Report to: Development Services Committee                                  Report Date: May 20, 2008

 

 

SUBJECT:                          Public Input on Proposed New Strategy for Second Suites

PREPARED BY:               Murray Boyce, Senior Policy Coordinator

 

 

RECOMMENDATION:

THAT the Report dated May 20, 2008 entitled “Public Input on Proposed New Strategy for Second Suites” be received; and

 

THAT the report be made available to the public on the Town website and to those in attendance at the May 20, 2008 Statutory Public Meeting of Development Services Committee.

 

EXECUTIVE SUMMARY:

On February 19, 2008, the Subcommittee on Second Suites presented its report outlining recommendations on a proposed new strategy for second suites to the Development Services Committee (See Appendix ‘A’.) The purpose of the report was to provide background information on the Town’s current strategy for second suites, outline the detailed chronology and review of second suites in Markham, and recommend a new approach to regulating and permitting second suites throughout Markham.  The proposed new strategy for second suites recommended in the report represents a framework to guide future actions by the Town respecting second suites; the Subcommittee recommended that the strategy should proceed to public discussion.

 

On March 4, 2008, Council adopted the Subcommittee on Second Suites recommendations report and authorized staff to schedule a public open house and a statutory public meeting to receive input on a new strategy for second suites.  Throughout April and May, the Town solicited input from the general public and official agencies on the content of the Subcommittee recommendations report and the proposed new strategy.

 

Opportunities for the public to learn more about the proposed new strategy were provided in the form of a public open house held at the Civic Centre on April 16, 2008 and through a webpage link provided on the Town website.  Notice of the public open house and website information link was published for three consecutive weeks in the newspaper and sent to over 500 registered second suite homeowners as well as those who had requested to be notified, and those who participated in the Town’s Extended Driveway By-law discussions.

 

As a result, over 110 residents attended the public open house and over 25 written submissions have been received to this date.  A copy of the public open house notice, staff presentation, and staff meeting notes is attached as Appendix ‘B’. Written submissions from the Town webpage and the public open house are organized chronologically in Appendix ‘C’.   Also, at the request of Council, staff prepared a Frequently Asked Question handout which was made available on the website and at the open house.  A copy of the FAQ document is attached as Appendix ‘D’.

 

 

This is a broad and complex issue, with a divergence of public opinion.  In general, there was support from the majority of public comments received for the increased regulation and permission of second suites throughout Markham.  However, many others opposed the wider permission and expressed concern that second suites would change the character of their neighbourhood and result in a sudden influx of residents. Others expressed concern that the wider permission for second suites would have an impact on property values and place a burden on services such as roads, water, and sewer systems and parks, community centres, schools and libraries.  The most common concerns were with how the new policy for second suites would be implemented.  Many felt that any new permission for second suites must be accompanied with a strong inspection and registration protocol and strict enforcement of codes, standards and zoning and parking by-laws by the Town.

 

Town staff recognize the value of public interest and input into the proposed new policy for second suites.  It is clear that a great deal of effort and thought has gone into the preparation by Markham residents of the many oral and written comments.

 

Opportunities for public review and comment will continue to be provided at a statutory public meeting of the Development Services Committee on May 20, 2008, and through oral and written comments to the Development Services Committee and Council prior to any decision on the proposed new policy.

 

It is recommended this information report be received by the Development Services Committee and made available to the public on the Town website and to those in attendance at the May 20, 2008 statutory public meeting.

 

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

 

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

PURPOSE:

To report on public input received from the public open house and the Town website on a proposed new strategy for second suites. 

 

PUBLIC COMMENTS RECEIVED:

The Subcommittee on Second Suites recommendations report was successful in drawing out public opinion on second suites across Markham.  While public opinion is divided, it is clear that there is a need for a balanced strategic approach in dealing with this issue.  The recommendation of the Subcommittee and staff is to permit second suites in single and semi detached dwellings throughout Markham but only within a strict regulatory regime to ensure all building and fire safety codes, driveway and parking standards and property standards are upheld.

 

Comments on Permission for Second Suites

The proposed new strategy for second suites contemplates an amendment to the Town’s zoning by-law to add permissions for second suites in single detached and semi-detached houses in residential areas throughout Markham, subject to certain development standards.

 

To ensure the second suite is secondary to the principal dwelling unit and large enough for human habitation:

         the maximum gross floor area of the second suite shall be no more than 45% of the gross floor area of the building

         the second suite must be at least 35 m2 (375 sq. ft.)

 

To ensure the second suite is inconspicuous from the street and doesn’t change the character of the dwelling or the neighbourhood:

         only one dwelling unit in the building may have a door(s) in a wall facing the street,

      and

         no additional parking will be required for the second suite, and all parking must be provided consistent with the Town’s Parking By-law.

 

A copy of the draft zoning by-law amendment will be made available prior to the May 20th Statutory Public Meeting of the Development Services Committee.

 

Controlling Who Occupies a Dwelling:

Some residents expressed concerns with the impact of permitting second suites with respect to changing the character of what they perceive to be their single family neighbourhood.  Some suggested that the permission should only be extended to new neighbourhoods, or certain existing neighbourhoods where by referendum the existing residents have agreed to it.   Some also expressed concern regarding “who” might occupy a second suite. 

 

The concept of single family housing, or single family neighbourhood, was common place at one time when some municipalities attempted to control residential occupancy through zoning restrictions on the number of persons, or their relationship to each other.

However, the Ontario Planning Act now specifies that municipalities may not restrict who may occupy a dwelling unit by provisions in a zoning by-law.  Attempts to enact such restrictions have resulted in Court decisions that identify these measures as “oppressive and unreasonable”. 

 

Bell v. R. was the 1979 decision of the Supreme Court of Canada that dealt with this issue.  In that case the municipality sought to restrict the occupancy of a dwelling unit to a single family, where “family” was defined as “a group of two or more persons living together and interrelated by bonds of consanguinity, marriage or legal adoption occupying a dwelling unit”.  The decision in the Bell case stands for the proposition that provisions in a by-law that purport to zone by reference to the relationship of occupants rather than the use of the building are beyond the powers of a municipality and are void. 

 

The Planning Act has since been amended to specifically exclude any authority “to pass a by-law that has the effect of distinguishing between persons who are related and persons who are unrelated in respect of the occupancy or use of a building or structure … including the occupancy or use as a single housekeeping unit” (section 35(2)).

 

In addition, the evolving demographics of Canadian Society reflect an ever-widening range of household preferences, in terms of residents’ personal relationships and their choices in how they organize their living arrangements.  Many new forms of dwellings have emerged to respond to new housing needs and preferences, including the use of existing dwellings to accommodate different household arrangements.  Second suites are one such response.  The decision by many property owners to introduce a second suite into an existing dwelling is a reality, notwithstanding zoning provisions to the contrary.

 

Assessed Value of a Dwelling:

Altering a dwelling to create a legal suite will increase the market value of the dwelling in a manner similar to that of adding a finished basement. There is effectively no difference in the value of a dwelling with a finished basement and one with a basement finished as a second suite.

 

The City of Toronto publication “The Gains & Benefits of a Second Suite” identifies that under “Current Value Assessment (CVA), the assessed value of a home is based on its market value.  According to the Municipal Property Assessment Corporation (MPAC), a property’s CVA does not usually go up unless there is an increase in the total property value of or at least $10,000 or 5%.  A typical second suite increases the value of a home by only 2-5%, depending on the neighbourhood.  Therefore, most second suites do not add enough value to meet this threshold.” 

 

Where the increase in total property value is greater than 5%, MPAC will increase the assessed value of the house for taxation purposes.  Improvements are tracked through building permits and the reassessment process.  Assessment of residential class properties takes account of improvements, but does not include a consideration of how the improved space is used or rental income.  There are no records of property value assessments declining as a result of second suites.

 

Providing Equitable Zoning Permission:

Town-wide zoning in existing and new development would provide consistent zoning for second suites across Markham and maximize the potential use of existing and future housing stock and community infrastructure.

 

There is no planning rationale to suggest that if second suites can be permitted in one neighbourhood they should not be permitted in another. 

 

Introducing a new zoning permission for certain wards or new development only would result in an inequitable treatment of residents across Markham and a reduced ability to regulate the condition of unsafe illegal second suites. 

 

Previous experience with zoning based on Wards has also demonstrated problems as Ward boundaries change.

 

After a thorough review of the legal and planning issues raised by the suggestion of a public referendum, the conclusion reached by the Town Solicitor, is that it would be inappropriate for the following reasons: 1) a referendum is ineffective in terms of ensuring that a community consensus has been reached; 2) it is not a process permitted by or provided for in the Planning Act; 3) there is no demonstrable need for a referendum; and 4) a binding referendum would interfere with the legislative role assigned to Council.

It would also be resource intensive for the Clerk to administer a street referendum on a Town-wide basis.

 

Controlling the Number of Persons Who Occupy a Dwelling

Other residents expressed concerns with the number of additional residents that would be generating by permitting second suites and the impact of those additional residents on key services such as road, water and sewage systems and community centres, schools and libraries.

 

There is no legal basis for a municipality to justify placing an upper limit on the number of persons who may occupy a residential dwelling.  The Building Code Act, 1992 grants authority to municipalities to enact by-laws for the purpose of enforcing municipal property standards, however these by-laws are subject to the same condition as zoning by-laws, that they not have the effect of distinguishing between persons who are related and those who are unrelated (section 15.1).  While the regulations of the Building Code Act, 1992 include requirements for commercial buildings that limit occupancy based on a calculation of a minimum floor area per occupant, and associated requirements for a minimum number of sanitary facilities and other facilities, there are no such requirements for residential dwelling units.  The regulations state that a residential dwelling unit shall have sanitary and other facilities, but no restrictions on the number of persons that may use them, or limitations of the amount of floor area that they may be said to adequately service.

 

“Overcrowding” complaints are often actually complaints about noise, property standards, parking problems etc., which may arise with or without second suites.  These impacts are regulated by separate Town by-laws that are presently enforced and will continue to be enforced if the second suite amendments are enacted. 

 

Impacts on Services:

Most demand for utilities and services is based on household consumption. However, the number of persons per unit varies broadly and is not directly proportional to the existence of a second suite. A dwelling with a second suite may have only marginally more people than single unit dwellings since the households in second suites tend to be smaller (seniors, young adults, singles, single parent families, etc.)  Second suites also tend to have fewer school-age children living in them than single household dwellings.

 

The service consumption for a household with a second suite (eg. water and sewage, recycling and garbage collection) does not result in a demand beyond the design capacity of the average household. 

 

As a structure with a second suite may have only marginally more people than single unit dwellings, it is also not anticipated that there will be an undue burden on the neighbourhood park system.  With respect to recreation programs, the programs occur in locations across the Town and are community rather than neighbourhood oriented (ie. the current model is to build large scale, community wide, multi purpose recreation centres).  Therefore, increases in population regardless of whether it occurs from new development, intensification, second suites, etc. will determine the demand for the for new or expanded facilities or additional program offerings at current locations.  Second suites, in of themselves, will not create a situation from a recreation program standpoint that cannot be accommodated in the Town’s normal course of planning for growth.

 

Residents of second suites may, in part, offset the normal decline in average household sizes as the demographics of the Town’s population change over time.  Maintaining neighbourhood populations ensures full use of the housing stock, supporting infrastructure and community services.

 

Comments from York Region District School Board:

The phenomenon of multiple families per dwelling unit is one which the school board is aware of in certain areas throughout the Region.  If additional students are generated above the average yield, the impact can be a positive one if available pupil places exist at the local school.  This can be particularly helpful in older, established communities where the local school is experiencing some decline in enrolment.  Where newer communities are still approaching peak enrolment, pupil yield from second suites would have to be carefully monitored to determine impact on local schools.

 

The Board undertakes its own review of pupils by housing type across the Region, particularly when changes impact the number of families per unit.  This information is crucial to ensure that the appropriate school accommodation is in place should it be required.  If the Town of Markham proceeds with a second suite policy, the Board will undertake a monitoring process to identify any significant changes in student yields.

 

Comments on Regulation of Second Suites

Many felt that zoning permission for second suites should not be imposed on existing homes in their neighbourhood.  However, many also felt that second suites will continue to exist regardless of the lack of permission in the zoning by-law and that it was preferable to be able to regulate second suites through appropriate zoning permission.

 

A record of second suites identified and registered within the Town generally indicates that second suites are located in most if not all neighbourhoods throughout the Town.  It is likely that second suites will continue to be present and added throughout Markham, whether or not they are legally permitted.  There is an opportunity to ensure life safety if a second suite can exist in a legally permitted environment where the Town can exercise greater regulatory control.

 

The success of the proposed new strategy for second suites is reliant on Markham’s ability to regulate second suites through:

         zoning permission;

         mandatory inspection and registration;

         enforcement of driveway and parking standards by-laws and property standards;

         educating landlords, tenants, real estate agents, and the general public on regulatory

      procedures; and

         monitoring the re-inspection and renewal of registration for second suites at regular intervals.

 

Zoning permission will provide less of a deterrent to homeowners who want to create a legal second suite which is properly inspected and registered with the Town.  

Re-inspection and registration every three years or upon change of ownership will increase landlord accountability for compliance will all building and fire safety codes, zoning and property standards, including driveway width and parking standards.  Enforcement of zoning and property standards by-laws and driveway width and parking standards is essential.  

 

A public education program will increase public knowledge of second suites and ensure the highest level of customer service by:

-    educating residents about the benefits of second suites;

-    providing information on how to register a second suite;

-    promoting registration including an incentive program; and

-    promoting life safety and encouraging compliance.

 

An 18 month monitoring program will measure the success of the strategy and report on any further changes required to the strategy components by tracking:

-         inspection and registration including the effect of an incentive program;

-         internal property standards inspections;

-         registration renewal; and

-         the need for licensing in the future.

 

Municipality’s Authority to Regulate:

The Town’s control over second suites is limited by provincial legislation to certain building types, development, building and fire safety codes, property standards and registration requirements.

 

The Town has authority to establish:

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

-         development standards such as minimum unit size, parking standards, external appearance of main dwelling, etc.

-         Building Code (where applicable) and 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 codes and by-laws)

 

The proposed new policy will introduce greater regulatory control in all of the above areas where the Town has authority to establish greater controls over second suites.

The ability of municipalities to license second suites and regulate the activities of homeowners with second suites is currently being tested in the City of Oshawa.  If the new strategy were adopted, the Town would monitor the success of Oshawa’s licensing by-law for rental properties over the 18 month monitoring period to determine whether a licensing program for second suites should be introduced in Markham.

 

Amending the Town Registration By-law for Second Suites:

In Markham there is a Registration By-law for second suites that requires that all two-unit residential dwellings must be inspected to ensure compliance with all relevant standards as set out in the Ontario Building Code and Fire Code, as well as compliance with all zoning and property standards. 

 

To be established, new second suites permitted through zoning would require a building permit, which automatically requires compliance with Building Code and Fire Code regulations.  Introducing new zoning provisions to permit second suites will increase the likelihood that legally established second suites will be inspected and included in the Town’s registry of fire safe accommodation.

 

There is a concern that once a house with a second suite is inspected and registered with the Town, building and safety codes and zoning and property standards may not continue to be upheld, particularly if there are absentee landlords or new owners unaware of the registration requirements.

 

By amending the Town’s registration by-law to:

-         require re-inspection and registration renewal (every three years or upon change in property ownership)

-         revoke any registration where the property is not in compliance

the opportunity for improving life safety of residents in houses with second suites is maximized and the accountability of landlords for compliance with building and fire safety codes is increased.

 

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 were consulted on the discussions outlined in this report.

 

RECOMMENDED BY:

 

_________________________________       __________________________________

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 -  March 4, 2008 Council Resolution, Feb 5, 2008 Subcommittee on Second

                        Suites Recommendations Report

Appendix B -  Notice of April 16, 2008 Public Open House, April 16, 2008 staff   

                        Presentation, April 16, 2008 Public Open House/Meeting Notes

Appendix C – Town Webpage and Comment Link, Public Comments from Webpage and

                        Public Open House Comment Sheet

Appendix D – Frequently Asked Questions

Q:Development/Planning/MISC/MI464/Second Suites/Public Input on Proposed New Strategy for Second Suites