Dealing with the Housing Crisis: Ontario’s Bill 23 Proposes Major Changes to Encourage Residential Development

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On October 25, 2022, Ontario Municipal Affairs and Housing Minister Steve Clark announced a comprehensive legislative initiative – the More Homes Built Faster Act, 2022 (“Bill 23”) – to complement the Government’s plan to add 1.5 million new homes in Ontario in the next decade. Bill 23 targets existing institutional obstacles to densification, including cumbersome municipal approval processes and excessive use of zoning and heritage designation to resist increased density in existing communities.

Among other highlights, as drafted, Bill 23 will allow the creation of up to 3 residential units “as of right” on most residential lots that are zoned for a single home, will require municipalities to establish minimum density requirements in areas targeted for densification (such as public transit corridors), and will introduce restrictions on “third party” appeals to the Ontario Land Tribunal. The Government is also proposing streamlined approval processes for certain residential projects, reforms to the Ontario Land Tribunal, substantial fee rollbacks, and consultations on various forms of tax reform that it believes would incentivize housing construction.

We will be providing additional commentary on this complex and wide-ranging legislation in the coming days. In the meantime, we recommend the following to those who would like to familiarize themselves with the basics of Bill 23:

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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