Act
Proposed Planning Act and Development Charges Act Changes: Providing Greater Cost Certainty for Municipal Development-related Charges
Regulation Number(s):
N/A
Instrument Type:
Act
Bill or Act:
Planning Act and Development Charges Act Changes
Summary of Decision:
Bill 23, the More Homes Built Faster Act, 2022 was passed by the Legislature and received Royal Assent on November 28, 2022.
Analysis of Regulatory Impact:
The proposed changes are designed to incent increased housing supply and affordability by providing greater cost certainty with respect to municipal development related charges - i.e., development charges (DCs), community benefit charges (CBCs) and parkland dedication requirements. The changes would reduce these charges and slow their growth over time, helping to provide cost savings for home builders, home buyers and renters. The proposals would incent the development of family-friendly rental housing by reducing charges to build these units and no charges could be levied on non-profit housing developments and affordable housing units meeting defined criteria (for charges not levied on a per-unit basis, the maximum charge would be lowered to reflect the affordable housing units). The proposals would have an impact on municipal revenues with associated administrative costs for compliance.
Further Information:
Link to Environmental Registry
Proposal Number:
22-MMAH026
Posting Date:
October 25, 2022
Summary of Proposal:
Everyone in Ontario should be able to find a home that is right for them. But too many people are struggling with the rising cost of living and with finding housing that meets their family's needs.
Ontario's housing supply crisis is a problem which has been decades in the making. It will take both short-term strategies and long-term commitment from all levels of government, the private sector, and not-for-profits to drive change. Each entity will have to do their part to be part of the solution to this crisis.
Ontario needs more housing, and we need it now. That's why the Ontario government is taking bold and transformative action to get 1.5 million homes built over the next 10 years.
To support More Homes Built Faster: Ontario's Housing Supply Action Plan: 2022-2023, the government introduced the More Homes Built Faster Act, 2022, which, if passed, would ensure that cities, towns, and rural communities grow with a mix of ownership and rental housing types that meet the needs of all Ontarians.
These changes are providing a solid foundation to address Ontario's housing supply crisis over the long term and will be supplemented by continued action in the future.
We welcome your thoughts on the following municipal development-related charge amendments to the Development Charges Act and Planning Act proposed under Bill X, More Homes Built Faster Act, 2022.
Provide greater cost certainty of parkland costs to enable housing developments to proceed more quickly
To help reduce the cost of developing housing and to create cost savings for new home buyers and renters, the maximum alternative parkland dedication rate, which is the maximum amount of parkland that can be required for higher density developments would be updated to:
For the purposes of land conveyed, from the current rate of one hectare for each 300 dwelling units to one hectare for each 600 dwelling units; and
For the purposes of cash payment in lieu of land, from the current rate of one hectare for each 500 dwelling units to one hectare for each 1000 dwelling units.
To provide further cost certainty, no more than 15 per cent of the amount of developable land (or equivalent value) could be required for parks or other recreational purposes for sites greater than 5 hectares and no more than 10 per cent for sites 5 hectares or less.
These proposed changes to parkland dedication would be in effect immediately upon Royal Assent of Bill X and would apply to developments, (other than a development that has received a land division approval under the Planning Act), for which a building permit has not yet been issued.
To incent developments to proceed more quickly, the parkland dedication rates would be set at the time council receives a site plan application for a development; or if a site plan is not submitted, at the time council receives an application for a zoning amendment (the status quo would apply for developments requiring neither of these applications).
To encourage development to move to the building permit stage so that housing can get to market faster and provide greater certainty of costs, the legislation provides that parkland dedication rates will be frozen for two ye
Ontario's housing supply crisis is a problem which has been decades in the making. It will take both short-term strategies and long-term commitment from all levels of government, the private sector, and not-for-profits to drive change. Each entity will have to do their part to be part of the solution to this crisis.
Ontario needs more housing, and we need it now. That's why the Ontario government is taking bold and transformative action to get 1.5 million homes built over the next 10 years.
To support More Homes Built Faster: Ontario's Housing Supply Action Plan: 2022-2023, the government introduced the More Homes Built Faster Act, 2022, which, if passed, would ensure that cities, towns, and rural communities grow with a mix of ownership and rental housing types that meet the needs of all Ontarians.
These changes are providing a solid foundation to address Ontario's housing supply crisis over the long term and will be supplemented by continued action in the future.
We welcome your thoughts on the following municipal development-related charge amendments to the Development Charges Act and Planning Act proposed under Bill X, More Homes Built Faster Act, 2022.
Provide greater cost certainty of parkland costs to enable housing developments to proceed more quickly
To help reduce the cost of developing housing and to create cost savings for new home buyers and renters, the maximum alternative parkland dedication rate, which is the maximum amount of parkland that can be required for higher density developments would be updated to:
For the purposes of land conveyed, from the current rate of one hectare for each 300 dwelling units to one hectare for each 600 dwelling units; and
For the purposes of cash payment in lieu of land, from the current rate of one hectare for each 500 dwelling units to one hectare for each 1000 dwelling units.
To provide further cost certainty, no more than 15 per cent of the amount of developable land (or equivalent value) could be required for parks or other recreational purposes for sites greater than 5 hectares and no more than 10 per cent for sites 5 hectares or less.
These proposed changes to parkland dedication would be in effect immediately upon Royal Assent of Bill X and would apply to developments, (other than a development that has received a land division approval under the Planning Act), for which a building permit has not yet been issued.
To incent developments to proceed more quickly, the parkland dedication rates would be set at the time council receives a site plan application for a development; or if a site plan is not submitted, at the time council receives an application for a zoning amendment (the status quo would apply for developments requiring neither of these applications).
To encourage development to move to the building permit stage so that housing can get to market faster and provide greater certainty of costs, the legislation provides that parkland dedication rates will be frozen for two ye
Contact Address:
Royal Assent Date:
December 19, 2022
Decision:
Approved