Housing minister admits province is off pace for 1.5m homes
Ontario’s government has introduced a sweeping new housing bill aimed at speeding up residential construction, as officials admit the province is not on track to meet its ambitious goal of building 1.5 million homes over 10 years.
Municipal affairs and housing minister Rob Flack unveiled the legislation Monday, acknowledging that the province faces “pretty strong headwinds” that are delaying progress toward its housing target.
“It’s a goal. But frankly, I’m focused more on — and our team is focused on — the next 12 to 24 months, because if it stays the way it is now, we’ll never get there,” Flack said at a press conference. “We have to make immediate changes.”
The bill introduces a series of measures designed to eliminate bottlenecks and reduce costs for developers. These include limiting the number and scope of studies municipalities can demand for new developments, streamlining fees related to housing-enabling infrastructure, and simplifying the process for minor variances.
It would also allow developers to pay development charges (DCs) at the time of occupancy instead of upfront at the permit stage. Additional provisions allow municipalities to more easily reduce DCs or exempt certain developments, including long-term care homes, from the charges entirely.
Crucially, the legislation would standardize construction requirements, ensuring municipalities cannot impose requirements that exceed the Ontario Building Code, effectively preventing cities like Toronto from enforcing green building standards beyond provincial guidelines.
The bill also proposes an expansion of Minister’s Zoning Orders (MZOs), giving the minister of infrastructure the same authority as the housing minister to fast-track development approvals for transit-oriented communities.
Infrastructure minister Kinga Surma said the expanded MZO powers will make the province more efficient.
“We want to be flexible. We want to be nimble. I have MZOs that I’d like to issue this year,” she said.
However, critics say the increased use of MZOs risks political interference in local planning. Ontario’s auditor general has previously warned that the surge in MZOs—used 114 times from 2019 to 2023, a 17-fold increase, creates the perception of preferential treatment.
Liberal leader Bonnie Crombie said the expansion of MZO authority raises “huge concern,” warning, “We’ve seen the abuse that there can be… this is just yet another opportunity by broadening the power and increasing the number of ministers who can now issue MZOs.”
The bill would also cap the number of affordable housing units municipalities can mandate in a development at 5%, a move the government says will increase project viability. Crombie criticized this as a potential setback for affordable housing supply.
In tandem with the legislation, the government also pledged an additional $400 million toward two infrastructure funds used by municipalities to support housing-enabling projects like water and sewer systems.
Real estate players react
The legislation drew strong support from industry organizations and real estate stakeholders, who say the changes are urgently needed to reduce red tape, lower development costs, and spur housing construction.
Richard Lyall, president of the Residential Construction Council of Ontario (RESCON), said the bill is “critical” for addressing housing supply and affordability.
“These changes are necessary and essential as they will simplify the approvals process and make the homebuilding process more efficient,” he said.
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RESCON praised the bill’s reforms on development charges and study requirements, noting they align with recommendations it has made over the past two years.
Dave Wilkes, president and CEO of the Building Industry and Land Development Association (BILD), described the bill as “a much-needed focus on homes in a region facing a housing deficit and affordability challenges,” and emphasized the need for swift implementation.
The Toronto Regional Real Estate Board (TRREB) also supported the bill, with President Elechia Barry-Sproule stating: “For too long, high development charges, excessive red tape, and sluggish approval processes have prevented the construction of homes our communities need.” She said the bill reflects more than 25 policy recommendations TRREB has put forward, including support for transit-oriented development and infrastructure investment.
Cathy Polan, president of the Ontario Real Estate Association (OREA), highlighted the potential of the bill to unlock housing tied to major infrastructure projects, such as the Ontario Line and Ring of Fire, both identified by OREA as vital to economic growth and competitiveness.
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