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TORONTO \u2014 Ontario is proposing to temporarily ban three major cities from requiring a certain percentage of affordable units in new buildings near transit stations, citing a downturn in the housing market.<\/p>\n
Critics say now is not the time to pull away from affordable housing, but the government argues in its proposal that the policy known as inclusionary zoning works well in a strong housing market. That is not what Ontario is seeing right now.<\/p>\n
\u201cBeginning in 2022-23, market conditions in Ontario have undergone a series of shifts that have negatively impacted housing starts and costs, including significant increases in the costs of financing (i.e., interest rates) and construction,\u201d the government writes in its proposal.<\/p>\n
\u201cThe residential development market continues to be strained and many municipalities considering IZ are finding that is not viable under present economic conditions.\u201d<\/p>\n
The pace of building new homes in Ontario has slowed in recent years and has caused the government to back away from its goal of building 1.5 million homes in 10 years.<\/p>\n
The policy is only in effect in Toronto, Kitchener and Mississauga. Other cities have been considering implementing it, but the province says it is planning to pause inclusionary zoning requirements until July 1, 2027.<\/p>\n
\u201c(The government) has heard from stakeholders expressing concerns that implementing IZ at this juncture, particularly in Toronto, could have a negative impact on overall housing supply and could result in the cancellation or pause of projects,\u201d the proposal says.<\/p>\n
Toronto Mayor Olivia Chow said the current rules allowing cities to place a maximum five per cent requirement of affordable units on development were already not enough. She had been pushing for 20 to 30 per cent, she said this week.<\/p>\n
\u201cPeople need homes they can afford,\u201d she said at a press conference.<\/p>\n
Mississauga Mayor Carolyn Parrish said in a statement that the city is \u201cdeeply concerned\u201d by the province\u2019s proposal.<\/p>\n
\u201cWe understand this zoning puts an extra burden on builders to finance their projects,\u201d she wrote. \u201cBut it is impossible for municipalities like Mississauga to subsidize those IZ units, no matter how desperately they are needed.\u201d<\/p>\n
A spokesperson for Municipal Affairs and Housing Minister Rob Flack suggested inclusionary zoning requirements hamper building.<\/p>\n
\u201cNow is not the time to be adding unnecessary red tape and requirements that only increase the cost of building a home,\u201d Michael Minzak wrote in a statement.\u00a0<\/p>\n
\u201cThese temporary measures will help to ensure project viability so more people can call the City of Toronto home.\u201d<\/p>\n
Builders are welcoming the pause. Richard Lyall, president of the Residential Construction Council of Ontario, said inclusionary zoning sounds good but doesn\u2019t work.<\/p>\n
\u201cIt has a chilling effect on projects, and then it delays projects\u2026and the problem with it as well, too, is that it\u2019s kind of like a beggar-thy-neighbour policy,\u201d he said.<\/p>\n
\u201cWe\u2019ll get these (affordable) units in a building and who pays for that? Well, it\u2019s the other occupants of that building, whether it\u2019s new rental or condo. There\u2019s no free lunch there, but it\u2019s an easy way for governments to try and look like they\u2019re really doing something here, when in fact, they\u2019re not.\u201d\u00a0<\/p>\n
Liberal housing critic Adil Shamji says by dropping inclusionary zoning, the province will miss a crucial window of opportunity for building affordable homes close to transit.<\/p>\n
\u201cI really struggle with this government, because on the one hand, they will tell us that they\u2019re doing an amazing job in housing, and then on the other hand, use their abysmal record on housing to justify short-sighted decisions,\u201d he said in an interview.\u00a0<\/p>\n
\u201cThe reality is that the opportunity to build around new subway lines and subway stations really only exists once. It\u2019s right now, as you\u2019re seeing the Finch West LRT open up, the Eglinton Crosstown open up in short order, the Ontario Line open up. Once those developments are built, the opportunity to have affordable housing in those areas will essentially be gone forever.\u201d<\/p>\n
NDP housing critic Jessica Bell said the government\u2019s proposal shows a failure to take responsibility.<\/p>\n
\u201cBy refusing to greenlight inclusionary zoning, the Conservatives have blocked the construction of at least 3,000 affordable homes a year in Toronto alone,\u201d she wrote in a statement.<\/p>\n
Green Party Leader Mike Schreiner noted that the government\u2019s proposal comes as the Association of Municipalities of Ontario reported this week that about 85,000 people in the province experienced homelessness last year, up from the year before.<\/p>\n
\u201cInstead of giving municipalities more tools to make communities more affordable, the Ford government is taking them away,\u201d Schreiner wrote in a statement.<\/p>\n
The government proposal is open for public comment until Monday.<\/p>\n
\u00a92025 The Canadian Press<\/strong><\/p>\n<\/p><\/div>\n