Municipalities have…

Municipalities have carefully crafted green standards to ensure new construction is environmentally, socially, and economically responsible. These requirements support their climate commitments, reduce the burden on our strained electricity system, and generate local economic value. The More Homes Built Faster Act (Bill-23), which was fast-tracked through the Ontario legislature, will take away their authority and inadvertently undermine the affordability benefits that energy-efficient, climate-resilient buildings provide to owners and tenants.

Clauses in the legislation narrow site planning authorities to an extent that they will prevent municipalities from addressing energy efficiency and climate change in new buildings. This legislation as written would override council-approved sustainable design standards in Toronto, Ottawa, Brampton, Ajax, Whitby, Pickering, Markham, and other municipalities across Ontario. They risk causing disorder in the development process as municipalities with green development standards would have to redesign existing processes, creating uncertainty for both development departments and developers across Ontario.

The aim of Bill 23 is to accelerate development and create housing. The following are three areas of significant legal implications:

1. Loss of Regional Participation in Land Use Planning Decisions
As part of the proposed changes:
• There will no longer be Regional Official Plans.
• The current Regional Official Plans will be deemed to be plans of the lower-tier municipalities.
• Regions will no longer have approval authority over any land use planning instruments including official plans, official plan amendments, and plans of subdivision.
• The Region will have no ability to appeal or request party status before the Ontario Land Tribunal hearings with respect to any land use planning decisions. As a result of the changes, there will be limited Regional control over future land development on a Region-wide basis, there will be a loss of Regional coordination of Region-wide issues, and a disconnect between new residential development and the provision of Regional services for those developments.

2. Increased Burden on Tax Base
There are various proposed exemptions from the payment of development charges (including the development charge phase-in), community benefit charges and parkland dedication. This means that the increased cost of providing municipal as well as Regional services (including to service the new residential developments) will result in an increased use of general revenues or reduction in the provision of service.

3. Financial Implications: Municipalities lose the ability to cover crucial capital costs
The proposed changes to development charges, parkland dedication fees and community benefits charges will limit the ability of municipalities to fund the capital costs of such infrastructure and services. The total cost of home ownership will be higher as a result of further property tax and user rate increases. The proposed legislation will have a material impact on municipalities’ ability to fund the infrastructure required to support the targeted growth in housing supply. Ultimately the total cost of home ownership will increase as, in the absence of federal/provincial funding to offset the impacts, the funding of growth-related infrastructure shifts from new development to existing tax and ratepayers. There is no demonstrable evidence that a reduction in development charges, community benefit charges or parkland dedication rates will translate into lower housing prices, as these prices are driven by market forces.
The financial aspects of the proposed legislation may unintentionally increase the cost of home ownership for all – reducing housing affordability.

The proposed legislation reduces the amount of Development Charges, Parkland Dedication fees and Community Benefits Charges collected by municipalities to fund the growth-related capital cost of infrastructure and services needed for new housing to be built and to provide the essential services to its residents. Existing taxpayers and ratepayers will pay more of the cost of growth-related infrastructure, and as such the total cost of housing will increase due to higher property taxes and user rates.

UNDRIP:
These proposed changes also go against UNDRIP article 19 and 32. As of June 21, 2021 UNDRIP is now enshrined in Canadian law and must be followed. The land included in Bill 23 development proposal is the traditional territory of many Indigenous Nations. As such, prior and informed consultation with each of these Nations is a REQUIREMENT BEFORE passing any laws or Bills mandating development, including Bill 23. No such consultation has occurred. Posting on an open message board on ERO cannot be considered consultation. Was any attempt even made to advise Indigenous Nations of this ERO message board? If not, it cannot remotely be considered consultation.

Conclusion:
The More Homes Built Faster Act, 2022 (Bill 23) proposes many changes that will severely limit the province’s ability to accelerate housing supply and affordability. At the same time, Bill 23 contains alarming regulatory changes and rollbacks that are destructive to our political, social and environmental futures.

Ultimately, excluding energy, sustainability and climate from consideration in the planning process will leave new housing exposed to spiraling energy costs and carbon prices.

This proposed legislation jeopardizes the livability and affordability of Ontario for present and future generations.