Item - 2024.PH12.7

The Planning and Housing Committee recommends that:

1. City Council endorse the Key Recommendations contained and appended in Attachment 1 to the report (May 8, 2024) from the Interim Chief Planner and Executive Director, City Planning with respect to Bill 185 - Cutting Red Tape to Build More Homes Act, and the Provincial Planning Statement 2024, and with respect to the Development Charges Act and authorize staff to provide comments through the Environmental Registry of Ontario with the following amendments to Attachment 1:

a. Replace the comments related to “Limiting third party appeals to the Ontario Land Tribunal (OLT)” with the following:
 

Do not support

Request that the Province not amend the legislation to restrict third-party appeals but if the amendment is enacted:

- limit the restriction on third-party appeals to development proposals that are solely or include a significant and prescribed amount of, social housing or affordable housing;

- extend the timelines for planning approvals to allow municipalities enough time to resolve third-party issues and avoid refusals.

2. City Council endorse the recommendations contained and appended in Attachment 3 with respect to Bill 185 - Cutting Red Tape to Build More Homes Act, and the Provincial Planning Statement 2024 in Attachment 2, and in Attachment 4 to the report (May 8, 2024) from the Interim Chief Planner and Executive Director, City Planning, with respect to the Development Charges Act and authorize staff to provide comments through the Environmental Registry of Ontario, with the following amendments to Attachment 3:

a. Replace the Comments/Recommendations related to “Limiting third party appeals to the Ontario Land Tribunal (OLT)” with the following:

Do not support

Request that the Province not amend the legislation to restrict third-party appeals but if the amendment is enacted:

- limit the restriction on third-party appeals to development proposals that are solely or include a significant and prescribed amount of, social housing or affordable housing; and
- extend the timelines for planning approvals to allow municipalities enough time to resolve third-party issues and avoid refusals.

3. City Council authorize the Interim Chief Planner and Executive Director, City Planning to submit any future comments on any associated regulations as may be released by the Province and report to City Council on the implications to the City of the regulations.

4. City Council direct the City Clerk to forward the report (May 8, 2024) from the Interim Chief Planner and Executive Director, City Planning on City Comments on Proposed Bill 185 - Cutting Red Tape to Build More Homes Act, 2024, Provincial Planning Statement 2024, and New Minister Zoning Order Framework, to the Standing Committee on Finance and Economic Affairs and the Ministry of Municipal Affairs and Housing. 

5. City Council request the City Manager to develop a public advocacy campaign to inform Toronto residents about the impacts of recent relevant provincial legislation including Bill 109, 23 and 185 and the mechanism to provide public feedback to the province.

6. City Council direct the Chief Planner and Executive Director, City Planning, to continue to work collaboratively with industry partners, including the Building Industry and Land Development Association (BILD), to implement operational improvements related to legislated application review timelines, the pre-application consultation process, and complete application requirements to address the impacts of Bill 185, the Cutting Red Tape to Build More Homes Act, 2024.

The Manager, Official Plan and Legislation, City Planning and the Executive Director, and the Senior Financial Analyst, Finance and Treasury Services gave a presentation to the Planning and Housing Committee.

On April 10, 2024, the Ministry of Municipal Affairs and Housing introduced Bill 185 – Cutting Red Tape to Build More Homes Act. The proposed Bill affects 17 acts, including the City of Toronto Act, Planning Act, Development Charges Act and others. Bill 185 has reached second reading and was referred to the Province’s Standing Committee on Finance and Economic Affairs. On April 10th, the Province also released a revised Provincial Planning Statement, 2024 (the "Planning Statement") and a new Minister Zoning Order (MZO) framework. The Planning Statement, which if adopted, will replace the existing Provincial Policy Statement, 2020 (the “PPS”) and include some policies from A Place to Grow: Growth Plan for the Greater Golden Horseshoe (the “Growth Plan”). The Growth Plan is proposed to be repealed.

The Province's 30-day commenting period on the proposed Bill 185, the revised Planning Statement and the new MZO framework closes on May 10, 2024.

Multiple divisions are reviewing Bill 185, the revised Planning Statement and new MZO framework. Staff will provide a supplementary report containing analysis and recommendations on the proposed legislative and policy changes. This report will be made available prior to the Planning and Growth Management Committee Meeting scheduled for May 9, 2024.

The policy-led planning system under which Ontario municipalities have operated has experienced numerous changes over the last several years, requiring the City to continuously review, examine and adapt its planning policies and practices. The frequency of changes has created a level of land use uncertainty for approval authorities, development industry and communities.

On April 10, 2024, the Province introduced the Cutting Red Tape to Build More Homes Act, 2024 (Bill 185), which proposes amendments to 17 Provincial Acts. The Province also released an updated draft of the proposed Provincial Planning Statement 2024 ("PPS 2024") which combines the Provincial Policy Statement, 2020 (PPS 2020) and A Place to Grow: Growth Plan for the Greater Golden Horseshoe, 2020 (Growth Plan) into a signal document. In addition, the Province introduced a new Minister's Zoning Order Framework.

The Province provided stakeholders 30 days to review and provide comments on these proposals. Comments are due by May 10, 2024. As of the date of this report, Bill 185 received second reading and was ordered for Public Hearings on May 7, 14 and 15, 2024 before the Standing Committee on Finance and Economic Affairs. Staff recommend submission of this report to the Standing Committee following Planning and Housing Committee's consideration of this report. Staff will forward to the Province Council's comments raised at the May 22-24 City Council meeting when it will consider this report.

Specifically, Bill 185 proposes numerous amendments to the Planning Act, Development Charges Act, City of Toronto Act and other legislation. With the introduction of the PPS 2024, the Province intends to repeal the Growth Plan for the Greater Golden Horseshoe ("Growth Plan") and has incorporated some of its policies into the PPS 2024. The elimination of several Growth Plan policies reduces the role of intensification and increases the role of greenfield development across the region to accommodate residential growth.

Proposed changes to the Development Charges Act reverse some, but not all, of the previously introduced changes through Bill 23, More Homes Built Faster Act, 2022, that substantially impact the City's ability to collect development charges to fund growth-related services. The outstanding Bill 23 impacts, coupled with previous iterative changes to the growth funding tools, continues to negatively affect the City's ability to provide services and infrastructure to growth in a fiscally sustainable way, although the proposed amendments are a step in the right direction. The Province has also proclaimed the Affordable and Attainable Unit exemptions for development charges, community benefits charge and parks levy into force, effective June 1, 2024.

The comments and suggested revisions contained in this report and its attachments have been developed in consultation with City Divisions. This report provides a high-level summary of key Bill 185 proposals, Minister's Zoning Order Framework and PPS 2024 changes. Attachments to the report outline detailed staff comments and suggested revisions, which will be submitted to the Province's commenting portal.

Staff support several of the proposed changes, as these changes wind back changes that the Province previously put in place which were not previously supported by Council. Several of the changes would require the City to revisit recently implemented policies, practices and operations. Given the overlapping themes between Bill 185 and the PPS 2024, this report organizes staff analysis and comments into five headings, under which the specific impacts of the proposed changes on the City are described.

1. Housing and Development Approvals

·       Re-introducing housing affordability definitions

·       Expanding housing options definition

·       Incenting redevelopment of commercial and institutional sites to residential

·       453.1 of the City of Toronto Act - Social Housing Programs

·       Limiting third party appeals to the Ontario Land Tribunal (OLT)

·       Replacing the Community Infrastructure and Housing Accelerator with a new MZO framework

·       Winding back development application fee refunds

·       Introducing lapsing Site Plan and Plans of Subdivision approvals

·       Streamlining student housing approvals

·       Removing mandatory pre-application consultation

·       Allowing OLT Motions to dispute application completeness

2. Economic Development and Employment Lands

·       Re-defining Employment Areas

·       Allowing conversion/removal of Employment Areas anytime

·       Creating potential land use conflicts with residential encroachment closer to Employment Areas

·       Weakening land use compatibility of Employment Areas

·       Deleting Provincially Significant Employment Zones

·       Assisting manufacturing, industrial, and commercial businesses

3. Infrastructure and Development Charges

·       Introducing ability to allocate Water/Sewer system capacity

·       Directing municipalities to collaborate with school boards

·       Considering streamlining approvals for community service facilities

·       Removing certain transportation policies

·       Limiting protections for listed Heritage properties

·       Reinstating studies as an eligible DC cost

·       Repealing the mandatory five-year DC phase-in

·       Reducing the time limit on the DC freeze, from two years to 18 months

·       Introducing a time-limited streamlined process for scoped amendments to DC bylaws

·       Proclaiming the exemption for Affordable and Attainable Units from DCs, community benefits charge and parks levy into effect

4. Regional Planning and the Environment

·       Removing intensification requirements in the Greater Golden Horseshoe Area

·       Focusing intensification and student housing within Strategic Growth Areas

·       Removing required parking within Protected Major Transit Station Areas

·       Removing population and employment growth targets

·       Allowing appeals to new Settlement Areas and boundary expansions

·       Removing certain Natural Heritage policies

·       Weakening climate change policies

·       Removing the Agricultural System and protecting the Greenbelt

·       Removing waste management policies

·       Removing sub-watershed planning for large developments in greenfield areas

5. Implementation

·       Eliminating requirements for Municipal Comprehensive Reviews

·       Eliminating the need for standardized Land Needs Assessments

·       Changing long range planning time horizon

·       Applying the Provincial Planning Statement upon its approval

·       Requesting transitional matters

·       Removing policies for municipalities to undertake integrated planning

·       Reporting on municipal planning data

·       Engaging with Indigenous communities

·       Changing public notice requirements

The PPS 2024 reshapes land use planning in Ontario with significant implications for the City. Bill 185 introduces significant modifications to the policy framework for planning and development in Ontario, with impacts on Toronto. Although staff generally support the intent and purpose of streamlining the development review process, this report highlights implications and potential unintended consequences that could hinder desired outcomes and suggest considering alternative approaches.