November 22, 2022 SENT BY E…

November 22, 2022

SENT BY E-MAIL – MFPB@ontario.ca

Dear Honourable Steve Clark, Minister of Municipal Affairs and Housing

RE: Bill 23, More Homes Built Faster Act, 2022

Proposed Changes to the Planning Act and Development Charges Act, 1997 Changes: Providing Greater Cost Certainty for Municipal Development-related Charges
ERO Number: 019-6172

This letter summarizes the Town of Erin’s comments to the proposed legislative and regulatory amendments to the Planning Act and Development Charges Act. We request that the Province consider our comments.
Provide Greater Cost Certainty of Parkland Costs to Enable Housing Developments to Proceed More Quickly
• The Province should clearly define what constitutes high density development.
• The proposed changes to parkland dedication should not apply to developments that have received draft plan approval prior to the date the Bill receives Royal Assent. Town Staff and other commenting agencies have completed detailed reviews of these applications and a reduction in the required parkland can significantly change the site design and planning efforts to date.
• The Town is not supportive of the reduced Parkland dedication rates. During the pandemic, municipalities realized that there is a deficiency in parkland for the current population. As we continue to grow, it is important to provide adequate parkland for all residents. Within high density developments, it is important to provide adequate outdoor parkland to create healthy, liveable and safe communities, as per the Provincial Policy Statement.

Support More Efficient Use of Land and Provide More Parks Quickly
• Before amending the Act to permit encumbered land and privately owned public spaces to count towards parkland dedication, Municipalities should be provided the future regulations identified, that must be met.
• The proposed amendment to allow for parkland appeals may result in land unsuitable for park purposes being provided for those purposes. This parkland might not meet municipal or provincial policies related to parkland.
• Public parkland should not be encumbered. This can lead to insurance and other related unforeseen risks for municipalities.

Build Transparency and Other Measures to Support the Faster Acquisition of More Parks
• Municipalities build up reserves for the purpose of parkland acquisition and development, which involve significant capital costs, especially for smaller municipalities. Parks are a component of a municipality’s 10-year capital plan. The spending of at least 60 percent of a parkland reserve balance at the start of each year will severely hamper efforts to execute parks plans.

Reduce Development Costs to Enable More Housing to be Built Faster
• Currently, many municipalities providing water/wastewater services carry negative development charge (D.C.) reserve fund balances and many others are carrying significant growth-related debt. The proposed changes will result in a loss of DC’s which are required to offset infrastructure related balances.
• The reduction in development charges by 20% will significantly impact the Town’s DC funds that are used to fund growth-related studies and infrastructure-related projects. Reducing the reserve will make it difficult for a growing community to keep up with the required infrastructure improvements (i.e. road network improvements). In addition, it will make the reserve amount uncertain, which makes asset management plans difficult to execute.
• Municipalities will be negatively impacted by the proposal to limit eligible capital costs through development charges. If studies can no longer be funded through DCs, municipalities will need to increase the tax rate. The Town strives to keep tax rates low, to combat the rising cost of living. Rising taxes reduce affordability.
• It is not clear how the reduced development costs will be passed onto the purchasers of residential housing. Provide clarity and guidance related to this.

Increase Transparency and Accountability in the Use of Development Charges Funds
• Request clarification on when the 60% development charges reserve must be used for water, wastewater and roads related work. Does it need to be at the start of each year similar to the proposal for Parkland Reserves?
• Municipalities often have multi-year capital plans to plan for infrastructure improvements. This would be difficult to execute if municipalities are required to use 60% of their DC reserves in the beginning of each year.
Encourage the Supply of Rental Housing
• The legislation should make it clearer that development charge discounts are for purpose-built housing. Furthermore, there is a more specific housing concern for larger 3+ bedroom units for the inclusions of family units and multi-generational housing. Larger 3+ bedroom residential dwelling units should be the focus of housing promotion.

Encourage the Supply of Affordable Housing
• During the pandemic, municipalities realized that there is a deficiency in parkland for the current population. As we continue to grow, it is important to provide adequate parkland for all residents. Exempting non-profit affordable housing projects from parkland dedication requirements would result in a deficiency of parkland surrounding affordable housing. The Town recommends that the Province consider an alternative rate for affordable housing to support the Province’s interest in increasing the affordable housing supply in Ontario.

Gentle Density
• Development Charges may be required for gentle density to ensure that water and waste water services can be provided to these additional dwelling units. There are scenarios where the existing services will not be sufficient. As a Town that is currently constructing a wastewater treatment plant where the capacity has already been allocated, permitting up-to three units per lot will require upgrades and extensions to municipal water and wastewater infrastructure that relies on DC funds.

Encourage the Supply of Attainable Housing
• As previously indicated, the Town disagrees with the exemptions proposed to development charges and parkland dedication requirements. The Town recommends that the Province consider an alternative rate to support the Province’s interest in increasing the affordable housing supply in Ontario and ensuring there is adequate parkland and DC reserves to fund infrastructure work.

If you have any questions or concerns, please contact me by email (Jack.Krubnik@erin.ca) or by telephone (519.855.4407 Ext. 253).
Sincerely,

Jack Krubnik, MLA, OALA, MCIP, RPP
Director of Planning & Development
Town of Erin