Report to: Development Services Committee                                 Report Date: March 3, 2009

 

 

SUBJECT:                          Action Plan to implement a new Strategy for Second Suites

PREPARED BY:               Interdepartmental Staff Working Group on Second Suites

 

 

RECOMMENDATION:

THAT the Report dated March 3, 2009 entitled “Action Plan to implement a new Strategy for Second Suites” be received;

 

THAT a Public Information Meeting of Development Services Committee be scheduled for April 7, 2009, to obtain public input on the Action Plan to implement a new Strategy for Second Suites; and

 

THAT the report be made available to the public on the Town website and to those in attendance at the May 2008 Public Meeting of Development Services Committee and to those listed with the Town Clerk, as requesting notice.

 

EXECUTIVE SUMMARY

The Sub-Committee on Second Suites and the Interdepartmental Staff Working Group on Second Suites are recommending that a new Strategy for Second Suites be approved to permit second suites in single and semi-detached dwellings throughout Markham, but only through implementation of a strict regulatory regime to ensure all building and fire codes, driveway and parking standards and property standards are upheld.

 

At a statutory public meeting held on May 20, 2008, Development Services Committee referred the matter back to staff for a recommendation report and directed that an additional public information meeting be held the same evening the report is presented to Committee.  However, at this time, Staff are recommending that the Development Services Committee receive this report and schedule a public information meeting for April 7, 2009 instead of the evening of the March 3, 2009 Development Services Committee.  This will allow the staff report to be available to interested parties in advance of the public meeting.

 

This report and appendices summarize the five year process leading up to the recommended strategy.  To ensure the Committee and public are fully informed staff have outlined below a draft resolution that could be brought forward following a public information meeting, and subject to any further revision that might be required as a result of input from the meeting. 

 

The following draft staff recommendations not only provide for the approval of a new Strategy for Second Suites and enactment of a Zoning By-law to permit second suites, but also an Action Plan to implement the new Strategy for Second Suites and identify the requirements of each of the Town’s Departments in delivering the Strategy.

 

Staff are recommending that the following strategy be considered at the public information meeting:

 

THAT Council approve a new Strategy for Second Suites, comprising:

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;

c)            development of a comprehensive public education program (following enactment 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, including among other things, whether interior property standards should be introduced, and whether the need and clear authority for licensing second suites has been established.

 

THAT Council take the following actions required to implement a new Strategy for Second Suites:

a)      the draft zoning by-law, attached to this report as Appendix “C”, to permit second suites Town-wide, in single detached and semi-detached houses, subject to specific development  standards be enacted;

b)            the Town’s By-law for Registration of Two-Unit Residential Occupancies (By-law 308-98) be amended to:

(i)   require re-inspection and registration renewal (every three years);

(ii) as a condition of a renewal, require that either the occupier consent to the re-inspection of the premises by the Town to determine continued compliance with the standards in place prior to registration or the registrant submit proof satisfactory to the Town that the property continues to comply with all applicable standards;

(iii)revoke any registration where the property in not in 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; and

(iv)that applicants or registrants be provided with the right to a hearing in the event that a registration or renewal is refused or revoked. 

c)     the Town’s Property Standards By-law 248-1999 be amended to incorporate additional Fire Code provisions as they relate to the inspection of second suites in existing single detached and semi-detached houses;

d)     a comprehensive public education program as outlined in this report be developed;  

        and

e)            an 18 month monitoring program be established (from the day of By-law enactment); and

 

THAT Staff from the Development Services Commission (Planning and Urban Design, Building Services), Corporate Services Division (By-law Enforcement, Clerks, Legal, Corporate Communications) and Community Services Commission (Fire Services) be directed to implement the actions outlined in this report and provide a status report on the delivery of the new Strategy for Second Suites and the results of the monitoring program in 18 months time.

 

BACKGROUND:

On February 19, 2008, the Subcommittee on Second Suites (a Subcommittee of Development Services Committee) 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 received 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.  At that time, Council also requested 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 to permit second suites;

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

 

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, at a statutory public meeting of the Development Services Committee on May 20, 2008 and through a webpage link provided on the Town website. 

 

Comments received from both public meetings are attached in Appendix “A.”  On May 20, 2008, the Development Services Committee received a staff report entitled “Public Input on Proposed New Strategy for Second Suites.” Since that time, Staff have updated the Frequently Asked Questions handout to address certain additional questions raised at

the May 20th public meeting.  A copy of the FAQ handout (updated June 2008) is attached as Appendix “D” and is currently available on the Town website.

 

At the May 20, 2008 public meeting, the Committee recommended that the draft Zoning By-law and strategy, be referred back to staff for a report and recommendation and that the staff recommendation report be tabled for information only at a future daytime Development Services Committee meeting and that a Public Information Meeting of Development Services Committee be scheduled to obtain public input on the report.

 

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

 

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

PURPOSE:

To report on actions required to implement a new Strategy on Second Suites.

 

DISCUSSION:

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. Of particular concern to the public is how the new policy for second suites will be implemented and 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.

 

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.

 

Staff recognize the success of the new Strategy for Second Suites will rely on the delivery of an action plan to implement the strategy and an effective monitoring program to track the implementation of the Strategy and report on any future changes required to the Strategy components

 

In order to implement and monitor the new Strategy for Second Suites, Staff are recommending the following actions:

 

New Permission for Second Suites

The proposed new Strategy for Second Suites contemplates an amendment to the Town’s Zoning By-laws to add permissions for second suites Town-wide in residential areas throughout Markham.  The purpose of the proposed zoning by-law amendment is to permit second suites Town-wide, in single detached and semi-detached houses, subject to specific development standards, including:

a)      both the principal dwelling unit and the secondary dwelling unit must be wholly contained within the single and semi detached dwelling; 

b)      there are no more than two dwelling units on the same lot;

c)      the maximum floor area of the secondary dwelling unit is no more than 45% of the floor area of the single or semi-detached dwelling as it existed prior to the establishment of the secondary dwelling unit;

d)      the secondary dwelling unit has a floor area of no less than 35m2;

e)      no more than one dwelling entrance is contained within any main wall facing a streetline; and

f)        the entrance to either the principal or secondary unit is not contained within the garage door.

 

The effect of the proposed zoning by-law amendment is to increase the life safety of residents in houses with second suites and increase landlord accountability for complying with building and fire safety codes and zoning and property standards.   Where zoning and code compliance is not attainable an existing second suite must be removed.

 

The Statutory Public Meeting of Development Services Committee to consider the proposed zoning by-law amendment was held on May 20, 2008.  A copy of the Committee extract is attached as Appendix “B”.

 

New Regulatory Controls for Second Suites

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  property standards and driveway and parking standards by-laws;

-         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 and whether the need and clear authority for licensing second suites has been established.

 

The proposed new strategy contemplates amendments to the Town’s Property Standards By-law and Registration By-law, the development of a Comprehensive Public Education Program, and the establishment of a Monitoring Program to increase Markham’s regulatory control of Second Suites

 

Mandatory Re-inspection and Registration

The Land Use Planning and Protection Act (Bill 20) was introduced on November 16, 1995 and proclaimed on May 22, 1996.

 

Bill 20 restored municipal authority to determine where new second suites are to be permitted, and what standards apply. However, certain existing two-unit houses are “grandfathered”. These houses are recognized as permitted uses for planning purposes. Municipalities have the authority to require that houses with two-units are registered.

 

Grandfathering applies to two unit houses when they have proof of existence of occupancy as two unit residential units on November 16, 1995.

 

Registration is to be used to require that owners declare a second unit. This identifies two unit houses that must be upgraded to Section 9.8 of the Fire Code.

 

The proposed new Strategy for Second Suites recommends the requirement for registration and registration renewal (every 3 years) of any house with a second suite to ensure compliance with all applicable codes. The proposed new registration by-law should also include a provision which requires, as a condition of a renewal, that either the occupier consent to the re-inspection of the premises by the Town to determine continued compliance with the standards in place prior to first registration or the registrant submit proof satisfactory to the Town that the property continues to comply with all applicable standards.  In addition, the by-law should also be amended to provide applicants or registrants the right to a hearing in the event that a registration or renewal is refused or revoked.

 

Re-inspection and Registration Fees

The Town’s Registration By-law sets a specific fee for the registration and inspection of two unit houses, however, once a unit is registered, no further fees are payable, unless the registration has first been revoked.

 

Under the proposed new Strategy for Second Suites, it is recommended that the inspection fee and registration fee be waived for a period of one year. This phase in period will allow staff the time to educate the public and also provide the owners an  incentive to come forward and register a second suite.

 

Amendment to Property Standards By-law Required

Current provincial legislation does not enable the Town to refer to Section 9.8 of the Ontario Fire Code as a prerequisite for registration in the Registration By-law as this Section only applies to the “grandfathered” two unit houses.  Section 9.8 (Retrofit) of the Ontario Fire Code sets standards for two unit houses which were in existence on November 16, 1995.  Alternatively, a municipality can require Section 9.8 provisions as a prerequisite for registration of a second suite in another municipal by-law such as a municipal Property Standards By-law. 

 

By including the Section 9.8 provisions as a requirement of registration in the Town’s Property Standards By-law, all owners of second suites that were created after November 16, 1995 will have to comply with the same requirements of Section 9.8 that currently apply to “grandfathered” two unit houses. Owners who fail to comply with these requirements would have a Notice of Violation issued against them or face prosecution.

 

It is recommended that the Town’s Property Standards By-law be amended to specify standards which a house with two units must meet to be eligible for registration.

 

Implementing a new Second Suites Policy – Fire & Emergency Services

Fire and Emergency Services Staff are aware that the implementation of a new Second Suite Strategy and Zoning By-Law will result in a three year cycle re-inspection program as well as additional requests for new second suite inspections.

 

 

 

 

 Please refer to the following table:

 

 

Available Hours Per Officer Per Year                                               1,465

 

Projected Workload Re-inspection                   Hours Per Inspection       Total Hours

            Approximately 600                          2                                       1200

 

Projected Workload – New Inspections                  5                                       1410             

Approximately 282 (Double 2007#’s)

 

FTE Equivalent                                                                                     1.78

 

The projected workload for new inspections is based upon twice the amount of second suite inspections during 2007 because of the incentives for owners to voluntarily register As can be seen, the requirement for additional inspections will require 2 full time additional resources including the following infrastructure needs:

·        Work space, IT equipment including mobile tablets, telephone, cell phone and vehicle equipped with tablet brackets.

 

Enforcement of Property Standards and Driveway and Parking Standards By-laws

As previously mentioned, residents raised concerns during the public meetings regarding the potential for excessive front yard parking and poorly maintained yards (due to absentee owners) should permissions be granted for second suites.  Staff is proposing that the work associated with the inspection of second suites be assigned to the 2 Officers currently assigned to the Extended Driveway Program.  Under this proposal, the Officers will complete a proactive inspection of all registered second suites (for exterior property standards and extended driveway purposes) and will provide for an inspection of any new applications for registration.

 

The above proposal is predicated on the conversion of the existing two contract positions for the Extended Driveway program into full-time positions in 2009.  In addition, staff will monitor the enforcement resources required and report back in future budgets if additional resources are required.

 

Possible Enactment of Interior Property Standards Regulations

During its deliberations, the Subcommittee on Second Suites discussed the need to regulate the interior condition/quality of second suites via possible amendments to Markham’s existing Property Standards By-law (Markham does not currently regulate interior property standards).  Towards this end, staff have identified two possible options which are noted in the Table below.  

 

 

 

 

 

 

 

Internal Property Standards Options Table:

Option 1 (minimum standards)

Option 2 (comprehensive standards)

Minimum Suite Sizes (bathroom/ kitchen)

Option 1, plus the following:

Garbage Handling

Basement Floors/ Windows

*Requires conversion of 2 existing contract extended driveway positions

Stairs/ Landings

 

Plumbing/ Electrical

 

Heating/ Water/ Ventilation

 

Pest Prevention

 

*Requires 2 additional full-time resources

 

Option 1 incorporates minimal requirements for the size of second suites and provides guidance on the proper handling of garbage.  These new regulations would be enforced by Town staff, with all other internal property standard regulations continuing to be enforced by the Province. Option 2 is the implementation of a comprehensive internal property standard framework, also to be enforced by Town Staff.  Implementation of this Option would result in the Province no longer being involved in the process. 

 

Implementation of either Option 1 or 2 will require additional staff resources if current service levels are to be maintained.  As such, staff is not recommending the implementation of either Option at this time.  Instead, it is suggested that the need for enacting interior property standards regulations be monitored during the proposed 18 month review period.  At the end of this time, staff will assess any concerns raised relative to the interior condition of second suites and prepare a report on same to Committee.

 

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

Proposals for a new Strategy for Second Suites has been in progress for several years in Markham and earlier proposals have received mixed reviews from residents. In particular, some residents in traditional, single detached homes feel second suites will have a negative impact on the quality of the community and property values, and place a burden on existing municipal services.

 

During public consultation on a new strategy, feedback indicated that any new permission for second suites must be accompanied with strong inspection and enforcement practices.

 

The proposed new Strategy for Second Suites strategy strikes a balance between the concerns of residents and the need to provide reasonable opportunities for secondary dwelling residency.

Staff from Corporate Communications have attached a proposed communication strategy and tactical plan for the new Strategy for Second Suites as Appendix “E”. It outlines the key messages of the strategy and an estimated budget for Communications.

 

Monitoring the re-inspection and renewal of registration for second suites at regular intervals and whether the need and clear authority for licensing second suites has been established

It is recognized the success of a 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 the effect of one year incentive program;

·        property standards inspections (including the need for new internal property standards by-law);

·        the registration renewal program; and

·        whether the need and clear authority for licensing second suites has been  established.

 

Prior to 2007, the Municipal Act prohibited the licensing of rental accommodations by municipalities. With the enactment of Bill 130, municipalities were provided expanded

powers in this area.  It is important to note however, that the licensing of rental units is in early stages of consideration by municipalities and a number of enforcement/administrative issues are still to be resolved.  There are also staff resource implications associated with the creation of a licensing framework.  More specifically, it is estimated that additional staff resources would be required to administer and enforce a licensing component of the second suite program.

 

Although staff recognize that the regulatory and enforcement benefits associated with the implementation of a licensing framework for second suites are potentially significant, staff are recommending a continuation of the current registry system to allow staff to continue to assess the potential benefits of licensing.  Should enforcement problems and/or compliance issues emerge during the proposed 18 month monitoring period, staff will report back to Committee with the licensing options available.

 

FINANCIAL CONSIDERATIONS:

 

Financial Impact of additional Fire Prevention:

The cost (salary plus benefits) of two 1st class fire prevention officers is estimated at approximately $190,000. The work requirement for second suites will be re-evaluated and further staffing decisions can be made after the program has been implemented.  These positions are required for both Options 1 and 2 (See Page 8).  Work space, IT equipment including mobile tablets, telephone, cell phone and vehicle equipped with tablet brackets will cost an additional $40,000 per officer for a total of $80,000.

 

Financial Impact of Enforcement of Property Standards

The 2009 budget includes funding for 2 extended driveway contract officer positions in the amount of $118,000 including benefits.  The cost for Option 1 for 2 full-time Provincial Offenses Officers (POO II) is $145,000 or an additional cost of $27,000 including benefits.  The cost for Option 2 would require 2 additional by-law enforcement officers at an incremental cost of $145,000 including benefits.  In addition, for Option 2 only there would be an equipment cost including work space, IT equipment, mobile tablets, telephone, cell phone and vehicle equipped with tablet brackets will cost an additional $40,000 per officer for a total of $80,000.

 

Financial Impact of Interior Property Standards Regulations

In summary, the estimated direct salary costs and associated expenses of implementing the Second Suites Strategy are as follows:

 

 

Option 1

Option 2

2 Additional Fire Prevention Officers

$190,000

$190,000

Fire Prevention Officers Equipment

$80,000

$80,000

Property Standards Enforcement

$27,000

$145,000

Enforcement Officers Equipment

$0

$80,000

Licensing Rental Accommodations

TBD

TBD

TOTAL

$297,000

$495,000

 

The financial information in this report is preliminary subject to further review and approval.

 

BUSINESS UNITS CONSULTED AND AFFECTED:

Staff from Fire, Building, Planning, Legal, By-law Enforcement, Clerks and Corporate Communications were contributed to the preparation of this report.

 

RECOMMENDED BY:

 

 

_________________________________       __________________________________

Jim Baird, M.C.I.P., R.P.P                               Andy Taylor

Commissioner of Development Services        Commissioner of Corporate Services

 

 

_________________________________      ___________________________________

Brenda Librecz                                     Catherine Conrad

Commissioner of Community Services          Town Solicitor

 

ATTACHMENTS:

Appendices:    May 20, 2008 Staff Report on Public Input

                        May 20, 2008 DSC Public Meeting Extract

                        Draft Amendment to Zoning By-laws

                        Frequently Asked Questions (Updated June 2008)

                        Proposed Communications Strategy

 

 

Q:Development/Planning/MISC/MI464/Second Suites/Action Plan to Implement a New Strategy for Second Suites4