Consulted key stakeholders Report: regulations Nov and Dec 2017 - PDF document

Proposed Rules for Short-term Rentals Presentation - September 2017 Agenda 1. How we got here 2. Background on short-term rentals 3. Proposed regulations 4. How you can provide input How we got here • Council directive Jan 2016 • Staff were directed to conduct research and develop potential regulations for short-term rentals • Interim report Oct 2016 • Staff reported on current short-term rental industry and plan for developing potential regulations • Initial consultations Nov 2016 to May 2017 • Staff consulted the public in-person and online • Staff consulted key stakeholders • Report on proposed regulations June 2017 • Staff proposed to permit short-term rentals only in principal residences • Executive Committee approved proposal for consultation Where we are going • Report: proposed regulations June 2017 • Proposed to permit short-term rentals only in principal residences • Consultations on proposal Aug and Sept 2017 • Consulted the public in-person and online

• Consulted key stakeholders • Report: regulations Nov and Dec 2017 Understanding short-term rentals • Short = 28 days or less in a row • Rented on online platforms like: • Airbnb • Flipkey • VRBO • HomeAway • Sonder Current rules • Short-term rentals were not previously defined in the city-wide zoning bylaw or other zoning by-laws, and are therefore currently not permitted. • No permit or licence required to operate a short-term rental, hotel, motel, or B&B in Toronto. • No special tax on short-term rentals, traditional bed and breakfasts, hotels, or motels. Principles for new rules • Allow home sharing • Minimize negative impacts on housing affordability and availability • Enable diversity of tourism accommodations • Maintain community stability • Minimize nuisances • Be fair and easy to follow Proposed rules – overview • Allow anyone to do short-term rentals in their home • Register those operating a short-term rental

• License any short-term rental company (like Airbnb, VRBO or FlipKey) Proposed rules – Zoning The proposed City-wide zoning framework would permit short-term rentals across the city in the principal residence of an owner or tenant in residential and mixed-use zones. Proposed Zoning By-law Definition: Short-Term Rentals means all or part of a dwelling unit , that is (A) used to provide sleeping accommodations for any rental period that is 28 consecutive days or less; and, (B) the principal residence of the short-term rental operator. Within their principal residence, people could use an entire dwelling unit, up to three rooms in a unit, and lawful secondary suites as short-term rentals for a period of no more than 28 consecutive days. Short-term rentals and dwelling units are defined terms under the Zoning By-law. Proposed rules – Operator Registry Those doing short-term rentals must register with the City → Registration is a simple, online process → Registrants will be given a registration number that they must post in any ad To register, operators must: • Provide basic information about themselves and their property • Declare that the address is their principal residence • Declare that they follow relevant laws (i.e. Fire Code, Noise bylaw, etc.) • Ensure a secondary suite fire inspection is complete • Provide contact info of a person who is available 24/7 • Pay a registration fee ($40 to $150 per year) Proposed rules – Company Licence Any company that facilitates short-term rentals for compensation or a fee will need to be licensed.

Licensed companies must: • Ensure that all listings include a valid registration number • Remove all short-term rental listings that are not registered • Share information with the City • Address problem properties • Pay a licensing fee. Initial estimates are: - Base fee of between $5,000 and $20,000, - Scalable fee based on the number of nights rented or number of rentals listed through the company Principal residence “ where a person lives and designates as their principal residence on government records ” • A person can only have one principal residence. • A corporation cannot have a principal residence. • City can audit any registered operator and request proof of principal residence Proposed rules - Taxation • Council endorsed: – 4% Hotel Tax to be implemented in City subject to Provincial legislative changes. The Province has passed related legislation and is expected to proclaim it into law upon completing the related regulations – a tax on Short-Term Rentals subject to Provincial legislative changes, and asked staff to report back on a recommended tax rate of up to 10%. • If and when Council approves a Short-term Rental Tax: – registered operators of short-term rentals would be required to collect the tax and remit it to the City, or – licensed companies which facilitate short-term rentals on behalf of registered operators and collect the rents would be required to collect the tax and remit it to the City • The City estimates that a 4% tax on registered operators (in principal residences) would raise between $1M - $3M/yr (preliminary)

How you can provide input We welcome your input!  Fill out our online survey at: o toronto.ca/mlshaveyoursay  Fill out a comment form  Talk to a staff person  Email: MLSfeedback@toronto.ca  Depute at a Committee meeting in November:  Planning and Growth Management: Nov 15, 2017  Licensing and Standards: Nov 20, 2017  Executive: Nov 29, 2017 Next steps • June to October: Research and consultation input • November: committee meetings on three components of regulations • Planning & Growth Management Committee Zoning amendments Nov 15, 2017 • Licensing & Standards Committee Licensing and registration Nov 20, 2017 • Executive Committee Taxation Nov 29, 2017 • If passed by committees: Council Dec 6, 2017 Contact Information City Planning Klaus Lehmann, Acting Manager klaus.lehmann@toronto.ca Municipal Licensing & Standards Carleton Grant, Director

Carleton.Grant@toronto.ca Corporate Finance Robert Hatton, Director Robert.hatton@toronto.ca Consultations The City is holding four open houses to engage residents and obtain feedback on the City’s proposed licensing, registration and zoning framework for short-term rentals. Drop in anytime between 3 and 8 p.m. A short presentation will be held at 4 p.m. and repeated at 7 p.m. Wednesday, September 6 City Hall Committee Room 2 100 Queen Street W., Toronto Monday, September 11 North York Civic Centre Council Chambers 5100 Yonge Street, North York Wednesday, September 13 Etobicoke Civic Centre, Main Boardroom 399 the West Mall, Etobicoke Tuesday, September 19 Scarborough Civic Centre Committee Room 1 150 Borough Drive, Scarborough