The appellants appealed a Divisional Court decision that set aside an Ontario Municipal Board (OMB) ruling.
The OMB had found that the City of Toronto's Official Plan Amendment No. 2 (OPA 2), which restricted the demolition and conversion of rental housing, was illegal and conflicted with the Tenant Protection Act.
The Court of Appeal held that while the OMB had limited jurisdiction to determine whether OPA 2 was an official plan within the meaning of the Planning Act, it erred in concluding that the City lacked the authority to enact it.
The Court found that the Planning Act permitted municipalities to include policies ensuring an adequate supply of rental housing.
Furthermore, OPA 2 did not conflict with the Tenant Protection Act, as dual compliance was possible.
The appeal was dismissed.