On hold

STA licensing will pause at the end of September

Following a long, in depth discussion, council decided to pause all shortterm accommodation applications, and not just whole-home accommodations, with a full program review to take place by the end of January 2021.

A staff report had suggested that council consider adopting a motion that declares all new applications not received to the STA licensing program by Wednesday, September 30, be frozen and not processed. When the licencing program launched in late 2019, a flood of applications mixed with recruiting new staff to administer the program created a backlog of work before inspections could start. Immediate and unanticipated enforcement responsibilities, with limited opportunity for inspections have caused a long line of applicants waiting in queue without a licence. Pausing any new applicants would help to manage the queue.

A declaration that suspends any new applications after September 30 would impact any new B and Bs and STAs wishing to be licensed until such time as the program has been reviewed. Any properties that qualify under the grandfathering provisions could continue to apply and be processed until the sunset date for grandfathering. Any new STA not-grandfathered applications received prior to the imposition of the suspension would continue through the licensing process and potentially receive a licence provided they qualify.

To date, 769 applications have been received by the County. Of those, only 281 inspections have been completed with 32 licences granted to new not-grandfathered STAs. Another 109 applications from new not-grandfathered STAs have been received.A total of $287,025 has been paid to date in licensing fees, but there are 114 pending unpaid invoices from the applications. Owner-occupied rentals and B&Bs make up less than 20 per cent of the applications. It should be noted that original program modelling required 800 licences or $350,000 in fees to remain cost neutral.

Treat Hull of Treat Hull and Associates spoke to the motion, saying that the housing problems are not caused be homes being bought to be turned into STAs. “I think we can all agree that the County has a large and growing problem of housing affordability. Whatever it was in the past, the cause now is not people buying homes to run them as whole-home STAs. In fact, the number of whole homes rented is down 18 per cent compared to a year ago,” said Hull, who also explained that home sales are up 80 per cent from last July, with the average price up 25 per cent. “Many people from Toronto can now work from home permanently. This is driving a permanent change for County real estate.”

Hull also worried about freezing all licensing, as it would affect those who are renovating a second suite to offset income loss during the COVID- 19 pandemic. “If the proposal to pause licensing goes ahead, second unit licences will be frozen too, and smaller players will be out of the income,” said Hull.

Councillor Bill Roberts also felt that pausing the licensing was not a fair position to put owners in.

“In my view, what we have before us as staff report is way too broad, and in fact punitive for primary residence owned STAs. It makes me think that while a thorough review of our STA experience to date is required and would be beneficial, and should be expedited, we should be doing this as a policy matter through the zoning bylaw amendment process and not by withholding licences across the board,” said Roberts, who also told his colleagues he believed the backlog was a staffing and resource issue, not a policy issue.

Roberts also told the horseshoe that many of those applying for licences are hard working County residents. “These are young families. We want these folks. They have gone to extraordinary measures and this will penalize them. This will be locals we are harming. Not the 16-STA coowner from Toronto. Locals and residents. Neighbours and friends. And I think that’s wrong,” said Roberts.

Some councillors felt it would be better to single out whole-home STAs, which CAO Marcia Wallace explained would open up the County to litigation.

Councillor Jamie Forrester felt that owners have had plenty of time to apply since the program opened in 2019. “We’ve given people almost a full year to sign up. Right now I think we need a timeout,” he said. Forrester also used his time at the mic to educate council on the summer he has had. Forrester explained that he receives countless emails from folks looking for accommodation, most times in large numbers. He worries that STAs aren’t following the occupancy rules. “When you have people that are having businesses in their homes, all they care about is the ching ching in their bank accounts every month. They are not good community members. They don’t care. I am sure there are some good ones out there. But a lot of them don’t care.”

Councillor Janice Maynard agreed that a break was needed. “I think that the pause will give us time to look at a few things and one of those might be a review of the definitions. Although I know that reducing whole-home STAs won’t solve our affordable housing crisis, it may help, but what it will do is help the social detriment of dark neighbourhoods,” said Maynard.

Councilor Phil Prinzen worried that council was rushing into a decision that didn’t need to be made. “I think we are making a knee-jerk reaction. This seems like a reaction to a tough summer in the County,” said Prinzen. “I think we have to be careful putting this on. I appreciate staff’s work into this. For me there are too many red flags, too much uncertainty, and too much potential for litigation.”

Councillor Kate MacNaughton asked for the motion to be referred back to staff to make sure this was the correct course of action. She thought it would also give council an opportunity to discuss with legal counsel. Her motion was defeated.

Mayor Steve Ferguson also wanted to tread lightly. “I’m uncomfortable with doing things on the fly. There is a lot of info here. There is a lot to understand. There is a lot that is controversial. We are moving goal posts which might be seen as unfair by the community,” he said.

In a recorded vote of 8-4, council decided to pause all STA licensing applications after September 30, with a detailed program review to come at the end of January 2021.