In Ontario, heritage properties are governed by the Ontario Heritage Act (the “Act”).
Under section 1 of the Act, “heritage attributes” are defined as, “in relation to real property, and to the buildings and structures on the real property, the attributes of the property, buildings and structures that contribute to their cultural heritage value or interest.”
Several factors influence whether a property can be given heritage status, including:
- the age of the property,
- historical significance,
- architectural designs,
- cultural value, and
- ownership.
The Act sets out the provisions to identify and designate a property as a heritage property and how such properties should be protected, conserved and preserved. The Act also grants municipal governments the authority to designate heritage properties and districts.
Properties can be designated as heritage property by either municipalities passing a by-law pursuant to section 29(1) of the Act or the Minister pursuant to section 34(5) of the Act.
When a property has been identified and designated as a heritage property, any change, alteration or renovation must be approved by the council of the municipality.
Designation under the Act can have several additional implications for property owners, including maintenance, sales, finances, and mortgage and insurance.
1. Alterations:
Under subsection 30(1) and subsection 34(7) of the Act, any alterations to the property that may affect its heritage attributes require a permit from the local municipality. This includes changes to the exterior of the building, significant landscaping changes, and sometimes even changes to the interior if those are specified in the designation by-law. The Act states:
if a notice of intention to designate a property as property of cultural heritage value or interest is given under section 29, any permit that allowed for the alteration or demolition of the property and that was issued by the municipality under any Act, including a building permit, before the day the notice was served on the owner of the property and on the Trust and published in a newspaper is void as of the day the notice of intention is given in accordance with subsection 29(3).
Under subsection 33(1):
No owner of property designated under section 29 shall alter the property or permit the alteration of the property if the alteration is likely to affect the property’s heritage attributes, as set out in the deion of the property’s heritage attributes in the by-law that was required to be registered under clause 29 (12) (b) or subsection 29(19), as the case may be, unless the owner applies to the council of the municipality in which the property is situate and receives consent in writing to the alteration.
2. Demolition:
Demolition or removal of any part of the property is also subject to municipal approval. In some cases, demolition may be completely prohibited. Under subsection 34(1), No owner of property designated under section 29 shall do either of the following, unless the owner applies to the council of the municipality in which the property is situated and receives consent in writing to the demolition or removal:
1. Demolish or remove, or permit the demolition or removal of, any of the property’s heritage attributes, as set out in the deion of the property’s heritage attributes in the by-law that was required to be registered under clause 29 (12) (b) or subsection 29 (19), as the case may be.
2. Demolish or remove a building or structure on the property or permit the demolition or removal of a building or structure on the property, whether or not the demolition or removal would affect the property’s heritage attributes, as set out in the deion of the property’s heritage attributes in the by-law that was required to be registered under clause 29 (12) (b) or subsection 29 (19), as the case may be.
3. Maintenance:
The owner is required to keep the property in good repair to preserve its heritage attributes. Failure to do so can result in the municipality undertaking the necessary repairs and charging the costs back to the owner, exposing the owner to significant financial liability.
4. Sale:
When selling a designated heritage property, the owner must notify the municipality. The municipality then has the right to purchase the property within a certain timeframe. However, a heritage designation does not prevent the sale of property. The law protecting the property still remains and the new owner must adhere to it. The Act has the following provisions for the sale of the heritage property:
Under subsection 10(2) of the Act, the Ontario Heritage Trust has the power to dispose of property by sale, by lease for a term of more than five years or by any other manner and execute any deeds or other instruments as may be required to affect the disposal, subject to the terms of any trust in connection with the property.
Under subsection 36(1) of the Act, the council of a municipality may pass by-laws providing for acquiring, by purchase, lease or otherwise, any property or part thereof designated under this Part, including any interest therein, for the use or purposes of this Part and for disposing of such property, or any interest therein, by sale, lease or otherwise, when no longer so required, upon such terms and conditions as the council considers necessary for the purposes of this Part.
5. Financial Implications:
There may be financial implications as well. For instance, the cost of maintaining a heritage property can be higher than a non-designated property. However, there may also be grants and tax relief programs available for owners of designated heritage properties.
6. Mortgage and Insurance:
Obtaining a mortgage or insurance for a heritage property can sometimes be more challenging, as lenders and insurers may perceive these properties as higher risk.
It's important to note that these implications can vary depending on the specific by-law that designates the property and the policies of the local municipality.
Any article or other information or content expressed or made available in this Section is that of the respective author(s) and not of the OBA.