 210 U nits
(2 10 Net New)
Land Costs
$6.7M
Model 1.2: 210 Units
(195 Net New + 15 Replacement)
Revenues Costs Revenues
Profit
IRR
EMx
Profit
IRR
$27.5M
26.2%
2.00x
$22.5M
19.3%
Land Costs
$6.7M
225 Units
(2 10 Net New + 15 Replacement)
Co sts Revenues
EMx Profit IRR
1.81 x $25.8M 21.2%
Land Costs
$6.7M
Co sts
EMx
1.87x
a
Page 155 of 174
TASK #2.0 SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
bl-.,nsiiit:
5 -Year Affordability Per
0
od
P ariv, I
• Shortening the affordability period from 10 years to 5 years improves project viability, though not meaningfully enough to
encourage redevelopment that otherwise would not occur.
Model 1.2: With Rental Replacement
(10-Year A ffo rda b 1*1 ity)
Land Costs
$6.7M
With Rental Replacement
(5-Year A ffo rda b 1*1 ity)
Revenues Costs Revenues
Profit IRR EMx Prod.
$22.5M 19.3% 1.81x $21.1 M
IRR
19.7%
Land Costs
$6.7M
Co sts
EMx
1.76x
in
Page 156 of 174
TASK #2.0 SENSITIVITY ANALYSES
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
.nsitivity summary (rinancial Feasibility "Lens")
Profit
IRR
EMx
Model 1.1
No Replacement
$27.5M
26.2%
2.00x
Model 1.2
With Replacement
$22.5M
19.3%
1.81 x
Condo
Minimum Density
$13.2 M
15.4%
1.66x
Minimum Density w/
Surface Parki na
$12.4M
15.4%
1.80x
Additional Density
improves
Return Metrics
25.8M
?- 1.2%
1.87x
P ariv, I
5 -Year Affordability
21.1
9.7°
1.76)
Marginal Impact
on Return Metrics
Page 157 of 174
FEASIBILITY SUMMARY
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
FEASIBILITY SUMMARY
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
Key Observations (Financial Feasibility " Lens")
P ariv, I
• Projects of all types and sizes are currently challenged from a financial feasibility perspective. This is a function of factors that
are both within and beyond the immediate control of the City of Kitchener.
• New purpose-built rental projects in particular are strained to achieve feasibility as a baseline condition, both in the local
Kitchener context, but also most other jurisdictions across Canada (i.e., short of selected high-value neighbourhoods where new
units command a sufficient premium to offset significant upfront capital requirements).
• A rental replacement bylaw in Kitchener risks further exacerbating this underlying condition, but is not necessarily the
sole factor contributing to poor feasibility.
Note: Financial feasibility represents just one "lens" through which policy -related
decisions need to be made, albeit an important one to ensure realistic implementation. In
addition, a range of other economic and social factors need to be addressed -including
the adequate provision of housing for a full range of income levels and household types to
ensure local economies are supported longer-term (e.g., support labour force, etc.).
Page 159 of 174
FEASIBILITY SUMMARY
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
"Levers" to Improve Feasibility (Rental Replacement-Specific)
Pare I
• Limit / waive requirements to replace existing rental units (either in whole oras part of specific development conditions)
• Increase the threshold for which rental replacement applies to enable smaller scale developments (e.g., remove as a barrier for
sites with 6-12 existing rental units only)
• Exempt replacement units from density calculations
• Shorten the duration for which replacement units are required to maintain pre -development rental rates (e.g., from 1 0 -years to 5-
years)
• Reduce parking requirements and/or consider alternative delivery methods (e.g., surface and/or interim parking solutions, etc.)
Note: Although many /all of these factors could improve conditions for financial
feasibility, they may be ineffective in terms of achieving other identified housing -related
policy objectives. They all come with trade-offs that need to be weighed by the City.
Page 160 of 174
FEASIBILITY SUMMARY
RENTAL REPLACEMENT: FINANCIAL FEASIBILITY UPDATES
"Levers" to Improve Feasibility (General)
Density
Pare I
• Greater density permissions generally makes it more feasible to absorb a smaller proportion of rental replacement units, in
theory. However, larger redevelopment projects will likely only be viable on sites that currently house larger rental buildings / via
lot assembly involving multiple rental properties. As such, density alone, though necessary, does not guarantee increased
financial viability.
• Expanding the definition of Mid -Rise developments to at least 1 2 -storeys+
efficiencies in the entitlements / approvals phase.
Government Fees as a Component of Total Development Costs
as -of -right could also aid feasibility via time
• Municipal and
regional fees are a relatively
small component
of project costs, constituting between 6% and 7% of tota
development
costs. Approximately 85% to
90% of these fees
are development charges.
• Given DCs are already waived on
replacement units (and discounted in the case
of
rental
units), there may be limited ability for
the municipality to further reduce
fees to meaningfully improve financial viability
of
rental
replacement.
Page 161 of 174
CONTACT US
1
I I
Parcel
perr %0w1W% %JIlVIIIIcSocom
i nfo@parceIeconom ics.com
416-869-8264
250 University Avenue, #221 , Toronto, Ontario, M5H 3E5
r 1
p If
Page 162 of 174
J U N E
2 0 2 4
Parcel
I_1A1a1►19]►X121►1a►16M.E.aCQII.Ito] a9Is] /_\w»_1►1
OF THE CITY OF KITCHENER
CITY OF KITCHENER
City-wide Rental Replacement Policies
Page 164 of 174
I_1►VAIN1►19] LVA 121►1a►16M.E.aCQII.Ito] a9Is] F_1w»_1►1
OF THE CITY OF KITCHENER
CITY OF KITCHENER
Rental Replacement Policies
11MRIM MA
SECTION 1 TITLE AND COMPONENTS
021
SECTION 3 BASIS OF THE AMENDMENT
SECTION 4 THE AMENDMENT
u,1-1-3!! 1ai■vaNLN
APPENDIX 1 Notice of the Meeting of Planning & Strategic Initiatives
Committee of June 17, 2024
APPENDIX 2 Minutes of the Meeting of the Planning & Strategic Initiatives
Committee of June 17, 2024
APPENDIX 3 Minutes of the Meeting of City Council
2
Page 165 of 174
/_1J1121►1971V121►Ir►[61W3:Vr0111.12te7aaus] /_10Z!W_1►to] aI.I21111113611WK6]all ICs7:121►121V
SECTION 1 — TITLE AND COMPONENTS
This amendment shall be referred to as Amendment No. ## to the Official Plan of the City of Kitchener
This amendment is comprised of Sections 1 to 4 inclusive.
SECTION 2 — PURPOSE OF THE AMENDMENT
In December 2023 Council directed that a rental replacement by-law be prepared in accordance with
the requirements of the Municipal Act. The purpose of the Official Plan Amendment is to update
demolition control policies to provide clarity that demolition control will be use as a tool that will work
alongside a rental replacement by-law.
SECTION 3 — BASIS OF THE AMENDMENT
The effect of the amendment is to incorporate certain modifications to the text of the Official Plan to
clarify that Kitchener's Demolition Control By-law may be used as a tool to protect existing rental
housing stock in accordance with the Municipal Act. This Official Plan amendment is consistent with
and conforms to the Provincial Policy Statement (2020), A Place to Grow: Growth Plan for the Greater
Golden Horseshoe (2020), the Region of Waterloo Official Plan (2009), and represents good planning.
Modifications
City staff are recommending amendments to the demolition control section of the Official Plan to
enable a demolition control by-law to be used as a tool to protect existing rental housing stock.
SECTION 4 — THE AMENDMENT
The City of Kitchener Official Plan is hereby amended as follows:
a) Part E, Section 17, policy 17.E.25.2 is amended by adding the following after c):
"d) protecting existing rental housing stock in accordance with the Municipal Act."
b) Part E, Section 17, policy 17.E.25.3 is hereby amended by adding the following after e):
"f) where a rental replacement permit is required under the Municipal Act."
c) Part E, Section 17, existing policy 17.E.25.3 f) is renumbered to policy 17.E.25.3 g).
Page 166 of 174
APPENDIX 1 - NOTICE OF PUBLIC MEETING
NOTICE OF PUBLIC MEETING
for City-wide Official Plan Amendments to
enable a rental replacement by-law. k.
City -Wide Renta'I
Replacement Policies
Have Your Voice Heard!
Planning & Strategic
Initiatives Committee
Date: June 17.2024
Location: Council Chambers,
Kitchener City Hall
200 King Street West
or Virtual Zoom Meeting
Go to kitchener.ca/meetings
and select:
Current agendas and reports
(posted 10 days before meeting)
Appear as a delegation
Watch a meeting
To learn more about this project, including
information on your appeal rights. visit':
www.kitchener.ca/PlanningApplications
or contact:
Natalie Goss,
Manager of Policy & Research
natalie.goss a@kitchener.ca
519.741.2200 x7648
City Planning staff are proposing amendments to the Official Plan to update demolition
control policies to enable the administration of a rental replacement by-law. These changes
align with action itemsfrom blousing far All. Kitchener's housing strategy and seek to mitigate
impacts from redevelopment of rental apartments on current tenants,
4
Page 167 of 174
APPENDIX 2 - MINUTES OF THE MEETING OF PLANNING AND STRATEGIC INITIATIVES COMMITTEE -
JUNE 17, 2024
Page 168 of 174
APPENDIX 3 - MINUTES OF THE MEETING OF CITY COUNCIL - DATE
Page 169 of 174
PROPOSED BY-LAW
'2024
BY-LAW NUMBER xx
OF THE
CORPORATION OF THE CITY OF KITCHENER
(Being a by-law to amend Chapter 620 of The City of
Kitchener Municipal Code with respect to Demolition Control).
WHEREAS it is deemed expedient to amend Chapter 620 of the City of Kitchener
Municipal Code as adopted by By-law 2013-093, as amended by By-law 2023-105;
NOW THEREFORE the Council of The Corporation of the City of Kitchener enacts
as follows:
The recitals section is amended by adding, after "AND WHEREAS under
subsections 33(3) and 33(6) of the Planning Act, R.S.O. 1990, c. P.13, the
Council of the Corporation of the City of Kitchener is the decision maker in
respect of consenting to the demolition of a residential property in an area of
demolition control' and before "AND WHEREAS under section 9 and 10 of the
Municipal Act, 2001, S.O. 2001, c. 25, in accordance with section 23.1 of the
Municipal Act, 2001, the powers of a municipality under that or any other Act may
be delegated to a person or a body subject to the restrictions set in sections 23.2
to 23.5, inclusive of the Municipal Act, 2001" the following:
"AND WHEREAS under section 99.1 of the Municipal Act, 2001, S.
O. 2001, c. 25, as amended, a municipality may prohibit and
regulate the demolition of residential rental properties and may
prohibit and regulate the conversion of residential rental properties
to a purpose other than the purpose of a residential rental property,
and, in accordance with section 99.1(3), a municipality cannot
prohibit or regulate the demolition or conversion of a residential
rental property that contains less than six dwelling units";
2. Section 620.1.6 is amended by deleting the definition of "dwelling unit" and
replacing it in its entirety with the following:
""dwelling unit" means the use of a building that contains a room
or suite of habitable rooms which:
a) is located in a dwelling or mixed use building;
b) is occupied or designed to be occupied by a household as a
single, independent and separate housekeeping establishment;
c) contains both a kitchen and bathroom used or designed to be
used for the exclusive common use of the occupants thereof;
Page 170 of 174
and,
d) has a private entrance leading directly to the outside of the
building or to a common hallway or stairway inside the building"
3. Section 620.1.7 is amended by deleting it in its entirety and replacing it with the
following:
"620.1.7 Director of Development and Housing Approvals —
defined
"Director of Development and Housing Approvals" means the
Director of Development and Housing Approvals for the City, their
designate, or successor thereto.
4. New sections 620.1.8 and 620.1.9 are added after section 620.1.7 as follows:
"620.1.8 Lodging House — defined
"Lodging House" means a dwelling unit where five or more
persons, not including a resident owner of the property, may rent a
lodging unit and where the kitchen and other areas of the dwelling
unit are shared amongst the persons occupying the dwelling unit.
Lodging house can include student residences but shall not
include a group home; hospital; and small residential care facility
or large residential care facility licensed, approved or supervised
under any general or specific Act; or a hotel as defined in Zoning
By-law 2019-051.
620.1.9 Lodging Unit —defined
"Lodging Unit" means a room or set of rooms located in a lodging
house or other dwelling designed or intended to be used for
sleeping and living accommodation which:
a) is designed for the exclusive use of the resident or residents of
the unit;
b) is not normally accessible to persons other than the residents
or residents of the unit; and,
c) does not have both a bathroom and a kitchen for the exclusive
use of the resident or residents of the unit."
5. Existing section 620.1.8 is amended by deleting it in its entirety and replacing it
and renumbering it as follows:
"620.1.10 Manager of Development Approvals of the
Development and Housing Approvals Division — defined
Page 171 of 174
"Manager of Development Approvals" means the Manager of
Development Approvals of the Development and Housing
Approvals Division for the City, their designate, or any successors
thereto. In the absence or unavailability of said Manager of
Development Approvals, this term shall also mean the City's
Director of Development and Housing Approvals."
6. New section 620. 1.11 is added after section 620. 1.10 as follows:
"620.1.11 Ontario Heritage Act — defined
"Ontario Heritage Act" means the Ontario Heritage Act, R.S.O.
1990, c. 0.18."
7. New section 6.20.1.12 is added after new section 620.1.11 as follows:
"620.1.12 Municipal Act — defined
"Municipal Act" means the Municipal Act, 2001, S.O. 2001, c. 25."
8. Existing section 620.1.11 is renumbered as section 620.1.13.
9. Section 620.2.2.b) is amended by deleting it in its entirety and replacing it with
the following:
"(b) Prohibit or delay demolition where a building permit for
redevelopment is ready to be issued, where a rental
replacement permit has been issued if required. The approval
authority must issue approval where a building permit is ready
to be issued and may impose the standard approval
conditions."
10. Section 620.2.3 is amended by deleting it in its entirety and replacing it with the
following:
"Area — limited — as set out
The City's demolition control area shall be limited to:
(a) lands zoned R-1 through R-6 as defined in the City of
Kitchener Zoning By-law 85-1, and
(b) lands zoned RES -1 through RES -5 as defined in the City of
Kitchener Zoning By-law 2019-051
(c) any property, or assembly of properties in the City of
Kitchener, that contain six or more dwelling units on lands
within any zone in the City's Zoning By-law 85-1 or Zoning
Page 172 of 174
By-law 2019-051."
11. Section 620.2.5b) is amended by deleting it in its entirety and replacing it with the
following:
"(b) the residential property is not a permitted use under the
current zoning of the property except where a by-law passed
pursuant to section 99.1 of the Municipal Act applies to said
property."
PASSED at the Council Chambers in the City of Kitchener this day
of , A.D. 2024.
Mayor
Clerk
Page 173 of 174
NOTICE OF PUBLIC MEETING
for City-wide Official Plan Amendments to
enable a rental replacement by-law.
0
City -Wide Rental
Replacement Policies
1
Ki -t- i> R
Have Your Voice Heard!
Planning & Strategic
Initiatives Committee
Date: June 17,2024
Location: Council Chambers,
Kitchener City Hall
200 King Street west
or Virtual Zoom Meeting
Go to kitchener.ca/meetings
and select:
Current agendas and reports
(posted 10 days before meeting)
Appear as a delegation
Watch a meeting
To learn more aboutthis project, including
information on your appeal rights, visit:
www.Witchener.ca/PlanningApplicafions
or contact:
Natalie Goss,
Manager of Policy & Research
natalie.goss@kitchener.ca
519.741.2200 x764$
City Planning staff are proposing amendments to the Official Plan to update demolition
control policies to enable the administration of a rental rffiI er�t la Tl�e ifhanges
align with action items from HousingforAll, Kitchener`s hoUsi at n eek o mitigate
impacts from redevelopment of rental apartments on currenttenants.