Loophole in London’s new renoviction bylaw already being exploited by unethical landlords: Councillor

Coun. David Ferreira wants to close a loophole in London’s renoviction bylaw he says is already being used to remove tenants from their affordable apartments.

Coun. David Ferreira wants to close a loophole in London’s renoviction bylaw that he says is already being used to remove tenants from their affordable apartments.

Frustrated that it only took months for unethical landlords to find a way around obtaining a municipal license, Ferreira’s motion to the Community and Protective Services (CAPS) Committee seeks to ‘minimally expanding the scope of existing municipal protection mechanisms to close loopholes used for bad-faith evictions.’

The term ‘renoviction’ describes the unethical use of N-13 Eviction Notices to evict a low-income tenant under the pretense of renovating their unit, when in fact, the landlord wants to hike the rent for a new tenant.

In March, London launched its long-awaited Rental Unit Repair License by-law.

It requires that landlords obtain a $600 Rental Unit Repair License from City Hall for each unit where a tenant receives an N-13 Notice.

The license requires a building permit, a qualified professional’s report that the unit must be vacant during the renovation, and proof the tenant was provided an information package explaining their rights.

If the work isn’t completed within six months, the license must be renewed and include an explanation why the work is taking so long.

However, Ferreira has been contacted by tenants who discovered the licensing requirement doesn’t apply to renovations that demolishes or converts residential apartments into commercial business space.

“It seems like there’s new means, new loopholes, being leveraged to evict in bad faith,” he explained.

In 2024, Ferreira warned colleagues on council that the bylaw would likely require updates as unethical landlords find new strategies to evict long-term tenants paying below-market rental rates.

His motion to the CAPS Committee calls for enhanced municipal options to prevent the unnecessary loss of affordable housing.

Co-signed by Coun. Sam Trosow, Ferreira’s motion would direct city staff to report back to the committee with municipal options, “to limit or prevent ‘bad faith’ tenancy evictions for reasons of demolitions and conversion to use for a purpose other than a residential premise, including but not limited to amendments to or new municipal bylaws, policies, and programs.”

Ferreira has no sympathy for landlords currently exploiting the loophole, “They can say whatever they want, but the truth is the truth.”

“A landlord trying to say that we want to change the use of a residential unit to commercial, in an area that has plenty of commercial space available, that tells me that it’s a bad faith eviction,” he said.

The motion will be considered by the CAPS Committee on Dec. 1.