The Ontario government has introduced the “More Homes Built Faster Act” recognizing housing supply is critical to improving affordability.
Some of the changes include:
- Up to 3 residential units permitted “as of right” on land zoned for 1 home without needing a municipal by-law amendment;
- Removal of site plan controls for most projects with fewer than 10 units. This reduces approvals for small projects and will help expedite all development applications;
- More certainty regarding inclusionary zoning, a maximum 25-year affordability period, 5% cap on the number of units, and a standardized approach for the price or rent;
- Freeze, reduce, and exempt fees for affordable and inclusionary zoning units, as well as non-profit housing developments, and exemptions from municipal development charges, parkland dedication levies, and community benefits charges (CAC’s).
So far, these are changes the BC government has only talked about. There’s been little action on municipal “Housing Needs Reports” revealing municipal obstruction, nor the province’s own “Opening Doors” report recommending phasing out community amenity contributions (CAC’s) that encourage municipalities to under-zone to collect revenue from rezoning applications.
Municipalities already charge Development Cost Charges, (recent 180% increase in Saanich) for infrastructure upgrades and new parks. CAC’s are another cash-grab where new homebuyers subsidize the construction of new community projects for existing taxpayers. Saanich is planning to boost CAC’s up to $21,000 per new townhome.
Ontario’s “More Homes Built Faster Act” recognizes that much of housing’s costs are embedded in the lot, amply demonstrated by the BC Assessment Authority.
For example, a 1950’s home on a 9,400 sq ft lot in Saanich was assessed at $962,900 in July 2021. The house was assessed at $49,900 and the lot at $913,000.
We are operating from decades-old planning concepts requiring large lots for single detached dwellings.
Rezoning to smaller lots or higher density is required, however, most CRD municipalities make this challenging and expensive.
In Ontario this will be much easier and more affordable by allowing up to 3 units without going through the slow and costly municipal processes.
Ontario is acting on the reality that housing affordability requires supply, which is unlikely to happen as long as municipalities have sole authority over zoning, approval processes and fees.
Following Ontario’s lead, we will see how long it takes for the BC government to now act on that reality.
This column appears Wednesdays in the Times Colonist newspaper.
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