Hamilton’s New Renovation License and Relocation By-law: A Guide for Landlords and Investors

Starting January 1, 2025, Hamilton’s new Renovation Licence and Relocation By-law 24-055 introduces significant changes for landlords planning renovations that require tenant displacement. This guide outlines key requirements and compliance strategies.

Core Requirements

Licensing Process

• Landlords must obtain a renovation licence within seven days of issuing an N13 notice
• Initial licence fee: $715
• Annual renewal fee: $125
• Licence validity: One year from date of issuance
• Renewal required if renovations exceed one year

Professional Documentation

• Application must include a report/letter from a qualified professional (engineer or architect) in good standing
• Documentation must confirm that vacant possession is essential for renovations
• Professional must be registered with either Professional Engineers Ontario or Ontario Association of Architects

Tenant Rights and Landlord Obligations

Right of First Refusal

• Tenants have the right to return to their unit post-renovation
• Tenants must notify landlords in writing within 120 days of receiving the N13 notice
• Return rent cannot exceed what would have been charged without interruption
• Landlords must provide written confirmation of arrangements

Temporary Accommodation Requirements

For tenants exercising right of first refusal, landlords must provide either:

1. Temporary Alternative Housing that is:
   • Comparable in cost to original unit
   • Similar in location (proximity to transit, amenities, etc.)
   • Similar in size (bedrooms and total area)

OR

2. Monetary Compensation:
   • Rent gap payments based on difference between current rent and CMHC market rates
   • Must be provided 7 days before the 1st of each month
   • Calculated using Hamilton Census Metropolitan Area data

Compliance and Enforcement

Penalties for Non-compliance

• Administrative penalty for operating without licence: $400
• Provincial Offences Act fines: $500-$1,000
• By-law violation fines:
  • Individual landlords: $500-$10,000
  • Corporations: $500-$50,000

Exemption Process

• Available if landlord and tenant cannot reach agreement within 120 days
• Must provide documentation of:
  • Attempted negotiations
  • Alternative accommodations offered
  • Compensation proposals
  • Explanation for lack of agreement

Best Practices for Landlords

1. Document Everything
   • Keep detailed records of all communications
   • Maintain copies of all notices and agreements
   • Document attempts to reach accommodation arrangements
2. Plan Ahead
   • Begin licence application process early
   • Budget for licensing fees and tenant compensation
   • Allow time for professional assessments
3. Maintain Clear Communication
   • Provide written notices promptly
   • Keep tenants informed of timelines
   • Document all offers and negotiations
4. Seek Professional Support
   • Contact Housing Help Centre Hamilton & Area (HHCHA) for guidance
   • Consider legal counsel for complex cases
   • Engage qualified engineers/architects early

Additional Resources

• For licensing questions: [email protected] or 905-546-2782 (option 2)
• For tenant support information: [email protected] or 905-546-2424 ext. 4557
• Housing Help Centre Hamilton & Area: Available for landlord education and support

Remember: This by-law aims to balance landlord renovation needs with tenant protection. Early planning, clear communication, and proper documentation are key to successful compliance.

– Kai T.