On February 8, 2022, the Housing Affordability Task Force reported to the Government of Ontario on the state of the housing market in Ontario. Its 33-page Report makes 55 recommendations intended to remove impediments to the construction of 1.5 million much-needed new homes in Ontario over the next decade. An Appendix to the Report considers the existing inclusionary zoning framework and makes further recommendations with respect to inclusionary zoning specifically.
Principal Recommendations
The Task Force cites a Scotiabank study showing that Canada has the fewest housing units per capita of any G7 country. In fact, to reach even the G7 average, Ontario alone would immediately require 1.2 million new units. Furthermore, in addition to its social impact, the housing shortage negatively affects the economy: as the Report notes, Toronto's two-way commute time, the longest in North America at 96 minutes, makes it difficult for many businesses to attract new employees.
The Task Force's 55 recommendations are intended to address the housing supply shortage by creating the conditions necessary to achieve a target of 1.5 million new homes within 10 years. The recommendations are divided into 5 categories:
- Requiring greater density –
Inefficient land use, especially near transportation corridors, is
a major issue in Ontario that can be addressed, in part, by
limiting the authority of municipalities to engage in exclusionary
zoning;
- Reduce and streamline urban design
rules – Because inconsistent and sometimes
onerous municipal design requirements can create significant
impediments to the provision of new housing, the Report proposes
the adoption of simplified and uniform provincial urban design
standards;
- Depoliticize the process and cut red
tape – The Task Force recommends a number of
steps to reduce obstacles to approval that arise out of what the
Report describes as excessive municipal consultation processes and
the politicization of technical issues such as heritage
designations – these steps include restoring the
developer's right to appeal official plans and municipal
comprehensive reviews;
- Fix the Ontario Land Tribunal –
Delays at the OLT are slowing the pace of approvals, with a current
backlog of over 1,000 cases, so the Task Force recommends (among
other steps) new powers to discourage use of the appeal process as
a stalling tactic and the prioritization of cases that would
increase housing supply quickly;
- Support municipalities that commit to transforming the system – The Report recommends financial incentives for Ontario municipalities that support growth in the supply of housing, in the form of an Ontario Housing Delivery Fund that would reward success in alleviating the housing shortage.
While Ontario is heading into a provincial election campaign, reports indicate that the Government of Ontario may attempt to pass legislation implementing at least some of these changes before the current legislative assembly is dissolved for the June 2, 2022 vote.
Inclusionary Zoning
As discussed in our November 2021 update on inclusionary zoning ("IZ"), the City of Toronto is the first Ontario municipality to adopt an IZ regime. The Report includes an Appendix that considers IZ in the context of affordable housing policy and makes a number of recommendations, including the following:
- Allow cash-in-lieu payments for IZ
units – This is an important flexibility option
that a number of municipalities recommended to the Task
Force;
- Require municipalities to use density bonusing and
other incentives for IZ –The City of
Toronto's IZ regime provides no benefits, incentives or offsets
for the provision of IZ units – the Task Force recommends
that legislative amendments be introduced to require municipalities
to utilize density bonusing or other incentives in all IZ and
affordable housing policies that apply to market housing; and
- Permit municipalities without IZ regimes to offer incentives and bonuses – This would give a wider range of options to Ontario's municipalities as they develop their affordable housing strategies.
Another option for increasing the supply of affordable housing is the increased use of surplus government lands, an option that, while outside the Task Force's terms of reference, is included in the Report as an item worthy of further consideration.
We will be closely monitoring any legislative changes that are introduced as a result of the Report. The Government of Ontario website has information about the initiative.
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