The Ontario government is proposing an end to indefinite residential leases in the province as part of a bill announced Thursday. The move is one of more than three dozen measures contained in the bill, which is intended to reduce the costs and time required to build homes and infrastructure.
Under Ontario’s Residential Tenancies Act (RTA), tenants have security of tenure, the right to remain in their rental unit as long as they follow the lease agreement and the RTA. Landlords can’t evict tenants without a legally valid reason, and the tenancy typically continues on a month-to-month basis after a fixed-term lease ends.
Premier Doug Ford’s government is proposing a lease agreement expiry that could allow landlords to control who occupies their units and for how long, letting them adjust tenancy arrangements “based on market conditions, personal needs or business strategies.”
While the Progressive Conservative government says this would give landlords more flexibility and could potentially increase rental housing supply, it could also end rent control. Ford already ended rent control for any rental units that were first occupied after Nov. 15, 2018, shortly after he assumed office.
Other proposals
The bill also proposes to end a rule requiring compensation for tenants whose rental units are repossessed by the landlord for their own use. The law currently requires the landlord to provide one month’s rent to the tenant or another comparable rental unit. The bill, if passed, would remove this rule as long as the tenant is given 120 days’ notice.
Ford also wants review the building code to reduce its size and streamline the municipal application process by using AI in the review process.
“Ontario intends to undertake a section-by-section review of the Building Code to reduce regulatory burdens and costs while maintaining safety … to remove outdated or unnecessary requirements that could add cost or complicate development,” the announcement said.
As part of its aim to lower construction costs, the bill will prohibit Toronto from requiring green roofs for new buildings. The Ministry of Municipal Affairs and Housing will also seek to remove green development standards at the lot level outside the building. The provincial government plans to make these changes by the spring building season.