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CITY OF HAMILTON
BY-LAW NO. 23-005
To Amend By-law 07-170, a By-law to License and Regulate Various Businesses
WHEREAS pursuant to the provisions of Part IV of the Municipal Act, 2001, S.O. 2001,
c. 25 ("Municipal Act, 2001") the Council of the City of Hamilton ("Council") may provide
for a system of licences with respect to businesses;
WHEREAS the City of Hamilton has a Business Licensing By-law 07-170 which regulates
a variety of businesses and Council deems it necessary to also regulate Short-Term
Rentals;
WHEREAS pursuant to Section 10 of the Municipal Act, 2001, Council is exercising its
authority to regulate Short-Term Rentals in the interest of health and safety, well-being of
persons, consumer protection and nuisance control;
WHEREAS section 436 of the Municipal Act, 2001 authorizes a municipality to pass by-
laws providing that the municipality may enter on land at any reasonable time for the
purpose of carrying out an inspection to determine whether or not there is compliance
with a by-law, a direction or order, or a condition of a licence;
WHEREAS section 390 of the Municipal Act, 2001 authorizes a municipality to pass by-
laws imposing fees or charges for services or activities provided or done by it or on behalf
of it; and
NOW THEREFORE the Council of the City of Hamilton enacts as follows:
1. That By-law 07-170 be amended by adding the following at the end of Section 6
(1) (e) (i), after Schedule 30 Transient Traders:
Schedule 32
Short Term Rentals
2. That By-law 07-170 be amended by adding the following at the end of Section
30:
Schedule 32
Short-Term Rentals
3. That By-law 07-170 be amended by adding Schedule 32 to the list of Schedules
in Appendix "B" Departmental Policy Standard Character and Driving Record
Criteria for Conditional Issuance and Refusal of Establishment and Trade
Licence Applications or Renewals.
Authority: Item 4, Planning Committee
Report 23-001 (PED17203(c))
CM: January 25, 2023
Ward: City Wide
Bill No. 005
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4. That By-law 07-170 be amended by adding Appendix A to this amending by-law
as Schedule 32 - Short-Term Rentals;
5. That By-law 07-170 be amended by adding the following subsection after 27 (3):
27 (4) Every person who contravenes any provision of this bylaw is guilty
of an offence and upon conviction is liable to a fine as provided for by the
Provincial Offences Act, R.S.O. 1990, Chapter P.33, as amended.
6. That in all other respects, By-law 07-170 is confirmed; and
7. That the provisions of this by-law shall become effective on the date passed by
Council.
PASSED this 25th day of January, 2023.
A. Horwath
A. Holland
Mayor
City Clerk
To Amend By-law 07-170, a By-law to License and Regulate Various Businesses
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Appendix A
SCHEDULE 32
SHORT-TERM RENTALS
1:
DEFINTIONS
1.1
For the purposes of this Schedule and any forms, contracts or policies prepared in
relation to this Schedule:
"Building Code Act" means the Building Code Act, 1992, S.O. 1992, c. 23;
"Building Code" means Ontario Regulation 332/12 established under the
Building Code Act;
"By-law" means the City's By-law No. 07-170, a By-law to License and Regulate
Various Businesses, as amended, and includes this Schedule 32;
"User Fees and Charges By-law" means the City's user fees and charges by-
law, as amended and as approved annually by Council;
"Fire Protection and Prevention Act" means the Fire Protection and Prevention
Act, 1997, S.O. 1997, c. 4;
"Fire Code" means Ontario Regulation 213/07 established under the Fire
Protection and Prevention Act;
"Health Protection and Promotion Act" means the Health Protection and
Promotion Act, R.S.O. 1990, c. H. 7;
"Operator" means any individual who operates a Short-Term Rental and does not
include a corporation;
"Principal Residence" means a dwelling unit owned or rented by an individual,
either alone or jointly with others, where the individual is ordinarily resident, makes
their home and conducts their daily affairs, including, without limitation, paying bills
and receiving documentation related to identification, taxation and insurance
purposes, driver's licenses, income tax returns, medical plan documentation,
vehicle registration and voter registration, or similar information;
"Property Standards By-law" means the City's By-law No. 10-221, being a By-
law to Prescribe Standards for the Maintenance and Occupancy of Property, as
amended, or any successor by-law thereto;
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"Reservation" means a booking or commitment between an Operator and a
person that a Short-Term Rental will be available for the person's use for a
specified period of time;
"Schedule" means this Schedule 32 under the By-law;
"Short-Term Rental" means all or part of a dwelling unit used to provide sleeping
accommodations to the travelling public for any rental period that is less than 28
consecutive days in exchange for payment or other remuneration;
"Short-Term Rental Broker" means any person who advertises, facilitates the
advertisement of, or brokers Short-Term Rental Reservations via the internet, or
otherwise, and who:
(1) receives payment, compensation, or any financial benefit, due to, as a result
of, or in connection with a person making or completing a Short-Term Rental
Reservation; or
(2) collects, accesses, or holds information on the number of nights that
Reservations of any Short-Term Rental are made or completed;
This definition does not include a person who facilities or brokers Reservations for
a Short-Term Rental that is the Principal Residence of that person or a Short-Term
Rental that is located on the same property as the Principal Residence of that
person.
In this definition, "person" includes multiple persons who, acting together, carry on
the business of a Short-Term Rental Broker, despite the fact that no single one of
those persons carries on the activity in its entirety, and such may be held jointly
and severally responsible for each other's actions.
"Zoning By-Law" means a by-law enacted by the City under Section 34 of the
Planning Act, R.S.O. 1990, c. P.13.
2.
APPLICATION
2.1
This By-law does not apply to:
(a)
a hotel, motel, inn, resort, or bed and breakfast as defined and regulated by
the Ontario Building Code and/or Zoning By-law;
(b)
a residence operated by a post-secondary institution;
(c)
an accommodation rented out to tenants in accordance with the Residential
Tenancies Act, 2006, S.O. 2006, C. 17.
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(d)
a home for special care operated under the authority of a licence issued
under the Homes for Special Care Act, R.S.O. 1990, c. H. 12;
(e)
a long-term care home operated under the authority of a licence issued
under the Long-Term Care Homes Act, 2007, S.O. 2007, c.8;
(f)
a retirement home operated under the authority of a licence issued under
the Retirement Homes Act, 2010, S.O. 2010, c. 11; or
(g)
a boarding, lodging or rooming house, as defined in the Building Code
and/or Zoning By-law.
3.
PROHIBITIONS
3.1
No person shall operate a Short-Term Rental unless they have obtained a licence
to do so from the City.
3.2
No person shall operate a Short-Term Rental unless the Short-Term Rental is that
person's Principal Residence or unless the Short-Term Rental is on the same
property as the person's Principal Residence.
3.3
No person shall act as a Short-Term Rental Broker unless they have obtained a
licence to do so from the City.
3.4
No person shall provide or advertise a Short-Term Rental without prominently
displaying in each advertisement or listing:
(a)
the Operator's licence number; and
(b)
the maximum overnight guest limit as established by Section 4.8 of this
Schedule;
3.5
No person shall fail to remove an advertisement for a Short-term Rental that is
prohibited under this by-law within seven (7) days of becoming aware of the
prohibition or receiving notice to do so by the Director.
3.6
No person shall provide or advertise a Short-Term Rental to a number of guests
that is in excess of the overnight guest limit established in Section 4.8 of this
Schedule.
3.7
No person shall provide or advertise a Short-Term Rental with a Short-Term Rental
Broker that is not licenced in accordance with this By-law.
3.8
Every Short-Term Rental Broker and Operator is required to maintain insurance
as specified in this Schedule.
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3.9
No person who is required under this Schedule to maintain insurance shall fail to
keep the policy in force for the period for which the licence is in effect, inclusive of
any renewal period.
3.10 Any lapse in maintaining the insurance coverage required in this Schedule
invalidates any licence issued under this By-law.
4.
OPERATORS
4.1
To apply for an Operator's licence or its renewal, an applicant shall submit to the
City the information required by this By-law, together with all applicable fees, as
prescribed by the User Fees and Charges By-law.
4.2
An application for an Operator's licence shall be in a form approved by the Director
and require the applicant to provide:
(a) The Operator's name, phone number and e-mail address;
(b) The address of the Operator's Short-Term Rental;
(c) A floor plan showing the square footage of the residential unit in which the
Short-Term Rental will be located including the number of bedrooms in the
Short-Term Rental, along with the number of smoke alarms and carbon-
monoxide detectors and their respective locations;
(d) A description of what parts of the property will be used for Short-Term Rental;
(e) A description of the type of building in which the Short-Term Rental is located;
(f) The number of off-street parking spaces available for the Short-Term Rental;
(g) The guest information package, as further described in section 4.15;
(h) A detailed fire escape plan;
(i) Proof of adequate insurance coverage in accordance with section 4.16;
(j) Approval of condo board and/or owner of property, if applicable
(k) Statutory declaration that the property is in compliance and will be maintained
in compliance with the Fire Protection and Prevention Act and any regulations
made thereunder including the Fire Code;
(l) Zoning verification for secondary dwelling units;
(m)The name and telephone number of an emergency contact person who will be
available 24 hours a day during rental periods;
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(n) List of companies used to advertise the listing;
(o) Government-issued identification that is satisfactory to the Director to
demonstrate the Short-Term Rental is the Operator's Principal Residence or
located on the same property as the Operator's Principal Residence;
(p) The applicant's original criminal record, provided that if no original criminal
record exists, the applicant shall submit instead original certification from the
police that no such record exists;
(q) A list of any criminal or provincial offences in all jurisdictions for which the
applicant has been convicted and not pardoned and which do not appear on
any original criminal record submitted; and
(r) Any other information or documents required by the Director.
4.3
No Short-Term Rental Operator's licence shall be issued to a corporation and no
more than one Short-Term Rental Operator licence per Operator is permitted.
4.4
An applicant for an Operator's licence or its renewal shall be an individual who is
18 years of age or older.
4.5
All licences issued to Operators shall be issued a unique licence number and will
be valid for one year after issuance. Operators may renew their licences annually
by paying the applicable fees and submitting the required documents.
Principal Residence Requirement:
4.6
For the purpose of this By-law, an Operator shall be deemed to have only one
Principal Residence at any time.
4.7
No Operator shall rent or advertise more than one dwelling unit as a Short-Term
Rental on the property where the Operator's Principal Residence is located.
Limitations regarding rentals
4.8
No Operator shall exceed the maximum limit for overnight guests of two (2)
persons per sleeping room. For the purpose of this requirement, children that are
two (2) years old or younger are exempt.
4.9
Operators shall ensure that their respective secondary dwelling units comply with
the Zoning By-law and are recognized by the City through the issuance of a
building permit and undergo inspections to confirm compliance with the Property
Standards By-law, Building Code Act; and Electricity Act, 1998, S.O. 1998, c. 15,
Sched. A.
4.10 All Operators shall post their fire escape plan on all floors of their building in a
conspicuous place.
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4.11 All Operators shall have working smoke alarms and carbon monoxide detectors in
their buildings in accordance with the Fire Code.
Requirements regarding guests and collection of information
4.12 Every Operator shall keep a record of each concluded transaction related to the
Operator's Short-Term Rental for three years following the date of the transaction.
A transaction is concluded on the last day of the rental period. The records
retained shall include the following:
(1) The number of nights the Short-Term Rental was rented;
(2) The nightly and total price charged for each rental; and
(3) Any other information required by the Director.
4.13 Every Operator shall provide the information referred to above to the City within 30
days of being requested to do so by the Director.
4.14 Every Operator shall provide the guest who made the reservation with an
information package for each rental period:
(a)
Electronically at the time of booking; and
(b)
Within the residential unit, in a printed document that is visible and
accessible to all guests.
4.15 The information package prescribed above shall include:
(a)
contact information for the Operator or person who is available to receive
communications from any guest during the rental period;
(b)
instructions for use of the 9-1-1 emergency system;
(c)
the name and address of the nearest two (2) hospitals or emergency medical
services providing emergency care;
(d)
non-emergency contact information for Hamilton Police Service;
(e)
a floor plan for the residential unit indicating emergency evacuation routes and
the location of safety equipment;
(f)
notice to guests of the presence of any system onsite that is making video or
audio recordings or photographs;
(g)
instructions for solid waste disposal, to include information on the applicable
waste collection day and instruction for composting and recycling;
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(h)
instruction for legal parking onsite and in the vicinity of the property, as
applicable; and
(i)
copy of the applicable Operator licence, occupancy limits and any
conditions imposed on the licence.
Insurance
4.16 Every Operator shall have and maintain Homeowners Insurance, Condominium
Insurance, or Renters Insurance, as appropriate, that includes the following:
(a)
coverage for Short-Term Rental or home sharing activity that is appropriate
for the nature of the property,
(b)
Host Liability or Commercial General Liability coverage of not less than One
Million Dollars ($1,000,000.00) per occurrence for personal injury, bodily
injury, death, and damage to property, and,
(c)
a provision that the City will be notified with no less than thirty (30) days
written notice of any cancellation.
5.
SHORT-TERM RENTAL BROKERS
5.1
To obtain a Short-Term Rental Broker licence with the City, an applicant shall
submit to the City the information required in this By-law together with all applicable
fees, as prescribed in the User Fees and Charges By-law.
5.2
A person may apply for a licence as a Short-Term Rental Broker by providing the
Director with the following:
(a) A completed application form prescribed by the Director containing:
(i)
the full name of the applicant;
(ii)
if the applicant is a corporation, the relevant duly certified
incorporating documents and an updated certified copy of an annual
return with a list of shareholders of the corporation;
(iii)
If the applicant is a partnership, certified documents indicating the
name of the partnership and the names and addresses of each
partner; and
(b) Proof that the applicant is eighteen (18) years of age or older, if the applicant
is a natural person;
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(c) The address of a place of business in the Province of Ontario, which is not a
post office box, to which the Director may send during business hours any
notice or documentation or communication that may be required under this By-
law and which the applicant or the applicant's agent will accept receipt of such
notice, documentation or communication;
(d) The name, telephone number and e-mail address of a designated
representative;
(e) Proof of insurance as required under this Schedule;
(f) Details of the process by which the company will remove advertisements for a
Short-Term Rental if its Operator has not obtained a licence from the City;
(g) Details of the company's procedure for dealing with problem Operators and
responding to complaints; and
(h) Any other information or documents required by the Director.
5.3
In any of the above required information changes during the term of the licence,
the Short-Term Rental Broker shall notify the City at its earliest convenience.
5.4
A Short-Term Rental Broker licence shall be valid for five (5) years and may be
renewed by paying the applicable fees and submitting the required documents
pursuant to this By-law.
Data Collection
5.5
A Short-Term Rental Broker shall execute an agreement with the City governing
the collection, use, disclosure and retention of information on Short-Term Rentals,
Operators and guests, on terms satisfactory to the Director and City Solicitor.
5.6
If required by law, a Short-Term Rental Broker shall obtain the consent of the
Operators and guests for the collection, use and potential disclosure of the
Operator's and guest information to and by the City for the purpose of the
administration of this By-law, as amended from time to time, or its successor by-
laws.
5.7
Every Short-Term Rental Broker shall keep a record of each concluded transaction
in relation to a Short-Term Rental listed or advertised on its platform in the city of
Hamilton for three years following the last day of the rental period. A transaction
is concluded on the last day of the rental period. The records retained shall include
the following:
(a)
The listing identification number and corresponding licence number of each
Short-Term Rental listing for which it has provided Short-Term Rental
Broker services;
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(b)
The total number of nights each Short-Term Rental listing has been rented
in each calendar year or part thereof;
(c)
The total amount of revenue collected for accounts associated with each
Short-Term Rental listing in each calendar year, or part thereof;
(d)
The total number of complaints received by the Short-Term Rental Broker
in respect of each Short-Term Rental in each calendar year or part thereof;
and
(e)
Any other information required by the Director.
5.8
No Short-Term Rental Broker shall fail to remit to the Director the records required
above every three (3) months during the licence term.
5.9
No Short-Term Rental Broker shall fail to make available to the Director the records
or information required pursuant to this Schedule for a specific Short-Term rental
listing within seven (7) days following a request to do so.
5.10 Every Short-Term Rental Broker shall make available to the City the number of
Short-Term Rental listings or advertisements that have been removed from its
platform in accordance with section 3.5 of this Schedule.
5.11 Every Short-Term Rental Broker shall maintain and make publicly available its
procedure for dealing with complaints it receives about nuisances, criminal activity,
and or contravention of federal, provincial or municipal law related to a Short-Term
Rental.
5.12 Every Short-Term Rental Broker shall have and maintain a system for receiving
and responding to complaints from the public.
5.13 Every Short-Term Rental Broker shall convey any communications issued by the
Director that relate to the requirements of this By-law to all Operators listing or
advertising their Short-Term Rental with the Short-Term Rental Broker in a format
and manner prescribed by the Director.
Insurance
5.14 Each Short-Term Rental Broker shall have and maintain:
a) Commercial General Liability Insurance subject to limits of not less that two
million dollars ($2,000,000.00) inclusive per occurrence for bodily injury, death
and damage to property including loss of use, that includes: blanket contractual
liability, premises and operations liability, products and completed operations
liability, contingent employers liability; personal injury, owners and contractors
protective coverage; broad form property damage; occurrence property
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damage; employees as additional insured, and cross liability and severability
of interest provision to the satisfaction of the City;
b) Comprehensive Crime Insurance, broad form coverage endorsed to include
third parties to adequately protect against loss of monies, securities or other
properties, while such property is in the Broker's care, custody, and control, for
dishonesty, disappearance and destruction, to protect against incidents arising
out of but not limited to theft, robbery or burglary; having a limit of not less than
$50,000) for Employee Dishonesty (Commercial Blanket Form A), Loss inside
the Premises, and Loss outside the Premises and Computer Funds Transfer
Fraud.
c) Cyber Liability and Privacy Breach Liability insurance in an amount of not
less than $1,000,000 per occurrence, to protect against privacy breach and
violations as a result of but not limited to unauthorized access to or wrongful
disclosure or dissemination of any private information, failure to properly
handle, manage, store, destroy or control personal or confidential information
and include the failure to comply with any privacy laws;
i. extend to include the costs associated with notification of
affected parties including credit monitoring costs for those
individuals, regardless if required by statute as well as any third
party fines or penalties or costs imposed as a result of any
privacy or cyber breach including judgements, settlements, or
defense of any regulatory action involving a breach of privacy;
ii. Privacy breach expenses including crisis management and
credit monitoring expenses related to electronic and non-
electronic breaches to a limit of not less than $1,000,000;
5.15 The insurance provided in accordance with the above shall name the City as
additional insured.
5.16 The insurance provided in accordance with the above shall include an
endorsement to provide the City with no less than 30 days prior notice of any
cancellation.
6.
GENERAL REQUIREMENTS
6.1
No person shall enjoy a right in the continuance of a licence and at all times the
value of a licence shall be the property of the City.
6.2
No person shall sell or transfer a licence issued under this Schedule.
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6.3
No person licensed under this Schedule shall advertise, promote or carry on
business under any name other than that endorsed upon that person's licence.
6.4
The City shall, upon receipt of an application for a licence, or its renewal,
investigate as necessary with respect to the application and shall:
(1) if there are any reasonable grounds to believe that the applicant may not be
entitled to the issuance or renewal of a licence based on the criteria identified
in this By-law, send notice of this fact to the applicant; or
(2) subject to the provisions of this By-law, issue or renew the licence, with or
without conditions and send the appropriate notice to the applicant.
6.5
In addition to the criteria in section 12 of By-law 07-170, the Director shall issue or
renew a license to any person who meets the requirements of this By-law, except
where:
(1) the conduct, or past conduct, of the person affords the Director reasonable
grounds to believe that the person has not or will not carry on the Short-Term
Rental or the Short-Term Rental Broker business in accordance with applicable
law or with honesty and integrity;
(2) the applicant is a corporation and its conduct or the conduct of its officers,
directors, employees, or agents afford reasonable grounds to believe that its
business has not been, or will not be carried on in accordance with law or with
integrity and honesty;
(3) The Director reasonably believes that the issuing of a license to a person could
be adverse to the public interest;
(4) The Director reasonably believes that the carrying on of the Short-Term Rental
or Short-Term Rental Broker business by the applicant has resulted, or will
result, in a breach of this By-law, a Zoning By-law or any other law;
(5) The Director has reasonable grounds to believe that the premises, advertising,
or platform in respect of which the licence is required have not complied or will
not comply with the provisions of this By-law, a Zoning By-law or any other law;
(6) The lot and/or building on which the Short-Term Rental is situated is subject to
an order, or orders, made pursuant to (or by): the Property Standards By-law,
the Building Code Act; the Fire Protection and Prevention Act; the Health
Protection and Promotion Act or any regulations made thereunder;
(7) The Short-Term Rental, the building in which it is situated, or the lot on which
the building is situated is not in compliance with the applicable Zoning By-law;
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(8) The person or the subject lot is indebted to the City by way of fines, penalties,
judgements or outstanding (past due) property taxes; or
(9) The conduct of the applicant or other circumstances afford reasonable grounds
to believe that the operation of the Short-Term Rental or the acting as Short-
Term Rental Broker by the applicant has infringed, or would infringe, the rights
of other members of the public, or has endangered, or would endanger, their
health and safety.
6.6
Where an applicant for a Short-Term Broker licence is a corporation or a
partnership, section 6.5 shall apply to any of the officers or directors of the
corporation or partners in the partnership.
6.7
The Director may deny the issuance or renewal or a license where the applicant
has been convicted within the past five (5) years of a criminal offence for which a
pardon has not been granted.
6.8
The collection, use, disclosure, transmission, retention and destruction of personal
information by any Operator or Short-Term Rental Broker must be conducted in
accordance with the requirements of PIPEDA.
7.
ENFORCEMENT
7.1
Notwithstanding anything else in this By-law, for the purpose of investigating
compliance with the By-law, the Director may audit or examine all books, records
and any account, voucher, letter, facsimile, and electronic or other document held
by a Short-Term Rental Broker or Operator that relates or may relate to information
that is or should be in the person's books or records.
7.2
A Short-Term Rental Broker and Operator shall comply with all audit directions
given by the Director within the time he or she specifies, including;
(a) Giving the Director all reasonable assistance with their audit or examination;
(b) Answering all questions relating to the audit or examination either orally or, if
the Director requires, in writing, on oath or affirmation, or by statutory
declaration;
(c) Attending at a premise or place where the business is carried on or any City
office for the purposes of giving the Director reasonable assistance and
answering questions related to the audit or examination; and
(d) Producing on oath or affirmation or otherwise all books, letters, accounts,
invoices, financial statements, electronic or such other documents as the
Director considers necessary to determine compliance with this By-law.
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7.3
Any person authorized by the Director may at all reasonable times and in
accordance with any applicable requirements in the Municipal Act, 2001, as
amended, inspect any premises used for the carrying on of any business in respect
of which a person is required to be licensed under this Schedule.
7.4
No person who has or is required to have a licence under this Schedule shall
obstruct or permit to be obstructed the making of the inspection.
7.5
If requested by the City, an inspection shall be scheduled and conducted within
seven (7) days of the City's request.
8.
DIRECTOR AUTHORITY AND ADMINISTRATIVE PROVISIONS
8.1
The Director may, at their discretion, issue interpretation bulletins or guidelines on
matters relating to this Schedule, including its enforcement or application
8.2
The Director may establish standards and guidelines applicable to the issuance,
renewal or entitlement to all licences issued under this Schedule.
8.3
The Director may delegate any authority or function provided for in this Schedule
to any employee of the City designated by the Director.
8.4
All communication relating to this Schedule between the City and an applicant or
licensee, shall be sent via e-mail to the e-mail address most recently provided to
the City as part of the licensing process under this Schedule, except where another
method is authorized by the Director.
8.5
Any e-mail sent in accordance with 8.4 shall be deemed for the purposes of this
Schedule to have been received by the addressees on the day it is sent.
8.6
All records and information that must be maintained by a Short-Term Rental Broker
or Operator or that may be audited, examined or collected by the City under this
Schedule are deemed to be collected and properly used for the purposes of
administrating and enforcing this By-law.