1. CONSUMER
PROTECTION FOR NEW HOME PURCHASERS - REVISED RECOMMENDATIONS PROTECTION DES CONSOMMATEURS POUR LES NOUVEAUX ACHETERURS-OCCUPANTS -
RECOMMENDATIONS MODIFIÉES |
agriculture
and rural affairs Committee Recommendation and planning and environment
committee recommendation
That Council approve that the City impose as a condition of draft subdivision approval the requirement for the developer to provide a summary sheet outlining development potential within a two-kilometre area from the limits of the development.
RECOMMANDATION DU
COMITÉ DE L’AGRICULTURE ET DES AFFAIRES RURALES ET DU COMITÉ DE L’URBANISME ET
DE L’ENVIRONNEMENT
Que le Conseil que la Ville impose l’exigence pour le promoteur de
fournir un sommaire exposant l’aménagement potentiel dans un rayon de deux
kilomètres autour des limites du lotissement, comme condition à l’approbation
de l’ébauche du plan de lotissement.
Documentation
1.
City
Clerk and Solicitor’s report, Legal Services, dated 31 August 2009
(ACS2009-CMR-LEG-0022).
2. Extract of Draft Minutes, 24 September
2009.
Planning and
Environment Committee
Comité de l;urbanisme et de l’environnement
and Council / et au Conseil
31 August, 2009/le 31 aout 2009
Submitted by/Soumis par : M.Rick O'Connor, City Clerk and Solicitor/
Greffier et Chef du contentieux
Contact Person/Personne ressource : Timothy Marc, Senior Legal Counsel
Legal
Services/Services juridiques
(613)
580-2424 x21444, timothy.marc@ottawa.ca
SUBJECT:
|
Consumer Protection for New
Home Purchasers - Revised Recommendations |
|
|
OBJET :
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Protection des consommateurs pour les nouveaux acheterurs-occupants -
Recommendations modifiées |
That Planning and Environment Committee and Agriculture and Rural Affairs Committee recommend to Council that the City impose as a condition of draft subdivision approval the requirement for the developer to provide a summary sheet outlining development potential within a two-kilometre area from the limits of the development.
Que le Comité de l’urbanisme et de
l’environnement et le Comité de l’agriculture et des questions rurales
recommandent au Conseil que la Ville impose l’exigence pour le promoteur de
fournir un sommaire exposant l’aménagement potentiel dans un rayon de deux
kilomètres autour des limites du lotissement, comme condition à l’approbation
de l’ébauche du plan de lotissement.
At its meeting of 9 September 2008, Planning and Environment Committee considered the following motion which had been introduced by Councillor Feltmate:
WHEREAS the presence of wooded areas
and other natural features near a new home influences whether people will
purchase the home and how much they are prepared to pay;
AND WHEREAS many people purchasing
new homes are surprised when wooded areas or other natural features near their
new homes are developed;
AND WHEREAS the land in question has
often been within the urban boundary in the Official Plan are zoned for
development since before the nearby homes were built;
AND WHEREAS the fact people who
purchased new homes near wooded areas or natural features that were scheduled
for development were not aware of that fact suggests that homebuyers are not
being provided with sufficient information prior to making the largest
investment of their lives;
THEREFORE BE IT RESOLVED THAT the City of Ottawa call upon the Government of Ontario to amend consumer protection legislation so that potential purchasers of new homes will receive complete information about the Official Plan and zoning status of lands within a two kilometre radius of their homes.
In providing a comment on this motion, staff stated the following:
Pursuant to the Ontario New Home Warranties Plan Act (Tarion), existing standard conditions of subdivision approval and the marketing practices of developers, new home purchasers already receive a significant amount of information about their purchase. With respect to zoning, the standard conditions of subdivision approval provide that the Owner shall ensure:
1.
The
Purchaser acknowledges that s/he has seen the following plans:
a. A Zoning Map or Schedule displaying current
zoning for all lands in and adjacent to the subject Subdivision;
The differences between the current practice and the report recommendation are that:
1. The current practice only requires that information on the zoning be distributed whereas the report recommendation would require information on the official plan and zoning to be distributed;
2. The current practice only requires that the zoning schedule to be distributed whereas the report recommendation would require both the zoning and official plan text (or a summary of the text) and schedules to be distributed; and
3. The standard practice only requires the zoning provisions for the subdivision to be distributed (although sometimes a concept plan for the entire development area is also required to be sent to purchasers) whereas the report recommendation would require information on lands within 2 kilometres to be distributed.
It is possible to have the above information provided. However, given the extent of such information, it is likely that it will not be read and/or understood by many of the purchasers.
In order to allow for the purchase of a new home, the development must go through one or more of a plan of subdivision, consent to sever, part lot control exemption or plan of condominium. With any of these development applications, Council could impose the requirement that the above information be provided. As such, specific provincial legislation to address this matter is not likely required.
The determination of the Committee was to refer the motion introduced by Councillor Feltmate and to provide the following:
Be It
Resolved That Item 11, Consumer Protection For New Home Purchasers be referred
to the Vice-Chair, Planning and Environment Committee, Planning, Transit and
Environment staff and Legal Services staff to develop conditions of approval
that provide meaningful information of zoning and official plan policies of
adjacent lands to new home purchasers.
The original motion submitted to Committee called for complete information on zoning and official plan designations for lands within two kilometres of a proposed plan of subdivision. While not touched upon in the report considered by Committee in September 2008, it should be noted that while much of the lands where development takes place is designated General Urban, there can be several official plan designations in place within two kilometres of a particular plan of subdivisions and dozens of applicable zones under the zoning by-law.
To provide “complete information” on such official plan designations and zones would require the production of several pages from the official plan and scores of pages from the zoning by-law. In the course of preparing the initial report, staff were provided with an example package for new home purchasers from one of Ottawa’s developers. This package is already very large in size. It is unlikely that a new home purchaser would take the time to reach an additional large section of material of the applicable planning documents.
Staff therefore explored a means by which the goal of the motion could be achieved, that of providing information to purchasers of the proposed development in the area in a fashion that the purchasers can readily understand. It was concluded in consultation with Councillor Feltmate that the balancing of the goal of providing information with the goal of such information being in a consumer friendly format would be best achieved by the provision of a summary sheet outlining the development potential in area of two kilometres from the development site. This information would be required to be prepared by the developer and would be reviewed by staff prior to its distribution. It would include:
1. Summary of uses permitted by the official plan and zoning, including not only anticipated densitities and heights but permitted densities and heights; and
2. Summary of uses that would be permitted by any zoning or official plan applications being anticipated by the developer (If no changes anticipated the summary would so indicate).
Staff will be looking to see that the summary is prepared in a format that calls attention to it as opposed to simply being the provision of text on a page. The information would be required to be provided prior to the execution of agreements of purchase and sale and will note the date as of which it was prepared.
This Report was provided to the Greater Ottawa Home Builders Association on Monday August 31, 2009.
The review of the summary sheet provided by the developers is expected to be only a marginal increase in the work load of staff and not require any additional staff resources.
The requirement for the summary sheet would be imposed through conditions of development approval. A developer would be able to appeal conditions of subdivision approval to the Ontario Municipal Board. In the opinion of Legal Services, a requirement for summary development potential is a reasonable one that would likely be sustained on appeal.
Planning and Growth Management will impose a condition of approval upon subdivisions for the requirement of the summary development potential information outlined above.
Consumer Protection for New Home Purchasers -
Revised Recommendations
Protection des consommateurs pour les nouveaux
acheterurs-occupants - Recommendations modifiées
ACS2009-CMR-LEG-0022 CITY WIDE/À L'ÉCHELLE DE LA
VILLE
Valerie Bietlot, Legal Counsel began by noting that
the Planning and Environment Committee had not discussed this item and carried
it on consent. In presumption of some
councillors concerns with respect to cost, Ms. Bietlot advised that she did not
believe the cost of the summary sheet would be onerous.
In response to a question from Councillor El-Chantiry
regarding additional costs, Ms. Bietlot reiterated her earlier comments that
costs would be minimal. John Moser,
General Manager of Planning and Growth Management agreed, adding that all the
information is available online but the summary sheet is a means to provide the
buyer with information in a consumer-friendly manner. He advised that the format could also be streamlined as a
checklist with some minor disclaimers regarding timelines but highlighted the
importance of having a format put in place.
Councillor Jellett praised the idea of a summary
sheet and how it would inform residents of future plans in their
neighbourhood.
Councillor Brooks countered that this was another
requirement the developer would be responsible for. In response to a question by the Councillor, Mr. Moser confirmed
that any changes in the official plan and zoning within a two-kilometre radius
would be included in the summary sheet.
He added that this is an open and transparent service provided to the
public.
Chair Thompson noted his support and felt that this
procedure simplifies the process of purchasing a home for new home buyers.
Vice-Chair El-Chantiry asked several questions, which
were added as a direction and staff offered to provide the responses prior to
the Council meeting.
DIRECTION TO STAFF:
Staff to provide information on the impact of studying
the two kilometres within a development, how it will be identified and the cost
associated to the summary.
That Planning and Environment Committee and Agriculture and Rural
Affairs Committee recommend to Council that the City impose as a condition of
draft subdivision approval the requirement for the developer to provide a
summary sheet outlining development potential within a two-kilometre area from
the limits of the development.
CARRIED