Dundas 50 Creighton tenants cannot be evicted for refusing to pay proposed rents

News Nov 09, 2020 by Craig Campbell Dundas Star News

Tenants of 50 Creighton Rd. do not have to make rent payments requested in a letter from their new landlord and they can’t be evicted for not paying, according to Ontario’s Ministry of Municipal Affairs and Housing.

Residents at the former Dundas Lions Club non-profit affordable seniors housing development received a letter from Proformance Investments GP Inc. president Derek Conorton, dated Nov. 5, stating tenants should have 12 postdated cheques made out to the company in the amount of $995 a month, for the upcoming year, ready for him to pick up at 1 p.m. on Tuesday, Nov. 10.

The letter suggests failure to pay will be considered 60-day notice to terminate tenancy, and the resident will be expected to move out by Jan. 31, 2021.

Conorton did not respond to requests for comment by deadline.

Katie Remington, staff lawyer at Hamilton Community Legal Clinic, said the tone of the letter is threatening.

“The Residential Tenancies Act protects tenants in Ontario and provides that tenants cannot just be evicted without notice and due process,” Remington said.

“Ontario is currently in a housing crisis, which has only been exacerbated by the COVID-19 pandemic. It is critical that affordable housing be protected and that tenants know that they have rights to defend their housing when investors use these coercive tactics.”

She said the letter’s offer of a $2,000 buyout, if a tenant leaves by Jan. 31, is a common tactic used by landlords to evict tenants in order to increase the rent for new tenants.

The province has passed legislation freezing rents for 2021 at this year’s rate.

Municipal Affairs and Housing spokesperson Conrad Spezowka said rent increases and evictions can only take place in accordance with the Residential Tenancies Act, which requires applications to the Landlord and Tenant Board.

Proformance has not made any applications to the board.

Spezowka said tenants cannot be required to pay rent by postdated cheques.

“Under the (Residential Tenancies Act), it is an offence to attempt to charge an illegal rent from a tenant,” Spezowka said. “Tenants may contact the Rental Housing Enforcement Unit if they believe an offence has been committed.”

He said the enforcement unit has been in touch with 50 Creighton’s landlord to advise of the rules under the Act.

Even if a landlord gives a tenant notice to end a tenancy, Spezowka said the tenant does not have to move out.

“Under the (Residential Tenancies Act), every tenant facing eviction has the right to a hearing at the Landlord Tenant Board,” Spezowka said.

If a tenant does pay an illegal rent, the tenant has 12-months to apply to the Landlord and Tenant Board to get their money back.

If convicted of an offence under the Residential Tenancies Act, an individual may have to pay a fine of up to $50,000, and a corporation may have to pay a fine of up to $250,000.

Conorton’s note to tenants states the property “is not and has never been subsidized living, it has just been quite cheap for some time.”

In fact, the former Dundas Lions Club property was subsidized by a provincial grant and a 45-year Canada Mortgage Housing Corporation loan — and subsidized both by the former Town of Dundas and the City of Hamilton in the form of property tax reductions from 1962 to 2010 (48 years). The federal, provincial and municipal subsidies all helped keep rents affordable for at least 45 years. Below market rents were required under the CMHC mortgage.

The Dundas Lions Club also subsidized 50 Creighton both financially and with its members’ volunteer labour.

Club president John Grant stated in a letter to the editor the club spent “approximately $200,000 over the past couple of years” for renovations and repairs.

According to the CMHC, housing is considered “affordable” if it costs less than 30 per cent of a household’s before-tax income.

Information on the CMHC website states: “Many people think the term ‘affordable housing’ refers only to rental housing that is subsidized by the government. In reality, it’s a very broad term that can include housing provided by the private, public and non-profit sectors.”

According to documents filed at Hamilton’s land registry on Oct. 6, when Dundas Lions sold 50 Creighton to Proformance for total consideration of $2.7-million, the new owner has two years to pay the remaining principal of $2.1-million, with no interest.

Proformance has an option to extend the period to a third year, at a 3 per cent monthly interest rate, and a fourth year at a monthly interest rate of 3.5 per cent. The mortgage is open for early repayment at any time without notice or bonus.

The agreement requires Dundas Lions Club to “consent to and sign all development related documents, applications, consents and agreements as requested by the Buyer or owner of the property, such documents to include, without limiting the general nature of the Chargee’s obligations, land titles absolution, rezoning and draft plan, minor variance and severance applications, site plan and subdivision agreements, grants of easements, road widening and land dedications …”

Neither the City of Hamilton nor the Hamilton Conservation Authority have received any development applications for the property.

Dundas 50 Creighton tenants cannot be evicted for refusing to pay proposed rents

New landlord’s letter states rent increase and payments would be pursued this week

News Nov 09, 2020 by Craig Campbell Dundas Star News

Tenants of 50 Creighton Rd. do not have to make rent payments requested in a letter from their new landlord and they can’t be evicted for not paying, according to Ontario’s Ministry of Municipal Affairs and Housing.

Residents at the former Dundas Lions Club non-profit affordable seniors housing development received a letter from Proformance Investments GP Inc. president Derek Conorton, dated Nov. 5, stating tenants should have 12 postdated cheques made out to the company in the amount of $995 a month, for the upcoming year, ready for him to pick up at 1 p.m. on Tuesday, Nov. 10.

The letter suggests failure to pay will be considered 60-day notice to terminate tenancy, and the resident will be expected to move out by Jan. 31, 2021.

Conorton did not respond to requests for comment by deadline.

Related Content

Katie Remington, staff lawyer at Hamilton Community Legal Clinic, said the tone of the letter is threatening.

“The Residential Tenancies Act protects tenants in Ontario and provides that tenants cannot just be evicted without notice and due process,” Remington said.

“Ontario is currently in a housing crisis, which has only been exacerbated by the COVID-19 pandemic. It is critical that affordable housing be protected and that tenants know that they have rights to defend their housing when investors use these coercive tactics.”

She said the letter’s offer of a $2,000 buyout, if a tenant leaves by Jan. 31, is a common tactic used by landlords to evict tenants in order to increase the rent for new tenants.

The province has passed legislation freezing rents for 2021 at this year’s rate.

Municipal Affairs and Housing spokesperson Conrad Spezowka said rent increases and evictions can only take place in accordance with the Residential Tenancies Act, which requires applications to the Landlord and Tenant Board.

Proformance has not made any applications to the board.

Spezowka said tenants cannot be required to pay rent by postdated cheques.

“Under the (Residential Tenancies Act), it is an offence to attempt to charge an illegal rent from a tenant,” Spezowka said. “Tenants may contact the Rental Housing Enforcement Unit if they believe an offence has been committed.”

He said the enforcement unit has been in touch with 50 Creighton’s landlord to advise of the rules under the Act.

Even if a landlord gives a tenant notice to end a tenancy, Spezowka said the tenant does not have to move out.

“Under the (Residential Tenancies Act), every tenant facing eviction has the right to a hearing at the Landlord Tenant Board,” Spezowka said.

If a tenant does pay an illegal rent, the tenant has 12-months to apply to the Landlord and Tenant Board to get their money back.

If convicted of an offence under the Residential Tenancies Act, an individual may have to pay a fine of up to $50,000, and a corporation may have to pay a fine of up to $250,000.

Conorton’s note to tenants states the property “is not and has never been subsidized living, it has just been quite cheap for some time.”

In fact, the former Dundas Lions Club property was subsidized by a provincial grant and a 45-year Canada Mortgage Housing Corporation loan — and subsidized both by the former Town of Dundas and the City of Hamilton in the form of property tax reductions from 1962 to 2010 (48 years). The federal, provincial and municipal subsidies all helped keep rents affordable for at least 45 years. Below market rents were required under the CMHC mortgage.

The Dundas Lions Club also subsidized 50 Creighton both financially and with its members’ volunteer labour.

Club president John Grant stated in a letter to the editor the club spent “approximately $200,000 over the past couple of years” for renovations and repairs.

According to the CMHC, housing is considered “affordable” if it costs less than 30 per cent of a household’s before-tax income.

Information on the CMHC website states: “Many people think the term ‘affordable housing’ refers only to rental housing that is subsidized by the government. In reality, it’s a very broad term that can include housing provided by the private, public and non-profit sectors.”

According to documents filed at Hamilton’s land registry on Oct. 6, when Dundas Lions sold 50 Creighton to Proformance for total consideration of $2.7-million, the new owner has two years to pay the remaining principal of $2.1-million, with no interest.

Proformance has an option to extend the period to a third year, at a 3 per cent monthly interest rate, and a fourth year at a monthly interest rate of 3.5 per cent. The mortgage is open for early repayment at any time without notice or bonus.

The agreement requires Dundas Lions Club to “consent to and sign all development related documents, applications, consents and agreements as requested by the Buyer or owner of the property, such documents to include, without limiting the general nature of the Chargee’s obligations, land titles absolution, rezoning and draft plan, minor variance and severance applications, site plan and subdivision agreements, grants of easements, road widening and land dedications …”

Neither the City of Hamilton nor the Hamilton Conservation Authority have received any development applications for the property.

Dundas 50 Creighton tenants cannot be evicted for refusing to pay proposed rents

New landlord’s letter states rent increase and payments would be pursued this week

News Nov 09, 2020 by Craig Campbell Dundas Star News

Tenants of 50 Creighton Rd. do not have to make rent payments requested in a letter from their new landlord and they can’t be evicted for not paying, according to Ontario’s Ministry of Municipal Affairs and Housing.

Residents at the former Dundas Lions Club non-profit affordable seniors housing development received a letter from Proformance Investments GP Inc. president Derek Conorton, dated Nov. 5, stating tenants should have 12 postdated cheques made out to the company in the amount of $995 a month, for the upcoming year, ready for him to pick up at 1 p.m. on Tuesday, Nov. 10.

The letter suggests failure to pay will be considered 60-day notice to terminate tenancy, and the resident will be expected to move out by Jan. 31, 2021.

Conorton did not respond to requests for comment by deadline.

Related Content

Katie Remington, staff lawyer at Hamilton Community Legal Clinic, said the tone of the letter is threatening.

“The Residential Tenancies Act protects tenants in Ontario and provides that tenants cannot just be evicted without notice and due process,” Remington said.

“Ontario is currently in a housing crisis, which has only been exacerbated by the COVID-19 pandemic. It is critical that affordable housing be protected and that tenants know that they have rights to defend their housing when investors use these coercive tactics.”

She said the letter’s offer of a $2,000 buyout, if a tenant leaves by Jan. 31, is a common tactic used by landlords to evict tenants in order to increase the rent for new tenants.

The province has passed legislation freezing rents for 2021 at this year’s rate.

Municipal Affairs and Housing spokesperson Conrad Spezowka said rent increases and evictions can only take place in accordance with the Residential Tenancies Act, which requires applications to the Landlord and Tenant Board.

Proformance has not made any applications to the board.

Spezowka said tenants cannot be required to pay rent by postdated cheques.

“Under the (Residential Tenancies Act), it is an offence to attempt to charge an illegal rent from a tenant,” Spezowka said. “Tenants may contact the Rental Housing Enforcement Unit if they believe an offence has been committed.”

He said the enforcement unit has been in touch with 50 Creighton’s landlord to advise of the rules under the Act.

Even if a landlord gives a tenant notice to end a tenancy, Spezowka said the tenant does not have to move out.

“Under the (Residential Tenancies Act), every tenant facing eviction has the right to a hearing at the Landlord Tenant Board,” Spezowka said.

If a tenant does pay an illegal rent, the tenant has 12-months to apply to the Landlord and Tenant Board to get their money back.

If convicted of an offence under the Residential Tenancies Act, an individual may have to pay a fine of up to $50,000, and a corporation may have to pay a fine of up to $250,000.

Conorton’s note to tenants states the property “is not and has never been subsidized living, it has just been quite cheap for some time.”

In fact, the former Dundas Lions Club property was subsidized by a provincial grant and a 45-year Canada Mortgage Housing Corporation loan — and subsidized both by the former Town of Dundas and the City of Hamilton in the form of property tax reductions from 1962 to 2010 (48 years). The federal, provincial and municipal subsidies all helped keep rents affordable for at least 45 years. Below market rents were required under the CMHC mortgage.

The Dundas Lions Club also subsidized 50 Creighton both financially and with its members’ volunteer labour.

Club president John Grant stated in a letter to the editor the club spent “approximately $200,000 over the past couple of years” for renovations and repairs.

According to the CMHC, housing is considered “affordable” if it costs less than 30 per cent of a household’s before-tax income.

Information on the CMHC website states: “Many people think the term ‘affordable housing’ refers only to rental housing that is subsidized by the government. In reality, it’s a very broad term that can include housing provided by the private, public and non-profit sectors.”

According to documents filed at Hamilton’s land registry on Oct. 6, when Dundas Lions sold 50 Creighton to Proformance for total consideration of $2.7-million, the new owner has two years to pay the remaining principal of $2.1-million, with no interest.

Proformance has an option to extend the period to a third year, at a 3 per cent monthly interest rate, and a fourth year at a monthly interest rate of 3.5 per cent. The mortgage is open for early repayment at any time without notice or bonus.

The agreement requires Dundas Lions Club to “consent to and sign all development related documents, applications, consents and agreements as requested by the Buyer or owner of the property, such documents to include, without limiting the general nature of the Chargee’s obligations, land titles absolution, rezoning and draft plan, minor variance and severance applications, site plan and subdivision agreements, grants of easements, road widening and land dedications …”

Neither the City of Hamilton nor the Hamilton Conservation Authority have received any development applications for the property.