Item - 2025.PH22.4

The Chief Planner and Executive Director, City Planning, recommends that:

1. City Council amend the Official Plan substantially in accordance with the proposed Official Plan Amendment 818 appended as Attachment 1 to this report.

2. City Council amend Zoning By-law 569-2013, as amended, substantially in accordance with the proposed Zoning By-law Amendment appended as Attachment 2 to this report.

3. City Council authorize the City Solicitor to make such stylistic and technical changes to the proposed Official Plan and Zoning By-law Amendments as may be required.

Toronto is a dynamic, growing city which continues to attract newcomers, with at least 830,000 new Torontonians expected by 2051. Both current and future residents will need homes, and to accommodate the diversity of household sizes and compositions across the city, Toronto needs a diverse range of housing options. The city’s housing growth has largely been in mid- and high-rise apartment buildings concentrated in densely populated areas like the Downtown, Centres, and Avenues. However, numerous initiatives to bring gentle density into residential neighbourhoods to meet the needs of a growing city have been successfully introduced through the Expanding Housing Options in Neighbourhoods (EHON) program, with permissions for laneway suites, garden suites, and multiplexes approved since 2021, among others. In recognition of the urgent action needed to address Toronto’s housing needs, the City of Toronto has also partnered with other orders of government to pursue all possible approaches toward increasing housing supply and to supporting growth.

The Sixplex Study evaluated the potential of permitting low-rise multiplexes with up to six dwelling units and with heights of up to four storeys in detached residential buildings on properties designated Neighbourhoods in the Official Plan city-wide. This report summarizes the work undertaken, identifies implementation challenges, and recommends that City Council approve Official Plan and Zoning By-law Amendments to permit multiplexes with five and six dwelling units in detached residential buildings (also referred to as “fiveplexes” and “sixplexes”, or as “detached houseplexes” with five and six dwelling units, respectively) in low-rise residential neighbourhoods city-wide.

The proposed amendments build on existing low-rise multiplex permissions for up to four units city-wide, introduced through the original Multiplex Study in 2023, and for up to six units in detached residential buildings in Ward 23, introduced through the Ward 23 Multiplex Study in February 2025. The amendments include zoning permissions enabling a 0.5 metre increase to building height to a maximum of 10.5 metres where current maximum height is 10 metres. The intent of this amendment is to facilitate increased basement ceiling heights to improve liveability and access to daylight for basement dwelling units that are expected to accompany fiveplex and sixplex development, and to maximize the potential for up to four levels of housing within a 3.5-storey building.

Expanding multiplex permissions will increase new low-rise housing options for Torontonians. New residents in low-rise neighbourhoods can help stabilize declining populations, optimize the use of existing infrastructure, and support local retail establishments and services. Additionally, these new permissions could unlock additional opportunities for individuals to access funding and low-interest rate loans for housing projects through the Canada Mortgage and Housing Corporation (CMHC).

Adoption of the recommendations in this report will mark a significant milestone towards meeting the City’s commitments under the federal Housing Accelerator Fund (HAF) to permit more low-rise, multi-unit housing development through as-of-right zoning by-laws in Neighbourhoods. The recommended amendments are consistent with the Provincial Planning Statement 2024 and with the general intent of the Official Plan, including recently adopted new Chapter 1 to the Official Plan vision, which aims to eliminate disparities, prioritize climate action, and make Toronto the world’s most inclusive city.

There are no immediate financial implications resulting from the recommendations included in this report; however, there may be future financial implications that are driven by infrastructure needs for increased low-rise multiplex permissions across the city.

Infrastructure Needs

Because of their smaller scale and smaller impact, multiplexes are not subject to the same review process as larger residential development projects that require rezoning and/or Site Plan Control. Currently, building permit applications for multiplexes are reviewed for a service connection. The Ontario Building Code Act does not require building permit applications to be reviewed for servicing capacity for the proposed use.

Through the City’s Multiplex Monitoring Program, staff evaluated the impact of multiplexes on the City’s sewer system, including the impact on basement flooding. The findings indicate that while individual multiplexes contribute only minor increases in flow to the sewer system, in areas where combined sewers are located, longer-term concentration of multiplex development has the potential to exacerbate existing constraints to adequate sewer capacity during wet weather flow. This may increase the risk of basement flooding in certain locations.

Staff will be reviewing the City’s approval processes (including building permits) as it relates to assessing sewer and water capacity constraints of multiplex development proposals. Where capacity constraints are found, it may be possible to implement site-specific measures to mitigate incremental impacts from the project. There may also be planned capital infrastructure upgrades to the sewer system that would address the capacity issue which would have to be completed to allow for incremental inflows. These matters will continue to be monitored in collaboration with Toronto Water. Any additional infrastructure needs will be addressed in future year budget processes.

Housing Accelerator Fund (HAF)

Canada Mortgage and Housing Corporation and the City entered into a contribution agreement for $471.1 million in funding on December 20, 2023. To date, the City has received two of four installments totalling $235.6 million from the federal government. Housing Accelerator Fund investments are providing Toronto with a predictable funding stream until 2027, which is pivotal to unlocking projects and accelerating the delivery of new homes, particularly affordable rental homes near transit. It also supports the development of complete, low-carbon and climate-resilient communities that are affordable, inclusive, equitable and diverse.

The recommendations in this report fulfill the City’s commitment under the Housing Accelerator Fund agreement with Canada Mortgage and Housing Corporation to report back to City Council on opportunities, and any by-laws required for implementation, to permit more low-rise, multi-unit housing development through as-of-right zoning by-laws in Neighbourhoods across Toronto, including permissions for four-storey multi-unit residential development, including multiplexes, and its potential to contribute to Toronto’s housing supply; and permissions for residential buildings with up to six dwelling units.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.