Ontario scraps controversial plan that threatened evergreen leases

The Ontario government previously proposed holding consultations on whether to change month-to-month tenancies, with advocates warning it could lead to tenants being kicked out.

The Ontario government is scrapping its plans for consultations on changing the law that currently allows for month-to-month tenancies, a move that housing advocates say is a relief but doesn’t go far enough.

Ontario Premier Doug Ford’s government introduced Bill 60 on Thursday, which included plans to address delays and reduce the backlog at the Landlord and Tenant Board.

The bill included proposals to change how much landlords must compensate tenants if evicted in good faith for specific reasons, and when an eviction order can be set aside.

Groups like ACORN Canada raised concerns over several elements, but the proposal that had advocates and politicians concerned the most was holding consultations to potentially change renters’ rights to stay in their homes.

On Sunday afternoon, Municipal Affairs and Housing Minister Rob Flack said in a statement on X that the government was no longer proceeding with those consultations.

“Residents expect stability and predictability in Ontario’s rental market, and now is not the time to consider changes to this system,” Flack wrote. “As such, we have decided not to proceed with consultations on potential changes to month-to-month leases.”

Under the original plan, the government said it would consult on alternative options for lease expirations that could “allow landlords to control who occupies their units and for how long.”

Under the Residential Tenancies Act (RTA), all tenants have the right to what’s called “security of tenure,” allowing them to stay in their home even after the lease expires, provided they abide by the rules of their lease and the RTA.