PROPERTY OWNER PROGRAMS/REGULATIONS

Residential Rehabilitation Assistance Program

The Residential Rehabilitation Assistance Program (RRAP) is a federal government program that provides financial assistance to renovate or repair housing that needs to be brought up to basic health and safety standards, or to convert non-residential properties to affordable housing. Deferred maintenance, cosmetic replacements, improvements for resale, and works carried out before a RRAP loan is approved are not eligible.

RRAP provides funding under the following categories: homeowner, rental, rooming house, residential conversions, and for persons with disabilities. Each category has distinct eligibility criteria (See below). In most cases, to be eligible, homeowner or tenant incomes must be below the Core Need Income Threshold (CNIT), a limit set by the Canada Mortgage and Housing Corporation (CMHC) based on household size and area. Also, rents must be at or below the Median Market Rent (MMR) established by CMHC for the area.

RRAP is coordinated by the CMHC. The City of Toronto administers RRAP in Toronto on behalf of CMHC.

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Details

Homeowner

• Homeowners may apply if the value of their house is below a specific figure, and if their household income is below the CNIT.
• Eligibility is limited to properties lacking basic facilities or in need of major structural, electrical, plumbing, heating, or fire safety repairs.
• Forgivable assistance is available only for mandatory repairs relating to health and safety and to extending the useful life of the property. Repayable assistance is available for other eligible repairs.
• Maximum total loan for the Toronto area is $18,000, with a maximum forgivable component of $12,000.

Rental

• Offers financial assistance to landlords of affordable rental housing to pay for mandatory repairs to self-contained units occupied by tenants with incomes below the CNIT.
• Eligibility is limited to projects having pre and post-RRAP rents at or below the MMR for the local area. In addition, the property must lack basic facilities or require major structural, electrical, plumbing, heating, or fire safety repairs.
• Eligible repairs are limited to mandatory repairs required to bring properties up to minimum levels of health and safety. Once repaired, the property should have a further useful life of 15 years, assuming normal care and maintenance.
• Assistance is in the form of a fully forgivable loan of up to 100 percent of the cost of mandatory repairs. Landlords must enter into an agreement that places a ceiling on the rents that may be charged after the repairs are completed, and limits rent increases during the term of the agreement. The landlord must also agree to limit new occupancy to tenants with incomes below the CNIT.
• In the Toronto area, the maximum assistance per unit is $18,000.

Rooming House

• Offers assistance to owners of Rooming Houses with rents affordable to low-income individuals. Pre and post-RRAP rents must be at or below 60% of the MMR for the area.
• The property must lack basic facilities, or require major structural, electrical, plumbing, heating, or fire safety repairs.
• Once repaired, the property should have a further useful life of 15 years, assuming normal care and maintenance.
• The assistance is in the form of a fully forgiveable loan of up to 100 percent of the cost of mandatory repairs.
• In the Toronto area, the maximum assistance per bed unit is $12,000.

Residential Conversion

• To be eligible, landlords must own and convert non-residential properties to create bona fide affordable permanent accommodation.
• Limited to properties that are environmentally safe and can be feasibly converted to residential accommodation, which will be viable based on agreed upon post conversion rents. The applicant must be able to demonstrate that the appropriate residential zoning and building permits can be obtained.
• Units must be occupied by tenants who have incomes at or below the CNIT.
• Pre and post-RRAP rents must be at or below 60% of the MMR for the area.
• Assistance is in the form of a fully forgiveable loan.
• In the Toronto area, the maximum assistance is $18,000 for each self-contained rental unit

Persons with Disabilities

• Offers financial assistance to homeowners and landlords to undertake accessibility work to modify dwellings occupied or intended for occupancy by persons with disabilities.
• Properties must meet minimum health and safety standards.
• Homeowners may apply if the value of their property is below a specific figure, and if their household income is below the CNIT.
• Landlords may apply for modifications to units occupied by tenants with incomes below the income threshold.
• Modifications must be related to housing and be reasonably related to the disabled occupant's disability.
• In the Toronto area, the maximum assistance is $18,000. For homeowners, the maximum forgivable component is $12,000. Landlords are eligible for 100 percent forgiveness, but must enter into an agreement that ensures the units remain affordable to tenants.

Greater Toronto Area MMR
1 bedroom		$770
2 bedrooms		$905
3 bedrooms		$1075
4 bedrooms		$1270
Greater Toronto Area CNIT
1 bedroom		$31,000
2 bedrooms		$36,500
3 bedrooms		$43,500
4 bedrooms		$51,000

 

Provincial Government Sets 2002 Rent Increase Guideline

August 28, 2001 -- The Ministry of Municipal Affairs and Housing has released the province's rent increase guideline for 2002. The 2002 guideline will be 3.9 per cent. For previous years' increase guidelines, please see the table below.

The new rent increase guideline becomes effective January 1, 2002 and establishes the maximum amount that Ontario's landlords may increase the rent for current residential tenants without applying to the Ontario Rental Housing Tribunal. Under the Tenant Protection Act, a landlord may increase a current tenant's rent once per year by an amount not to exceed the guideline.

The guideline is calculated using a formula that takes into account the overall costs of running an apartment building -- including maintenance, hydro, heating costs and taxes -- averaged over a three-year period.

For more information on rent increases, please contact the Ontario Rental Housing Tribunal at 1-888-332-3234.

Historical Rent Increase Guidelines
2002	3.9%
2001	2.9%
2000	2.6%
1999	3.0%
1998	3.0%
1997	2.8%
1996	2.8%
1995	2.9%
1994	3.2%
1993	4.9%
1992	6.0%
1991	5.4%
1990	4.6%

FREQUENTLY ASKED QUESTIONS:

What is a second suite?

A second suite is a self-contained unit (rental or rent-free) in a single-detached or semi-detached house. Most second suites are basement apartments. They have also been called granny flats, in-law suites and accessory apartments.

Are second suites new?

No! In the past, second suites were permitted in some areas of the City (York, East York, and parts of former Etobicoke, North York and Toronto). Some parts of the City have had a long experience with this form of housing. As well, provincial legislation, in force between July 1994 and November 1995, allowed for the creation of second suites in all areas of the province.

Why has it taken a year for the City's second suites by-law to come into effect?

In July 1999, City Council adopted the second suites by-law. This by-law was appealed to the Ontario Municipal Board (OMB) by a number of residents' groups and individuals. The OMB held a hearing on the appeals in February 2000. The OMB issued a decision in April approving the City's by-law but directed that two amendments be made. The amendments dealt with: (1) parking provisions in some neighbourhoods in the former Toronto, and (2) building alterations.

The final by-law was approved by Order of the OMB on July 6, 2000. As a result of the Order, the second suites by-law (including the amendments) is now in effect.

Where are second suites permitted in the City?

The new by-law permits second suites in all single-detached and semi-detached homes throughout the new City of Toronto -- with certain conditions.

What are some of the conditions that apply to second suites?

Some of the conditions include:

• the second suite must be self-contained with its own kitchen and bathroom.
• the house, including any additions, must be at least 5 years old;
• the floor area of the second suite must be smaller than the remaining unit;
• in most cases, homes with a second suite must have at least 2 parking spaces and parking can be in tandem (one behind the other). There is an exception for parts of the former City of Toronto (R2, R3 and R4 districts) where only 1 parking space is required for a house with a second suite. Please contact the City of Toronto's Urban Planning and Development Services Department to determine if a property is located in a R2, R3, or R4 district.
• Before planning any changes to the outside appearance of a dwelling the homeowner should contact the City of Toronto's Urban Planning and Development Services Department; and
• all new second suites must comply with the Ontario Building Code and require a building permit. Existing second suites must comply with the Fire Code as well as zoning and property standards.

How can I find out if an existing second suite complies with the regulations?

The unit will have to be inspected by Fire Department staff. There is a fee for the inspection and you may be required to upgrade the suite to meet the code requirements and other standards. Contact the City's Urban Planning and Development Services Department for more information (see phone numbers below).

Does the City provide grants or loans to encourage the creation of second suites?

There is currently no grant or loan program for second suites. The City is discussing the potential for a program with senior levels of government. TREB's Government Relations staff is monitoring this initiative and will inform members if the City implements a program.

Will a second suite impact property taxes?

In most cases, there will be little impact on property taxes. A major exception would be where the second suite is created by constructing an addition, thereby significantly adding to the value of a house.