Affordable Housing

In April 2018, O.Reg. 232/18 was passed by the Province under the Planning Act for Inclusionary Zoning for Municipalities which requires affordable housing units (IZ units) to be included in residential developments of 10 or more units.  Housing is considered “affordable” when no more than 30% of gross annual income is spent on accommodation.

In 2019, the City will draft Official Plan IZ policies for public consultation.  Once the OP IZ policies come into effect, the City will be able to mandate affordable housing units as part of large residential developments.  IZ policies are sheltered from appeal to LPAT.

The Ontario Ministry of Municipal Affairs and Housing has provided the following information on its website:

It includes the following excerpts:

Creating affordable housing

This tool is typically used to create affordable housing for low-and moderate-income households. In Ontario, this means families and individuals in the lowest 60% of the income distribution for the regional market area, as defined in the Provincial Policy Statement, 2014.

Generally, housing is considered “affordable” when households do not pay more than 30% of gross income on annual accommodation costs, or when the purchase price for housing is at least 10% below average market value or when households do not pay more than 30% of gross annual household income for rent or when the rent is at or below the average market rent.

How to implement inclusionary zoning

In order to implement inclusionary zoning, a municipality will undertake a series of steps, including an assessment report to understand local housing supply and demand, as well as potential impacts which might arise from IZ, and then implement official plan policies and pass ZBL guiding where and how inclusionary zoning will be implemented. Once implemented, the municipality is responsible for monitoring the affordable housing units and reporting on outcomes.