Superior Court rules against landlords who appealed Windsor’s residential rental licensing bylaw

The Ontario Superior Court has ruled against a group of landlords who challenged the City of Windsor’s Residential Rental Licensing Bylaw and the city confirms enforcement of the program will once again resume.

The case was brought forward by Windsor Housing Providers Inc., a group representing hundreds of area landlords who took the city to court over the bylaw, arguing it was passed it in bad faith.

“The decision allows for the arbitrary licensing of Wards 1 and 2 in the City of Windsor,” reads a statement from Borys Sozanski, the president of Windsor Housing Providers. “It is WHP's position that the Residential Rental Licensing bylaw adds another layer of bureaucracy to an already heavily regulated sector.”

In his decision, Superior Court Justice Kelly Gorman ruled the licensing program is effective, was passed in good faith and dismissed the landlords’ application.

Sozanski said he and hundreds of other landlords who fought against the bylaw are disappointed in the decision.

“It's going to chase good operators out of the business. Is an additional cost that will be paid by the tenants because this will get passed on to tenants and tenants already can't afford rents,” Sozanski argued.

The pilot study was launched in February 2023, “with the goals of improving safety in existing rental housing stock and enhancing proactive enforcement efforts for property standards,” according to a media release from the City of Windsor.

As part of the program, a residential rental licence is required for each rental unit in wards 1 and 2, at a cost of $466 for the first year and $275 for annual renewals.

The city is operating the program in full cost recovery so there is no additional cost for enforcement levied upon the existing tax base.

Sozanski, who is landlord on Windsor’s west end, led the charge against the bylaw. He argues it will have a negative impact on the rental market, further raising rents and adding to the housing crisis.

“It's another level of red tape. Instead of cutting red tape, we’re creating more red tape and it's not going to accomplish the goals that it purports to try to achieve,” Sozanski said.

Ward 2 Coun. Fabio Costante, who started pushing for the bylaw when he took office in 2018, disagrees.

“I'm delighted to see, you know, the city being able to defend it, and us resuming the residential rental license so that we can continue inspecting properties, ensuring that units are up to code, cracking down on slumlords,” Costante said.

“All we're doing is establishing a standard that adheres to our existing laws and ensuring that we're doing inspections proactively,” he added.

During the initial launch of the bylaw, Costante said of the hundreds of homes inspected, only 38 per cent were in compliance with code.

He believes the landlords aren’t actually fighting against the fee.

“This is about what is potentially going to be seen, unraveled when our building and fire code inspectors go into these units,” he said.

According to Craig Robertson, the city’s manager of licensing and enforcement, 750 landlords voluntarily signed up while the case was before the court.

Now that the case is resolved, Robertson says the program will resume enforcement if necessary, but will continue with education and encourage voluntary compliance.

But this may not be the end of the battle. Sozanski said Wednesday the team of landlords is still weighing all legal options and will further consult with their lawyer, noting an appeal of the decision is still not off the table.

Details on the pilot study, including frequently asked questions and application forms, can be found here.