Doug Ford’s administration is considering a pause on affordable housing mandates for new residential projects near transit hubs in Toronto, Mississauga, and Kitchener, arguing that these requirements are hindering construction amid a housing crisis.
The suggested change would freeze inclusionary zoning in these three Ontario cities until July 2027. This planning tool allows cities to require developers to offer some units at below-market rates – specifically at 30 percent of the household’s gross income – in new developments close to major transit stations.
This proposal arises as Ontario struggles to meet its target of building 1.5 million new homes across the province over ten years, leading Municipal Affairs and Housing Minister Rob Flack to declare last year that it has become a “soft” target.
The provincial government believes that this adjustment will make housing initiatives more feasible under current market conditions, a spokesperson for Municipal Affairs and Housing Minister Rob Flack stated in an email on Wednesday.
“We need to get more shovels in the ground to build homes for families across the province,” said Michael Minzak. “Now is not the time to be adding unnecessary red tape and requirements that only increase the cost of building a home.”
WATCH | New zoning rules coming to Toronto communities near transit:
Why neighbourhoods around major Toronto transit stations will soon change
Toronto is moving ahead with new zoning regulations surrounding major transit stations – changes that could transform neighborhoods around subway, LRT, and GO stops. CBC’s Lane Harrison explains what you need to know.
In 2025, Toronto received an F grade after housing starts in the city dropped by 40 percent, according to a report from the Residential Construction Council of Ontario. The condo market also declined last year, with some comparing it to the downturn seen in the early 1990s.
The province’s proposal highlighted significant increases in financing and construction costs over recent years. The government noted feedback from industry stakeholders indicating that affordable housing mandates, especially in Toronto, could lead developers to pause or cancel projects altogether.
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A map of major transit areas approved by the provincial minister of municipal affairs and housing in August for inclusionary zoning. (City of Toronto)
However, housing advocate Mark Richardson argued that inclusionary zoning as it stands in Ontario is just “a marginal solution” for tackling the housing crisis.
This policy was first adopted by Toronto city council back in 2021 but didn’t take effect until last year due to delays from the province. This was after changes were made limiting affordability requirements to five percent of units within eligible new developments while restricting how long those units would have rent set below market value at just 25 years.
Richardson suggested replacing this policy with direct offerings of affordable housing on provincial lands surrounding transit stations.
“We need quick action on delivering affordable homes at scale; you can’t achieve this through inclusionary zoning,” said Richardson, founder of Housing Now TO. “You’re only going to see progress through direct investment from all three levels of government.”
Richard Lyall, president of RESCON (Residential Construction Council of Ontario), expressed his desire for complete elimination of inclusionary zoning policies.
“[Governments] look for solutions like inclusionary zoning because they seem good on paper but don’t effectively work; they actually discourage investment,” he said.
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Why neighbourhoods around major Toronto transit stations will soon change
Toronto is moving ahead with new zoning regulations surrounding major transit stations – changes that could transform neighborhoods around subway, LRT, and GO stops. CBC’s Lane Harrison explains what you need to know.
In 2025, Toronto received an F grade after housing starts in the city dropped by 40 percent, according to a report from the Residential Construction Council of Ontario. The condo market also declined last year, with some comparing it to the downturn seen in the early 1990s.
The province’s proposal highlighted significant increases in financing and construction costs over recent years. The government noted feedback from industry stakeholders indicating that affordable housing mandates, especially in Toronto, could lead developers to pause or cancel projects altogether.
NDP Calls Pause ‘Serious Failure’
The Official Opposition responded on Wednesday, arguing that the Progressive Conservative government would block at least 3,000 affordable homes from being built each year just in Toronto. “In a housing crisis this severe, that’s a serious failure,” said NDP finance critic Jessica Bell in a statement. “Toronto’s inclusionary zoning rules simply ask developers to include some affordable homes in large new condo and purpose-built rental buildings.” She expressed concern that the Ford government might never approve “strong” inclusionary zoning policies. Mississauga Mayor Carolyn Parrish shared her disappointment regarding how the province is proceeding. She mentioned that her municipality’s housing task force met with top developers about inclusionary zoning and “they weren’t fighting back.” “They were OK with it. None of them were ever thrilled, but there wasn’t massive objection,” she stated. “I understand that developers are really feeling pressure right now. We’re facing a housing crisis too for those who need affordable options.”Source link
