Ontario Introduces Bill 5 to Accelerate Housing Development
The Ontario government is preparing to unveil new legislation aimed at speeding up housing construction across the province. Known as the Protecting Ontario by Building Faster and Smarter Act, the bill seeks to reform municipal planning rules, reduce red tape, and standardize development charges-fees developers pay to local governments to fund infrastructure like roads, transit, and parks.
Minister of Municipal Affairs and Housing Rob Flack emphasized that these changes are designed to help Ontario meet its ambitious goal of building 1.5 million homes by 2031. “We are going to speed up the process; today it just takes too long,” Flack told reporters, highlighting the need to cut delays that slow down new housing projects.
Streamlining Approvals and Reducing Costs for Developers
One of the key features of the bill is reducing the number of studies developers must conduct before starting projects. Municipalities will be limited in requesting additional studies that fall outside their official plans, and certified studies submitted by developers must be accepted. This aims to simplify and shorten the approval process.
Additionally, the legislation proposes changes to development charges. Currently, these fees vary widely between municipalities and can significantly increase housing costs. The new rules would encourage municipalities to reduce charges, allow developers to delay payments until homes are occupied, and enable builders to pay the lowest applicable rate at the time of payment. Furthermore, municipalities would be required to spend collected fees more quickly rather than holding them in reserve accounts.
Balancing Infrastructure Needs and Housing Affordability
While homebuilders have long called for lower development charges to make housing more affordable, cities argue these fees are essential to fund infrastructure that supports growth. Flack reassured that development charges are not being eliminated but remain a “needed tool” for building vital community services.
Experts agree that modernizing the Development Charges Act, which has remained largely unchanged for decades, is crucial. A recent study by the Building Industry and Land Development Association (BILD) recommends updating the system to reduce costs without sacrificing transparency or infrastructure funding.
Economic Uncertainty Fuels Push for Housing Reform
The Ford government is advancing these changes amid economic uncertainty, including trade tensions with the United States. By simplifying regulations and cutting red tape, the province hopes to stimulate construction activity, create jobs, and ease housing shortages.
A government spokesperson said, “Now more than ever, we need to cut red tape and streamline approvals to unleash the full potential of our economy-this includes giving municipalities the tools they need and requested to build critical infrastructure like transit, roads, and new homes.”
Ontario’s new legislation marks a significant step toward faster, smarter housing development. As the bill moves forward, residents and developers alike will watch closely to see how these changes impact affordability and growth.
