Further to our 8 November article on this topic, the More Homes Built Faster Act (Bill 23) received Royal Assent on to 28 November 2022 and is now largely in force. It is intended to increase housing supply and affordable housing options for Ontarians by getting 1.5 million homes built over the next 10 years. It boldly does so in a number of very significant and controversial ways.

The highlights of the approved form of Bill 23 include:

Development Charges Act, 1997

Bill 23 creates a number of new exemptions from development charges as follows:

  1. the greater of 1 residential unit or 1% of existing residential units in a building containing 4+ residential units;
  2. up to 3 residential units in a new detached house, semi-detached house or rowhouse;
  3. non-profit housing development; and
  4. residential affordable housing pursuant to a development approved by way of a zoning by-law

(after 28 November 2022); and

  1. residential units intended to be affordable or attainable for a period of 25 years or more

(on a date to be proclaimed)

Under section 5 of that Act the amount of development charges are now reduced on a sliding scale from 80% to 95% from the charges imposed pursuant to a by-law passed on or after January 1, 2022 (unless the DC is payable immediately prior to 28 November 2022).

Development charges for rental housing projects are reduced by 25% for premises with three or more bedrooms, 20% for two bedroom units, and 15% for all other residential units.

Commencing on 1 January 2023 municipalities are now required to spend and/or allocate each year at least 60% of the monies in reserve funds for water supply services, including distribution and treatment of services, waste water services, and treatment and services related to highways.

A development charge by-law now expires every 10 as opposed to every 5 years.

The Planning Act

The most significant changes to the Planning Act will limit/extinguish the appeal rights of third-parties, including upper tier municipalities now characterised as upper tier municipalities without planning responsibilities (the GTA Regions of Durham, Halton, Niagara, Peel, Waterloo, York and Simcoe) and conservation authorities (date to be implemented TBD).

For minor variances and consents the Act will restrict a right of appeal to applicants, public bodies and "specified persons" (public utilities, operators of railway lines, and telecommunications providers).

This will increase the significance of local Committees of Adjustment as they may now be the only opportunity to oppose a project.

Importantly this provision has retroactive effect and will nullify appeals where a hearing on the merits has not been scheduled before October 25, 2022.

Upper Tier municipalities without planning responsibilities will cease to become approval authorities for local planning instruments.

Bill 23 contains other consequential changes including:

  1. deleting the prohibition on making requests for official plan and zoning by-law amendments for the 2 year period following their coming into effect;
  2. allowing the Minister of Municipal Affairs and Housing to make amendments to official plans where the Minister is off the opinion that a plan will adversely affect a matter of provincial interest;
  3. allowing up to three residential units in a house to be permitted "as of right" (including placing restrictions on parking requirements);
  4. reducing the section 37 community benefit further by making the prescribed percentage of value (4%) subject to a ratio recognizing the existing floor area. This ratio will be further reduced where the formula takes into account affordable/attainable units (date to be implemented TBD);
  5. exempting from site plan control (section 41):

A. residential development of up to 10 units and a land lease community home from site plan control; and

B. exterior design as an element to be considered in site plan drawings. It will be interesting to see what effect this has on urban design guidelines;

  1. revising section 42, parkland dedication, requirements by:

A. with respect to the dedication of land/cash-in-lieu of 5% (residential rate):

  1. decreasing that requirement by the percentage of affordable/attainable units (on a date to be proclaimed); and
  2. exempting up to 3 residential units and non-profit housing;

B. with respect to the alternate rate (unless a building permit has been issued):

  1. changing the rate from 300 units/ha to 600 units/ha;
  2. restricting the calculation further to:
    1. if 5 ha or less of land, 10% of the land or the value of the land;
    2. if more than 5 ha 15% of the land or land value;
    3. excluding from the calculation:
    1. the number of existing units; and
    2. affordable/attainable units from the calculation of net residential units (date to be implemented TBD);

C. permitting land owners to propose the conveyance of portions of their land, including encumbered lands, for parkland purposes as opposed to having to rely on the determination of the local municipality (date to be implemented TBD); and

D. requiring municipalities to allocate at least 60% of monies collected for parkland purposes at the beginning of each year (1 January 2023).

  1. amending section 51 by removing the requirement for a public meeting on subdivision applications.

Conservation Authorities Act

The Conservation Authorities Act is amended to greatly reduce the ability of Conservation Authorities to regulate development activity by removing their ability to comment on development applications and to require permits for projects approved under the Planning Act. Moreover the Minister will have greater powers to make exceptions for development applications. (date to be implemented TBD).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.