As of January 1, 2025, landlords in the City of Hamilton face significant changes when it comes to conducting renovations or repairs that require tenants to vacate rental units. The Renovation Licence and Relocation By-law 24-055 aims to curb bad faith evictions, also known as renovictions, by introducing new licensing requirements.
Overview of the Renovation Licence and Relocation By-law
The new by-law mandates that landlords must apply for a renovation licence if they issue an N13 notice requiring tenants to vacate their rental units for repairs or renovations. This measure does not prohibit N13 notices and the vacation of rental units, but it does establish greater oversight to ensure renovations are great enough to require tenant displacement and increase tenant protection in these situations.
The by-law applies to all rental housing units in Hamilton and requires landlords to:
- Obtain a licence before starting renovations.
- Provide evidence that vacant possession is essential for the renovations.
- Educate tenants on their rights and support programs.
Key Requirements for Landlords
Applying for a Renovation Licence
Landlords must apply for a renovation licence within seven days of serving an N13 notice to tenants. The application package must include documentation confirming that the renovations are extensive enough to require tenant displacement.
A critical component of the application is a letter or report from a qualified professional (either a licensed engineer or architect in good standing) detailing why vacant possession is necessary.
Renewing Licences
If the renovations or repairs exceed one year from the date of the licence issuance, landlords are required to renew the licence. Licensing and By-law Services should be contacted before the licence expiry date to proceed with the renewal.
Tenant Right of First Refusal
Tenants displaced by renovations have the right of first refusal to return to their unit once the work is complete, at a rent no higher than what would have been charged had there been no interruption in tenancy.
To exercise this right, tenants must notify the landlord in writing within 120 days of receiving the N13 notice. The landlord must then make appropriate temporary arrangements and submit an attestation form describing the agreed arrangements to Licensing and By-law Services.
Landlord Requirements to Support Tenants
Under the by-law, landlords must provide tenants who are exercising their right of first refusal with one of the following options:
- Temporary accommodations comparable in cost, location, and size to the tenant’s original unit, or
- Monetary compensation (rent gap payments), calculated as the difference between the tenant’s current rent and the average market rent for similar-sized units in Hamilton, based on Canada Mortgage and Housing Corporation (CMHC) data.
If landlords and tenants cannot agree on temporary arrangements within 120 days, landlords may seek an exemption by providing documentation, including evidence of efforts to secure agreements. Exemption requests are evaluated at the discretion of the Director of Licensing and By-law Services.
Landlords are also required to supply tenants with a Tenant Rights and Entitlement Package, outlining tenants’ rights under the by-law.
Practical Tips for Compliance
File Licence Applications Promptly
Submit the renovation licence application within the required seven-day period to avoid delays or penalties. Be prepared to include detailed documentation from a qualified professional.
Prioritize Tenant Communication
Inform tenants of their rights and clearly outline any temporary arrangements or compensation options. Open and transparent dialogue can help resolve disputes and avoid legal complications.
Track Renovation Timelines
If renovations are expected to exceed one year, contact Licensing and By-law Services well in advance to begin the licence renewal process.
Gain Professional Assistance
Contact organizations like the Housing Help Centre Hamilton & Area (HHCHA), or engage legal counsel to ensure compliance with the by-law while effectively managing tenant relations.
The HHCHA offers education and resources for landlords. It can guide landlords through their legal responsibilities, help manage tenancy issues, and connect them with additional support services.
Impacts
Hamilton’s Renovation Licence and Relocation By-law significantly changes how landlords handle renovations requiring tenant displacement.
It enables greater municipal oversight, adding formal licensing and documentation requirements, and allows the City of Hamilton to monitor N13 notices systematically, track trends, identify potential abuses, and take corrective action when necessary.
Landlords need to justify vacant possession with reports from licensed professionals, introducing a firmer – and potentially higher – standard for determining if a unit truly needs to be vacated. Furthermore, tenant protections like temporary accommodations or compensation must now factor into the decision-making process, adding another consideration for landlords when planning renovations.
