New Housing Bylaw Changes are Imminent, Get Informed

New housing bylaw changes are imminent in Waterloo.  On March 10, an information session was held on campus to give an opportunity for the city to tell students about the proposed housing bylaw changes and how it may affect students.  The session was arranged by FedS VP Education Nick Soave. In attendance from the city was Jim Barry from Bylaw Services, Tanya Curie from the planning department and Ward 6 Councillor, and CompEng almuni, Jeff Henry. An update from staff is set to be delivered to council on April 11, 2011, at which point it will be decided where the bylaws go from there.  Most students are in the midst of exams then but concerns and comments can be channeled through the FedS VP Education Nick Soave or Ward 6 Councillor Jeff Henry.

A number of significant changes are being proposed in, what is basically, a complete overhaul of the rental licencing structure in Waterloo. A 3-bedroom limit on all low-rise rental properties, a police check on landlords to obtain a licence, a requirement to include rooms such as a living room and dining room in all units, minimum room sizes and maximum gross floor area coverage for specific rooms are all significant changes that will impact rental housing in the region.

This law would apply to all low rise housing rental units, which encompasses all single and semi-detached houses, triplex units and town houses. Exemption would be made for special use units like group homes. That being said, many rental properties already operate illegally and the new law will probably not change this.  For a lodging house to be legal, it must have their license clearly displayed in the unit.  The major exception to this law is high-rise apartment style housing which the city states are built to higher standards, so don’t expect any 3-bedroom limits or mandated minimum bedroom/living room size in this type of housing.

One of the major changes will be a 3-bedroom limit placed upon Class A, B and E licences.  Class C and D are exempted and will be discussed in the next section. The city will enforce this limit through by-law enforcement inspections and via the floor plan drawings provided by landlords. Most of the units around campus contain 5 to 6 units, however the city states that there will be an adequate supply for renters in Waterloo as they are approving many new high-rise units, with over 2000 new units already having the green-light for construction and many more in the preliminary development stages.

For units wishing to get licences for dwellings with greater than 3 rented units, they must either get a Class C (Boarding House) or Class D (Lodging House) Licence.  Class D licences are grandfathered Lodging House licences from the current legislation.  Boarding houses will have their own, more stringent, licencing regulations described in the table of licence types. The grandfather clause (Class D) will stay in effect until the owner switches ownership of the dwelling.  The grandfather clause causes some significant advantage in the market for those that are able to get it it which is anti-competitive.  Other owners may have trouble competing due to the fact that Class D licence holders do not have as stringent regulations.

Table 1. Classes of Licences

Landlords will now have to provide site, snow removal, garbage disposal, and parking allowance plans, in addition to basic electrical and plumbing certifications currently required when applying for a licence. This is part of an attempt to ensure that rental units are safe and not unsightly for their neighbours. A police check will also be a new addition to the application package, which is meant to ensure tenant safety since landlords have access to all units.

Mandated in this proposed bylaw is minimum area for bedrooms, living rooms dining rooms and kitchens (75, 145, ~35 and 45 sq. ft respectively).  These requirements should not be too difficult to conform to for many units. Some units, especially those without a dining room or living room for example, may have some added renovation costs.

Licencing costs are in the $400-$700/year depending on the class of the unit. Another cost will lie in getting site maintenance and floor plans done and getting an HVAC technician certify the ventilation system. The police check will also cost a small amount for the landlords to get. Although the aforementioned costs will add some costs, the major costs will lie in renovations required to bring non-lodging/boarding houses into compliance with the 3 bedroom limits. Many units will require significant renovation which may lead to landlords ceasing to rent units or renting them illegally.

The proposed bylaw cites three major motivators behind these sweeping changes. The first is to protect the health and safety, as well as human rights of renters in Waterloo. The second is to ensure that essential services, such as plumbing, heat and water, are readily available in each unit and are safely installed. Finally, the city wants to “protect the residential amenity, character and stability of residential areas”. These three formidable goals are meant to provide the highest-quality rental housing possible.

The city wishes to “Protect the residential amenity, character and stability or residential areas” in Waterloo.  Unfortunately, this law accomplishes this at the expense of renters in Waterloo.

The representatives of the city freely acknowledge that these proposed changes will adversely affect the availability of low rise rental units in Waterloo. Waterloo decided previously that  “Student Precinct” style housing (aka the Northdale ”Student Ghetto”) was not an option for Waterloo.  Instead, they have decided to go with “Node and Corridor Intensification” meaning that they will allow apartments to replace houses on major arterial.  This can be seen already in the Northdale area of Waterloo (around University and Lester for example). Thus, the city’s way of protecting the “character” of Waterloo’s residential areas is to reduce the student impact on its neighbourhoods. This is being accomplished by the reducing low-rise rental unit availability through the prohibitive legislation in this new rental unit bylaw while simultaneously approving as many boring apartment complexes as possible on transit corridors. These apartment units do not have to comply with any legislation set out by the city.  The average number of bedrooms per apartment is ~4.7 instead of the mandated 3 bedrooms in this new bylaw.  When asked why these apartments should have preferential treatment in the market the city would only say that apartments are provincially legislated and adhere to provincial safety regulations. This law tries to get rid of “Student Precinct” areas by reducing the availability of low-rise housing while the city simultaneously approves apartments to be occupied by renters.  This law attempts to “protect the residential amenity, character and stability or residential areas” by moving renters into high rise apartments.

Within the bylaw, council could potentially mandate that the law should  “protect the health and safety and human rights of persons residing in residential rental premises” but it falls short of this goal as well.  Fire regulations, electrical regulations and building code are already in place under current legislation and this law does not change that legislation.  In order to get a rental license it is not required to get a building inspection.  It should also be noted that under current legislation, if there is a safety issue with a rental unit renters can call bylaw and bylaw can mandate the landlord to fix issues or face fines.  The new law puts minimum square footage requirements for bedrooms, etc. on low rise rental units but in reality the free market already puts limits on room size.  If a renter wants a bedroom that isn’t an old broom cupboard they will find a unit that meets that requirement.

The same thing applies for the caveat that the law should “ensure that certain essentials are provided in residential rental premises such as plumbing, heating and water”. These already fall under Ontario Building Code legislation and is enforced through the City of Waterloo. Violations and complaints can already be lodged through the city. Thus the inspections through this bylaw will have minimal affect other than  giving the city another outlet to enforce conformance to legislation that is already in place.

Although the caveats of the bylaw legislation seem to be beneficial, the law falls short of delivering many beneficial improvements for renters. In some cases, such as the goal to protect the character of neighbourhoods, it actually significantly infringes on students ability to freely choose where they want to live by using carrot and stick incentives to get more students in “node and corridor” apartment complexes which fit in the City’s long term plans.

The current proposed bylaw is a slap in the face to student renters in Waterloo. While the city claims that it applies equally to all renters across Waterloo, the three bedroom limit and the concurrent approval of high-rise buildings in student dominated areas shows that this is a direct attempt to limit students mobility in choosing where to live. One has to wonder why the city had to consult the Ontario Human Rights Commission in developing this legislation.  It seems like it would be an extraneous step unless they were actively tiptoeing around the elephant in the room in this case that the law directly targets students.

If you’ve already graduated, about to graduate, or are going to be in Waterloo for the a few more years, it is still important that you educate yourself and direct concerns, comments and questions to Ward 6 Councillor Jeff Henry at jeff.henry@waterloo.ca or FedS VP-Education Nick Soave at vped@feds.ca. The future of student housing is on the line, and will impact students in Waterloo for decades to come.