New Ontario legislation targets red tape, faster construction timelines
The Ontario government has introduced new legislation that aims to speed up the construction new homes and infrastructure.
If passed, the Protect Ontario by Building Faster and Smarter Act will streamline development processes and reduce costs in partnerships with municipalities.
The province is also increasing its investment in housing-enabling infrastructure by adding $400 million in immediate funding to the Housing-Enabling Water Systems Fund (HEWSF) and Municipal Housing Infrastructure Fund (MHIP). The additional money brings the combined funding of both to nearly $2.3 billion over four years.
“We are taking bold action to protect Ontario in the face of economic uncertainty by speeding up construction so we can lower housing costs and keep workers on the job,” said Municipal Affairs and Housing Minister Rob Flack. “The legislation we’re tabling today responds to recommendations and requests from municipal leaders, and will help build the homes and infrastructure Ontario needs.”
The act and other proposed measures consist of 20 initiatives that would accelerate provincial permitting and approvals.
Specific approaches include spurring new construction by simplifying and standardizing development charges based on measures that were developed in consultation with municipalities, including measures that some municipalities have already implemented. The province says it will work with municipalities to continue simplifying, streamlining and reducing costly local development fees that can add hundreds of thousands of dollars to the cost of new homes.
The act would also remove barriers for Canadian manufacturers who want to introduce innovative materials, systems and building designs that could reduce construction costs and expedite projects. It will also streamline planning and delivery for transit-oriented communities, speed up project approvals with consistent building construction standards across Ontario municipalities, and speed up getting shovels in the ground to build major transit projects by extending measures in the Building Transit Faster Act to all provincial transit projects.
Finally, it aims to simplify, streamline and bring consistency and transparency to development applications, land use planning approvals, and contents of municipal official plans. These changes would make it easier and faster to build residential, commercial and industrial buildings within and across Ontario’s municipalities.
"RESCON has been advocating for significant regulatory changes that will facilitate the construction of more homes in an expedited manner, and which will assist in reducing costs for homebuyers and homebuilders,” said President Richard Lyall. “We welcome the major changes to processes and regulations that will go a long way towards addressing these challenges."
The province also says it plans to consult with municipalities and stakeholders by the fall on framework legislation for greater harmonization and clarified governance of municipal standards for road building construction. The approach, it says, will lead to cost savings through more efficient design and technical review, greater construction efficiencies and streamlined procurement processes.
"For far too long, fragmented and inconsistent standards have created unnecessary duplication, inefficiencies, and increased costs for industry and government alike,” said Walid Abou-Hamde, CEO of the Ontario Road Builders' Association. “This long-overdue step toward harmonization will bring greater consistency, reduce barriers to market access, and allow us to deliver critical infrastructure faster and more affordably. By working together to modernize the way we build roads, we can ensure better value for taxpayers and stronger outcomes for Ontario communities."
Through the HEWSF, the province has already allocated nearly $1.3 billion for water and waste-water infrastructure projects that will enable the construction of approximately 600,000 homes.
The province is also currently investing $400 million through the MHIP Housing-Enabling Core Servicing Stream to support the construction of up to 160,000 new homes and ensure these growing communities are connected to reliable roadways. MHIP provides funding for core infrastructure projects that support growing and developing communities.
Through the Building Faster Fund, the government has also provided municipalities with $286.8 million for community and housing-enabling infrastructure last year, along with $120 million dedicated for small, rural and Northern municipalities without housing targets which is being delivered through the HEWSF and MHIP. This is in addition to the $1 billion in flexible loans for housing-enabling water infrastructure projects available to municipalities through the Infrastructure Ontario Loan Program.