What is Bill 23
Ontario Bill 23, “More Homes Built Faster Act, 2022”
Understanding Bill 23
This article will provide an overview of Bill 23 and the advantages it offers investors and developers. Passed on November 28, 2022, Ontario’s Bill 23, “More Homes Built Faster Act, 2022,” is in large part an amendment to previous legislation affecting planning and land development across the Province of Ontario.
The roots of this new legislation stem from a pledge made by the provincial government to provide 1.5 Million new homes over the next decade. It is the hope that this effort, along with others, will assist in making housing more affordable for the average Canadian. But it is likely that we will fall short of this 1.5 million new home target, which some argue is already outdated due to new immigration laws, which would put further pressure on housing affordability. Cue, Bill 23.
Described as “part of a long-term strategy to increase housing supply and provide attainable housing options for hardworking Ontarians and their families”, Bill 23 is intended to spur development through changes in regulation, new municipal housing targets, and a consolidation of Provincial plans and policies.
Here’s what you should make note of:
Major Changes
Planning and Development
Bill 23 introduces significant changes to the Provincial Planning Act, aimed at expanding the “as of right” development guidelines for small-scale residential projects, regulating inclusionary zoning, increasing flexibility in parkland dedications by municipalities, limiting the application of site plan control, and altering how the planning authority functions.
What does this mean?
Bill 23 makes it easier to build small residential projects (up to three units per lot), where services are available, through “as of right” guidelines.
It regulates "inclusionary zoning" to encourage affordable housing in new developments.
Municipalities are required to loosen their park requirements, allowing for further defecation of communities.
As of right:
As-of-right is a concept used in land use and zoning, by which a property owner is entitled to build on said property without discretionary approval or special permission from a regulatory authority, given that the development falls within the zoning regulations of that property.
The “as-of-right” principle provides more predictability to property owners, as they can proceed with their plans with certainty.
Development Charges
Bill 23 mandates the reduction of several development charges, which include the addition of new discounts and exemptions to the rates that local municipalities are allowed to levy on new developments. These changes encompass varying rates based on the timing of development, the type of housing, and fluctuations in interest rates.
What does this mean?
Bill 23 brings in new discounts and exemptions for developers when it comes to paying for new development charges.
The rate of a development charge can vary based on factors like housing type but, more importantly, on timing.
Important note to consider:
It should be noted that these alterations not only decrease the financial implications on the builder, but the decreased revenue collected from the cities through the use of these development charges could have long-term implications on our cities’ ability to fund infrastructure, social housing programs, etc.
Ontario Land Tribunal (OLT) Proceedings
Amendments to the Ontario Land Tribunal Act, 2021, broaden the authority of the OLT to dismiss appeals and award costs to the successful parties. Situationally dependent, the OLT will be required to prioritize the resolution of certain types of proceedings and/or be subject to timelines during such proceedings to find a resolution.
In short, these amendments are intended to streamline the development approval process and reduce delays caused by prolonged disputes over land development.
Ontario Land Tribunal:
The Ontario Land Tribunal (OLT) is a provincial administration tasked with resolving disputes related to land use planning, development, and property rights. It provides an independent forum for hearings and appeals, ensuring decisions are made fairly and in accordance with relevant provincial laws and regulations.
Heritage & Conservation Protection
With Bill 23, amendments to both the Ontario Heritage Act and the Conservation Authorities Act have been implemented. The result of these amendments is reduced regulations on buildings and areas that had previously been protected under such regulations. These amendments are intended to open up new lands for development and further defecation that were previously protected under either heritage or conservation guidelines.
Conclusion
The goal of Bill 23 is to make housing more available and affordable in Ontario. The changes affect how housing is built, how development is regulated, and how heritage and conservation lands are managed. It is part of a bigger plan to shape how Ontario grows over the next decade.
But will this new bill work as intended? The current market environment has suppressed development across the province, if not the country. The increasing cost of construction, and now financing due to increasing interest rates, have made it difficult for developers to turn a profit. Companies, large and small, are struggling to utilize these new guidelines as a result of external circumstances. With that being said, as the market environment begins to show signs of improvement, it is likely we will see the implementation of Bill 23 come into full effect as investors and developers rush to take advantage.
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