Item - 2025.EX24.2

The Executive Committee recommends that:

1.  City Council request the Government of Ontario to:
 

a. make the City whole for the financial impacts of Bill 17, including the deferral of residential development charge payments until the time of occupancy, estimated to be $1.9 billion in cash flow over the next 10 years; and

b. reconfigure the Building Faster Fund in future years to provide funding upfront to help the City provide development charge waivers or other financial supports to reach the Province’s homebuilding target.

2. City Council request the Government of Ontario to meaningfully consult with City of Toronto staff and the public in advance of drafting Regulations that implement Bill 17.

3. City Council request the Government of Ontario enact a Regulation to permit the use of zoning with conditions, pursuant to Section 113 of the City of Toronto Act 2006, and Section 34(16) of the Planning Act.

4. City Council amend City of Toronto Municipal Code Chapter 415, Development of Land, Section 415-11 in accordance with Attachment 3 to the report (June 11, 2025) from the City Manager, the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning to remove mandatory indexing in 2025 and 2026 as authorized by Protect Ontario by Building Faster and Smarter Act, 2025, and City Council request the Chief Financial Officer and Treasurer consider a longer-term approach as part of the City's Comprehensive Development Charges Review.

5. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft amendment in Recommendation 4 above, as may be required. 

6. City Council reiterate its requests to the Minister of Municipal Affairs and Housing to provide greater flexibility to allocate development charge funds across all eligible capital projects without requiring repayment, and to direct intergovernmental infrastructure funding contributions toward the growth and non-growth share of development charge eligible projects.

7. City Council request the Minister of Municipal Affairs and Housing allow the City of Toronto to determine Inclusionary Zoning requirements, including the percentage of affordable units and affordability period.

8. City Council rescind its current practice authorized by Item 2022.EX34.1 and amended by Item 2023.EX1.6 which requires applicants seeking conditional below-grade permits to enter into an agreement requiring payment of Development Charges at the higher of the development charge rates in effect at the time of permit issuance or the development charges rates in effect based on Section 26.2 of the Development Charges Act, 1997 (the “higher of”) for all new developments and any developments subject to a higher of agreement, provided no development charges have been paid and City Council authorize the Chief Building Official and Executive Director, Toronto Building and direct the Chief Financial Officer and Treasurer take any necessary steps to effect the foregoing.

9. City Council request the Minister of Municipal Affairs and Housing, in considering amendments to the Ontario Building and Fire Codes to improve the economic viability of single-unit four storey townhouses, expand this consultation to include areas where the City has already developed compensating measures for garden suites, laneway suites and multi-tenant houses, and consult directly with the Chief Building Official and Executive Director Toronto Building, and the Fire Chief and General Manager, Toronto Fire Services in any potential code amendments.

10. City Council request the Minister of Municipal Affairs and Housing provide formal confirmation to the Chief Financial Officer and Treasurer that the creation of Municipal Services Corporations will remain optional, not mandatory, for the City of Toronto.

11. City Council forward the Item to Ontario’s Big City Mayors and the Association of Municipalities of Ontario for consideration.

The Executive Committee recommends that:

1.  City Council request the Government of Ontario to:
 

a. make the City whole for the financial impacts of Bill 17, including the deferral of residential development charge payments until the time of occupancy, estimated to be $1.9 billion in cash flow over the next 10 years; and

b. reconfigure the Building Faster Fund in future years to provide funding upfront to help the City provide development charge waivers or other financial supports to reach the Province’s homebuilding target.

2. City Council request the Government of Ontario to meaningfully consult with City of Toronto staff and the public in advance of drafting Regulations that implement Bill 17.

3. City Council request the Government of Ontario enact a Regulation to permit the use of zoning with conditions, pursuant to Section 113 of the City of Toronto Act 2006, and Section 34(16) of the Planning Act.

4. City Council amend City of Toronto Municipal Code Chapter 415, Development of Land, Section 415-11 in accordance with Attachment 3 to the report (June 11, 2025) from the City Manager, the Chief Financial Officer and Treasurer, and the Chief Planner and Executive Director, City Planning to remove mandatory indexing in 2025 and 2026 as authorized by Protect Ontario by Building Faster and Smarter Act, 2025, and City Council request the Chief Financial Officer and Treasurer consider a longer-term approach as part of the City's Comprehensive Development Charges Review.

5. City Council authorize the City Solicitor to make such stylistic and technical changes to the draft amendment in Recommendation 4 above, as may be required. 

6. City Council reiterate its requests to the Minister of Municipal Affairs and Housing to provide greater flexibility to allocate development charge funds across all eligible capital projects without requiring repayment, and to direct intergovernmental infrastructure funding contributions toward the growth and non-growth share of development charge eligible projects.

7. City Council request the Minister of Municipal Affairs and Housing allow the City of Toronto to determine Inclusionary Zoning requirements, including the percentage of affordable units and affordability period.

8. City Council rescind its current practice authorized by Item 2022.EX34.1 and amended by Item 2023.EX1.6 which requires applicants seeking conditional below-grade permits to enter into an agreement requiring payment of Development Charges at the higher of the development charge rates in effect at the time of permit issuance or the development charges rates in effect based on Section 26.2 of the Development Charges Act, 1997 (the “higher of”) for all new developments and any developments subject to a higher of agreement, provided no development charges have been paid and City Council authorize the Chief Building Official and Executive Director, Toronto Building and direct the Chief Financial Officer and Treasurer take any necessary steps to effect the foregoing.

9. City Council request the Minister of Municipal Affairs and Housing, in considering amendments to the Ontario Building and Fire Codes to improve the economic viability of single-unit four storey townhouses, expand this consultation to include areas where the City has already developed compensating measures for garden suites, laneway suites and multi-tenant houses, and consult directly with the Chief Building Official and Executive Director Toronto Building, and the Fire Chief and General Manager, Toronto Fire Services in any potential code amendments.

10. City Council request the Minister of Municipal Affairs and Housing provide formal confirmation to the Chief Financial Officer and Treasurer that the creation of Municipal Services Corporations will remain optional, not mandatory, for the City of Toronto.

11. City Council forward the Item to Ontario’s Big City Mayors and the Association of Municipalities of Ontario for consideration.

This report provides an assessment of impacts to the City arising from Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025 and the 2025 Ontario Budget. An overview of the 2025 Ontario Budget tabled on May 15, 2025 is included as Attachment 1 to this report. 

The provincial government introduced Bill 17 on May 12, 2025, and fast tracked it through the legislature, including its referral directly to 3rd Reading without further debate, amendments, public hearings, or standing committee review. The provincial government passed Bill 17 and it received Royal Assent on June 5, 2025 - before the end of the public commenting period on June 11, 2025. Bill 17 is an omnibus bill that amends eight separate statutes and introduces several non-legislative related actions, all of which are intended to speed up the construction of new homes and infrastructure by streamlining development processes and reducing costs.

To meet the provincial public commenting deadline, City staff prepared and submitted detailed comments on Bill 17 and related regulatory and policy proposals (Attachment 2) to the provincial government on June 11, 2025. Staff will submit any supplementary information to the relevant Ministries, including any recommendations from Executive Committee and City Council.

The upcoming supplementary report to Executive Committee will provide an assessment of impacts to the City of Toronto arising from Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025 and the 2025 Ontario Budget. Bill 17 is an omnibus bill that amends eight separate statutes and introduces several non-legislative related actions, all of which are intended to speed up the construction of new homes and infrastructure by streamlining development processes and reducing costs. Preparation of staff comments has taken additional time due to the number of and complexity of the issues and the need to seek additional information from the Province regarding some of the proposals.