Out with the old and in with the new, as they say. With the new year comes new housing laws and regulations that will impact everyone from builders to buyers and renters across Ontario (and in Toronto, specifically).
Major changes to be aware of include the implementation of provincial and municipal legislation and amendments all aimed at addressing the housing and housing affordability crises. From streamlining the Ontario Building Code to new short-term rental by-laws in Toronto, here are the biggest changes to housing legislation that will come into effect in 2025.
Rental Renovation Licence By-Law (Toronto)
Why It's Important
The Rental Renovation Licence By-Law was created to combat "renovictions" — an increasingly common practice where "tenants are evicted under the false pretence of necessary renovations so landlords can increase rents," according to the City of Toronto. Renovictions are not only unjust but potentially life-ruining, as they are disproportionately carried out against low-income and marginalized individuals and families who could end up homeless or in precarious living situations.
What You Need To Know
The By-Law prevents renovictions by requiring that landlords issuing an N13 notice to end tenancy obtain a Rental Renovation Licence. In order to obtain the Licence, a landlord must provide the City with approved building permits, a $700 application fee (waived for Multi-Tenant Housing Operators), and they must complete a Tenant Accommodation or Compensation Plan, which provides temporary housing, amongst other requirements.
More info can be found here.
When It Comes Into Effect
July 31, 2025.
Mass Timber Buildings Up To 18 Storeys (Ontario)
Why It's Important
Mass Timber — manufactured wood products that meet similar structural, fire protection, and seismic performance as materials traditionally used to construct tall buildings (e.g., concrete and steel) — has grown in popularity in recent years for its desirable qualities of being both sustainable and efficient in terms of cost and construction time. Plus, because it's prefabricated, it's a quieter build (aka happy neighbours and less pushback from communities).
According to the provincial government, the move to increase height regulations is designed to ramp up the construction of new homes and reduce costs over time, while supporting good-paying jobs in forestry, technology, engineering design, and manufacturing.
Check out this chic example of a City-owned 10-storey mass timber development.
What You Need To Know
The new allowance is the result of an amendment to the Ontario Building Code. Prior to the change, mass timber developments were only allowed to climb 12 storeys, but now can rise as tall as 18 storeys, allowing more housing units to be built on a single plot of land.
When It Came Into Effect
January 1, 2025.
Additional Ontario Building Code Amendments (Ontario)
Why It's Important
The Ontario Building Code (OBC) has been criticized for conflicting with National Construction Codes and creating barriers for developers through excessive regulatory burdens that make it harder to efficiently build homes and meet our housing goals. The previous building code was created in 2012 and, according to a consultation on the 2025 National Construction Codes, is only 60% in harmony with the National Building Code (NBC).
What You Need To Know
In 2025, the province is introducing a new OBC that, according to them, "streamlines processes for the sector and increases harmonization with the National Construction Codes by eliminating at least 1,730 technical variations between the provincial and national requirements." Once implemented, the new OBC will be closer to 80% harmonized with the NBC, according to the consultation.
Learn more and get your copy of the 2024 Code here.
When It Comes Into Effect
The 2024 Building Code came into effect on January 1, 2025, with a three-month grace period lasting until March 31, 2025 for certain designs that are already underway.
New Short-Term Rental By-Laws (Toronto)
Why It's Important
The City of Toronto defines a short-term rental (STR) as "all or part of a dwelling unit rented out for less than 28 consecutive days in exchange for payment." Over the course of the last year, two previous phases of STR bylaws have come into effect with launches on June 30, 2024, and September 30, 2024.
The third and final phase of regulations is being introduced in 2025 and, together with the first two phases, represents a concerted effort to preserve long-term rental housing by ensuring only primary residences are rented out by licensed operators.
What You Need To Know
Here are the newest regulations:
- Short-term rental operator registration and renewal fee will increase to $375.
- You will need to choose between registering as either an entire-unit short-term rental operator (i.e. short-term renting your entire home) or as a partial-unit short-term rental operator (i.e. short-term renting only rooms in your home) for the duration of your registration period.
- If you have a partial-unit rental (i.e. short-term renting only rooms in your home), you can only advertise one fewer than the number of bedrooms available in your principal residence. Partial-unit rental operators cannot rent out the entire dwelling unit at the same time.
When It Came Into Effect
January 1, 2025.
Updates To The Household And High Need Income Limits (Ontario)
Why It's Important
Housing assistance keeps people off the streets, and the Household Income Limits (HILs) and High Need Income Limits (HNILs) provide a guideline for who receives assistance and how much they receive. According to the province, HILs represent the minimum annual income required for a household to afford appropriate accommodation without spending more than 30% of income on shelter. HNILs on the other hand, make up 60% of HILs and include households that would need to spend 50% or more of their income on shelter.
What You Need To Know
The previous framework under the Housing Services Act, 2011, was not properly adjusted to reflect the most recent data provided by the Canada Mortgage and Housing Corporation, but the 2024 amendment of the Act brings them up to date. In Toronto, HNILs for one-bedroom units were increased from $37,500 to $40,500, and in Durham Region and Hamilton they rose from $27,600 to $30,300.
See the full updated schedule here.
When It Came Into Effect
January 1, 2025.
