Firm News

LN Bulletin: Province introduces the Promoting Affordable Housing Act, 2016

On May 18, 2016, the Ontario government introduced the Promoting Affordable Housing Act, 2016, that would, if passed, go towards improving Ontarians’ access to affordable and adequate housing.

The changes come as part of the government’s update to the Long-Term Affordable Housing Strategy, which was first launched in 2010, and would amend four provincial acts (the Planning Act, the Development Charges Act, the Residential Tenancies Act, and the Housing Services Act) to help increase the supply of affordable housing across the province and modernize existing social housing.

Inclusionary Zoning

Inclusionary zoning is one of the most significant parts of the province’s proposed reforms. It refers to policies, by-laws and programs that mandate development proposals with residential units to include affordable housing units and provide for those units to be maintained as affordable over a period of time.

The proposed inclusionary zoning legislation would enable municipalities to increase the supply of affordable housing in order to meet the objectives and targets set out in their housing and homelessness plans and official plans. 

Key Elements to the Proposed Inclusionary Zoning Framework:

  • Municipalities would be allowed to determine where and how inclusionary zoning applies through official plan policies and zoning by-laws, subject to the requirements of the proposed legislation and potential regulations
  • Appeals to the Ontario Municipal Board from municipal inclusionary zoning official plan policies and zoning by-laws would be prohibited, except for appeals made by the Minister of Municipal Affairs and Housing
  • Municipalities would not be authorized to accept money in lieu of inclusionary zoning units or allow the units to be built on off-site lands
  • Municipalities would be required to establish a procedure to maintaining the affordability of inclusionary zoning units over time
  • Owners of inclusionary zoning units would be required to enter into agreements with the municipality, which may be registered against the land and can be enforced against subsequent owners to keep the unit affordable
  • Municipalities would be restricted from using section 37 (density bonusing) in addition to inclusionary zoning requirements, except in circumstances outlined in regulations

Additional Information

A more detailed and comprehensive look at the province’s update to its Long-Term Affordable Housing Strategy can be found on the Ministry of Municipal Affairs and Housing’s website.

A draft of Bill 204 – Promoting Affordable Housing Act, 2016 can be found here. The bill has passed first reading, and will be debated at its second reading.

Members of the public are invited to comment and share ideas on inclusionary zoning by: August 16, 2016, through one of several ways as outlined here.

If you have questions about these proposed changes or any aspect of municipal, land use planning, or development law, please contact Quinto Annibale, Steve Ferri or Mark Joblin.