The City of Toronto is currently engaging in public consultation on draft Official Plan and Zoning By-law amendments (the “Draft Amendments”) that would enable the City to require new development to include affordable housing.
Although inclusionary zoning is new to Toronto, it has been used in various forms in other jurisdictions across Canada and around the world.
Background
The Draft Amendments reflect the requirements set out in the Planning Act and Ontario Regulation 232/18 and look to formalize the anticipated transition period resulting from Bill 108 changes to limit Inclusionary Zoning to Protected Major Transit Station Areas (“PMTSAs”). These PMTSAs must be adopted by Council and approved by the Minister of Municipal Affairs and Housing before they are identified as areas where the Inclusionary Zoning provisions will apply.
Key components of the Draft Amendments include geographic application, the affordability period and the amount of units set aside. Geographically, Inclusionary Zoning will apply to areas defined as strong and moderate market areas within defined PMTSAs. The City of Toronto has already proposed these areas: https://www.toronto.ca/legdocs/mmis/2019/ph/bgrd/backgroundfile-133051.pdf
City Approval Process
On September 4, 2020, a Report for Action was released by the City presenting the Draft Amendments for the purpose of public consultation. These provisions were considered by the Planning and Housing Committee on September 22, 2020. The Planning and Housing Committee directed that further analysis, consultations and meetings with key stakeholders take place. These discussions will consider additional options including increases to the percentage of housing that would be secured as affordable rentals or affordable ownership, or reductions in the prescribed period of time for which the units must be maintained as affordable (the “Affordability Period”).
The Draft Amendments presented to the Planning and Housing Committee suggested that the amount of units set aside include securing 3-10% of the total residential gross floor area in a development as affordable housing for an Affordability Period of 99 years. These requirements are dependent on whether the development is in a strong or moderate market and what type of development it is. These affordability requirements will be secured by agreements under section 35(2) of the Planning Act and they will be registered on title to the lands. At the current time, it is unknown the extent of changes to the Draft Amendments that will be proposed after the further consultation.
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