Ontario is looking to temporarily stop three major cities from mandating a certain percentage of affordable units in new constructions near transit stations, pointing to a slump in the housing market.
Critics argue that this isn’t the right time to backtrack on affordable housing initiatives, while the government claims in its proposal that the policy known as inclusionary zoning thrives in a strong housing market. However, that’s not what Ontario is experiencing at the moment.
“Beginning in 2022-23, market conditions in Ontario have undergone a series of shifts that have negatively impacted housing starts and costs, including significant increases in the costs of financing (i. e., interest rates) and construction,” the government writes in its proposal.
“The residential development market continues to be strained, and many municipalities considering IZ are finding that it is not viable under present economic conditions.”
The rate of new home construction in Ontario has slowed down recently, leading the government to reconsider its goal of building 1.5 million homes over ten years.
This policy currently applies only to Toronto, Kitchener, and Mississauga. Other cities were contemplating adopting it but the province plans to pause inclusionary zoning requirements until July 1, 2027.
“(The government) has heard from stakeholders expressing concerns that implementing IZ at this juncture, particularly in Toronto, could have a negative impact on overall housing supply and could result in the cancellation or pause of projects,” the proposal says.
Toronto Mayor Olivia Chow mentioned that current regulations allowing cities to require up to five percent of affordable units on developments were already insufficient. She has been advocating for 20 to 30 percent instead.
“People need homes they can afford,” she said at a press conference.
Mississauga Mayor Carolyn Parrish expressed her city’s “deep concern” regarding the province’s proposal.
“We understand this zoning puts an extra burden on builders to finance their projects,” she wrote. “But it is impossible for municipalities like Mississauga to subsidize those IZ units, no matter how desperately they are needed.”
A spokesperson for Municipal Affairs and Housing Minister Rob Flack suggested inclusionary zoning requirements hinder building progress.
“Now is not the time to be adding unnecessary red tape and requirements that only increase the cost of building a home,” Michael Minzak wrote in a statement.
“These temporary measures will help ensure project viability so more people can call the City of Toronto home.”
Builders are welcoming this pause. Richard Lyall, president of the Residential Construction Council of Ontario stated that while inclusionary zoning sounds appealing, it doesn’t function well.
“It has a chilling effect on projects, and then it delays projects … and another problem with it too is that it’s kind of like a beggar-thy-neighbour policy,” he said.
“We’ll get these (affordable) units in a building and who pays for that? Well, it’s other occupants within that building whether it’s new rental or condo. There’s no free lunch there; it’s just an easy way for governments to try and look like they’re really doing something when they’re actually not.”
Liberal housing critic Adil Shamji argued by halting inclusionary zoning efforts; the province will miss out on vital opportunities for developing affordable homes near transit options.
“I really struggle with this government because one moment they claim they’re doing an amazing job with housing while simultaneously using their poor track record as justification for short-sighted decisions,” he said during an interview.
“The reality is that chances to build around new subway lines exist only once-it’s now while you see Finch West LRT opening up soon along with Eglinton Crosstown. After those developments happen, opportunities for affordable housing there will be lost forever.”
NDP housing critic Jessica Bell stated that by refusing inclusionary zoning approval; the government fails its responsibilities.
“By refusing to greenlight inclusionary zoning, Conservatives have blocked at least 3,000 affordable homes each year just within Toronto alone,” she noted in her statement.
Green Party Leader Mike Schreiner highlighted how this proposal comes amid reports from the Association of Municipalities of Ontario stating about 85,000 individuals faced homelessness last year-a rise from previous years.
“Instead of giving municipalities more tools to create affordable communities; Ford’s government takes them away,” Schreiner remarked in his statement.
The government’s proposal remains open for public feedback until Monday.
Allison Jones, The Canadian Press
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“(The government) has heard from stakeholders expressing concerns that implementing IZ at this juncture, particularly in Toronto, could have a negative impact on overall housing supply and could result in the cancellation or pause of projects,” the proposal says.
Toronto Mayor Olivia Chow mentioned that current regulations allowing cities to require up to five percent of affordable units on developments were already insufficient. She has been advocating for 20 to 30 percent instead.
“People need homes they can afford,” she said at a press conference.
Mississauga Mayor Carolyn Parrish expressed her city’s “deep concern” regarding the province’s proposal.
“We understand this zoning puts an extra burden on builders to finance their projects,” she wrote. “But it is impossible for municipalities like Mississauga to subsidize those IZ units, no matter how desperately they are needed.”
A spokesperson for Municipal Affairs and Housing Minister Rob Flack suggested inclusionary zoning requirements hinder building progress.
“Now is not the time to be adding unnecessary red tape and requirements that only increase the cost of building a home,” Michael Minzak wrote in a statement.
“These temporary measures will help ensure project viability so more people can call the City of Toronto home.”
Builders are welcoming this pause. Richard Lyall, president of the Residential Construction Council of Ontario stated that while inclusionary zoning sounds appealing, it doesn’t function well.
“It has a chilling effect on projects, and then it delays projects … and another problem with it too is that it’s kind of like a beggar-thy-neighbour policy,” he said.
“We’ll get these (affordable) units in a building and who pays for that? Well, it’s other occupants within that building whether it’s new rental or condo. There’s no free lunch there; it’s just an easy way for governments to try and look like they’re really doing something when they’re actually not.”
Liberal housing critic Adil Shamji argued by halting inclusionary zoning efforts; the province will miss out on vital opportunities for developing affordable homes near transit options.
“I really struggle with this government because one moment they claim they’re doing an amazing job with housing while simultaneously using their poor track record as justification for short-sighted decisions,” he said during an interview.
“The reality is that chances to build around new subway lines exist only once-it’s now while you see Finch West LRT opening up soon along with Eglinton Crosstown. After those developments happen, opportunities for affordable housing there will be lost forever.”
NDP housing critic Jessica Bell stated that by refusing inclusionary zoning approval; the government fails its responsibilities.
“By refusing to greenlight inclusionary zoning, Conservatives have blocked at least 3,000 affordable homes each year just within Toronto alone,” she noted in her statement.
Green Party Leader Mike Schreiner highlighted how this proposal comes amid reports from the Association of Municipalities of Ontario stating about 85,000 individuals faced homelessness last year-a rise from previous years.
“Instead of giving municipalities more tools to create affordable communities; Ford’s government takes them away,” Schreiner remarked in his statement.
The government’s proposal remains open for public feedback until Monday.
Allison Jones, The Canadian Press
Last 30 Days: 68,387 Votes
All Time: 1,154,652 Votes
1771 VOTES
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