Ontario proposes pause to rule letting cities require affordable housing units

Ontario has proposed pausing requirements that allow some cities to require affordable housing units, citing higher financing and construction costs and a strained residential development market; the province says the pause would run until July 1, 2027.

Ontario has proposed pausing a rule that allows some cities to require affordable housing units. The government says market conditions since 2022-23 have raised financing and construction costs. Officials describe the residential development market as strained and say many municipalities find inclusionary zoning not viable under current conditions. The province plans the pause through July 1, 2027. Key details: - The government proposal cites increased costs of financing and construction beginning in 2022-23. - Officials report that the residential development market has slowed and housing starts have been affected. - Inclusionary zoning is currently in effect only in Toronto, Kitchener and Mississauga. - The province says it will pause new inclusionary zoning requirements until July 1, 2027. Summary: The proposed pause responds to recent market shifts that officials say have reduced the viability of inclusionary zoning for some municipalities. The policy remains in effect in Toronto, Kitchener and Mississauga while the pause is in place. What follows after the pause period is undetermined at this time.