Ford Government Introduces Legislation to Help Build More Homes Faster

Ford Government Introduces Legislation to Help Build More Homes Faster

Ontario’s Premier, Doug Ford, is introducing the More Homes Built Faster Act, 2022 or Bill 23, to help alleviate the housing crisis and build more affordable homes.

Canada as a whole is feeling the effects of high-interest rates, construction material shortages and rising inflation. This has caused a housing crisis that has worsened over the last decade. This new Bill is part of a long-term action plan to help solve Ontario’s current housing crisis.

The province is amidst a population boom expected to grow by more than two million over the next 10 years. The most incredulous part is that 70% of this growth will occur in the Greater Golden Horseshoe. As a way to help accommodate the droves of people moving to the province, Ford plans to build 1.5 million homes over the next 10 years. This new legislation will help kickstart the number of homes being built as the federal government pledges to bring in half a million immigrants annually.

“Our Housing Supply Action Plan is creating a strong foundation on which 1.5 million homes can be built over the next 10 years. Our government is following through on our commitment to Ontarians by cutting delays and red tape to get more homes built faster,” said Steve Clark, Minister of Municipal Affairs and Housing.

The proposals in the More Homes Built Faster Act, 2022, would, if passed, ensure that cities in the Greater Golden Horseshoe grow with a mix of ownership and rental housing types that meet the needs of all Ontarians.

The legislation outlines a plan containing around 50 different actions. The policies in the plan provide the groundwork to build more by:

  1. Reducing the government fees and red tape that are delaying construction and pushing home prices even higher.
  2. Promoting building near transit and reforming zoning to create more “gentle density”.
  3. Protecting homebuyers and utilizing provincial lands to build more attainable homes.

Some of the actions detailed in the legislation include:

  • Addressing the missing middle.
  • Building more homes near transit.
  • Supporting the growth and standardization of affordable and rental housing,
  • Freezing, reducing and exempting fees for building attainable, affordable, and non-profit housing.
  • Streamlining bureaucratic processes to get more homes built faster.
  • Creating a new attainable housing program to drive the development of housing.
  • Sites across all regions of Ontario will be considered, including those in the north, central, east and southwest regions.
  • Increasing the Non-Resident Speculation Tax rate from 20% to 25% to discourage non-resident investors from speculating on the province’s housing market and help make home ownership more attainable for Ontario residents.
  • Freezing and reducing government charges to spur new home construction and reduce the costs of housing.
  • Building more density near transit, unlocking innovative approaches to design and construction, and removing red tape to get shovels in the ground faster.
  • Increasing consumer protection measures for home buyers and consulting on ways to help more renters become homeowners.

One of the most controversial proposals tabled so far is to open up the Greenbelt for housing. This proposal, released in November 2022, aims to build at least 50,000 new homes on more than a dozen tracts of land in the Greenbelt while adding roughly 2,000 acres of protected land elsewhere. The province will be launching a 30-day consultation to discuss this proposal further.

As another solution, the Ford government passed the Strong Mayors, Building Homes Act this Fall. This legislation gives the mayors of Toronto and Ottawa more power to work with the province to reduce timelines for development, standardize processes and address local barriers to increase the housing supply. These plans, along with other legislation, are aimed at helping reduce the housing crisis – which is needed now more than ever.

To learn more about the Ford government’s plan to build more homes and how this affects you as an investor, register with us today.