I want to thank both the Minister of Municipal Affairs and Housing and the Associate Minister of Housing for sharing their time with me today, as well as to thank them for their commitment and dedication to addressing the housing supply crisis in Ontario.

I am proud to be part of a government, under the leadership of Premier Ford, that takes the necessary action to ensure the growth of Ontario, and, in the case of this bill, make housing easier and within reach for all Ontarians.

That’s why it’s my pleasure to rise for the third reading of our government’s proposed More Homes Built Faster Act.

We can all agree that Ontario is the best place in the world to call home, yet finding the right home is all too challenging. We are dedicated to working with all levels of government to get 1.5 million homes built over the next 10 years. Today I’m honoured to speak to some of the details of how we plan to reach that goal. The proposed changes we are speaking to today advance our new, bold housing supply action plan. It includes numerous initiatives that would help to build more homes in Ontario.

The More Homes Built Faster Act expands on our track record of addressing the housing supply crisis. This is a cross-government initiative, and we’re counting on our partnerships with municipalities, the federal government and those in the housing industry to help us to achieve our goals.

An important element of our newest plan is our commitment to reducing delays and reducing the costs associated with building new housing of all kinds. Delays are contributing to the housing supply shortage, and delays in building housing drive up costs.

A recently released study by the Building Industry and Land Development Association, or BILD, reports that each month a permit is stuck in approvals, costs can increase significantly. They found that over the past two years, development application timelines in the greater Toronto area have gotten 40% longer. They found that, in a typical high-density project, each month of delays amounts to $2,600 to $3,300 in additional construction costs per residential unit. And those costs inevitably trickle down to consumers.

If we can both reduce delays and get the cost of building homes down, we can lower the price for the average homebuyer.

There are a variety of ways that these delays can occur. Opposition from some members of local municipal councils can create delays. It’s an important step in the process to consider all angles and vocalize opposition, as we know. But sadly, even appropriate zoning and development approvals can be hindered because of these disagreements; at times, projects can be abandoned altogether. Even if a project finally gets the go-ahead, significant delays have already occurred.

Other barriers include complex land use policies inhibiting land access in urban areas, coupled with lengthy planning approvals for new housing, on top of high development charges.

The same study by BILD that I mentioned earlier found that approval timelines for major municipalities in the GTA are among the worst in the country. The collective requirements for approvals can add, on average, from 27% to 51% more time on a new build. We need to do better, and this proposed legislation will help us do better.

We must significantly increase the speed at which new homes and units are built so that we can meet existing and future demands. This will also help to lower housing costs for Ontarians, because these barriers and delays, and the resulting high costs, are burdens that builders, renters and homeowners bear.

So we’re proposing to look at ways to improve and streamline how and when things like development charges are required for new builds. Our proposed changes would extend the deadline for replacing a development charge bylaw from every five years to every 10 years, and in doing so would reduce the administrative burden on municipalities. We would also phase in development charges over five years, which would make the increases more manageable for home builders by spreading it out.

On average, 25% of the cost of a new single-family home in the GTA is composed of government fees, taxes and charges. This can add as much as $250,000 to the cost. Municipal charges can account for more than half of that.

In five of our province’s most populous municipalities, BILD has found that development charge rates for a two-bedroom apartment unit exceed $70,000—that’s $70,000 for one unit. As I’ve mentioned, this cost can trickle down to the buyer or renter.

Development charges are just one of the three main charges that municipalities levy when new residential buildings are developed. The other charges are parkland dedication fees, which can be either money or land and are used to create parks, and the second is community benefit charges, which help build infrastructure for services that are needed for higher-density residential developments. If passed, our proposed changes would help spur much-needed residential development by revising the way these charges are levied for a range of housing types.

We know that over the last two years municipal fees and charges have increased as much as 36%. We’re proposing that specific housing options—namely, affordable housing units and inclusionary zoning units—will not be required to pay development charges, parkland dedication fees and community benefit charges. We are also proposing to relieve certain attainable housing projects and non-profit housing developments from all three charges.

Rental construction would have discounted development charges, with deeper discounts for family-sized units. This will help get shovels in the ground for much-needed rental units.

Changes like this would also make it easier for builders to predict the cost of construction.

With our new legislation, we’re proposing ways to freeze these development-related fees. I’ll give you another example of just how we plan to do this. We are proposing changes to freeze parkland dedication bylaw rates earlier in the development process, at the time of the site plan or zoning application, instead of at the time the building permit is issued, which is later in the development process. For higher-density developments, we’re proposing to reduce maximum parkland dedication requirements. For sites that are larger than five hectares, the parkland rate would be no more than 15% of the land or its value. The maximum parkland rate for sites that are five hectares or less would be no more than 10%. This aims to reduce the amount of money it takes to build new condos and apartment buildings and would help make new housing options available to everyone.

Speaker, there is one more type of charge I’d like to address—and that’s our proposed changes to community benefit charges. I mentioned that affordable housing units would not be subject to community benefit charges. We are also adjusting the way maximum community benefit charges are determined, to encourage infill development. We believe that this change would also make it easier to build new housing.

Municipal fees and charges should be collected to build infrastructure, not earn interest. In 2021, the municipal sector self-reported development charge reserve balances province-wide of over $8 billion. With this legislation, we would require that municipalities use or allocate at least 60% of their development charge reserves for services like water, waste water and roads each year. We have put the same requirement in place for parkland dedication reserves as well.

Of course, we know that these fees are big revenue tools for municipalities. That is why we would supplement any shortfall municipalities may see through Ontario’s $1.6-billion portion of the federal Housing Accelerator Fund, because we understand that growing communities need housing today but they also need supporting infrastructure.

With this in mind, our plan would also help to create more consistency around land use planning and would help to decrease the number of disputes that often arise in municipal council meetings due to a lack of clarity. We’re proposing to reduce the number of approvals in the pipeline. We would do this by removing site plan control requirements for residential projects with fewer than 10 units.

Let me elaborate. Site plan control is a municipal planning tool used to evaluate things like landscaping or exterior design, as well as walkways and parking areas in new developments. It’s a tool that works in tandem with the provincial policy statement, official plan, zoning bylaws, community planning permit systems and building permits. By streamlining site plan reviews we can focus on health and safety issues, such as safe access to and from the site, rather than on unnecessary regulation of architectural or aesthetic landscaping design details.

I’d like to underline that we would still ensure that essential building permits, as well as building code and fire code requirements, continue to protect public safety.

Our plan requires bold changes, and it requires well-considered and sound policies. Our housing stock has already fallen behind, and it’s currently not on track to keep pace with population growth.

A recent study by Re/Max Canada found that our housing inventory is depleted, in part, thanks to our rapidly growing population.

As mentioned by the Minister of Municipal Affairs and Housing earlier, Ontario is expected to grow by more than two million people by 2031, with approximately 1.5 million of those new residents in the greater Golden Horseshoe region.

In addition to working with our partner ministries, increasing housing supply across the province needs everyone together on the same side—all levels of government, working alongside industry and non-profits.

When we say we need the support of all of our partners, that includes the federal government as well. CMHC’s own data shows that Ontario is due $480 million in additional funding under the National Housing Strategy. We are counting on Ottawa to come to the table and to fix this shortfall. In the meantime, we’re taking bold action now to keep up with the demand.

As the Associate Minister of Housing mentioned, we are seeking input on how to integrate A Place to Grow: Growth Plan for the Greater Golden Horseshoe with the provincial policy statement to create a new outcome-based, province-wide policy document for our municipalities.

Overall, there are six main themes that are shaping our proposed policy review through a housing supply lens. Number one is reviewing policies related to growth management and ensuring enough housing is built in the right places, including through increasing density in strategic areas. This review will also look at specific policies for large and fast-growing municipalities to leverage our government’s investment in infrastructure.

Second is developing a strong mix of housing in areas where urban growth is occurring, building up our attainable building supply.

Third is reviewing policies that relate to rural housing, boundary expansions, and considering changes that would allow for the faster conversion of appropriate employment areas into areas suitable for housing. This will be done through the review of land use planning policies.

Fourth is maintaining our province’s natural heritage, protecting environmental and natural resources and looking at agricultural policies.

Number five includes integrating schools into our urban communities as well as looking at the capacity and the current supply of our community infrastructure.

Last is ensuring our policies have a positive impact, are focused and are flexible enough to keep up with quickly changing demands as we grow as a province.

We know we must be nimble in our approach and create a stable foundation that will allow for growth as it happens. These proposed approaches to breaking down barriers, streamlining processes and cutting costs would further our goal of making housing more attainable for all Ontarians.

As I wrap up, let me take the chance to put this debate into perspective. Our province has a serious housing supply shortage. It is making life unaffordable and unsustainable for too many Ontarians. This is not disputed. It’s often spoken about as a big-city problem, and, indeed, it is a serious crisis here in the greater Toronto area and other major urbanized parts of the province. But the housing supply crisis is also an issue in rural and northern parts of the province. In my community of Thunder Bay–Atikokan, for instance, the demand for attainable and safe housing is serious and growing and needs to be addressed now.

I’m proud that our government is keeping its word to Ontarians and putting the housing supply crisis front and centre. I am proud that we have had the opportunity in recent weeks to introduce several pieces of legislation that will directly address that crisis, and I’m particularly proud of the bill that we are debating today. It is a sweeping, transformative and bold set of proposals that are evidence-based and that will have a direct impact on the housing supply crisis. We are leading innovations that would help to create more housing in Ontario and make it easier for our municipal partners to keep up with ever-growing and changing demands.

Supply and demand are key to reducing costs for housing for all Ontarians. Our proposed changes would help renters cross over and become homeowners by helping to increase the number of homes available to all people.

Everyone in Ontario should be able to find a home that is right for them.

I just want to take a quick moment to recognize a number of members of my team from the ministry. We have Evan here with us. We have Kosta. We have Corey, Harjot, Brittany and Kamel. I just want to welcome them to the Legislature.

The 28 across-government initiatives in this fall 2022 red tape reduction package build on our government’s progress to date. The initiatives in this legislation, if passed, will increase Ontario’s competitiveness, build a stronger supply chain and make it easier to interact with government by cutting red tape. These initiatives will continue to lead the province of Ontario to a path of greater economic certainty, confidence and stability.

Simply put, this bill will help build a stronger Ontario, where people and businesses can thrive, now and into the future.

Ms. Pasma moved first reading of the following bill:

Bill 47, An Act to amend the Residential Tenancies Act, 2006 and the Condominium Act, 1998 to require emergency power generators / Projet de loi 47, Loi modifiant la Loi de 2006 sur la location à usage d’habitation et la Loi de 1998 sur les condominiums pour exiger la présence de génératrices de secours.