Exploring the Impact on Housing Affordability

For the last decade, the OAA has been calling on the government to make changes to the province’s broken Site Plan Approval process. While substantive changes have been implemented this year, more work needs to be done.

In 2013 and 2018, the Association commissioned independent research to quantify the economic impact of lengthy Site Plan Approvals on individual projects as well as the cumulative effect on the province. The first report by Bousfields Inc. and Altus Group, A Review of the Site Plan Approval Process in Ontario, studied two hypothetical projects—a 100-unit condominium apartment building and a 50,000 square foot office building—and quantified the costs associated with the time spent getting from Site Plan application to approval.

At the request of various parties, including the provincial government, the OAA commissioned Altus Group to develop a followup report in July 2018, Site Plan Delay Analysis. This study aimed to provide updated economic modelling from the original report, and to estimate cumulative costs for the province. Using a conservative estimate of the annual building permit value subjected to Site Plan Approval across Ontario, Altus estimated indirect costs to total up to $900 million per year for all stakeholders involved.

Government Housing Affordability Task Force

Earlier this year, the provincial government announced it was striking a Housing Affordability Task Force to study Ontario’s housing affordability crisis and to put forth recommendations to address this far-reaching challenge. The OAA commends government for taking this step and applauds the Task Force for the substantive set of recommendations it proposed. The OAA was also pleased to learn many of its own recommendations, including some regarding reforms to the Site Plan Approval process, are integrated in the report.

New Legislation

Since the publication of the recommendations from the Housing Affordability Task Force, the government has made some significant legislative changes that impact the Site Plan Approval process and, more generally, the development approval process across Ontario.

More Homes for Everyone Act

The introduction and speedy passage of Bill 109, More Homes for Everyone Act, 2022, brought with it significant changes to the development approval process and legislated building code changes that were also proposed through Interim Changes to the 2012 Building Code.

In particular, this legislation mandates delegated authority for Site Plan control decisions as well as additional funding to help the Ontario Land Tribunal (OLT) resolve disputes faster. Other changes to the development approval process that result from the passage of this legislation include:

• a 60-day timeline for approval of Site Plan applications, including application fee rebates starting January 1, 2023 for processes that take longer than the allotted 60 days; and
• the “Streamline Development Approval Fund” to assist municipalities to ready themselves for this 60-day timeline and associated fee rebate requirement.

Strong Mayors, Building Homes Act

In addition to the province-wide changes brought about through Bill 109, Bill 3, Strong Mayors, Building Homes Act, 2022, provides new power to the Mayors of the Cities of Toronto and Ottawa, including:

• hiring the Chief Administrative Officer and municipal department heads, and creating and re-organizing departments;
• appointing chairs and vice-chairs for identified committees and local boards, and establishing new identified committees;
• bringing matters for Council consideration related to provincial priorities;
• vetoing bylaws approved by Council if they relate to matters of provincial priority; and
• proposing the municipal budget.

This legislation, which was the last to receive Royal Assent from the late Queen Elizabeth II, will come into effect on November 15 to coincide with the start of the new municipal Council terms. Although it does not address Site Plan Approval specifically, it is the first piece of legislation related to the development approval system the government has introduced since it was elected in June of this year.

The OAA will continue to urge government to stay focused on housing affordability, including fixing all parts of the Site Plan Approval process. In particular, the Association will continue to advance its recommendation to restore Section 41 exclusions in the Planning Act.