Ontario Construction News staff writer
Although the City of Ottawa has managed to cut down on its internal processing times for many development applications, significant delays during the post-approval phase are causing major bottlenecks, with timelines for legal agreements dragging on for years, according to a recent audit.
The report from Auditor General Nathalie Gougeon, presented at the city’s Audit Committee on Friday (Sept. 12), highlights a system grappling with “inconsistent expectations across City departments,” unclear decision-making authority, and inadequate file tracking.
The audit revealed that for applications needing post-approval agreements, such as subdivision plans, overall review timelines have actually increased, leading to uncertainty and rising costs in a city dealing with a housing crisis.
“This audit provides insights into existing challenges in the development application review process and our recommendations support further efficiency and transparency,” said Gougeon in a statement. She acknowledged the tough spot the city finds itself in; balancing provincial mandates to build more homes while fulfilling its core responsibilities. “The audit recognizes the challenging position that the City is in; being both a regulator of housing and steward of municipal assets, while also working to reach its housing targets.”
Post-approval delays a “Significant Pain Point”
While the audit points out that city staff have made headway in accelerating the initial review of applications before they get draft approval, things slow down considerably once legal agreements and conditions need finalization. These agreements are crucial before construction can start and typically involve several city departments like planning, legal services, and infrastructure.
The data shared in the audit paints a clear picture:
Site Plan Control: Although the city’s review time for these applications has improved, finalizing legal agreements after approval took an average of 204 business days in 2023. Plans of Subdivision: The situation is even worse for subdivisions. The average time to finalize legal agreements skyrocketed to 555 business days in 2023, up from an already lengthy 391 days in 2022. This means builders are waiting over two years on average for final sign-off after their projects receive draft approval.
The audit pointed out “bottlenecks and inconsistent expectations across City departments” as key contributors to these delays. It also noted that there’s a need for the city to “clearly define decision-making authorities for reviewing and approving applications” along with better tracking of files so departments can provide timely feedback.
Industry praises findings, urges prompt action
The findings from this report were quickly welcomed by Ottawa’s home-building industry which stated that it confirms their long-standing concerns.
The Greater Ottawa Home Builders’ Association (GOHBA) issued a statement expressing its “strong support for the recent findings and recommendations,” praising the Auditor General for highlighting “systemic gaps and deficiencies.”
GOHBA mentioned that its members are directly affected by issues raised in this report like “process inefficiencies and inconsistencies that contribute to delays, uncertainty, and unpredictability for applicants.”
The association fully backed all seven recommendations made by the Auditor General, particularly those calling for clearer timelines, enhanced file tracking systems, and modern performance metrics aimed at boosting accountability.
“A predictable, transparent approvals process is critical to delivering the housing supply Ottawa urgently needs,” GOHBA emphasized while noting that minimizing uncertainty helps reduce costs for both builders and buyers.
GOHBA urged City Council to act quickly on implementing these recommendations while providing necessary resources to planning and legal departments ensuring their effectiveness.
“GOHBA stands ready to work with the city to advance these reforms,” continued their statement adding they expect upcoming recommendations from Mayor’s Housing Innovation Taskforce will complement Auditor General’s findings.
Call for improved public reporting
Lastly, this audit calls attention to needing more transparent public reporting practices. It found current methods used by the city do not present an accurate picture regarding development application timelines as they often omit lengthy post-approval phases.
This absence of comprehensive data makes it hard for Council members as well as residents to hold accountable parties involved or grasp how extensive delays affect housing construction efforts.
The city management has accepted all seven recommendations from this audit.
A full copy of the audit is available here.
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