Report to: Development Services Committee                             Report Date: February 5, 2008

 

 

SUBJECT:                          Subcommittee on Second Suites Recommendations

PREPARED BY:               Murray Boyce, Senior Policy Coordinator

 

 

RECOMMENDATION:

THAT the Report dated February 5, 2008 entitled “Subcommittee on Second Suites Recommendations” be received;

 

THAT Staff be authorized to schedule a Public Open House and a Statutory Public Meeting to receive input on a new Strategy for Second Suites, which addresses the directions of the Subcommittee on Second Suites for a broader strategy as outlined in Appendix ‘D’, and includes:

a)   the introduction of Town-wide zoning permissions for second suites in single detached and semi-detached dwellings, subject to certain development and property standards;

b)   the requirement for registration and registration renewal (every 3 years or upon change in property ownership) of any house with a second suite to ensure compliance with all applicable codes and standards;

c)   development of a comprehensive public education program (following approval of Town-wide zoning permission) to communicate changes to Markham’s policy on second suites and support implementation of the strategy, including an incentive program to encourage voluntary registration of a second suite; and

d)   the establishment of an 18 month monitoring program to monitor the implementation of the strategy and report on any further changes required to the strategy components.

 

THAT Staff report back to Development Services Committee following the Statutory

Public Meeting on actions required to implement the new Strategy for Second Suites,

including:

a)      a draft zoning by-law amendment to permit second suites;

b)      required amendments to the Town’s Registration By-law and Property Standards By-

      law;

c)      any further changes required to the Town’s procedures for inspecting and registering  second suites;

d)      preparation of a comprehensive public education program; and

e)      any financial implications associated with implementing the strategy.

 

EXECUTIVE SUMMARY:

The Subcommittee on Second Suites, together with staff from across Town Departments, has undertaken considerable research and analysis.  As well, the Subcommittee has consulted with representatives from other GTA municipalities, which already permit second suites, regarding the investigation of options for wider zoning permissions for second suites in Markham. 

 

The current zoning prohibition of second suites in Markham is an ineffective deterrent to the establishment of second suites and does not properly address Town efforts to ensure life safety.  

Though it is difficult to estimate the exact number of second suites Town-wide, what is known from Fire inspection records is that only a small percentage of inspected two unit houses are able to be registered under the “grandfathered” zoning permissions (existing prior to November 16, 1995).  As a result of the “underground” approach to establishing second suites, life safety measures are likely compromised by the zoning prohibition and there is no incentive for the owner, and a reluctance on the part of a tenant, of an illegal two unit house to voluntary apply for inspection and registration of the two unit house to ensure the life safety of the occupants.

 

Having regard for the detailed review of second suites in Markham, and the procedural and policy changes which have taken place since the Town’s current strategy was adopted in 2005, the Subcommittee has determined it is appropriate to now implement wider zoning permissions for second suites within the context of a new broader Strategy for Second Suites. 

 

The Subcommittee directions for a new comprehensive Strategy for Second Suites are attached as Appendix ‘D’.  They reflect a level of commitment to improving life safety, to equitable zoning permissions and standards, to customer service within the Town, and to efficient and effective corporate approvals processes.

 

The key Strategy components are:

1.      A new Second Suites Zoning By-law

2.      Amendments to the Town’s Registration By-law and Property Standards By-law

3.      A comprehensive Public Communication/Education Program; and

4.      An 18 month Monitoring Program

 

It is the opinion of the Subcommittee that a Town-wide zoning permission for second suites in single detached and semi detached dwellings in existing and new development within the urban, rural and rural residential areas of Markham will:

-         maximize the opportunity for improving life safety;

-         offer the highest and most equitable level of customer service;

-         provide equitable zoning for all residents;

-         maximize the potential use of appropriate existing and future housing stock and community infrastructure;

-         increase accountability of landlords for compliance with regulations; and

-         provide for the most efficient use of staff resources.

 

For municipalities like Markham, that already have Official Plan policies in place, the Province has also provided that zoning by-laws to implement second suites policies cannot be appealed to the Ontario Municipal Board.

 

The Subcommittee is recommending that staff be authorized to schedule a Public Open House and a Statutory Public Meeting to receive input on the recommended new Strategy for Second Suites. 

 

The Subcommittee is also recommending that staff report back to Development Services Committee following the Statutory Public Meeting regarding actions required to implement the recommended Strategy for Second Suites.

 

1. Purpose                     2. Background                      3. Discussion                        4. Financial        

 

5. Others (Environmental, Accessibility, Engage 21st, Affected Units)             6. Attachment(s)

PURPOSE:

To recommend a preferred option for moving forward with a new Strategy for Second Suites, including a public consultation/engagement program.

 

BACKGROUND:

 

A Second Suite is located in a Two Unit House

For the purpose of this report, a second suite shall be a common name for a basement apartment, an accessory apartment or another form of secondary residential unit which is located in a two-unit house, a two-unit dwelling, or a two-unit residential occupancy.

 

By definition, a Two Unit House means a detached house, semi detached house and rowhouse containing two residential units, with each unit:

-         consisting of a self contained set of rooms located within a residential structure;

-         used as a residential premise;

-         containing kitchen and bathroom facilities designated for the exclusive use of its

      occupants; and

-         having a means of egress to the outside of the building or structure in which it

      is located, which may be a means of egress through another residential unit.

 

Town’s current Strategy for Second Suites

Two unit houses or houses with a second suite are generally not permitted in the Town of Markham, except in specific instances where the zoning permits them, or where the two unit house was in existence on Nov. 16, 1995 and was grandfathered under provincial legislation, Bill 20.

 

The Official Plan provides that accessory apartments may be permitted in association with single detached or semi-detached dwellings, provided all of the provisions of the zoning by-law can be met.  The majority of Markham’s zoning by-laws currently do not permit second suites.  For a brief period in the early 1990’s, the provincial government passed legislation to prevent municipalities from prohibiting two unit houses in their zoning by-laws.  When a new provincial government was elected it repealed the previous legislation and grandfathered units in existence on the date the new legislation was introduced.  As a result, Markham does have a process for inspecting and registering two unit houses that were in existence on Nov. 16, 1995.  There is a mandatory $300 inspection fee and $150 registration fee for a “grandfathered” second suite.

 

In March 2005, Council adopted improved inspection and registration procedures for legally established grandfathered two unit houses as the Town’s current Strategy for Second Suites.

 

 

 

Bill 51 Amendment to the Planning Act

In October of 2006, Bill 51(An Act to amend the Planning Act and the Conservation Land Act and to make related amendments to other Acts) received royal assent.  In an effort to promote a range and mix of housing types, the Province has provided municipalities with the ability to adopt second suite official plan policies without being subject to appeals, except at the time of a five year comprehensive Official Plan Review. 

 

For municipalities like Markham, that already have Official Plan policies in place, the Province has also provided that zoning by-laws to implement second suites policies cannot be appealed to the Ontario Municipal Board.

 

Subcommittee to investigate wider zoning permissions for Second Suites

Having regard for the policy and procedural changes that have taken place since March 2005, on June 26, 2007 Council recommended that a Subcommittee of Development Services Committee be established to review the continued appropriateness of the Town’s current Strategy for Second Suites.  The Subcommittee was asked to investigate whether options for a strategy that would apply wider zoning permissions for second suites should be considered for public review and input.

 

The Subcommittee was directed to report back to Development Services Committee on a preferred option(s) for moving forward with a Strategy for Second Suites including a public consultation/engagement program.

 

On September 4, 2007 the Subcommittee provided a status report on the establishment and proceedings of the Subcommittee and invited all members of Development Services Committee to attend a PART A DSC presentation and discussion of other municipal experiences with permitting second suites.

 

On October 23, 2007, the Development Services Committee welcomed staff and political representatives from the Region of York, the Town of Newmarket, the City of Pickering, and a former staff member from the City of Toronto, to share their experiences with permitting second suites.  A copy of the DSC action and staff meeting notes is attached as Appendix ‘C’.

 

OPTIONS/DISCUSSION:

The Subcommittee on Second Suites including Regional Councillor Tony Wong as Chair, Regional Councillor Jack Heath as Vice-Chair, Councillor John Webster, and Councillor Logan Kanapathi, met ten times over the summer and fall of 2007.

 

The Subcommittee undertook to consult with Town staff and representatives of other GTA municipalities to investigate options for a strategy that would apply wider zoning permissions for second suites.  In particular, staff from Fire, Building, Planning, Legal, By-law Enforcement, Clerks and Corporate Communications participated in the Subcommittee meetings.

 

 

 

Detailed Review of Second Suites in Markham

A detailed chronology and review of second suites in Markham is attached to this report as Appendix ‘A’. Issues respecting approval of second suites, if permitted by zoning, are very complex and require a thorough response.  This response must examine the implications of a limited zoning permission vs. Town-wide zoning permission for second suites.  

 

As a result, over the past five years staff have approached a review of second suites from several perspectives including that:

-    second suites exist Town wide, even without zoning permission;

-    the potential for second suites is available in existing housing stock and new housing

     stock ;

-    establishment without zoning permission and municipal regulation results in life

     safety concerns (ie. Lack of Building Code and Fire Code compliance);

-    a permissive regulatory regime, including registration and inspection of second suites,

     will increase landlord accountability;

-    permission for second suites requires both technical zoning changes and

     organizational process changes;

-    procedural changes respecting second suites will improve customer service; and

-    second suites can be promoted as a form of affordable housing through public

     information and education.

 

Current legislation limits the Town’s control over second suites to zoning standards, certain building types, development, property and safety standards and inspection and registration requirements.  The Town has authority to establish:

-   where second suites shall be permitted in Town and in what type of dwellings;

-   Development standards such as minimum size, parking standards, external appearance

    of main dwelling, etc.; Fire Code and Property Standards By-law requirements; and

-   Inspection and registration requirements (ie. a Registration By-law for second suites

    can increase landlord accountability for compliance with applicable Codes and By-

    laws).

 

Guiding Principles for Investigation of Options to update Strategy for Second Suites

After reviewing the five year chronology and detailed review of second suites in Markham, and the procedural and policy changes which have taken place since the Town’s current strategy was adopted in 2005, the Subcommittee determined it was appropriate to consider wider zoning permissions to permit second suites within the context of a new broader Strategy for Second Suites. 

 

The Committee also determined that given the Official Plan already has polices to permit accessory apartments subject to zoning provisions,  it was not necessary to address the wider zoning permissions in the context of  a comprehensive Official Plan Review. 

 

On this basis, the Subcommittee identified guiding principles for the Subcommittee’s investigation of options for a new Strategy for Second Suites with wider zoning permissions, notably,

-       Improving life safety aspects is a priority;

-       Investigating only Town-wide zoning options will ensure more equitable zoning;

-       Opportunity for legal suites is increased with wider zoning permissions;

-       Council and Public need to be better informed and educated on second suites;

-       Development and Property Standards for two unit houses with second suites need to be updated and maintained;

-       Driveway By-law and Parking Standards By-law requirements are a key component of  

wider permission; and

-       Re-inspection and registration renewal will increase landlord accountability for

     compliance with applicable Codes and By-laws.

 

Review of Town-wide Options

The Subcommittee reviewed the Pros and Cons of two options for Town-wide permission for second suites:

 

Option A – Town-wide (Existing and New Development):

-       New zoning provisions Town-wide.

-       Establish development standards – ie. Singles/semis only.

-       Introduce new procedures – building permit approvals where zoning permissive and rezoning requirements where second suites not permitted.

-       Second suite must be registered and re-inspected.

-       Increase public information and promotion to encompass Town-wide audience.

-       Accommodate 2 concurrent approval processes: grandfathering and zoning permission, but zoning permission reduces reliance on grandfathering.

Pros:

-       Opportunity to enhance life safety Town-wide.

-       Highest and most equitable level of customer service.

-       Equitable zoning for all residents.

-       Highest potential use of existing and future housing stock and community infrastructure.

-       Most efficient use of staff resources and the most cost effective with greatest return on investment.

-       Promotes compact communities, sustainability of housing stock & infrastructure, live/work solutions.

-       Best response to Town’s identified housing role; consistent with Growth Plan and Region’s emerging growth strategy.

Cons:

-       Potential resistance from some residents.

 

Option B – Town-wide (New Development Only):

-       New zoning provisions for certain new development (ie. New plans of subdivision

     under review/draft approval).

-       Establish development standards.

-       Introduce new procedures – building permit approvals where zoning permissive and rezoning requirements where second suites not permitted.

-       Second Suite must be registered and re-inspected.

-       Increase public information with a promotional focus for new developments but maintain regulatory focus for existing development.

-       Maintain 3 concurrent approval processes: grandfathering, zoning permissive and rezoning requirement.

Pros: 

-       Provides greater opportunity for second suites in new construction.

Cons:

-       Improved but inequitable customer service.

-       Limited opportunity for safety inspections of  “underground” units in existing development.

-       Ability to introduce and maintain new standards is not comprehensive in application

-       3 concurrent processes confusing; inequitable zoning permission.

-       Limited opportunity to use existing housing stock and infrastructure.

-       Very little opportunity remaining in Greenfield areas within the current settlement area.

-       Greater affordable housing benefits but limited response to Town’s housing role, Growth Plan, and Region’s emerging growth strategy, given resources invested.

 

After considering the pros and cons of both Town-wide options, the Subcommittee agreed that the best option would be to permit second suites Town-wide in single detached and semi-detached dwellings in existing and new development and urban and rural/rural residential areas.   This option was also found to be consistent with seven of the eight Greater Golden Horseshoe communities surveyed that permit second suites.

 

The Subcommittee felt that second suites should be permitted in townhouses as well provided they can meet the applicable life safety and development standards.  However, it was recognized that this permission would require an amendment to the Official Plan and that it would be more appropriate to introduce the townhouse permission in future as part of a comprehensive Official Plan Review.

 

Review of Development  Standards

The Subcommittee completed an in depth survey of eight other Greater Golden Horseshoe communities with Town-wide permission for second suites to gather input on appropriate development standards/zoning requirements.  The eight municipalities included Newmarket, Pickering, Toronto, Clarington, Ajax, Guelph, Barrie, and Burlington (where second suites policies are under review).  A copy of the survey is attached as Appendix ‘B’. This was followed by a review and discussion of other municipal experiences with permitting second suites at Development Services Committee on October 23, 2007. 

 

Common development standards and zoning requirements identified in other Greater Golden Horseshoe municipalities were:

-       Municipal wide permission in existing and new development.

-       Permission in Single detached and Semi-detached dwellings only.

-       Second Suite must be secondary in size to principal dwelling unit.

-   Second suite must meet a minimum gross floor area requirement.

-       1 parking space for second suite.

-       No addition or substantial alteration to exterior appearance from street.

 

In considering additional development standards to include in a Markham Town-wide zoning by-law to permit second suites in singles and semis, the Subcommittee agreed that:

-    the second suite must be secondary to the principal dwelling unit;

-       the second suite must meet a minimum gross floor area requirement; and

-       the second suite shall not be conspicuous from the street or change the appearance of the dwelling or character of the neighbourhood.

 

Review of Driveway and Parking Standards

It was agreed that in addition to new zoning development standards, driveway and parking standards were a key component of a new Strategy for Second Suites.

As such, the two unit house containing the second suite must comply with the driveway width standards of the Town’s Extended Driveway By-law and the parking space requirements of the Town’s Parking Standards By-law.

 

Driveway Standards revised in 2006

In June of 2006, Markham Council passed an amendment to the Town’s By-laws to strengthen the zoning provisions which regulate front and exterior yard parking.  This By-law was passed by Council to mitigate concerns about the excessive width of  driveways on some residential lots, and the impacts front and exterior yard parking potentially has on the character of a dwelling and a neighbourhood. All parking, with direct access from a public street, associated with ground oriented residential dwellings, including houses containing a second suite, will have to comply with these driveway width standards.

 

The By-law prohibits parking in a front or exterior yard except on a driveway leading to a garage.  Details relating to the maximum permitted driveway width can be found in Appendix ‘A’ attached to this report.  The By-law also has provisions to regulate parking on non-typical driveways, such as circular drives and driveways with no garage. These zoning provisions provide a sound way to regulate driveway widths and ensure that the exterior appearance of the home and the character of the community will not be altered by excessive paving in front or exterior yards, regardless of the existence of a second suite.

 

Parking Considerations

The Town’s Parking Standards By-law currently requires two parking spaces per dwelling unit, plus one additional space for accessory apartments.  Consequently, a home with a second dwelling unit requires a minimum of three parking spaces. 

 

After reviewing the options of :

i)  maintaining the additional parking space requirement, or

ii) amending the by-law to only require two parking spaces total,

the Subcommittee is recommending that the existing parking standards be modified so that no additional parking space is required for a second suite.  The Subcommittee maintains that all parking should be contained within the maximum allowed by the Parking By-law, as amended in 2006.

 

Not all tenants, particularly those choosing to occupy a second suite close to transit will have cars, and require parking.   Consequently, to have a blanket requirement for a parking provision for all separate units is excessive, and may require the provision of more on-site parking than is necessary.  Therefore a tenant can only have a parking space, if there is space available on-site, within the area permitted by the Parking By-law (ie. in a garage or on a legal driveway).   If there is only space to accommodate parking for two cars on the property, and the homeowner has two cars, a second suite can only be rented to a tenant who does not require parking.  This will be self-regulating and does not require a standard in the zoning by-law.

 

The By-law Enforcement Division is actively enforcing the overnight on-street parking restrictions and the new driveway zoning provisions.  This enforcement regime will also apply in the case of any zoning permission for second suites.

 

Review of Property Standards

The Subcommittee recognizes the need for the Town to address internal property standards, particularly as it relates to the regulation of the activities of absentee landlords regarding upkeep of two unit houses.  At its meeting of September 11, 2007 Council requested an initial presentation from the Town Clerk to the Subcommittee regarding the possible implementation of an Internal Property Standards By-law for Markham.

 

Markham regulates external property standards via By-law 248-1999.  The Town currently does not regulate internal property standards but instead has an arrangement with the Ministry of Municipal Affairs and Housing to complete internal property standards inspections. 

 

Although Vaughan and Richmond Hill each received 75 internal property standards inspection requests last year, Markham received only 6 internal property standards inspection requests last year.

 

The Subcommittee supports a Town staff inspection of internal property standards for two unit houses, particularly those owned by absentee landlords.  They recognize that the number of annual internal property standards inspection requests may rise as a result of wider zoning permissions to permit Second Suites but do not believe it will result in a significant impact on existing Town  enforcement resources. 

 

The Subcommittee supports an amendment to the Town’s current Property Standards By-law to incorporate new interior property standards.  At the request of Council, the Clerk will reporting back to Development Services Committee on the implementation of Internal Property Standards for Markham in early 2008.

 

Review of Regulatory Options

In addition to the introduction of Internal Property Standards, the Subcommittee also reviewed other regulatory options that might be introduced as a component of a new Strategy for Second Suites:  Re-inspection of Registration under the Town’s Registration By-law and enactment of a Licensing By-law for Second Suites.

 

Changes to Registration By-law

Currently, the Town’s By-law for Registration of Two Unit Residential Occupancies, By-law 308-97 as amended, has a mandatory requirement that every second dwelling unit in a two unit house be inspected and registered as required by the by-law.  However, the Subcommittee expressed concern that the registration requirement of compliance with all relevant standards determined to be applicable as set out the Building Code, Fire Code, the Fire Protection & Prevention Act, the applicable Zoning By-law, and Property Standards By-law, all as amended for time to time, may not continue to be upheld by two unit house owners after registration, particularly if they are absentee landlords or new owners are unaware of the registration requirements. 

 

After learning more about the Town of Newmarket’s experience with re-inspection and revocation of registration if compliance with relevant standards is not maintained, the Subcommittee reviewed the pros and cons of re-inspection under the Town’s Registration By-law.

 

Pros:

-       Develop a protocol for pro-active re-inspection by Fire Services which would be an effective tool for monitoring ongoing compliance with the Registration By-law.

-       Fire Services staff would note potential property standards violations during inspections and report them to By-law Enforcement staff for follow up.

-       Registration could be revoked if property not in compliance with registration by-law.

-       Renewal of registration could be required upon change in property ownership.

Cons:

-       A pro-active inspection will increase work for the Fire & By-law Enforcement staff.

 

The Subcommittee agreed that registration of a second suite should continue to be mandated in the Registration By-law and that the by-law should be amended to include the requirement for re-inspection and registration renewal, and revocation of any registration where the property is not in compliance with the registration by-law.

 

Introduction of a Licensing By-law for Second Suites

There was a significant amount of discussion of the Town’s ability to license second suites and regulate the activities of two unit house owners, particularly absentee landlords, with respect to maintenance of development and property standards.

 

After consulting with the Town Solicitor and the Clerk on the ability of municipalities to enact a licensing by-law for second suites at this time, the Subcommittee agreed to monitor other test case municipalities such as the City of Oshawa over the next 18 months to confirm whether municipalities are able to license second suites and whether a licensing program for second suites should be introduced in Markham.

 

Public Communication/Education Program

It is the intention of the Subcommittee members to involve all members of Council on how to engage and consult with the public on a proposal for a new Strategy for Second Suites and to review any public communication material to be prepared on the strategy.

 

A key component of a new Strategy for Second Suites would be a public communication /education program:

1.  To provide accurate information and education about second suite legislation and changes to Markham’s policy and procedures respecting second suites;

2.   To elaborate on each of the Strategy components including all relevant applicable laws, codes, and programs including Zoning, Registration, Property Standards Driveway, and Parking Standards by-laws; Fire and Building Codes; Incentive and Monitoring Programs, etc; and

3.      To use plain language to:

      a)  Educate residents about second suites and the benefits of registration,

      b)  Promote the method for registering second suites (including a one year incentive

           program that would waive fees for a voluntary inspection and registration of a two

           unit house), and

      c) Promote life safety and encourage compliance.

 

The public communication/program may include media announcements of legislative changes, public information posted on the Markham website, a public information brochure and a promotion of public information via newsletters, homeowner information packages, postings in community centres and libraries.

 

The Subcommittee supports the development of a comprehensive public communication /education program to communicate the changes to Markham’s policy on second suites and support the implementation of a new Strategy for Second Suites including an incentive program to encourage voluntary registration of a second suite. 

 

It is recommended that a Public Open House and a Statutory Public Meeting be scheduled to receive input on the Subcommittee recommendations for a new Strategy for Second Suites.

 

Monitoring Program

It is recognized the success of any new Strategy for Second Suites will be reliant on an effective monitoring program to track, among other things:

-       voluntary inspection and registration of second suites including effect of one year incentive program

-       internal property standards inspections

-       the registration renewal program

-       the need for introducing a licensing program in the future

 

The Subcommittee agreed that a monitoring program should be established for a period of 18 months after the Strategy is adopted to monitor the implementation of the Strategy and report on any further changes required to the Strategy components

 

FINANCIAL CONSIDERATIONS:

There are no direct financial considerations at this time. If the Development Services Committee determines that further action is to be recommended to Council, based on the recommendations of the Subcommittee, further budget approvals may be required before the actions required to implement a new Strategy for Second Suites may proceed.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Staff from Fire, Building, Planning, Legal, By-law Enforcement, Clerks and Corporate Communications participated in the Subcommittee Meetings and were consulted on the recommendations/actions outlined in this report.

 

RECOMMENDED BY:

 

 

 

_________________________________      ________________________________

Regional Councillor Tony Wong                   Regional Councillor Jack Heath                                  

Chair, Subcommittee on Second Suites          Vice-Chair, Subcommittee on Second Suites

 

 

 

_________________________________       ________________________________

 Councillor John Webster                                    Councillor Logan Kanapathi

 Subcommittee on Second Suite                       Subcommittee on Second Suites

 

 

_________________________________       __________________________________

Jim Baird, M.C.I.P., R.P.P                               Valerie Shuttleworth, M.C.I.P., R.P.P.

Commissioner of Development Services         Director of Planning and Urban Design

 

 

ATTACHMENTS:

Appendix A - Detailed Review of Second Suites and Strategy Options

Appendix B - Second Suite Permissions in other Greater Golden Horseshoe Communities

Appendix C - DSC Presentation and Discussion of Other Municipal Experiences

Appendix D - Subcommittee Directions for a new Strategy for Second Suites

 

Q:Development/Planning/MISC/MI464/Second Suites/Second Suites Subcommittee Report – Feb 2008