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Big changes are coming to new homebuilding in Ontario. Some good. Some grotesque. Some will be costly. Some unfair. It will be messy. And it all may be too late to make a difference. Yet changes are coming anyway. We will blame politics. A brutish and crude provincial government. We will call it corruption. Shortsighted and heavy-handed.
The truth is, however, that we did it to ourselves. We have only us to blame. A lack of supply of new homes has driven prices higher across the province. There can be good faith debate about the remedies across the political spectrum, but there is no honest debate that a shortage of housing supply is at the core of the province’s affordability crisis. We didn’t build enough homes. Because we didn’t want them. We pushed a wide range of arguments— some sound, some genuine. Most, however, were rooted in a selfish desire to postpone change.
We erected barriers. We encouraged regulators to stretch out and explore new ways to slow down development. We made it expensive. Really, really expensive. We told ourselves it was okay because these costs were being passed along to new homebuyers.
The upshot was that all the costs, all the delays, and all the appeals resulted in fewer new homes. Yet folks keep coming. If you woke up in Shanghai, Taipei or Hong Kong this morning, Ontario looks an awfully appealing place for you and your family. Safe. Secure. Good schools. Health care. Welcoming.
If you are betting on a major pullback in housing demand in this province, I suggest you aren’t weighing the pressures in south east Asia correctly.
The Ford government’s most recent response, the More Homes Built Faster Act, is a basket of measures sure to cause a furor in town halls and resident associations across the province.
Properties zoned for single homes may now be permitted three residences as-ofright, meaning they will not need zoning change approval. This could take the form of an in-law suite, basement suite, and a laneway or garden homes. These new units would be exempt from development charges and parkland obligations.
Development charges will also be removed from select attainable housing and non-profit projects. These charges will be reduced for rental developments. (Who funds this largesse hasn’t yet been explained.)
Site plan control is being eliminated for projects consisting of 10 units or fewer. Public meeting requirements are being eliminated for draft plans of subdivision.
The province is also directing the Ontario Land Tribunal—the quasi-judicial body that hears appeals regarding land use projects—to prioritize matters involving new housing. And to toughen up its processes. It will enact time standards upon the OLT and direct the tribunal to dismiss appeals that are delayed unreasonably. It is also proposing to block third parties from appealing an array of municipal planning decisions, as well as clarifying the imposition of costs upon unsuccessful litigants.
You can find a link to the province’s backgrounder here. The More Houses Built Faster Act still has hurdles to cross before it becomes law. There will be consultations and amendments. But next spring, Bill 23 will become law.
City halls across Ontario, likely including Shire Hall, are already decrying the increased burden being imposed by the province, as it simultaneously drains municipal development charges revenue. Queen’s Park has hinted at some offsetting funding— but it will likely fall short of sufficient and be uneven in its distribution.
There is much to be worried about in this legislation. Much to ignite a vigorous debate in our community.
But don’t tell me this about ideology or a corrupt state. It is a problem we allowed to take root and fester in our communities. We ignored it for a decade. We need more homes. Greater density. We need builders to respond to market forces in a timely and responsible way. The remedy is harsh and likely overdone.
But it is overdue. And our doing.
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