Unlocking Space and Income: Toronto’s New Second Suite Rules

In an effort to address the growing demand for affordable housing, Toronto has legalized second suites—commonly known as basement apartments, in-law suites, or accessory apartments. This decision, which was solidified through a by-law passed by the Toronto City Council and approved by the Ontario Municipal Board (OMB), marks a significant step in increasing the city’s housing supply. Here’s a detailed look at what this means for homeowners, potential buyers, and renters.

What Are Second Suites?

A second suite is a self-contained living unit within a single-detached or semi-detached home. These units typically include their own kitchen, bathroom, and living space, making them ideal for rental purposes or for accommodating family members, such as elderly parents or adult children.

Historical Context and Legalization

While second suites have existed in Toronto for many years, their legal status was inconsistent across different parts of the city. In 1994, provincial legislation allowed the creation of second suites across Ontario, but this was later repealed, leading to a patchwork of regulations in various municipalities.

In July 1999, Toronto City Council passed a by-law to legalize second suites throughout the city. However, the by-law faced opposition from various residents’ groups, leading to an appeal to the Ontario Municipal Board (OMB). The OMB approved the by-law in April 2000 but required amendments to address public concerns, particularly regarding the exterior appearance of homes with second suites and the provision of parking.

The by-law officially came into effect in July 2000, making second suites legal in all single-detached and semi-detached homes in Toronto, provided they meet specific criteria, including compliance with fire and building codes.

Key Conditions for Legal Second Suites

To ensure that second suites are safe and fit within the character of Toronto’s neighborhoods, the by-law includes several conditions:

• Self-Contained Unit: The second suite must have its own kitchen, bathroom, and living area.
• Age of the Home: The home, including any additions, must be at least five years old.
• Size Requirements: The floor area of the second suite must be smaller than the primary unit.
• Parking: Most homes with a second suite must have at least two parking spaces, although exceptions exist for certain districts where only one parking space is required.
• Building and Fire Code Compliance: All new second suites must comply with the Ontario Building Code and require a building permit. Existing suites must meet fire code regulations.

Inspection and Compliance

Homeowners who want to create or legalize a second suite must have the unit inspected by the Fire Department. There is a fee for this inspection, and homeowners may need to make upgrades to ensure the suite meets all code requirements.

Financial Implications

One of the concerns for homeowners considering adding a second suite is the potential impact on property taxes. In most cases, the addition of a second suite will have little impact on property taxes unless it involves a significant addition to the home that increases its overall value.

No Financial Assistance Available

Currently, the City of Toronto does not offer grants or loans to encourage the creation of second suites. However, discussions are ongoing about the possibility of introducing such programs in the future.

Benefits of Second Suites

For homeowners, second suites offer a way to generate additional income, increase property value, and make more efficient use of space. For renters, they provide more affordable housing options in a city where rental rates are continually rising.

How to Proceed

If you are considering adding a second suite to your home, it’s essential to consult with the City of Toronto’s Urban Planning and Development Services Department to ensure your plans comply with all applicable regulations. The department can also provide guidance on the necessary permits and inspections.

The legalization of second suites in Toronto is a crucial step in addressing the city’s housing shortage and providing more affordable options for residents. By following the necessary regulations and ensuring compliance with building and fire codes, homeowners can contribute to the solution while also benefiting from the additional income and increased property value that a second suite can provide.