Item - 2023.PH7.9

The Planning and Housing Committee recommends that:

1. City Council request the Chief Planner and Executive Director, City Planning, in consultation with the General Manager, Economic Development and Culture, to study potential conversion of office space into new housing, consider what zoning and other regulatory or policy relief may be required to enable economically-viable office conversions, evaluate the feasibility of requiring the provision of affordable housing in lieu of the replacement of office space, and report back to Planning and Housing Committee with recommendations in the third quarter of 2024 as part of the ongoing Office Space Needs Study.

2. City Council request the Chief Planner and Executive Director, City Planning review the Downtown Calgary Development Incentive Program for any lessons learned that can be applied to the City of Toronto, including efforts to expedite reviews and provide financial incentives. 

3. City Council request the Government of Canada follow through on a commitment to create a federal grant program to support the conversion of empty office and retail space into residential housing in municipalities across Canada, especially when there are opportunities to increase the supply of affordable housing.

As of September 2023, occupancy rates within the downtown core remain at approximately 50 percent of pre-pandemic levels. While some employers are mandating a return to work, others are embracing hybrid and work from home policies. Given the changing nature of work and the ongoing housing crisis, it is time to reevaluate the need for office space.

The City of Toronto must remove barriers to the creation of new housing at every opportunity. That includes making it easier – where possible – to convert older office buildings into housing. This will require that we ensure relief from guidelines and other rules that make it difficult to convert office floor plates into housing. This will also mean modernizing office replacement policies to unlock new housing supply and identify opportunities to secure affordable housing.