Toronto Star News

The landlord behind one of Toronto’s most notorious apartment buildings is facing a fine of over $1 million, for 13 counts of failing to comply with an order issued under the Property Standards Bylaw related to problems at 500 Dawes Road. The highrise, near Victoria Park Avenue and St. Clair Ave East, is owned by Havcare Investments Inc., and Carolyn Krebs is the sole director. “The moral blameworthiness of Havcare is very high,” wrote Justice of the Peace John Scarfe in a June 19 decision. “Havcare is essentially a slumlord that preys on vulnerable tenants, by refusing to comply with the very basic standards set out in the Building Code Act and its regulations.” Several issues were flagged, mostly during 2025, over several visits with property standards inspectors, the decision states, and the landlord was supposed to take care of them within a set period of time. But they were not addressed and Havcare pleaded guilty to all 13 counts in May 2026. The issues included a leaking refrigerator, broken toilet, missing floor tiles and evidence of mice. Count 12 and 13 were more serious and involved unsafe balconies and problems with the underground parking garage, including falling chunks of concrete, Scarfe wrote. “The risk to life and/or permanent injury is significant and, at some point, highly likely.” Scarfe rejected a joint proposal from the paralegal representing the landlord and the city for a $300,000 total fine, with $75,000 each for the most serious charges, writing that it would be a “slap on the wrist” and cheaper for Havcare to continue on, instead of hiring an engineer to make the repairs. “It is only a matter of time before someone falls off a balcony and dies,” Scarfe added, noting many tenants are recipients of Ontario Works or the Ontario Disability Support Plan. “The lives of the tenants, many of whom are vulnerable, cannot be placed at this level of jeopardy,” he wrote. “Preying on the vulnerabilities of an already disadvantaged community of individuals is clearly an aggravating factor to be considered when assessing an appropriate penalty.” Scarfe issued a fine of $400,000 each for the most serious offences, making the total $950,000 plus victim fine surcharges and court administration fees, roughly tripling the original proposal. Cordaie Paralegal Services did not respond to a request for comment. The person who answered the phone at a number connected with Krebs hung up. In March, Mayor Olivia Chow introduced a “Cracking Down on Bad Landlords” program, directing staff to make repairs at 500 Dawes. A spokesperson for the mayor on Friday called 500 Dawes a “test case” for the new program, adding the building is “widely understood to be one of the properties most in need of city intervention.” “These additional fines issued by the court send a clear message that repeated failures to meet basic safety and property standards will have serious consequences,” Braman Thillainathan said in a statement to the Star. In June, Havcare Investments Inc. and Carolyn Krebs were fined $300,000 and $20,000, respectively, by a provincial offences court, related to fire safety violations at 500 Dawes Rd., along with a 25 per cent victim surcharge. And in May, Krebs was sentenced to 15 days in custody and fined $120,000 for violations at a building at 680 Dawes Rd. In his ruling, Scarfe wrote that 50 Dawes Rd. is estimated to be worth $35 million “despite its dismal state” and there are no mortgages registered in connection with the building. The average rent is $1,000 per unit, adding up to income of $190,000 per month and just under $2.3 million a year. “The sole director, either through her ownership of shares in Havcare, or in her personal capacity, also owns at least six other apartment buildings in the City of Toronto,” Scarfe added. Ryan Endoh, who has lived at 500 Dawes Rd. for over a decade, called the decision “a critical step in the right direction” after many years of discussions with the city about problems with the building. “It’s satisfying, it’s refreshing,” he said. But he added he doesn’t understand why the city lawyers were proposing a lower fine. “It’s a poignant rejection of the joint submission that was made by city lawyers,” he said of the decision. According to the city, the victim surcharge will bring the total up to $1,187,500 and the owner has 12 months to pay. May Warren May Warren is a Toronto-based housing reporter for the Star. Follow her on Twitter: @maywarren11.