On Tuesday, October 25, 2022, the government of Ontario
introduced the More Homes Built Faster Act, 2022
which proposes sweeping changes to the land use approvals system in
the province, with the goal of facilitating the construction of 1.5
million new homes by 2031. The omnibus bill proposes amendments to
nine different acts, and proposes a new act to implement the
construction of significant sewage infrastructure to service York
and Durham regions.
If passed, the changes would (among other things) provide
certainty with respect to parkland dedication rates, slow the
potential increases to Development Charges (DCs), provide rules
around the applicability of Community Benefit Charges (CBCs),
eliminate third party appeal rights to the Ontario Land Tribunal
(Tribunal), and remove planning responsibilities from the Regions
of York, Peel, Durham, Halton, Waterloo and the County of
Simcoe.
In addition to the legislation, the province announced that it
is proposing to update and integrate the Provincial Policy
Statement and A Place to Grow: Growth Plan for the Greater Golden
Horseshoe, as well as revoke the Parkway Belt West Plan and the
Central Pickering Development Plan.
The legislation is the third step in the government's
changes to the Planning Act and other related legislation,
following on the More Homes, More Choice Act,
2019, and the More Homes for Everyone Act, 2020.
The Strong Mayors, Building Homes Act was also passed
earlier this year, and those powers may well be rolled out to other
municipalities beyond Toronto and Ottawa, when the final
regulations are released.
A summary overview of the key changes is set out below, along
with links to blackline versions of the affected acts, which
highlight the proposed amendments in context.
Overall, the changes will provide greater certainty to
developers. It will provide caps on the amount of parkland that
must be provided, as well as reducing significant and sudden
increases in development charges.
Some of the changes are contained in the legislation that was
introduced, while others are contained in proposed changes to
regulations and programs.
Issue
|
Proposed changes
|
Inclusionary Zoning/Affordable
and Attainable Housing
|
- Exempt affordable housing (generally defined as being priced at
no greater than 80% of the average price/rent in the year a unit is
rented or sold) and attainable housing and inclusionary zoning
units from DC, CBCs and parkland dedication
- Introduce a category of "attainable housing" which
will be defined in future regulations
- An upper limit of 5% of the total number of units in a
development that can be required to be affordable as part of
inclusionary zoning, and a maximum period of 25 years over which
the units would be required to remain affordable (this is a
proposed regulation change, not in the legislation itself)
|
Parkland
|
- The maximum amount of land that can be conveyed or paid in lieu
is capped at 10% of the land or its value for sites under 5 ha, and
15 % for sites greater than 5 ha
- Maximum alternative dedication rate reduced to 1 ha/600 units
for land and 1 ha/1000 units for cash in lieu
- Parkland rates frozen as of the date that a zoning by-law or
site plan application is filed. Freeze remains in effect for two
years following approval. If no building permits are pulled in that
time, the rate in place at the time the building permit is pulled
would apply
- Encumbered parkland/strata parks, as well as privately owned
publicly accessible spaces (POPS) to be eligible for parkland
credits
- Landowners can identify land they intend to provide for
parkland, with the municipality able to appeal to the Tribunal if
there is a disagreement
- Parks plans to be required prior to the passing of any future
parkland dedication by-law (would not apply to by-laws already
passed)
- Parkland dedication will apply to new units only (i.e., no
dedication can be imposed for existing units)
- Municipalities will be required to spend or allocate 60% of
parkland reserve funds at the start of each year
|
Development Charges
|
- Five year phase in of DC rate increases, beginning with a 20%
reduction in the first year, with the reduction decreasing by 5%
each year until year five when the full new rate applies. This is
proposed to apply to all new DC by-laws passed since June 1,
2022
- Historical service level for DC eligible capital costs (except
transit) extended from 10 to 15 years
- DC by-laws will expire every 10 years, instead of every five
years. By-laws can still be updated any time
- Cap the interest paid on phased DCs for rental, institutional
and non-profit housing to prime plus 1%
- DC/CBC/parkland exemptions for attainable housing, which will
be projects designated by future regulations
- New regulation authority to set services for which land costs
would not be an eligible capital cost recoverable through DCs
- Exclude the cost of studies (including background studies) from
recovery through DCs
- Municipalities will be required to spend at least 60% of DC
reserves for priority services (i.e., water, wastewater and
roads).
- Discount for purpose built rental units, with a higher discount
for larger units, on top of the existing DC freeze and deferral of
payments over five years
|
Community Benefit Charges
|
- Maximum CBC payable to be based only on the value of land
proposed for new development, not the entire parcel that
may have existing development
- Maximum CBC to be discounted by 4% of land value divided by the
existing building size, as a proportion to total building square
footage
|
Removal of Upper Tier approval powers
|
- All upper tier municipalities in the Greater Toronto Area, as
well as Waterloo and Simcoe will be removed from the Planning
Act approval process for both lower tier official plans and
amendments and plans of subdivision
- Minister would (unless otherwise provided) therefore become the
approval authority for all lower tier OP and OPAs, and
Minister's decisions are not subject to appeal
|
Zoning in MTSAs
|
- Municipalities will be required to update zoning to include
minimum heights and densities within approved Major Transit Station
Areas (MTSA) and Protected MTSAs within one year of MTSA/PMTSA
being approved
|
No third-party appeals
|
- No one other than the applicant, the municipality, certain
public bodies, and the Minister will be allowed to appeal municipal
decisions to the Tribunal. This applies to all Planning
Act decisions (including consents and minor variances)
- Existing third-party appeals where no hearing date has been set
as of October 25 will be dismissed. The scheduling of a case
management conference or mediation will not be sufficient to
prevent an appeal from being dismissed
|
Gentle Density/Intensification
|
- As of right zoning to permit up to three residential units per
lot (two in the main building and one in an accessory building),
with no minimum unit sizes
- New units built under this permission would be exempt from
DC/CBC and parkland requirements, and no more than one additional
parking space can be required
|
Subdivision approvals
|
- Public meetings no longer will be required for applications for
approval of a draft plan of subdivision
|
Site plan control
|
- Developments of up to 10 residential units will be exempted
from site plan control
- Architectural details and landscape design aesthetics will be
removed from the scope of site plan control
|
Rental Replacement
|
- Minister to be given the authority to enact regulations related
to the replacement of rental housing when it is proposed to be
demolished or converted as part of a proposed development
|
Heritage
|
- Municipalities will not be permitted to issue a notice of
intention to designate a property under Part IV of the Ontario
Heritage Act unless the property is already on the heritage
register when the current 90 day requirement for Planning
Act applications is triggered
- Heritage registers to be reviewed and a decision made whether
listed properties are to be designated, and if not, removed from
the register
- A process is proposed which will allow Heritage Conservation
District Plans to be amended or repealed
- Criteria for Heritage Conservation District Plans can be
established for regulation
|
Ontario Land Tribunal procedures
|
- The Tribunal will have increased powers to order costs against
a party who loses a hearing at the Tribunal
- The Tribunal is being given increased power to dismiss appeals
for undue delay
- The Attorney General will have the power to make regulations
setting service standards with respect to timing of scheduling
hearings and making decisions
- Regulations can also be made to establish priorities for the
scheduling of certain matters
|
Aggregate Resources
|
- Decisions on aggregate applications will be delegated to staff
(instead of the Minister)
- Planning Act applications for aggregate proposals will
be exempt from the two-year freeze on applications to amend new
official plans, secondary plans and zoning by-laws
|
Natural heritage planning
|
- A program to offset development pressures on wetlands is being
considered, which will require a net positive impact on wetlands.
The language appears to contemplate that wetlands can be developed
provided a net positive impact is demonstrated
- The Wetland Evaluation System is also being revised, and the
proposed changes would eliminate the concept of wetland
complexes
|
Conservation Authorities
|
- A single regulation is proposed for all 36 Authorities in the
province
- Clear limits are proposed on what Authorities are permitted to
comment on as part of the planning approvals process, which will
keep their focus on natural hazards and flooding
|
Consumer protection
|
- Proposed increases to penalties under the New Homes
Construction Licensing Act, 2017 of up to $50,000
|
Taken together, these changes will fundamentally change how land
use planning approvals are processed, approved and implemented in
Ontario.
It will cause municipalities to go back to the drawing board
with respect to the calculation of development charges, as well as
parkland by-laws. The prohibition of third-party appeals will
reduce backlogs both at the Toronto Local Appeal Body as well as
the Tribunal, as neighbours no longer will be able to appeal minor
variance approvals to either body.
Osler will continue to monitor these legislative changes and
will provide updates as they become available.
Links to blackline versions of the Acts that are proposed to be
amended are below:
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.