Market-rate and subsidized tenants could pose differing liability threats for Ontario’s rental housing landlords under a looming crackdown on knowingly permitting illegal drug-related activity in their buildings. That would be spelled out in yet-to-be-finalized regulations for interpreting the provincial Measures Respecting Premises with Illegal Drug Activity Act.

The legislation was adopted last year, but has not yet come into force. A newly launched public consultation is seeking public input on some proposed exemptions to the Act’s definition of “landlord”, which could free owners of designated types of housing from obligations under the Act. That would include the potential for first-offence fines of $10,000 to $250,000 for individuals, or $250,000 to $1 million for corporate landlords, if the Court determines a drug-related offence has been allowed to occur on the property.

“Potential impacts for small, medium and large businesses, municipalities, and non-profit housing may be significant, complex and varied,” states the analysis posted on Ontario’s regulatory registry.

It’s proposed that owners/managers of community, supportive and transitional housing be exempted. That would apply to units that private market landlords make available for tenants who receive government-funded rent supplements, as well as to public and non-profit providers of subsidized housing.

Student residences, retirement homes, long-term care homes, workers’ housing and various types of accommodation aligned with rehabilitative/therapeutic services and short-term respite care are also tapped for exemption.

“All other landlords as defined under the Act would be subject to the provisions of the Act,” the proposal confirms. That includes all other types of commercial and residential property owners and tenants who have sublet their leased premises to other users.

The consultation will be open for comments until March 8, 2026.