On April 10, 2024, Ontario’s Minister of Municipal Affairs and Housing introduced Bill 185, the Cutting Red Tape to Build More Homes Act, 2024. The bill proposes significant reforms to Ontario’s Planning Act, the Municipal Act, 2001, the City of Toronto Act, 2006, and the Development Charges Act, 1997, among other legislation—which, if passed, will bring about yet another suite of substantial changes to Ontario’s planning and land development regime.
The proposed legislation is part of the Government’s broader Spring 2024 Red Tape Reduction Package, and follows previous rounds of legislation introduced by the Government to support its goal of building 1.5 million homes by 2031. For the Government’s previous housing supply action plans, see "More Homes, More Choice" (2019), "More Homes For Everyone" (Spring 2022), "More Homes Built Faster" (Fall 2022), and "Helping Homebuyers, Protecting Tenants" (Spring 2023).
Key Proposed Measures
Highlights from Bill 185, as announced by the Government, include:
- Limiting third-party appeals to the Ontario Land Tribunal: The Government is proposing changes to the Planning Act to streamline certain third-party appeals for official plans, official plan amendments, zoning by-laws and zoning by-law amendments to the Ontario Land Tribunal.
- Re-instating appeal rights for settlement boundary changes: Proposed changes to the Planning Act will also allow proponents to appeal to the Ontario Land Tribunal when a municipality refuses an application or does not make a decision on a settlement boundary change outside the Greenbelt Area.
- Removing mandatory planning application fee refunds: The Government is proposing changes to remove application fee refund provisions from the Planning Act and the City of Toronto Act, 2006. These application fee refund provisions were first introduced in 2022, requiring municipalities to gradually refund zoning by-law amendment and site plan control application fees if they fail to make a decision on an application within legislated timelines.
- Changes to development-related charges: The Government is proposing to eliminate the five-year phase-in of development charge rates for development charge by-laws passed on and after January 1, 2022. The Government has also indicated that it intends, on June 1, 2024, to bring into force municipal development-related charge exemptions and discounts for affordable residential units to provide incentives for the development of affordable housing across the province. Proposed changes to the Development Charges Act, 1997 would also reduce the time that a development charge rate would be frozen from two years to 18 months after approval of the relevant application.
- Changes to municipal planning responsibilities: The Government’s proposed changes will remove statutory powers under the Planning Actfrom seven upper-tier municipalities identified in the legislation: Durham, Halton, Niagara, Peel, Simcoe, Waterloo, and York. For Peel, Halton and York Regions, upper-tier planning changes would come into effect on July 1, 2024, with others coming into effect at a later date. Once in effect, planning policy and approval responsibilities of the regional municipality will be removed and the lower-tier municipalities will assume primary responsibility for all planning in their geographies, except for matters requiring provincial approval.
- Minister’s Zoning Order framework: The Province is launching a new go-forward framework for how requests for zoning orders will be received and considered.
- Eliminating parking minimums: Proposed changes to the Planning Act will remove the requirement to have a minimum amount of parking spaces for developments located within Protected Major Transit Station Areas or other areas around subway, rail, and rapid bus stations that are designated for higher density (e.g., Major Transit Station Areas).
- Creating a “use it or lose it” process for development approvals: The Government is proposing changes to the Municipal Act, 2001 and the City of Toronto Act, 2006 to enable municipalities to adopt policies setting out how water and wastewater servicing may be allocated and reallocated so that developments ready to proceed encounter fewer barriers and delays prior to construction. The Government is also proposing changes to the Planning Act which would establish a three-year timeframe for conditions to be met on pre-1995 draft subdivision approvals—failing which, the approval would expire or lapse. Proposed changes to the Planning Act would also require a lapsing condition on all new draft subdivision and condominium approvals. Proposed changes to the Planning Act and City of Toronto Act, 2006 would also allow municipalities to apply lapsing conditions on new or previous site plan application approvals.
- Reducing barriers to building additional residential units: Proposed changes to the Planning Act will provide authority for regulations to eliminate practical barriers to building residential units, such as garden, laneway or basement suites, which may include maximum lot coverage and limits on the number bedrooms allowed per lot.
- Exemptions for standardized housing designs: The Government is proposing to create a regulation-making authority to exempt standardized housing designs (once created) from certain sections of the Planning Act (e.g. zoning) and from planning provisions under the City of Toronto Act, 2006.
Next Steps
While Bill 185 may be subject to further revisions as it advances through the legislative process, it is anticipated that the Bill could be passed before the Provincial Legislature adjourns for the summer break on June 13, 2024.
Our group will continue to monitor Bill 185 as it makes its way through the legislative process and other proposed changes to Ontario’s rapidly shifting planning and land development regime. For further guidance and information, please contact Jonathan Cheng or Calvin Lantz.
Further Reading
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