The data provided from the first two links above differs from the CMHC data. I’ve included two unbiased and independent third-party market rent reports. You can find more references with a Google Search.
Although the developer is required to reference CMHC data, they are not confined to it alone; do not submit or settle for general opinion, you can get greater compensation with legal representation. It’s crucial to engage a lawyer to negotiate fair market rents based on unbiased market research, ensuring fair compensation.
For CMHC our area is considered Central Toronto. Our neighborhood, known as North St. James Town, is a blend of low-income and middle-class housing, including home ownership. Relying solely on CMHC data is insufficient, as neither you nor I intend to live in low-income or low-average cost housing, and typically those who do not ask for more compensation will not benefit.
Pinedale doesn’t charge low-income rents, making it unreasonable to generalize them with neighborhood averages. While we’re identified as North St. James Town, we do not have to accept the CMHC’s lower rent standards.
Do not be fooled into believing that you cannot ask for more when seeking fair compensation. Legal representation can help negotiate truly fair market rents that lead to much better compensation outcomes.
Estimated Compensation Calculator
*Note, this does not include the Moving Costs Calculation, since these costs fluctuate seasonally, it is better to look at the market cost for a similarly sized apartment and multiply that x 2.
TLDR
- Notice to Vacate:
- Tenants must be given a six-month Notice to Vacate by their landlord before demolition can begin.
- Rental Compensation:
- Eligible Tenants will receive compensation equal to three months’ rent when receiving the Notice to Vacate.
- Special Needs Tenants, including seniors and those with significant health conditions, receive an additional four months’ compensation.
- Rent Gap Payment:
- Developers must provide a lump sum payment to cover the rent gap (increased market rent) until tenants return.
- This initial payment will be equal to 36 months of rent gap.
- You will receive this payment when you move out
- This payment is based on a tenant’s current rent compared to the average market rent for a similar unit in the area (as determined by the Canada Mortgage and Housing Corporation)
- If development takes longer, additional rent gap payments will be mailed to your address on file
- This payment is not taxable and does not affect ODSP eligibility.
- Moving Compensation:
- Tenants receive a lump sum for moving costs based on unit size, both for moving out and back in.
- Leasing Assistance:
- A leasing agent will assist tenants in finding rental housing during the six-month Notice to Vacate period.
- Right to Return at Similar Rent:
- Tenants can return post-construction at rents similar to their previous rates, adjusted by rent guidelines.
- Future rent increases will also follow provincial rent guidelines.
Demolition and Replacement of Rental Housing
A handbook for tenants and property owners
City of Toronto’s Policy
As taken from: http://chrismoise.ca
The City has a standard Tenant Assistance and Relocation Plan that it asks applicants to adhere to in order to provide some certainty and consistency to tenants across the City. Please note that these benefits only apply to tenants in buildings that would lose six or more rental units, and may only be provided to residents who moved into a building prior to a development application before the City. The City will hold a meeting with building tenants to ensure these benefits are properly communicated.
Tenants must receive a Notice to Vacate in order to obtain these benefits.
Notice to Move Out
Under City requirements, tenants are to be provided six months Notice to Vacate by their landlord to move out of their unit before demolition can begin.
Rental Compensation
Tenants will receive compensation equal to three months’ rent when the Notice to Vacate is provided. An additional four months’ compensation is to be provided for Special Needs Tenants, including seniors or those experiencing significant health conditions.
Rent Gap Payment
A developer will be required to provide a lump sum payment to tenants to help bridge the increase in rent between when they move out and when they return. This payment is based on a tenant’s current rent compared to the average market rent for a private rental apartment unit in the area (as determined by the Canada Mortgage and Housing Corporation), multiplied by the number of months until they can return to the new building.
This rent gap payment is considered compensation, and is therefore not taxable, and will not impact Ontario Disability Support Program (ODSP) eligibility.
Moving Compensation
Tenants will receive a lump sum of money, depending on the size of their unit, to assist with moving related costs from the building, as well as a lump sum to move back to the building.
Leasing Assistance
A leasing agent will be made available during the six-month Notice to Vacate period to help tenants find rental housing.
Right to Return at Similar Rent
Should they wish, tenants will be able to return to the new building post-construction. Rents for returning tenants will be similar to those paid before the Notice to Vacate, equal to the previous rent plus any additional provincial rent guideline increases between moving out and moving back. Upon return, future rent increases would also be limited to the provincial rent increase guideline.
Process for existing Tenants
IMPORTANT: If you want compensation, wait until you get a Notice to Vacate
You are under no obligation to leave until you get a Notice to Vacate from your landlord. Your landlord/building owner may try to encourage you to move out of your unit ahead of receiving a Notice to Vacate, including financial compensation. These offers are not illegal, but moving before receiving a Notice to Vacate will likely disqualify you from most compensation under a Tenant Assistance and Relocation Plan. So consider whether accepting an alternative option is worth it for you.
Continue to Pay Your Rent and Communicate with your Landlord
It is important that you remain in good standing with your landlord; the City cannot protect tenants under a Tenant Relocation and Assistance Plan who are forced out of the building. During that period, your landlord is still required to communicate with you, maintain your unit, and address property standards issues. If you have unaddressed issues, please contact RentSafeTO by calling 3-1-1 or visiting their website.
Wait for the City’s Process to Conclude
Between the City receiving an application and issuing a building permit for demolition, there are many steps that developers need to take before they can issue a Notice to Vacate. There will be a public community consultation that the City will hold, as well as a meeting just with tenants in order to explain the Tenant Assistance and Relocation Plan for their building. You are strongly encouraged to attend both. It can potentially take years before a Notice to Vacate is issued; please contact the City or my office if you would like an update on any redevelopment.
Wait for your Notice to Vacate to arrive
Once you receive this notice, you will have six months to move out. Make sure your landlord has your current contact information so you can receive updates on the development’s progress.
Choose whether to return
Once the building is complete, you will have the option to pick a replacement rental unit based on the seniority of your previous tenancy. These units will be similar in size, and depending on availability, you can choose to move to a larger (e.g., 2-bedroom to 3-bedroom) or smaller (e.g., 2-bedroom to 1-bedroom) unit, with an associated increase or decrease in rent.
You can choose not to return, although any compensation will then end. You do not need to make a decision until you are notified by the developer that a replacement unit is nearing occupancy.
Frequently Asked Questions
How are rent gap payments issued?
When you move out, you will receive a cheque for a lump sum equal to 36 months of rent gap payments. Should construction exceed 36 months, any future rent gap payments will be mailed to your address on file.
Rent gap payments cannot be issued via wire transfer or Interact e-transfer as the City of Toronto requires physical cheques.
Are rent gap payments and other compensation taxable?
No.
Will returning tenants have to pay condo fees in the new building?
No.
How does unit assignment in the new building work if we exercise our right to return?
Units are assigned based on seniority and choice. The developer will give you six months’ notice before the building is ready for occupancy. You will rank your floorplan preferences for the same unit type (i.e. studio, one bedroom, two bedroom, three bedroom), which will be incorporated into a unit offered to you three months before occupancy. If you accept the offer, you will be required to sign a formal lease for the new unit. Once the building receives its occupancy permit from the City, you will be able to schedule a visit to view the unit.
How is the seniority list determined?
Your seniority ranking will be stated in your N13 Notice and is based on your unit type and your original move-in date (your first move-in date if you have had multiple continuous tenancies within the same building). If you moved in on the same date as another unit, it is based on who signed a lease first. If you find that the date is incorrect on your form, you will have 35 days from receiving the Notice to Eligible Tenants to dispute that date and request a correction. The landlord will issue the final seniority list 15 days after that (50 days total from when the Notices were delivered).
If we waive our right to return, can we later choose to return after all?
No.
Can we exercise our right to return and then at the last minute, after the new building is ready for occupancy, suddenly decide to not move back into the new building after all?
Yes, even if you indicate in your Tenant Intention Form that you would like to exercise your right to return, you can refuse a replacement unit up until you sign a formal lease for the replacement unit.
How can we afford to return to the future building?
Every tenant has the legal Right to Return, which means you can return to a unit of the same type as the one you are currently leasing at a similar size and rent (only increased by the Provincial annual guidelines). Returning tenants will have access to all amenities provided in the new building.