Ontario introduces new bill aimed to increase housing supply
Posted March 30, 2022 10:21 am.
Last Updated March 30, 2022 3:28 pm.
Ontario’s government introduced legislation Wednesday to increase the province’s housing supply that, if passed, will support a plan to accelerate development timelines to get affordable homes built faster.
The Ontario Housing Affordability Task Force published a report in February 2022 calling for 1.5 million new homes to be built within the next ten years.
Premier Doug Ford says the plan, built on recommendations from that task force, will deliver both near-term solutions and long-term commitments “to provide more attainable housing options for Ontario families.”
“Ontario is the best place to live, start a business and raise a family, but we can only build on our success if all hardworking Ontarians and their families are able to find the home they need and want,” Ford said in a news release.
“As Ontario’s population and our economy continue to grow, building more homes is another way that we’re keeping costs down for families across the province.”
The More Homes for Everyone Act has tabled several solutions to help offset Ontario’s current housing crisis, largely responsible for restricting first-time homebuyers from diving into the real estate market.
One proposal from the government is to increase the non-resident speculation tax rate to 20 per cent by expanding the tax beyond the Greater Golden Horseshoe. It would also aim to close loopholes to fight tax avoidance.
The government is now launching new consultations on increasing “missing middle” housing including support for multigenerational housing, access to financing for not-for-profit developers and the housing needs of rural and northern communities.
The bill contains measures to streamline subdivision approval processes, site plan approval processes, which deal with elements such as walkways and parking, and approvals for modular multi-unit residential buildings.
Municipalities would also have to refund zoning by-law amendment fees after January 1, 2023, if they don’t make a decision within legislated timelines.
Ford says his government is committed to investing more than $19 million to help the Ontario Land Tribunal (OLT) and the Landlord and Tenant Board to reduce their backlogs.
Ontario’s Real Estate Association (OREA) praised the More Homes for Everyone Act, saying these new additions and improvements will go a long way in “addressing affordability and the need for more transit-oriented communities.”
“The Bill will also increase consumer protection for purchasers of newly built homes by providing the Home Construction Regulatory Authority (HCRA) the additional tools it needs to impose bigger fines and penalties for builders who break the rules,” OREA President Tim Hudak said in a statement.
House prices continue to skyrocket provincewide
Housing Minister Steve Clark said he was confident he could enact some of the recommendations before the spring election, saying it would be a mix of small and “bold” measures because there isn’t one solution.
“There is no silver bullet to addressing the housing crisis. It requires a long-term strategy with long-term commitment and coordination at all levels of government,” Clark said.
“We are committed to introducing an update to Ontario’s Housing Supply Action Plan every year over four years in partnership with municipalities and sector associations and deliver long-term solutions for all Ontarians.”
House prices in Ontario have nearly tripled in the last ten years, far outpacing income growth, the report said, but the province is 1.2 million homes — both rental and owned — short of the G7 average.
Businesses and public services are having trouble recruiting and retaining workers because of a scarcity of nearby housing, which harms the economy, while long commutes contribute to air pollution, the report said.
Ontario announced Tuesday it is increasing a tax on non-resident homebuyers from 15 to 20 per cent and is broadening it to the entire province instead of just the Greater Golden Horseshoe.
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Many of the task force report’s recommendations suggested ways to limit how development can be stifled by local opposition to neighbourhood growth and change.
Those recommendations included eliminating municipal policies that prioritize preserving “neighbourhood character,” exempting projects of 10 units or fewer from public consultation when they only need minor variances, limiting municipalities from hosting talks beyond what is required in the Planning Act, and banning heritage designations that are made only after a development application is filed.
The report said that municipal zoning rules also need to be changed to allow more homes to be built. It’s estimated that 70 per cent of the residential land in Toronto is restricted to single-detached or semi-detached houses.
The province allowed secondary suites starting in 2019. However, municipalities are still restricting their use — the total number of secondary suites has declined over the past three years, the report said.
The task force also recommended changes to the Ontario Land Tribunal.
Many of the task force report’s recommendations suggested ways to limit how development can be stifled by local opposition to neighbourhood growth and change. Photo courtesy: Tierra Mallorca.
Overwhelming majority of Ontarians feel they will never afford a home: poll
Canada’s housing market continues to be a constant source of consternation among many, as a recent poll finds that an overwhelming majority of respondents worry they won’t be able to afford a home of their own.
A poll conducted by Counsel Public Affairs of 2,273 eligible Ontario voters from January 21-23 concluded that 83 per cent of respondents are either very concerned or somewhat concerned about the cost of housing in their community.
A Statistics Canada report published in mid-January revealed that people were moving to the suburbs in Toronto and Montreal in unprecedented numbers.
“Urban sprawl continues, with Toronto and Montreal both experiencing record-high population losses to surrounding areas,” the report said.
The City of Toronto has already introduced a Vacant Home Tax, with one in the works for Ottawa, the province said, noting that all municipalities have the authority to establish the tax through the Municipal Act.
The Toronto Regional Real Estate board revealed in early March that the average selling price for a home in the region surpassed $1.3 million last month, up from just above $1 million in February and more than $1.2 million in January of this year.
The average price of a detached home hit more than $1.7 million in February, with semi-detached properties at $1.3 million, townhouses at $1.1 million and condos nearing $800,000.
With files from David Zura and Michael Talbot of CityNews
