Ontario housing law to eliminate parking requirements near transit

Ontario's government announced “targeted” housing changes Wednesday that would allow developers to provide fewer parking spaces for buildings near rapid transit while exempting public post-secondary institutions from planning laws.

Currently, developers are required by law to provide a certain number of parking spaces per resident, but the government is seeking to eliminate these minimums for new construction near transit stations and high-traffic transit areas such as subways, rail lines, and bus rapid transit stations. This allows developers to decide how much parking to build based on market needs.

The legislation also reverses some of the previous changes made by the Doug Ford government to development fees.

On Wednesday afternoon, Municipal Affairs and Housing Minister Paul Calandra introduced the legislation, known as the Eliminate Red Tape to Build More Homes Act.

Calandra said in a statement that the measures “recognize the struggles” of municipal partners and aim to remove barriers to housing.

“We will not micromanage and impose a one-size-fits-all approach across the province,” the minister said.

“Municipalities know their communities well – they know where it makes sense to build houses. That's why we support them by providing them with the necessary infrastructure and the necessary funds and tools to build all kinds of housing.”

The new legislation prioritizes pre-fab housing projects and makes it easier to approve student housing and roadside housing units.

Part of the plan includes exempting state-supported colleges from the Planning Act, allowing them to avoid paying application fees and build high-density residences.

Discounts apply to both the university and the college, as well as any other location owned by the post-secondary institution.

The changes come a day after Calandra confirmed the government would consider adding student housing to the 1.5 million new homes it is working to build.

There will also be changes to the planning act to remove “practical barriers” to the creation of driveways, basements and garden suites. These decisions will be made by the new regulatory body and may include changing the number of bedrooms allowed on a lot, as well as the maximum lot coverage.

The government is trying to eliminate parking minimums for new developments near transit stations and high-trafficked transit areas such as subways, rail lines and rapid transit bus stations. This allows developers to decide how much parking to build based on market needs.

Officials say that could reduce construction costs from about $2,000 to $100,000 per parking lot that is not needed.

The legislation also reverses some of the government's changes to construction payments. The province has phased in relief and exemptions for certain residential properties, such as duplexes, as well as affordable housing and inclusionary zoning. This is also significantly reduced for six family units.

Development fees are collected by cities to help pay for municipal services or damaged infrastructure such as roads and transit. After previous legislation, municipalities warned it would cost millions in housing infrastructure.

Officials say the new changes will bring additional revenue to municipalities.

“We've listened to our municipal partners and we're moving forward in a more collaborative way to address the financial needs they're dealing with,” Calandra told reporters this afternoon, adding that it's what his province is doing to make municipalities more “holistic.”

Building payments for those building affordable housing will remain suspended, but the time frame for obtaining planning permission and benefiting from the ban has been reduced from two years to eight months.

“Use it or lose it”

The Ford government pledged last year to implement a “use it or lose it” policy to halve approved projects and get shovels in the ground. It was included in Wednesday's legislation.

The policy expands the scope of “past provisions” that allow housing approvals to expire if certain conditions are not met.

A three-year deadline is set for compliance with the conditions for approval of pre-1995 divisions.

The province requires obsolescence conditions on new subdivision and condominium approval projects and sets universal guidelines for municipalities to apply these conditions in new and existing site plan applications.

Seven municipalities reported 70,000 units inactive for at least two years, officials said.

Municipalities will have the ability to reallocate to other infrastructure-intensive projects, such as water and wastewater services.

Officials noted that municipalities have the authority to set the rules and that the policy will streamline the process.

Building codes and paperwork

Building codes will be amended to allow 18-storey mass timber buildings, and the government will advise allowing single staircases in small residential buildings. The government says it will help increase density.

In order to minimize costs and delays, third-party applications are limited to “principal participants” under the Official Plans and Zoning Act.

These participants include applicants, government agencies, First Nations and utility providers.

By eliminating some of these third-party claims, the government anticipates speeding up approval of applications by up to 18 months.

Ontario also created a regulatory body to exempt standardized housing projects from certain sections of the Planning Act. These “standardized housing projects” have yet to be created and will work alongside the federal government's promised “catalogue” of support for high-density construction.

“We have a good opportunity to work with them and help them optimize,” Calandra said.

According to the province, the design could include different types of homes, including modular housing.

The Bill contains many other proposals to help streamline processes, such as a new “forward framework” for ministerial zoning orders.

The new process requires key data to be open for consultation through an environmental register.

“Random Bag”

Opposition parties argued the bill would introduce a “random package of small-ball measures” that could have been introduced years ago.

“This bill will not get the job done,” Liberal Leader Bonnie Crombie said in a statement.

NDP Leader Marit Stiles called the bill “weak” and said it lacked a bold vision.

“The government is ignoring key recommendations from its housing affordability task force, including legalizing four- and four-story multiplexes in all neighborhoods,” Stiles said, noting that it also included another Ford government policy change.

“Also missing: real rent control and public investment in non-market housing, without which the housing affordability crisis will continue.”