Key Takeaways from the More Homes Built Faster Act
If you live in toronto, this new legistlation will likely affect you either positively or negatively, but hopefully it helps make the City more affordable
There are about 50 actions that are outlined in The Ontario Government’s plans to address the housing crisis in Toronto and the rest of Ontario, but in an already established and dense City like Toronto there are a few of them that stand out as the most impactful. Read on below to learn about which ones we feel will create the most change in Toronto
Action #1: Addressing the Missing Middle by removing barriers to three-unit residential properties
As many people in Toronto are already aware, laneway housing and garden suites are already established programs that are helping introduce “gentle-density” within Toronto. What the Ontario Government is try to achieve with this action is to allow three unit residential properties zoned as single family properties to have the right to create three separate units with minimal barriers, versus the exclusionary zoning requirements found in most of Toronto zoning bylaws to prevent them.
What does this mean? The cutting of the red tape to allow three units in a single family dwelling-zoned property will allow home owners and landlords the flexibility to add an additional 1-2 units for rental or owner-occupied purposes, which may incentivize development of existing single family dwelling properties to be income-producing (or higher income producing) properties, while also allowing for more rental units in the City. In the long term the Government is hoping that the increase in supply will help stabilize the rental market, and give home owners and real estate investors more of a reason to safely convert their properties into high density housing. The three units can be a mix of duplex, triplex, laneway house, garden suite, as long as the total number of units remains below or at three.
Important Note! The introduction of this initiative will not bypass the minimum building code requirements needed to have a multi-unit property. It will be important to partner with an experienced General Contractor to properly navigate your existing house and property to determine what changes will need to be made, along with working with an experienced designer to create the plans to meet fire code and building code requirements for multi-unit residential properties.
Action #2:high non-resident speculation tax
At 25%, Ontario is trying to create a Non-Resident Speculation Tax (NRST) program that makes it difficult for foreign buyers to consider an investment in Ontario Real Estate worthwhile.
What does this mean? By reducing the amount of demand from foreign buyers it gives Canadian Citizens a better chances at buying real estate and making rentals more affordable overall.
Action #3: Building More Homes Near Transit
There are proposed changes to the planning act that will allow for as-of-right zoning to meet minimum density in areas that surround transit throughout Ontario.
What does this mean? In Toronto, this means that the areas that currently have transit hubs for the TTC, GO, and other modes of transport will have an easier time getting approvals for new housing, which may disrupt the neighbourhoods around these areas in the short term but lead to more housing and rentals in the long term.
IMPORTANT TO NOTE: Toronto has already started including measures to increase Density
The Strong Mayors, Building Homes Act allows the Toronto (and Ottawa) Mayors to help streamline development of housing and reduce barriers to housing supply. John Tory, who has been re-elected for another term has given this act the thumbs up and will likely utilize it to take advantage of this initiative, and in-fact already have been making changes to allow for gentle density increases for single family dwellings. It seems like the Mayor that will be in office for another 4 years in on board with this disruption, which can only mean that you are likely to see changes in your neighbourhood very soon.
Important to note: The More Homes Built Faster Act, 2022 has just been introduced - Not passed
It is important to distinguish that is act has just been introduced into parliament and has not yet been passed. There is still some time before these actions are introduced, if at all depending on how things go with Government. It is very likely that this act will be passed due to the majority government in place, but due to the complex nature of these initiatives it may take some time to introduce them at the Municipal level.
Conclusion
Overall this act presents a unique opportunity for allowing for more affordable housing in Toronto, but Toronto is a large Municipality and it will take time to get things ironed out to fit the directives shown in this act. It will also take time for any real change to be made to cool off the housing crisis, but if this act is rolled out correctly it has the potential to make Toronto a more livable City for the masses and create a truely world-class city for every demographic.
Read more about the new act by visiting the Ontario Government Webpage
About BVM COntracting
BVM Contracting is a full-service General Contractor or Home Builder located in Toronto. We provide home renovation and building services for major home renovations (kitchen renovations, bathroom renovations, basement renovations, full interior renovations, home additions, lot severances, and new home construction). Our goal is to help guide our clients through the process of renovating their home, from concept to completion.
Further than providing General Contracting and Project Management for major home renovations, we also offer value-added services such as renovation financing, renovation rebate consultations and services, building permit and design services, smart home installation services, and real estate investor services.
To learn more about our offering by visiting our services page.