New rules have been approved by the City of Toronto that will require certain residential projects to include affordable housing units.
On Tuesday in a 23-2 vote, Toronto City Council adopted a new inclusionary zoning policy framework that will make it mandatory for some developments to incorporate affordable units in an effort to boost attainable housing in the city.
Council approved an inclusionary zoning official plan amendment, a zoning bylaw amendment and draft implementation guidelines which require new developments around protected major transit stations areas to include affordable rental and ownership housing units starting in 2022.
Toronto is the first city in Ontario to implement inclusionary zoning according to a press release issued on Tuesday.
“In a nutshell, inclusionary zoning means by law that new developments must include an affordable housing component where rents or the cost of ownership will be less than our expensive marketplace otherwise offers,” Mayor John Tory told news reporters at Toronto City Hall on Tuesday according to CP24.
“The private development industry has been very successful, even through the pandemic, and that’s good for jobs and for the economy. But the long term health of the city itself and its economy requires that our development industry should play an increasing role in the supply of affordable housing,” he added.
The inclusionary zoning will secure five to 10 per cent of condominium developments — over minimum unit thresholds — as affordable housing. This threshold will gradually increase to eight to 22 per cent by 2030.
As per the city’s policy, rent and ownership prices will be determined around income-based definitions of affordable housing specifically for households with an annual income between $32,486 and $91,611.
The quantity of affordable housing required in a development will vary depending on whether the units are designated for rental or ownership, and where the project is located. The downtown region, Midtown and Scarborough Centre will have the highest requirements in the city.
Areas currently undergoing a planning study, like Little Jamaica and the Sheppard Subway Corridor, will receive additional market analysis to find opportunities to expand inclusionary zoning. A report is slated for mid-2022, the release said.
The new zoning framework will help to ensure affordable housing is protected for 99 years and is “incorporated on a consistent basis in new developments.” The policy will be monitored and reviewed after one year to make room for any adjustments, such as changes to the minimum development size threshold and any updates to “ensure market stability and production of affordable housing units.”
“No two cities have the same inclusionary zoning policy. The implementation of this made-for-Toronto program is balanced, forward-looking and equitable,” said Deputy Mayor and Chair of the Planning and Housing Committee, Ana Bailão, in the release. “It will provide longer and deeper affordability for our residents who find it difficult to manage on a limited income, and help us to reach the City’s target of more than 40,000 affordable rental and ownership homes by 2030.”
