Ontario set to reduce developer charges to spur new home construction

Reducing developer charges, allowing more units on one residential lot, and pursuing rent-to-own programs are among a host of measures Ontario announced Tuesday aimed at tackling the housing crisis.

The Progressive Conservative government has promised to build 1.5 million homes in 10 years, and introduced new legislation intended to spur and speed up development.

The province has identified 29 municipalities in which the bulk of new housing will need to be built in order to reach that provincewide goal, and will require them to develop "pledges" of how they will meet their assigned targets, though there are so far no consequences for falling short.

Toronto will need 285,000 new homes, Ottawa will need 151,000, Mississauga will need 120,000 and Brampton will need 113,000, the province says. Ontario has previously granted the heads of Toronto and Ottawa so-called strong mayor powers to overrule council when votes conflict with building housing.

The list of municipalities with the greatest housing needs could point to other cities Ford may grant strong mayor powers to in the future.

Ford and his housing minister previewed the legislation in a Toronto Region Board of Trade event earlier Tuesday.

"Our government will never ignore the many Ontario families who want to place the call home," Ford said in his speech.

"Everyone's dream is to have a little white picket fence. You know, when they put the key in the door, they know they're building equity into it, they can do the little tweaks to their house and increase the value of it. That's our goal. We won't let the ideology and politics stand in the way of doing what's right for all Ontarians."

The legislation would allow up to three residential units — such as basement apartments and garden houses — on one lot without needing bylaw amendments. Those new units would also be exempt from development charges.

The province also proposes to freeze, reduce and exempt fees associated with new home construction in order to spur building. Affordable housing, non-profit housing and inclusionary zoning units — meaning affordable housing in new developments — as well as some "attainable" units would be exempt from various charges.

Rental builders would also see development charges reduced, with larger discounts on family-sized units.

Government officials in a technical briefing could not say what financial impact that would have on municipalities.

The new housing plan also includes introducing more housing density near transit stations, and using surplus government lands, modular homes and rent-to-own programs.

Municipal Affairs and Housing Minister Steve Clark said the policies represent the boldest housing changes the government has made to date.