The More Homes Built Faster Act will create rental housing supply for all needs.

When the Ontario government introduced the More Homes Built Faster Act a few weeks ago, FRPO welcomed it as a major step toward the implementation of its ambitious plan to build 1.5 million new homes in the next ten years. The act lays the path for the transformative change and bold action necessary to bring the province out of the housing crisis. Confronted with the task we face, bold action that challenges traditional norms and conventional process is exactly what is needed.

Ontario needs more housing of all types. With affordability challenges continuing to put pressure on household budgets, purpose-built rental housing must play a prominent role in any new housing that is built. The current supply of rental housing is not enough to meet the ever-growing demand as immigration increases and many young families are priced out of buying a home. By the latest estimates, Ontario will need 300,000 new purpose-built rental homes in the next ten years just to keep pace with current demand. And that number keeps growing.

What does the journey look like for building purpose built rental housing? For staters, finding land. In large cities like Toronto, most rental projects only work if the land is already owned. Next, government-imposed fees and charges. Development charges, for example, are designed to pay for infrastructure and services that are used by the whole community, but they have skyrocketed especially in the GTA in recent years. Rising construction costs and a shortage of skilled trades put added stress on the viability of rental projects. Then come approvals and construction. A purpose-built rental project typically faces a two to three-year approval process, then another two to three years to construct the building.

The goal is to get more purpose-built rental housing built, so how will Bill 23 achieve that? Exempting affordable housing and inclusionary zoning units from development charges, community benefits charges and parkland dedication, and discounting development charges for all purpose-built rental units with greater discounts for units with more bedrooms will get shovels in the ground faster.

Ontario experienced a wave of rental housing construction in the 1950’s & 1960’s. Many of these buildings are nearing the end of their life-cycle and must be replaced with modern, energy efficient buildings. Bill 23 will streamline and standardize municipalities’ bylaws on rental replacement providing greater flexibility to build more housing.?

This does not mean that affordable rental housing will disappear. As new homes are built, market forces will apply downward pressure on rents as we achieve a healthier vacancy rate. Additionally, as more choice gets added to the market, some residents will move to newer buildings, vacating older, more affordable units for others.

Bill 23 will also streamline the role of regional government in development approvals, increase barriers to frivolous appeals often driven by NIMBY minorities who fight access to more housing in neighbourhoods, and will prevent the misuse of heritage listings and other tools to stop much needed rental housing. This will put keys in the hands of our residents much faster.

The More Homes Built Faster Act is bold legislation that meaningfully addresses decades of chronic underbuilding of housing. It will ensure not only that more homes are built, but also that we build the diverse options we need for our communities including purpose built rental. Now is the time for all parties to work together to build an Ontario where there is a quality home that fits the budgets and needs of all.