Ask a Canada Law Question, Get an Answer ASAP!
The building scheme doesn't matter. It is what the zoning is that matters and you need to comply with the R1 zoning requirements.
While it may be that you are not entitled to have a tenant you can certainly have a house with a second kitchen for your family's use.
If you have actually be served with a claim then you should retain a lawyer to do your defence for you. The defence is that you are not renting out any part of your house and in any event have not caused the neighbour any harm nor do you intend to do so.