Ontario scraps controversial plan that threatened evergreen leases
The Ontario government is scrapping its plans for consultations on changing the law that currently allows for month-to-month tenancies, a move that housing advocates say is a relief but doesn’t go far enough.
Ontario Premier Doug Ford’s government introduced Bill 60 on Thursday, which included plans to address delays and reduce the backlog at the Landlord and Tenant Board.
The bill included proposals to change how much landlords must compensate tenants if evicted in good faith for specific reasons, and when an eviction order can be set aside.
Groups like ACORN Canada raised concerns over several elements, but the proposal that had advocates and politicians concerned the most was holding consultations to potentially change renters’ rights to stay in their homes.
On Sunday afternoon, Municipal Affairs and Housing Minister Rob Flack said in a statement on X that the government was no longer proceeding with those consultations.
“Residents expect stability and predictability in Ontario’s rental market, and now is not the time to consider changes to this system,” Flack wrote. “As such, we have decided not to proceed with consultations on potential changes to month-to-month leases.”
Under the original plan, the government said it would consult on alternative options for lease expirations that could “allow landlords to control who occupies their units and for how long.”
Under the Residential Tenancies Act (RTA), all tenants have the right to what’s called “security of tenure,” allowing them to stay in their home even after the lease expires, provided they abide by the rules of their lease and the RTA.
When people sign a lease agreement in Ontario, it automatically goes month-to-month once the term ends.
Under the law, landlords also cannot evict a person without a legally valid reason, such as wanting to take possession of it for themselves to live in it, or to conduct renovations.
Attorney General Doug Downey said Thursday in introducing the law that he was concerned these rules may be flawed.
“We’ve heard from stakeholders that these evergreen leases that just go on with no end in sight may not be appropriate,” he said.
Downey added that there are landlords not putting their properties on the market because they’re concerned about whether they’ll be able to get them back when the time comes, but the changes could “unlock” thousands of units.
With Monday’s change, Flack said the government will instead focus on implementing “common sense reforms” and work to strengthen the province’s rental market.
Flack said this would include “restoring balance” at the Landlord and Tenant Board, encouraging new rental constructions, and “cracking down on abuse” of the system.
But advocates say they’re still wary, with NDP MPP and shadow minister for housing Catherine McKenney saying the change is “some relief.”
“While this walk-back is some relief, we know we can’t trust this government,” McKenney wrote in an email to Global News.
Ontario ACORN, an independent organization made up of low and middle-income families in the province, said more than 23,000 emails were sent through its online form to Ford, Downey, Flack and MPPs to demand “they keep their hands off rent control.”
The government is still proceeding with other aspects of the bill, which include amending the RTA to limit a tenant’s ability to raise new issues at a rent arrears hearing unless the tenant has paid 50 per cent of the arrears claimed in the landlord’s application. It also proposes that if a landlord provides 120 days’ notice that they want to move in, the landlord won’t have to provide compensation or offer another acceptable unit.
The York-South Weston Tenants’ Union in the Greater Toronto Area told Global News that while they’re happy to see the reversal, it’s “not good enough.”
“The changes that he’s (Ford) proposing in Bill 60 are still very dangerous attacks on tenant rights,” said Chiara Padovani, co-chair of the tenants’ union.
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