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Proposed Provincial Regulation Changes

Recently, the Province announced potential changes to Ontario Regulation 232/18, which guides how municipalities can implement Inclusionary Zoning (IZ). As a past participant in the City’s IZ study, we wanted to ensure you are aware of the proposed changes and how to provide feedback to the Province.

In the table below, we have developed a comparison of Mississauga's current policies and the proposed provincial regulatory changes.

The Province is accepting comments from members of the public on the proposed changes until December 9, 2022.

To read more about these changes and share your feedback with the Province, see Environmental Registry of Ontario Notice #019-6173: https://ero.ontario.ca/notice/019-6173

The current IZ Ontario Regulation 232/18 can be accessed here: https://www.ontario.ca/laws/regulation/180232

City staff have prepared a corporate report in response to the proposed legislation titled Bill 23 "More Homes Built Faster Act" and Implications for the City of Mississauga. It will be reviewed at a Special Council meeting on November 23 at 9:30 a.m. You can read a copy of the report here.

For more information from City Staff, please contact:

Catherine Parsons, MCIP, RPP

Planner, Planning Innovation, Planning and Building Department

T 905-615-3200 ext. 8409

catherine.parsons@mississauga.ca

Table 1: Comparison of Mississauga’s IZ Policies vs. Proposed Provincial Regulation Changes

Policy Area	Mississauga’s Inclusionary Zoning Official Plan Policy (August 10, 2022)	Proposed Change to Provincial Regulation O.Reg. 232/18
Set-aside Rate: The percentage of units or the percentage of the residential area in a development that is required to be “set-aside” as affordable housing.	After an initial phase-in period, Mississauga’s Official Plan requires set-aside rates that range from 5% to 10% depending on the location in the city.	Currently, there is no upper limit to the set-aside rate in the Provincial Regulation. The Province is proposing to limit the maximum set-aside rate a municipality can require to 5%.
Affordable Price and Affordable Rent: The price or rent at which an affordable unit must be sold or rented.	Mississauga’s current Official Plan policies indicate that housing is affordable if it costs no more than 30% of gross annual household income. The IZ policy is targeted to housing for moderate-income households. For affordable ownership units, this equates to prices that are no greater than about 50% to 60% of resale market prices. For affordable rental units, this equates to rents that are no greater than Average Market Rent as established by Canada Mortgage and Housing Corporation (CMHC).	Currently, there are no price/rent requirements in the Provincial Regulation. Other Provincial policy documents define affordability as housing that costs no more than 30% of gross annual household income. The Province is proposing to require that municipalities cannot set the affordable price any lower than 80% of resale prices for ownership units The Province is proposing to require that municipalities cannot set the affordable rent any lower than 80% of Average Market Rent for rental units.
Affordability Term: The length of time an affordable housing unit is required to remain affordable.	Currently, ownership units must stay affordable for 99 years and rental units must stay affordable for 25 years (plus a 5-year phase out).	The current Provincial Regulations do not set any limits to the affordability term. The Province is proposing to change the regulation so that the maximum affordability period a municipality can require is 25 years.