Thank you for the…

Thank you for the opportunity to comment on the release of the proposed inclusionary zoning regulation. Please accept the following as King Township Planning staff’s comments on the Ministry of Municipal Affairs EBR Posting “Proposed regulation under the Planning Act related to Inclusionary Zoning” (EBR Number 013-1977). The Planning Department reserves the opportunity to provide additional comments and/or modify the comments contained herein as the review of inclusionary zoning progresses.

Summary of Staff Comments:

Planning staff has significant concerns with the viability of inclusionary zoning as a municipal tool to achieve affordable housing based on the proposed regulation and recommends the following: 1.That the mandatory municipal incentives be eliminated or significantly reduced to make inclusionary zoning a useful tool for municipalities to increase the supply of affordable housing; 2.That the 5 and 10 per cent cap of inclusionary zone units be increased and include both rental and ownership units to provide flexibility and further opportunities to meet local, regional, and provincial affordable housing targets and goals; and 3.That the Province works with municipalities to re-evaluate the roles and responsibilities of upper-tier and lower-tier municipalities in the implementation of inclusionary zoning.

Mandatory Municipal Incentives

The proposed regulations place a significant financial obligation on local municipalities that choose to implement inclusionary zoning and could take funds away from infrastructure and parks. Reductions in parking requirements in the context of King’s villages may not be appropriate and may result in parking enforcement concerns. The mandatory incentives combined with the administrative costs may deter municipalities from using this tool to achieve affordable housing units. Planning staff recommends that the mandatory municipal incentives be eliminated or significantly reduced to make inclusionary zoning a useful tool to increase the supply of affordable housing.

Tenure & Total Number of Affordable Units

The proposed regulation indicates that inclusionary zoning requirements only apply to ownership units; purpose built rental projects would be exempt. This distinction may be viewed as an effort to minimize discouraging factors for proponents undertaking a purpose built rental project, or encourage construction of purpose built rentals. However, the proposed required municipal financial incentives may actually make purpose built rental units more financially viable. York Region staff, in consultation with the York Region Local Municipal Working Group, has undertaken research and pro forma analysis that indicates that purpose built rental projects may benefit more from financial incentives, while incentives may not be necessary to make ownership developments viable.

York Region’s Official Plan requires that a minimum of 25 per cent of new housing units across the Region be affordable and be distributed within each local municipality. A mix and range of unit type, lot size, unit size, function and tenure are encouraged.

The proposed regulations cap the total number of affordable housing units or the total gross floor area proposed to be occupied by the units to 5 per cent of the total number of units or gross floor area of the development or redevelopment. If the development is a high density transit station area identified in an official plan, the cap would be 10 per cent of the total number of units or gross floor area of the development or redevelopment. Planning staff recommends that the 5 and 10 per cent cap of inclusionary zone units be increased and include both rental and ownership units to provide flexibility and further opportunities to meet local, regional, and provincial affordable housing targets and goals.

Implementation

The proposed regulations will require a significant amount of municipal resources to administer delivery and monitor, which include initial Municipal Assessment Report, establish market and affordable process by location annually, enter into agreements with each development, assess purchaser eligibility (presumed, not explicit in proposed regulation summary), and monitor units over term of the agreement (20-30 years). The proposed regulation seems to targets single- and lower-tiered municipalities and does not mention the two-tiered municipal system. In York Region, the Region is generally responsible for collecting and managing data around housing affordability and housing prices. As a lower tier municipality with limited resources and expertise related to affordable housing, the Township would need to rely heavily on York Region to assist in implementing inclusionary zoning. Planning staff recommends that the Province work with municipalities to re-evaluate the roles and responsibilities of upper-tier and lower-tier municipalities in the implementation of inclusionary zoning.

Township Planning staff looks forward to continuing its participation in this review and to our comments and recommendations being considered and addressed. We look forward to hearing from you in this regard.

Kristen Harrison, MCIP, RPP

Planner – Policy

kharrison@king.ca

905-833-4065

[Original Comment ID: 212319]