On Thursday, September 28, 2023, the Hon. Paul Calandra, Ontario’s Minister of Municipal Affairs and Housing, tabled Bill 134 the Affordable Homes and Good Jobs Act, 2023.  If passed, this legislation would make it less expensive and easier to build affordable homes, provide certainty to municipalities and help more Ontarians find an affordable home based on their household income.

This would help support measures made through the government’s housing supply action plans and its commitment to help communities across Ontario build at least 1.5 million homes by 2031.

The province has released the ERO, and is accepting comments until October 28^th, 2023.

Within the tabled legislation is a new definition of affordable housing.  Bill 134 proposes to amend the Development Charges Act, 1997 to change the definition of an affordable housing residential unit for the purposes of discounting and exempting these units from the municipal development-related charges (including community benefit charges, parkland dedication requirements and development charges).  It is intended to incent the development of housing that would be considered affordable to moderate income households and help lower the cost of building, purchasing, and renting affordable homes across the province.

The proposed new definition would be based on the existing definition of affordable housing in the Provincial Policy Statement (PPS), 2020, which considers local income in addition to market prices.  The proposed new definition would consider the housing costs that are affordable for households that, in the Minister of Municipal Affairs and Housing’s opinion, are in the 60^th percentile of gross annual income in the applicable local municipality.

Under the proposed change, an affordable residential unit would be defined as:

For rental housing, where the rent is no greater than the lesser of,

      i.            The income-based affordable rent for the residential unit set out in the Affordable Housing Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing, and

  ii.            The average market rent identified for the residential unit set out in the Affordable Residential Units bulletin.

In identifying the income-based rent applicable to a residential unit, the Minister of Municipal Affairs and Housing shall,

a.       Determine the income of a household that, in the Minister's opinion, is at the 60^th percentile of gross annual incomes for rental households in the applicable local municipality; and

b.       Identify the rent that, in the Minister’s opinion, is equal to 30 per cent of the income of the household referred to in clause (a).

For ownership housing, where the price of the residential unit is no greater than the lesser of,

    i.            The income-based affordable purchase price for the residential unit set out in the Affordable Residential Units bulletin, as identified by the Minister of Municipal Affairs and Housing, and

 ii.            90 per cent of the average purchase price identified for the residential unit set out in the Affordable Residential Units bulletin.

In identifying the income-based affordable purchase price applicable to a residential unit, the Minister of Municipal Affairs and Housing shall,

a.       Determine the income of a household that, in the Minister's opinion, is tat the 60^th percentile of gross annual incomes for households in the applicable local municipality; and

b.       Identify the purchase price that, in the Minister’s opinion, would result in annual accommodation costs equal to 30 per cent of the income of the household referred to in clause (a)

Related Information:

Development Charges Act, 1997, S.O. 1997, c.27

Bill 23, More Homes Built Faster Act, 2022

Planning Act R.S.O. 1990, c. P.13 (Ontario.ca)

Review of proposed policies adapted from A Place to Grow and Provincial Policy Statement to form a new provincial planning policy instrument

Changes to the Definition of an “Affordable Residential Unit” in the Development Charges Act, 1997 for the Purpose of Municipal Development-Related Discounts and Exemptions

Statement from OHBA:

Today, the Ontario Minister of Municipal Affairs & Housing tabled the “Affordable Homes and Good Jobs Act”.  If passed, this legislation will enact two important measures that will reduce cost and streamline processes to get more homes built, faster.  

 The first provision more precisely defines “affordable housing” for the purpose of determining which housing units should be eligible for development-related charge discounts and exemptions. This is an important step in helping our members make more affordable housing developments economically viable.

 The second provision of interest to OHBA’s members relates to further reforms at the Ontario Land Tribunal.  The backlog of cases at the OLT has been a problem for all parties involved for many years.  Measures to clear this backlog, reduce delay and reduce cost are welcome by everyone involved in developing housing in Ontario. 

 OHBA, our 27 chapter associations, and the 4,000 builders and renovators across Ontario that we represent all welcome these important changes and commend the Province of Ontario for taking these important steps.  Our association has been advocating for these measures for many months and has provided constructive advice to the Province on both of these issues.  We look forward to reviewing the details of these proposals in the coming days and to participating in the legislative debate over the coming weeks.