Ontario's New Plans To Accelerate Home Building

Association of Municipalities of Ontario conference (AMO)

At the recent AMO conference, Paul Calandra, Ontario's Minister of Municipal Affairs and Housing, introduced the new Provincial Planning Statement (PPS) 2024¹, a pivotal update designed to enhance the tools and flexibility available to municipal leaders across the province. The PPS will be effective October 20, 2024.

Calandra assured the municipal representatives at the conference that this new planning framework aims to provide a uniform set of planning directions throughout Ontario. He emphasized the importance of local knowledge in addressing housing needs, asserting that municipalities are well positioned to determine the most effective locations and types of homes required to manage the unprecedented population growth in Ontario.

His comments are timely, given the current performance of the province's housing market. According to the latest housing tracker,² Ontario is still lagging significantly behind the ambitious target set by the Conservative government, which aims to build 1.5 million homes by 2031. The province has yet to meet any of its annual targets toward this goal. Although there was notable progress last year, the overall pace remains insufficient.

To address this shortfall, Ontario has assigned specific annual housing targets to 50 municipalities and has promised additional funding to those that either meet or exceed these targets. As of the end of June, only 11 municipalities have achieved more than half of their annual targets, despite being 8 months into the year.

Calandra highlighted external factors that have hindered housing development, including global economic uncertainties and elevated interest rates. "The new planning statement takes these challenges into account and aims to lay the foundation for a long-term building surge as economic conditions improve," he said.

The Provincial Planning Statement (PPS)

Issued under Section 3 of the Planning Act, the PPS 2024 mandates that all decisions affecting land use planning must be consistent with the Provincial Planning Statement. This requirement ensures a uniform approach to planning across the province. The PPS represents a comprehensive consolidation of the Ontario government's land use planning policies. This updated framework outlines provincial policy directions on several critical land use issues that affect communities across the province. The PPS 2024 aims to address a variety of important areas, including:³

1. Housing Development: The statement prioritizes the construction of additional housing in areas where it is most needed. This focus is designed to alleviate housing shortages and ensure that development aligns with local demand. For example, under section 2.2 of the PPS it says; "establishing and implementing minimum targets for the provision of housing that is affordable to low and moderate income households, and coordinating land use planning and planning for housing with Service Managers to address the full range of housing options including affordable housing needs."
2. Land Availability: Ensuring that land is accessible for development is a key component of the PPS. By making land available, the statement supports the growth of communities and facilitates the expansion of residential, commercial, and industrial areas.
3. Economic Development and Job Creation: The PPS emphasizes the creation of opportunities for economic growth and job creation. It seeks to foster an environment where businesses can thrive and employment opportunities are plentiful.
4. Infrastructure Planning: Adequate infrastructure is essential for supporting both current and future needs. The PPS directs municipalities to plan for essential infrastructure, including transportation systems, water supply, sewerage, and other critical services.
5. Environmental Protection: Protecting the environment and valuable resources is a central focus of the PPS. This includes safeguarding farmland, water resources, archaeological sites, cultural heritage, mineral aggregates, and petroleum resources.
6. Hazard Mitigation: The PPS directs development away from areas prone to natural or human-made hazards, such as flood zones. This approach helps to protect people, property, and community assets from potential risks.

Municipalities play a crucial role in implementing the policies outlined in the PPS. They are responsible for applying these provincial policies through local official plans and related planning documents, including zoning by-laws and plans of subdivision. This local implementation is essential for translating the broad directives of the PPS into actionable and practical planning measures within communities. The PPS serves as a critical guide for municipal planners, outlining strategies for community growth, including land use for housing, industry, and agriculture. One of the key updates encourages the construction of more homes in proximity to major transit stations and on underutilized low-density sites, such as shopping plazas and malls.

Conclusion

The introduction of the Provincial Planning Statement represents a significant shift in how Ontario plans for and manages its growth. By providing municipalities with greater flexibility and clearer guidelines, the government hopes to address the housing supply challenge more effectively and meet its long-term housing goals.

Footnotes

1. Scroll down and click "Download a PDF of the Provincial Planning Statement" to see the Statement in full.

2. Scroll to the bottom of this link where it says "Housing progress by municipality" and the reader can filter the chart based on what they want to see.

3. Scroll to the bottom of this link where it says "Background" and you can see a summary of the Provincial Planning Statement."

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