Ottawa approves housing acceleration plan, reducing developer fees but cancelling $1.6M refund to fund city projects and public amenities.
Ottawa Approves Sweeping Housing Acceleration Plan
Ottawa City Council finalized its housing acceleration plan Wednesday, a bold initiative aimed at speeding up home construction and easing costs for developers. Mayor Mark Sutcliffe hailed the plan as a “giant step forward” in making Ottawa Canada’s most housing-friendly city.
The plan includes 53 recommendations developed by a task force dominated by real estate and construction representatives. Its focus: streamline approvals, cut red tape, and offer financial relief to encourage more housing projects.
Financial Incentives Spark Debate
While the majority of reforms passed without opposition, councillors debated the balance between supporting developers and protecting neighbourhoods. Coun. Shawn Menard cautioned against excessive public subsidies for private developers, noting the risk of eroding community priorities.
Developer Fee Refund Scrapped
A major change came in the handling of the city’s community benefits charge, which funds parks, traffic improvements, and other public amenities. The original plan proposed refunding fees already collected for ongoing projects—totaling $1.6 million—but councillors voted to cancel the refund.
Coun. Ariel Troster called the refund “illogical,” emphasizing that the funds are already allocated to projects across multiple wards. The council did approve a reduction in future fees from four per cent of land value to two per cent, with even lower rates in high-transit areas.
Tackling an “Ossified” Approval Process
Even critics of developer incentives agreed on the need to overhaul Ottawa’s slow, bureaucratic housing approvals. Coun. Jeff Leiper, chair of the planning committee, described the system as “ossified” and burdened with “red tape and micro-management.”
Mayor Sutcliffe highlighted broad support for the plan, noting praise from stakeholders ranging from affordable housing advocates to market developers, signaling a rare consensus on accelerating housing projects.
A Strategic, Forward-Looking Approach
Troster described the housing plan as “a pretty unprecedented subsidy program” for private developers, stressing the city’s effort to balance incentives with funding for essential community projects.
With this plan, Ottawa positions itself to boost housing supply while maintaining neighbourhood livability, marking a major step toward addressing the city’s long-standing housing challenges.
