Developers Pleased with Ontario's New Housing Plan amid Concerns

Developers Pleased with Ontarios New Housing Plan amid Concerns

Doug Ford's provincial government has revealed its More Homes Built Faster Act which is a sweeping plan to construct 1.5 million homes in Ontario by 2031, including 285,000 homes in Toronto.

This is due to a critical shortage in housing and the ambitious legislation has a long list of bold measures such as:

 

 - Zoning regulations to allow triplex units on lots zoned for single-family homes

 - Cutting development charges

 - Removing a layer from the approval process for projects with fewer than ten units

 

The More Homes Built Faster Act has been met with mixed reception. Housing advocates seem cautiously optimistic while the move is highly supported by developers and organizations representing their interests.

BlogTo reports that environmentalists, preservationists and other groups are sounding alarm bells over the repeal of environmental and heritage protections to fast-track housing.

The organizations speaking in favour of the new act are:

 

 - Toronto Regional Real Estate Board (TRREB)

 - Ontario Home Builders' Association (OHBA)

 - Residential Construction Council of Ontario (RESCON)

 

"Municipalities have a direct impact on housing affordability, not only by adding direct costs like development fees and land transfer taxes, but also by delaying and preventing desperately needed new housing supply with slow approval processes, duplication and outdated restrictive zoning."

TRREB President | Kevin Crigger

 

It's important to note that all of these organizations benefit from the building of new homes, and that the expected boost in new construction made possible by the Ontario government's changes - though framed as measures to curb a housing crisis - is only going to further line the pockets of the development industry.

Others seem less excited about this new plan. A deep dive on the environmental ramifications published by The Narwhal finds that the legislation will repeal three-dozen regulations that give conservation authorities oversight on development in regards to pollution and conservation of land.

There will probably be less protection for heritage assets, as the province states that "proposed changes to the Ontario Heritage Act would renew and update Ontario's heritage policies and strengthen the criteria for heritage designation and update guidelines."

The public will also have fewer ways to challenge new developments, with the legislation proposing changes to the Ontario Land Tribunal Act that the province claims would help speed up proceedings, resolve cases more efficiently and streamline processes. Proposed measures include the elimination of third-party appeals and giving the tribunal new power to dismiss appeals.

iHeart Radio states that northern communities have been calling for action on housing supply, but the Federation of Northern Ontario Municipalities (FONOM) said it is worried the move is offloading too much of the responsibility on local taxpayers.

 

"The reality is, we need infrastructure to support any development and that's going to take money. Somebody has got to pick up that tab and the province certainly hasn't offered their coffers yet. Development fees, while already low in parts of the north, help offset the costs of new developments."

Federation of Northern Ontario Municipalities | Danny Whalen

 

Whalen is also concerned about the added pressure on making sure new basement apartments will be up to code. And he said the public should be able to consult on new developments that affect the neighbourhood.

Osler reports that the changes in this plan 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.

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.

The Association of Municipalities Ontario states that the More Homes Built Faster Act, 2022 proposes changes to several acts including, but not limited to the Planning Act, Conservation Authorities Act, and Development Charges Act, in accordance with four main themes:

 

 - Building more homes

 - Helping homebuyers

 - Reducing construction costs and fees

 - Streamlining development approvals

 

AMO is encouraged to see the province focus on increasing supply, including building more affordable and purpose-built rental housing. However, they are concerned that the province is proposing to exert more centralized control over local planning decisions and limit public consultation and appeals through this plan.

In AMO's view, the proposed changes to municipal development charges, parkland dedication levies, and community benefits charges may contradict the goal of building more housing in the long-term. Unless fully offset by funding to support growth-related projects, reductions in these fees will shift the financial burden of growth-related infrastructure onto existing municipal taxpayers.

AMO will be reviewing the various proposals and cross-ministry initiatives included in this plan. They will be actively participating in any ongoing consultations and also hope that this work will be informed by the Housing Supply Action Plan Implementation Team.

 

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Posted by Judy Lamelza

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