Proposed New Regulation Respecting Community Benefits Authority Under the Planning Act

  • May 04, 2020
  • Mary Ellen Bench and Katarzyna Sliwa

Background 

Bill 108, the More Homes, More Choice Act, received Royal Assent on June 6, 2019. The Act amended 13 different pieces of legislation respecting municipalities and the land use planning process, including the various charges imposed on development, new rules respecting affordable housing, heritage buildings, and more.

Bill 138, the Plan to Build Ontario Together Act, 2019, received Royal Assent on December 10, 2019, and set out a requirement that a municipality provide notice of the enactment of a by-law to put in place a community benefits charge system, and a 40-day period in which any person or public body could appeal the charge to the Local Planning Appeal Tribunal. The requirements for studies to support a Community Benefits Charge and the appeal, is consistent with the studies requirement and appeal of a Development Charges By-law. The Community Benefits Charge will replace the s.37 bonusing provisions of the Planning Act. Municipalities that opt to introduce a Community Benefits Charge cannot charge for parkland dedication under s. 51 of the Planning Act. The Community Benefits Charge authority has not yet been proclaimed. 

On February 28, 2020, the Province posted, “Proposed regulatory matters pertaining to community benefits authority under the Planning Act, the Development Charges Act, and the Building Code Act.”  The draft regulation sets out mandatory requirements before Bill 138 can be proclaimed law. It is available for public comment until March 30, 2020.

The proposed regulation is generating discussion from municipalities that are concerned about ensuring the changes are revenue neutral, and from the development community, which sees the benefits of shorter timelines for municipal approvals and changes that support the Province’s Housing Supply Action Plan.