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BILD Members,
In keeping with the objectives of the Ontario Housing Supply Action Plan and recommendations of the Housing Affordability Task Force, today, the provincial government made an announcement related to a multi-Ministerial Housing Supply Action Plan 3.0, introducing Bill 23, the More Homes Built Faster Act. Other significant policy proposals and numerous (approximately 30) consultations were also announced.
BILD’s research and advocacy efforts have framed many of the significant and impactful legislative initiatives and policy developments introduced and signaled today.
On Friday, October 28th, BILD and OHBA will together be launching a public campaign to support the proposed legislation that will run through to December 2nd on print, radio, digital, social and CP24 (banner ads). The BILD developed campaign will also be run in Ottawa and Hamilton-Halton under OHBA and local HBA banners.
In addition, we look forward to MMAH providing members with a briefing of today’s announcement and proposals in a BILD-OHBA hosted session at the end of the month, or shortly thereafter.
PROPOSED POLICY DIRECTIONS & LEGISLATIVE HIGHLIGHTS:
If passed, the More Homes Built Faster Act proposes the following:
DEVELOPMENT CHARGE BY-LAWS: REDUCTIONS & POLICY CHANGES
- Any new development charge by-laws as of June 1, 2022, would be required to be phased in over five years. The current rate applicable, if approved as of June 1st, would be phased in as follows: a mandatory 20% discount would apply in year one, a 15% discount in year two, a 10% discount in year three, and a 5% discount in year four. This change would take effect immediately upon the legislation receiving Royal Assent and not through Regulations.
- The legislation proposes changes so that new development charge by-laws will be reviewed every ten years as opposed to every five years. As is the current policy, municipalities would still be permitted to renew their DC by-law more frequently, as long as it is renewed at least once every ten years. This provision works in tandem with the mandatory discount noted above, which may incent municipalities to limit these by-law updates so that they can charge the maximum rate over the last five years as a 0% mandatory discount would apply in year 5 and years 6 to 10.
- Related to the maximum interest rate for the DC freeze and deferral provisions permitted through the new DC Act, retroactive to June 1, 2022, the proposed legislation would establish the maximum interest rate as the bank prime rate plus one per cent per annum.
- The legislation proposes a reduction in the eligible capital costs that can be recovered through development charges such as housing services and certain studies, as well as a change to the historical service level used to calculate eligible capital costs from 10 years to 15 years (with the exception of transit).
- Using a tiered discounting process based on the amount of bedrooms per unit, development charges for purpose built rental units will be decreased, with this reaching a 25% discount for family-sized units (3+ bedrooms). This would be in addition to the applicable DC interest rate freeze and deferral.
PARKLAND DEDICATION BY-LAWS: PROPOSED CAPS & POLICY CHANGES
- The legislation proposes to CAP the maximum alternative parkland dedication rates for all residential developments outside of transit-oriented community sites at 15%, regardless of land value or site size.
- In addition, the current maximum alternative parkland dedication rate of 1ha/300 units for land conveyed and the 1ha/500 unit rate for cash-in-lieu is proposed to be changed to 1ha/600 for land and 1ha/1000 units for cash-in-lieu.
- These changes would take affect when the legislation receives Royal Assent and not through Regulations. Municipalities would not have to update their by-laws for this to apply. Members who have not paid parkland dedication charges for their projects at time of Royal Assent would benefit from this change.
- The proposed legislation will also allow for parkland credits for encumbered land (ie. POPs, strata parks, passive open space, etc.).
- As a new requirement for those that only use the standard parkland rate, municipalities will also be required to develop a parks plan prior to passing a parkland by-law, as opposed to the current requirement to develop a parks plan before developing OP policies in order to use the alternative rate.
- The legislation also proposes that parkland dedication rates would be frozen at the site plan application stage (or zoning if no site plan). Upon application approval, parkland rates will remain frozen for two years, however, applicants are required to obtain their building permit within that two year period for this to apply.
COMMUNITY BENEFIT CHARGE BY-LAWS: REDUCTIONS & POLICY CHANGES
- The proposed legislation clarifies parameters related to community benefits charges in that the maximum CBC rate would be based on the land value of only the new units, and not the entire parcel of land related to the existing development. It is proposed that the maximum CBC of 4 per cent land value would be discounted by the existing square footage as a proportion of total building square footage.
- The legislation also proposes, with certain criteria, to reduce the maximum CBC that can be charged for a development that contains affordable housing units. The maximum CBC of 4 per cent land value would be discounted by the square footage of affordable housing units as a proportion of total building square footage.
RESERVE BALANCE RELATED REQUIREMENTS
- Municipalities will be required to spend or allocate at least 60% of their development charge and parkland reserve balances at the start of each year. For development charges, priority services would include infrastructure related items such as roads, water and waste-water.
LIMITS RELATED TO INCLUSIONARY ZONING
- The proposed legislation would prescribe a maximum affordability period of 25 years.
- Proposed legislative amendments would also prescribe an approach to determining the lowest price or rent required for IZ units. For ownership units, this would translate to 80% of the average resale purchase price, and 80% of the average market rent for rental units.
- It is proposed that, with certain criteria, parkland dedication charges, development charges and community benefit charges be exempt from IZ units (as well as affordable housing units and non-profit housing).
- PMTSAs will not be approved until, at least, the time that municipalities update their IZ by-laws to reflect above.
- It is proposed that set aside rates will be capped at 5% per units.
GROWTH PLAN RELATED ITEMS
- The provincial government is planning to launch a broad consultation, via an ERO posting, focused on a policy review of the provincial Growth Plan: A Place to Grow: Growth Plan for the Greater Golden Horseshoe, as well as the Provincial Policy Statement. The consultation will focus on themes related to: residential land supply, growth allocation, infrastructure, streamlining processes, the environment and natural resources.
- Regarding municipal housing targets, 29 municipalities will be assigned housing targets based on population size and growth rates with the requirement for them to develop pledges outlining their intent and plans to meet the targets. This will direct them to accelerate growth and identify what they will do to address housing supply immediately.
PROPOSED CHANGES TO REGIONAL PLANNING AUTHORITY
- The provincial government is proposing to remove planning decision making from certain regional/ upper-tier municipalities: Durham, Halton, Peel, Simcoe, Waterloo and York, to allow municipal councils more discretion and influence over decisions that impact them directly.
- The date of proclamation for this proposal will be at a later date, post consultations and government discussions.
STREAMLINING DEVELOPMENT APPROVALS, SUPPORTING THE CREATION OF NEW HOMES & OTHER SIGNIFICANT REDUCTIONS IN COSTS, FEES AND TAXES
- The province is proposing to ensure that as-of-right zoning is in place for building height/density within one year in major transit station areas and protected major transit station areas. Municipalities would be required to update their zoning by-laws to specify minimum heights and densities to meet the minimum required density targets ‘as of right’ within one year of MTSA/PMTSA approval. Protection from MTSA/PMTSA appeals that implement zoning by-law amendments regarding permitted heights, densities and uses would expire within one year.
- To support the missing middle, the proposed legislation will allow for up to three residential units to be permitted “as of right” in residential lots without requiring a by-law amendment. These new units would also be exempt from parkland dedication fees and development charges, as well as the inability for municipalities to set minimum unit sizes or require more than one parking space per unit. Items such as garden suites, secondary suites and basement apartments will no longer need an additional approval.
- The proposed legislation removes third party appeals for official plan amendment, zoning by-law amendment, consents and minor variances, which would mirror the current appeal rights for plans of subdivision.
- It is proposed that public meeting requirements for draft plans of subdivision is removed.
- Related to site plan, it is proposed that the municipal ability to regulate architectural details and landscape design aesthetics is removed. The legislation also proposes to exempt all aspects of site plan control for developments of up to 10 units.
- The legislation proposed to make changes to the Municipal Act and the City of Toronto Act to allow the Minister to prescribe limits to municipal powers related to demolition and conversion of residential rental properties.
- Related to site plan and plan of subdivision, the current Planning Act limits leases for land lease communities to 21 years or less. This new legislation would allow or longer leases of up to 49 years, where the land has received site plan approval, and where the land lease community is without a land division approval and is subject to a site plan control by-law.
- The proposed legislation will give the Minister the authority to appoint deputy facilitators, supporting the Office of the Provincial Land and Development Facilitator, who can perform the same role as the Facilitator.
- Conservation Authority fees related to development permits and applications will be temporarily frozen.
- The province will be creating a working group to examine innovative approaches to building schools in high density communities.
- The provincial government also announced a review of other fees charged by provincial ministries, boards, agencies and commissions.
- Changes are also expected to the Ontario Land Tribunal which would prioritize cases that support increased housing supply, establish service standards and clarify the OLT’s powers to dismiss certain appeals; as well as increased staffing and resources.
PROPOSED TIMING & NEXT STEPS
- Standing Committee hearings in the coming weeks and Royal Assent of the legislation is expected in early December before the House rises.
- The Province is committed to a housekeeping Bill, potentially in the Spring. BILD has been advised that there will be several refinements to today’s proposals as we work through implementation.
- The Minister of Municipal Affairs and Housing will be joining BILD for its Annual General Meeting on December 7th. Registration information is available on BILD’s website.
For additional information on today’s announcement, please see the following links:
Provincial Backgrounder: More Homes Built Faster Act, 2022 | Ontario Newsroom
Provincial News Release: Ontario Taking Bold Action to Build More Homes | Ontario Newsroom
Additional updates will be shared with the membership as BILD receives additional information.
Senior Vice President, Policy & Advocacy
Building Industry and Land Development Association
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狗仔卡
发表于 2022-10-27 09:08:47
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