Politics
Ontario Bill 112 Commercial Lease Protections and Kensington Market Vendor Expenses
Kensington Market small businesses face capped annual rent increases of 2.8 percent under Bill 112, a rate that matches protections in Hamilton but exceeds those applied in Ottawa under the same provincial rules.
How we reported this
The Ontario Legislative Assembly passed Bill 112, the Commercial Lease Stability Act, on June 22, 2026. The legislation caps annual rent increases for commercial spaces under 5,000 square feet in designated market districts at 2.8 percent through 2028. Kensington Market vendors operating on Augusta Avenue and Baldwin Street fall within the covered zones and must receive written notice of any proposed increase by August 15 each year.
The bill responds to a 2025 report from the Ontario Ministry of Economic Development that documented average commercial rent growth of 6.4 percent in Toronto's older retail strips between 2023 and 2025. Provincial officials stated the measure aims to retain independent operators in areas already served by existing municipal zoning bylaws.
Effects on Kensington Market Daily Operations
Under the new rules, a produce stall holder paying $3,200 monthly on Augusta Avenue would see the rent rise by no more than $89.60 in 2027. Neighbouring property owners must also maintain the same percentage cap on common-area maintenance fees listed in existing leases. Local advocates note that these limits apply only to renewals signed after September 1, 2026, leaving current month-to-month agreements outside immediate coverage.
The legislation states that municipalities with more than 500,000 residents receive an additional $1.15 per capita in provincial administrative support for enforcement offices. Toronto's allocation under this formula totals $3.1 million for the 2026-27 fiscal year, according to the bill's schedule of appropriations.
Comparison With Other Ontario Cities
Hamilton's commercial strips receive the same 2.8 percent cap, yet the city was allocated only $620,000 in enforcement funding because its population falls below the 500,000 threshold. Ottawa vendors operate under a stricter 2.3 percent limit set by a separate municipal overlay that the province agreed to recognize in the bill text. Mississauga received no additional per-capita funding because its designated market districts did not meet the density criteria defined in section 4 of the act.
Implementation begins September 1, 2026, with the first compliance reports due to the Ontario Ministry of Municipal Affairs by December 31, 2026. The government says the policy will require annual audits of 15 percent of covered leases in each participating municipality.