New & Notable

Toronto Approves Inclusionary Zoning

Toronto is the first city in Ontario to implement inclusionary zoning which will require certain new residential developments around Protected Major Transit Station Areas to include affordable rental and ownership housing units beginning in 2022.

Inclusionary zoning will secure five to 10 per cent of condominium developments (over minimum unit thresholds) as affordable housing, increasing gradually to eight to 22 per cent by 2030. The amount of affordable housing required will vary depending on where in the city the development is located and whether the units are intended for rental or ownership, with the highest requirements in the Downtown area, followed by Midtown and Scarborough Centre.

Overall, Mayor John Tory said the policy will help the city achieve its target of approving 40,000 affordable rental and 4,000 new affordable ownership homes across Toronto by 2030. “Policies like this one are the right move forward to get thousands of homes built and it will ensure that our city remains vibrant and strong as it continues to grow,” he said.

Tenant advocacy groups like ACORN are not convinced the new policy goes far enough. In a statement on November 9, the group said its members are “happy to have won the policy, but disappointed that it could have been much stronger,” and that despite victories the council voted to “protect developer profits rather than the right to housing.”

The Framework

Toronto’s inclusionary zoning framework sets out foundational requirements for affordable housing to be incorporated on a consistent basis in new developments and ensures affordability is maintained for 99 years.

The policy will be closely monitored and reviewed after one year to allow for adjustments that may be required including changes to the phase-in and/or set aside rate, alterations to the minimum development size threshold and any other changes needed to ensure market stability and production of affordable housing units.

Additional market analysis will be conducted in areas of the city currently undergoing a planning study, such as Little Jamaica and the Sheppard Subway Corridor, to identify opportunities to expand inclusionary zoning to other areas, with an update report by mid-2022.

In the city’s policy, rent and ownership prices will be centred on new income-based definitions of affordable housing, targeting households with an annual income of between $32,486 and $91,611.