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.


Report to/Rapport au :

 

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

 

CITY WIDE

Ref N°: ACS2009-CMR-LEG-0022

 

 

SUBJECT:

Consumer Protection for New Home Purchasers - Revised Recommendations

 

 

OBJET :

Protection des consommateurs pour les nouveaux acheterurs-occupants - Recommendations modifiées

 

 

REPORT RECOMMENDATION

 

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.

 

RECOMMANDATION DU RAPPORT

 

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.

 

 

BACKGROUND

 

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.

 

Jurisdiction

 

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.

 

DISCUSSION

 

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.

 

CONSULTATION

 

This Report was provided to the Greater Ottawa Home Builders Association on Monday August 31, 2009.

 

FINANCIAL IMPLICATIONS

 

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.

 

LEGAL/RISK MANAGEMENT IMPLICATIONS

 

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.

 

DISPOSITION

 

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