Part 2: Shovels in the ground for Ontario - The Province announces the More Homes Built Faster Act to address the housing crisis

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Part 2: Shovels in the ground for Ontario - The Province announces the More Homes Built Faster Act to address the housing crisis

Part 2: Shovels in the ground for Ontario - The Province announces the More Homes Built Faster Act to address the housing crisis

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November 9, 2022

On October 25, 2022, the Ontario government introduced sweeping legislation – Bill 23, More Homes Built Faster Act, 2022 (Bill 23), aimed at incentivizing the construction of 1.5 million new homes by 2031. Dentons provided an initial overview in Shovels in the ground for Ontario - The province announces the More Homes Built Faster Act to address the “housing crisis”. The below additional information and charts summarize the following:

Bill 23, including a list of the legislation that is proposed to be amended and upcoming consultation deadlines;
Significant proposed amendments to the Planning Act;
Significant proposed amendments to the Development Charges Act, 1997;
Significant proposed amendments to the Ontario Land Tribunal Act, 2001;
Significant proposed amendments to the Conservation Authorities Act.

As of the date of this Client Bulletin, Ontario’s Provincial Parliament concluded a First and Second Reading of Bill 23 and ordered that it be referred to the Standing Committee on Heritage, Infrastructure, and Cultural Policy, for a series of hearings and public consultations. The current status of Bill 23 can be reviewed at this link to the Ontario Legislative Assembly website. As part of the legislative process, the Ontario government is seeking feedback from the public on Bill 23. The links to the Environmental Registry of Ontario (ERO) and the Regulatory Registry of Ontario, where comments can be submitted, are included below. Comments should be provided as soon as possible, and well ahead of the deadline, as the process is unfolding quickly.

On November 4, 2022, the Ministry of Municipal Affairs and Housing (MMAH) made two significant announcements that are intended to implement some of the sweeping changes proposed under Bill 23 and to facilitate growth. First, MMAH announced proposed amendments to the Greenbelt Plan that will add approximately 9,400 acres to the Greenbelt Plan (when combined with other additions that were announced in 2022), and remove or redesignate 15 areas of land totaling approximately 7,300 acres from the edge of the Greenbelt Area that are serviced or adjacent to serviced lands and will be used to build housing, subject to certain conditions. The Ministry’s stated expectation is that landowners will develop detailed plans to build housing quickly, obtain significant progress on approvals and begin construction of these new homes by no later than 2025. The government is proposing to return lands that do not meet these conditions to the Greenbelt. Comments on proposed amendments to the Greenbelt Plan can be submitted through the Environmental Registry at this link. Second, MMAH announced decisions and approvals relating to various Regional Official Plans (OP), including those for the Regions of York, Peel, Halton, and Niagara, that were with the Minister for approval. Modifications were made to each OP as well as to the various maps to address provincial policy direction and government priorities related to growth.

Please note that the information provided in this article is current as of November 9, 2022. It does not constitute legal or professional advice or a legal opinion of any kind. If you require any assistance regarding specific legal issues with respect to The More Homes Built Faster Act, or how this legislation could impact your business, please contact the authors.

Dentons continues to monitor and report on the Ontario government’s ongoing efforts to address the housing crisis, including with respect to Bill 108, More Homes More Choice Act, the Housing Affordability Task Force Report, and Bill 109, More Homes for Everyone Act. We will continue to review the legislation and related policy updates as they unfold, and provide updates on relevant developments. In the meantime, should you have any questions about Bill 23 and how it may impact your business, or require assistance preparing and submitting comments to the Ministry on any of the various consultation items, please do not hesitate to contact Kat Sliwa or any member of Dentons’ Municipal, Land Use Planning and Development Law group.

1. Overview of Key Changes and Upcoming Consultations

NAME	Bill 23 – An Act to amend various statutes, to revoke various regulations and to enact the Supporting Growth and Housing in York and Durham Regions Act, 2022
SHORT TITLE	More Homes Built Faster Act, 2022
STATUS	Second Reading complete; ordered to Standing Committee (for an update, see this link)
LEGISLATION AMENDED BY BILL 23	Bill 23 proposes to amend the following legislation: 1. City of Toronto Act, 2006 2. Conservation Authorities Act 3. Development Charges Act, 1997 4. Municipal Act, 2001 5. New Home Construction Licensing Act, 2017 6. Ontario Heritage Act 7. Ontario Land Tribunal Act, 2001 8. Ontario Underground Infrastructure Notification System Act, 2012 9. Planning Act 10. Supporting Growth and Housing in York and Durham Regions Act, 2022
STANDING COMMITTEE HEARINGS	Public Hearings Markham on Wednesday, November 9, 2022 (in person) Brampton on Thursday, November 10, 2022 (in person) Toronto on Wednesday, November 16, 2022, and Thursday, November 17, 2022 Deadlines Oral Presentations: Required to register by 6:00 p.m. (EDT) on Thursday, November 3, 2022 (Markham and Brampton) and 6:00 p.m. (EST) on Wednesday, November 9, 2022 (Toronto). Written submissions: Those who do not wish to make an oral presentation but wish to comment on the bill may send a written submission by 7:00 p.m. (EST) on Thursday, November 17, 2022. To register or send a written submission, please visit the following link: ola.org/en/apply-committees This information is provided for convenience only. Please consult the Standing Committee on Heritage, Infrastructure and Culture Policy for the most accurate and up-to-date information.

2. Planning Act, R.S.O. 1990, c. P. 13

ERO Links for Comments on Amendments to the Planning Act		Current Submission Deadline
https://ero.ontario.ca/notice/019-6172 https://ero.ontario.ca/notice/019-6163		November 24, 2022
SUBJECT	SUMMARY OF AMENDMENTS		PROVISIONS
SUBJECT	SUMMARY OF AMENDMENTS		NEW/AMENDED	REFERENCE(S)
Elimination of planning responsibilities for certain upper-tier municipalities	New Section 1(1) is amended by adding definitions to distinguish between “upper-tier municipality without planning responsibilities”, which means, the County of Simcoe, the Regional Municipality of Durham, the Regional Municipality of Halton, the Regional Municipality of Niagara, the Regional Municipality of Peel, the Regional Municipality of Waterloo, and the Regional Municipality of York, and “upper-tier municipality with planning responsibilities”. Other upper-tier municipalities may be added to the definition of upper-tier municipality without planning responsibilities by way of future regulations. Removes rights of appeal for upper-tier municipalities without planning responsibilities. Upper-tier municipalities without planning responsibilities may provide advice and assistance to lower-tier municipalities by agreement, but would no longer have the authority or requirement to adopt official plans or amendments, approve lower-tier official plans or amendments, or appeal any planning decisions. The Minister would assume approval authority previously held by the upper-tier municipality without planning responsibilities, subject to future transition regulations. Amendments governing transition are proposed regarding official plans or official plan amendments that are in effect before the legislation is in force, adopted but not yet in effect when the legislation comes into force, or in process but not yet adopted.		NEW	Section 1(1), 1(4.3), & 1(4.4)
			AMENDED	Section 8
			AMENDED	Section 15
			AMENDED	Section 16
			AMENDED	Section 17
			AMENDED	Section 34
			AMENDED	Section 50
			AMENDED	Section 51
			AMENDED	Section 54
			NEW	Section 70.13
Gentle density	Municipalities are precluded from prohibiting three residential units on urban residential land, provided certain specifications are met. There are no appeal rights in respect of any official plan policies or parts of by-laws that authorize the use of additional residential units.		AMENDED	Section 16(3)
			AMENDED	Section 17(24.1)
			AMENDED	Section 17(36.1)
			AMENDED	Section 34(19.1)
			AMENDED	Section 35(1)
Mandatory amendments to Zoning By-Laws	Municipalities have 1 year after official plan policies come into effect to amend zoning by-laws to ensure they conform with specific policies related to planned higher order transit stations or stops, provincial plans or policy statements, or policies set out in Section 17(36.1.4).		NEW	Subsection 16(20) & (21)
Appeals	Removes the general right of appeal for official plan amendments, zoning by-law amendments, consents, minor variances, previously open to any person or public body who made submissions to the council before the plan, by-law, variance, or provisional consent was adopted/approved/given. Limits the rights of appeal for official plan amendments, zoning by-law amendments, minor variances, and consents to "specified persons" as defined in proposed new subsection 1(1) - i.e. gas, electric, hydro authorities, or public bodies that are not “upper tier municipalities without planning responsibilities, as defined in proposed new subsection 1(1). Elimination of appeal rights to have retroactive effect, deeming any appeals already filed but not scheduled for a “hearing on the merits” as of October 25, 2022, to be dismissed. No appeals permitted with respect to policies or parts of by-laws that authorize the use of specified as-of-right units.		AMENDED	Subsection 17(24)
			AMENDED	Subsection 17(36)
			AMENDED	Subsection 34(19)
			AMENDED	Subsection 45(12)
			AMENDED	53
Minister’s authority to amend Official Plan in provincial interest	Continues to allow the Minister to amend official plans where the plan is likely to adversely affect a matter of provincial interest. Eliminates certain procedural steps previously required, specifically, the Minister is no longer required to give a municipality the opportunity to change the official plan, nor is the Minister required to request that the Tribunal hold a hearing with respect to the official plan amendment at the request of any person or municipality.		AMENDED	23
Community Benefits Charges	Changes the community benefits charge payable from an amount not exceeding the prescribed percentage of the value of land as of the valuation date to an amount to be multiplied by a ration based on floor area.		AMENDED	Subsection 37(32)
Site Plan Control	Various amendments to site plan control area-related provisions, including that residential buildings with 10 units or less will be exempt from site plan control. Limits imposed on municipalities’ authority to dictate a building’s exterior design, including character, scale, appearance and design, except to the extent that it is a matter relating to exterior access to a building that will contain affordable housing units.		AMENDED	Section 41
Parkland	A new subsection 42 (1.1) is added to establish a maximum amount of land required to be conveyed for development or redevelopment that will include affordable residential units, attainable residential units or residential units required to be affordable pursuant to an inclusionary zoning by-law. Similar changes are made to section 51.1. New subsections 42 (2.1) to (2.4) are added, which set out rules with respect to the timing of the determination of the amount of land for park or other public recreational purposes or payment in lieu that is required to be provided under a by-law under the section. Similar changes are made to section 51.1. Amendments are made in relation to the maximum alternative rate of parkland dedication to one hectare for each 600 net residential units proposed or at such lesser rate as may be determined by the municipality for the conveyance of land and one hectare per 1,000 units for cash-in-lieu. Amendments are made that cap parkland dedication requirements where the alternative requirement is used at (a) where land proposed for development or redevelopment is 5 hectares or less in area, 10 percent of the land or value of the land, as the case may be, and (b) where land proposed for development or redevelopment is greater than 5 hectares in area, 15 percent of the land or the value of the land, as the case may be. New subsections 42 (4.30) to (4.39) are added, which set out a framework for owners of land to identify land to be conveyed to satisfy requirements of a by-law passed under the section. The framework permits owners to appeal to the Tribunal if the municipality refuses to accept the conveyance of the identified land. A new subsection 42 (16.1) is added, which requires a municipality to spend or allocate 60 per cent of the monies in the special account required by subsection 42 (15) annually.		AMENDED	Sections 42 and 51.1
Exceptions to subdivision control/part-lot control for land lease community homes	Amendments to exceptions to subdivision control and part-lot control under subsections 50(3) and (5) of the Planning Act are made regarding land lease community homes. The exception does not apply to land, if any part of the land, is in the Greenbelt area. Related amendments to the definition of “parcel of land” in subsection 46(1) are also included.		AMENDED	Section 46
			AMENDED	Section 50
Public meetings for proposed draft plans of subdivision	Sections 51(20.1) to (21.2), which set out specific requirements for public meetings in respect of applications for draft plans of subdivision, is removed.		AMENDED	Section 51
Transitional matters	Gives the Minister power to make regulations regarding transitional matters (ss. 70(12)). Addresses various transitional matters which may arise where there is a change in the municipality that has planning responsibilities (ss. 70(13).		ADDED	Subsection 70(12) & (13)

3. Development Charges Act, 1997, S.O. 1997, c. 27

ERO Links for Submissions on Amendments to the Development Charges Act, 1997			Submission Deadline
https://ero.ontario.ca/notice/019-6172			November 24, 2022
SUBJECT	SUMMARY OF AMENDMENTS	PROVISION(S) TO BE REVISED
SUBJECT	SUMMARY OF AMENDMENTS	NEW/AMENDED		REFERENCE(S)
Development Charges	Exemptions are added for “affordable residential units”, “attainable units”, and affordable housing units required pursuant to an Inclusionary Zoning By-law, from the municipality’s ability to make by-laws and impose development charges against land for these units. Amendments made to no longer permit development charges related to housing services. Existing by-laws under this section which impose development charges related to housing services are deemed to be amended to be consistent with the amendment to remove housing services.	AMENDED		Section 2
Exemptions from development charges for certain types of development	Exemptions from development charges added for affordable and attainable residential units. To qualify as affordable and exempt from development charges, the residential unit must be intended to be an affordable residential unit for a period of 25 years or more from the time the unit is first rented or sold. In addition, the municipality must enter into an agreement with the person who otherwise would be required to pay a development charge, requiring it to be an affordable residential unit for a period of 25 years. In the case of an attainable unit, the municipality must enter into an agreement with the person who otherwise would be required to pay a development charge, that requires the residential unit to be an attainable residential unit at the time it is sold. The Minister of Municipal Affairs and Housing may also establish standard forms of agreement to be used in these instances.	NEW		Sections 4.1, 4.2, & 4.3
	Exemption from development charges added for non-profit housing developments. non-profit housing development is identified as the development of a building or structure intended for use as a residential premise. A non-profit housing development is developed by a corporation to which the Non-for-profit Corporations Act, 2010 applies, a corporation without share capital to which the Canada Not-for-profit Corporations Act applies, and a non-profit housing co-operative that is in good standing under the Co-operative Corporations Act.	NEW (s. 4.2) AMENDED (ss. 26.1(2))		Section 4.2 & Subsection 26.1(2)
	Exemption from development charges added for inclusionary zoning residential units, required to be included in a development or redevelopment plan pursuant to a by-law passed under section 34 of the Planning Act to give effect to the policies described in subsection 16(4) of that Act.	NEW		Section 4.3
Determination of Development Charges	Amends the existing method for determining development charges. Includes removal of costs of certain studies from the list of capital costs that are considered in determining a development charge that may be imposed. Also requires development charges to be reduced from what could otherwise be imposed during the first four years a by-law is in force. · Year 1 – no more than 80 per cent of the maximum development charge that could previously be charged; · Year 2 - no more than 85 per cent of the maximum development charge that could previously be charged; · Year 3 - no more than 90 per cent of the maximum development charge that could previously be charged; and · Year 4 - no more than 95 per cent of the maximum development charge that could previously be charged.	AMENDED		Section 5
Development Charge Expiry	Amends the current expiry period of a development charge by-law to 10 years after coming into force, from the current 5 years.	AMENDED		Subsection 9(1)
Rental Housing Development	Development charges for rental housing developments are reduced by a percentage based on the number of bedrooms: · Three or more bedrooms shall be reduced by 25 per cent; · Two bedrooms shall be reduced by 20 per cent; and · Premises not referred to in the above shall be reduced by 15 percent.	NEW		Section 26.2
Maximum interest rates	Maximum interest rates are prescribed for the purposes of sections 26.1 and 26.2, including with respect to rental housing developments.	NEW		Section 26.3
Reserve funds	Beginning in 2023 and in each subsequent calendar year, municipalities must now spend or allocate at least 60 per cent of reserve funds for certain services – i.e. water supply, waste water, and certain services related to highways.	AMENDED		Section 35

4. Ontario Land Tribunal Act, 2021, S.O. 2021, c. 4, Sch. 6

ERO Links for Submissions on Amendments to the Ontario Land Tribunal Act, 2001		Submission Deadline
https://www.ontariocanada.com/registry/view.do?postingId=42913&language=en		November 24, 2022
SUBJECT	SUMMARY OF AMENDMENTS		PROVISION(S) TO BE REVISED
SUBJECT	SUMMARY OF AMENDMENTS		NEW/AMENDED	REFERENCE(S)
Dismissal Without a Hearing	Expands the Tribunal’s powers to dismiss a proceeding without a hearing, on the basis that the person who brought the proceeding has contributed to undue delay or if the Tribunal is of the opinion that a party has failed to comply with an order of the Tribunal in the proceeding.		AMENDED	Section 19
Power to order costs	Provides the Tribunal with the power to order an unsuccessful party to pay a successful party’s costs.		NEW	Section 20(2)
Regulation-Making Power	Lieutenant Governor in Council may make regulations requiring the Tribunal to prioritize the resolution of specified classes of proceedings. Minister may make regulations prescribing timelines that would apply to specified steps taken by the Tribunal in specified classes of proceedings (the implications of a failure of the Tribunal to comply with the timelines prescribed by the Minister are also addressed), and to require the Tribunal to report on its compliance with the timelines.		AMENDED	Section 29

5. Conservation Authorities Act, R.S.O. 1990, c. C. 27

ERO Links for Submissions on Amendments to the Conservation Authorities Act		Submission Deadline
https://ero.ontario.ca/notice/019-6141		November 24, 2022
SUBJECT	SUMMARY OF AMENDMENTS	PROVISIONS
SUBJECT	SUMMARY OF AMENDMENTS	NEW/AMENDED	REFERENCE(S)
Powers of Authorities	Subsections 21(2) and (3) are repealed and new amendments are proposed to be enacted that require conservation authorities to provide notice of the proposed disposition of land previously granted by the Minister under section 39, to the Minister instead of requiring the Minister’s approval. Conservation authorities also need to conduct public consultations before disposing of lands that meet certain criteria.	AMENDED	Section 21
Municipal Programs and Services/Fees	Currently, conservation authorities are authorized to provide certain programs and services within their areas of jurisdiction. The proposed change provides that conservation authorities may not provide a program or service related to reviewing and commenting on certain matters under a prescribed Act.	AMENDED	Section 21.1
*Planning Act*	Certain prohibitions on activities in the area of jurisdiction of a conservation authority do not apply if the activities are part of development authorized under the Planning Act and if other specified conditions are satisfied (Subsection 28(4.1) and 28(4.2)). Amendments made to require conservation authorities to issue permission or a permit where an order has been made under section 34.1 of the Planning Act, in addition to the current language which provides for this where an order has been made under section 47 of the Planning Act.	NEW	Subsection 28(4.1) & 28(4.2) Subsections 28.0.1 & 28.1.2
Other	Amendments relating to factors that must be considered when making decisions relating to a permission to carry out a development project or a permit to engage in otherwise prohibited factors. Amendments would require consideration of the effects on the control of unstable soil or bedrock versus the current factors such as control of pollution and the conservation of land. Regulation powers are also amended, providing that the Minister may make regulations limiting the types of conditions that may be attached to a permission or permit. Prohibition added to prevent a person from carrying out a development project if they have not entered into an agreement by the timeline prescribed in the regulations.	AMENDED	Various