Business Licence

Renovation Licence and Relocation By-law

Hamilton's Renovation Licence and Relocation By-law 24-055, in effect as of January 1, 2025, addresses bad faith evictions and protects tenants through new requirements for landlords who want to complete renovations where vacant possession of a unit is required. The By-law applies to all rental housing units anywhere in Hamilton.

Starting January 1, 2025, all landlords must apply for a renovation licence within seven days of serving an N13 notice to tenants to vacate their rental unit for extensive repairs or renovation.

Tenant Information

Landlord/Property Owner Information

Tenant Right of First Refusal

Under Section 53 of the Residential Tenancies Act, 2006, tenants who receive an N13 notice for the purpose of extensive renovations or repairs to their rental housing unit have the right of first refusal. If exercised, the right of first refusal allows a tenant to move back into the unit once the renovations or repairs are completed.

To use their right of first refusal, tenants must inform their landlord in writing within 120 days of receiving an N13.

Under the By-law, the landlord must make temporary arrangements with tenants who are using their right of first refusal for:

Temporary alternative accommodations or compensation while the renovations or repairs are in progress; and,
The tenant’s return to the unit at a rent that is no more than what could be lawfully charged if there had been no interruption to the tenancy.

An attestation form describing the landlord and tenants’ agreed upon arrangements must be submitted to Licensing and By-law Services as part of the renovation licence application.

When a completed attestation form is received, Licensing and By-law Services staff will contact the tenant to confirm the accuracy of the information provided on the attestation form.

Arrangement Options

The landlord and tenant arrangements may be either:

Temporary alternative accommodations comparable to the tenants’ original unit in cost, location and size.

Monetary compensation (rent gap payments) calculated as the difference between the tenant’s existing unit size, current rent rate and the annual average market rent in the Hamilton Census Metropolitan Area (CMA) for the current year, based on data provided by the Canada Mortgage and Housing Corporation (CHMC).

The landlord must notify Licensing and By-law Services if the landlord and tenant are unable to agree upon arrangements during the renovation or repair period.

Tenant Supports

Tenants who have been issued an N13 may contact [email protected] or call 905-546-2782 option 2 to ensure that their landlord is in compliance with the By-law.

Under the By-law, landlords must provide tenants with a copy of the Tenant Rights and Entitlement Package(PDF, 270.84 KB) that outlines tenant rights.

Administered through Housing Services, the Tenant Support Program helps low-income Hamilton residents understand their rights as tenants. For more information about the Tenant Support Program and to share tenant-related concerns, contact [email protected] or call 905-546-2424 ext. 4557.

Qualified Professionals

Application packages must include a letter or report from a qualified professional stating that the repair or renovation is so extensive that vacant possession of the unit is required. The qualified professional must be a member in good standing with Professional Engineers Ontario or the Ontario Association of Architects.

Exemptions

If the landlord/property owner and tenant that is exercising the right of first refusal are unable to come to an agreement on temporary arrangements within 120 days of the N13 being issued the landlord/property may contact Licensing and By-law Services staff to request an exemption. Staff will request additional documentation, such as an explanation as to why an agreement could not be made, copies of correspondence with the tenant, a list of alternative accommodations or compensation offered to the tenant, etc. Consideration of requests for an exemption under the By-law is at the discretion of the Director of Licensing and By-law Services.

Licence Renewal

A licence renewal is required when repairs or renovation exceeds one year from the date the renovation licence was issued. Contact Licensing and By-law Services before the renovation licence expiry date to learn about the renewal process and requirements.

Landlord/Property Owner Supports

The Housing Help Centre Hamilton & Area (HHCHA), a partner in the Tenant Support Program, can assist landlords with tenancy issues, provide education on legislated standards and landlord rights and responsibilities, and help identify resources and access support services.

Apply for a Renovation Licence

Review the renovation licence information in the Business Reference Guide for more information on application requirements by licence type.
Provide impacted tenants with the Tenants Rights and Entitlement Package

The following documents and supporting information must be included in the application package:

Completed Renovation Licence Application Form
Copies of all N13 notices served to each impacted rental housing unit
Proof of Building Permit
Letter from a qualified professional (e.g. Engineer or Architect) indicating vacant possession of each impacted rental housing unit is required
Completed Attestation Form for each impacted rental housing unit (may be submitted up to 120 days after the date that N13(s) were served, if required)

Application packages and supporting forms can be submitted:

Pay licence fee online

The cost of a renovation licence is $715, with an annual renewal fee of $125. To make an online payment you must have:

Your file/application/licence number

Provide notice of application to tenants within five days of submitting the renovation licence application to the City and, if the property includes multiple rental units, post a notice on the premises in a location that is clearly visible to all tenants.
Come to an agreement with impacted tenants regarding temporary arrangements (temporary alternative housing or compensation).
Submit the completed attestation form as soon as the agreement is made.
- A landlord/property owner may apply for an exemption if they are unable to reach an agreement on temporary arrangements.
Timelines for licence issuance depend on when supporting materials are submitted. A licence will not be issued until all supporting materials are submitted and reviewed.
Renew your licence if the repair or renovation work exceeds one year. A renewal fee of $125 applies.
- A licence reinstatement fee (late fee) will be added to the renewal fee if renewal documents are not received before the Renovation Licence expires.

Frequently Asked Questions

Why does the City of Hamilton require landlords to apply for a Renovation Licence to renovate Rental Housing Units?

The City of Hamilton’s Renovation Licence and Relocation By-law (“By-law”), requires landlords to obtain a licence from Licensing and By-law Services before starting any renovation work on a rental housing unit located anywhere in Hamilton when a tenant is required to move out of the rental housing unit. The By-law is one component in a full suite of options to halt renovictions in Hamilton. The By-law does not prohibit landlords from issuing N13s to their tenants, but instead creates a mechanism for the City to receive information about N13s issued in Hamilton. The By-law also requires landlords to provide supporting documentation to Licensing and By-law Services to confirm that vacant possession of the rental housing unit is required to complete the renovations, and requires landlords to provide information to tenants regarding their rights and supports available through the Tenant Support Program.

What is an N13 notice?

An N13 is a provincial legal notice provided by a landlord to a tenant when the landlord wants to demolish the rental unit, extensively repair it or convert it to another use. The Landlord and Tenant Board provides instructions on when the N13 notice can be used, a form for landlords to complete, and resolves disputes related to the N13 process.

When does the Renovation Licence and Relocation By-law take effect?

The Renovation Licence and Relocation By-law comes into effect on January 1, 2025. A landlord that issues an N13 on or after January 1, 2025 must also apply for a Renovation Licence through the Licensing and By-law Services Division within 7 days.

What is the Tenant Support Program?

The Tenant Support Program is administered by Housing Services in partnership with Housing Help Centre Hamilton & Area (HHCHA), Hamilton Community Legal Clinic (HCLC) and Association of Community Organizations for Reform Now Hamilton (ACORN Hamilton). Together, these organizations work to prevent bad faith evictions and help tenants stay informed about their rights.

For more information about the Tenant Support Program and to share tenant-related concerns, contact [email protected].

What is the Tenant Rights and Entitlement Package?

The Tenant Rights and Entitlement Package is an information package provided by the City of Hamilton to inform tenants about their rights and entitlements under the Residential Tenancies Act, 2006, and this By-law. The Tenant Rights and Entitlement Package will be available by January 1, 2025 through the Tenant Support Program resources.

What type of properties fall under the Renovation Licence and Relocation By-law?

The By-law applies to all rental housing units within the City of Hamilton. The By-law does not apply to properties such as: licenced hotels, motels, inns or bed & breakfasts, tourist homes, licensed lodging homes, licensed short-term rentals, or licensed residential care facilities.

Is a separate licence application required for each Rental Housing Unit to be renovated?

A renovation licence is required for each Rental Housing Unit and/or each Residential Complex for which a building permit is issued. If a building permit is issued for renovations impacting multiple Rental Housing Units at the same time (e.g. N13s issued to all impacted Rental Housing Units at the same time), then only one renovation licence is required for all impacted Rental Housing Units. If N13s are issued separately then multiple renovation licences may be required.

How long is a renovation licence valid?

A Renovation Licence is valid for one year from the date it was issued.

What is the tenant’s right of first refusal?

Under Section 53 of the Residential Tenancies Act, 2006 tenants have the right to move back into their Unit once the renovation work is finished. This right is called the right of first refusal. Tenants must inform their landlord in writing within 120 days of receiving a N13 whether they will be using their right of first refusal to move back into the unit when renovation work is finished. Tenants must also provide their landlord with their temporary address during the renovation period work.

What are the requirements under the Renovation Licence and Relocation By-law if a tenant exercises their legal first right of refusal?

If a tenant provides their landlord with written notification within 120 days of receiving the N13 that they intend to exercise the right of first refusal, a landlord must provide the tenants an opportunity to move back into the unit after the renovations are complete as per Section 54 of the Residential Tenancies Act, 2006. Under the By-law, a landlord must make temporary arrangements with a tenant who has exercised their right of first refusal: either a temporary alternative accommodation or compensation to the tenant for the duration of the renovation. The landlord must provide the City of Hamilton with proof of the arrangements made with the tenant using the Attestation form. The City does not enforce the Residential Tenancies Act, 2006.

What form of temporary arrangements should a landlord offer to tenants that are issued N13 notices?

When issuing N13 notices to tenants, a landlord must offer temporary arrangements to tenants that have exercised their right of first refusal in the form of either temporary alternate housing or monetary compensation (rent gap payment).

Temporary alternate accommodation requirements:

Temporary alternate accommodations must be comparable to the tenant’s original unit in cost, location, and size.

Cost: the rental rate of the temporary alternate accommodation is equal or less than the rent of the original unit.
Location: the temporary alternate accommodation is a similar distance as the original unit to transportation options (including transit services); Community infrastructure (e.g. recreation facilities, libraries, police stations, schools, and places of religious assembly); commercial services and amenities.
Size: the temporary alternate accommodation has the same or similar number of bedrooms and approximate total surface area as the original unit.

Rent gap payment requirements:

If a landlord is unable to provide temporary alternate accommodations at the same rent amount, a landlord shall provide impacted tenants with rent gap payments to minimize additional costs to tenants while tenants are in temporary alternative accommodations.

Rent gap payments shall be based on the tenant’s unit size, current rent rate and the most recent Canada Mortgage and Housing Corporation (CMHC) annual average market rent in the Hamilton Census Metropolitan Area (CMA) for the current year, based on the size (# of bedrooms) of the tenant’s current rental unit. These rates would be updated on a yearly basis following the annual release of new data from the CMHC.

The full difference in rent between these amounts and a tenant’s current rent would be required for the period of displacement where an applicant is not able to provide temporary alternative accommodations in the same area at the same rent, and a tenant must find their own accommodations. Rent gap payments must be provided to the tenant within 7 days before the 1st day of each month during the renovation period.

What are the requirements under the By-law if the tenant does not exercise their legal right of first refusal within 120 days of receiving the N13 notice?

If a tenant does not exercise their right of first refusal, a landlord is not required under the Renovation Licence and Relocation By-law to make temporary arrangements with the tenant (i.e. provide the tenant with temporary alternative housing or compensation).

What if the landlord and tenant cannot come to an agreement on temporary arrangements during the renovation period?

If the landlord and tenant cannot make temporary arrangements for accommodations or compensation during the renovation period, a landlord may apply for an exemption by providing additional information and documentation to explain why an arrangement could not be made.

How will the Renovation License and Relocation By-law be enforced?

Enforcement of the By-law will be based on a reactive approach. Staff must receive either a formal complaint from a tenant who has been or may be issued an N13 notice or who is in receipt of an application for a Renovation Licence. Officers will use their discretion to issue Orders to obtain compliance, and fines and/or fees may follow for non-compliance.

What is the cost associated with obtaining a Renovation Licence?

The cost of a renovation licence is $715 with an annual renewal fee of $125. A licence re-instatement fee (late fee) will be added to the renewal fee if renewal documents are not received prior to expiry date of the Renovation Licence.

What penalties and set fines could a landlord face for not complying with the by-law?

An individual or corporation charged under the Renovation Licence and Relocation By-law may be subject to fines, penalties, or other orders.

Administrative penalties for performing renovations without a licence or transferring a licence are $400.

Set fines under the Provincial Offences Act range from $500 to $1000.

Fines for non-compliance of the by-law range from $500 to $10,000 for an individual landlord and $500 to $50,000 for a corporation. Fine amounts are subject to approval by the Ministry of the Attorney General.

Where can I find additional information and apply for a Renovation Licence?

Program information, application forms and guidance documents for the Renovation Licence program will be available online by January 1, 2025 on this page.

Landlords and tenants can contact Licensing and By-law Services:

Email: [email protected]
Call: 905-546-2782 option 2

For more information about the Tenant Support Program and to share any other tenant-related concerns:

Email: [email protected]
Call: 905-546-2424 ext. 4557

Date modified

February 03, 2025