Ontario’s new housing decision means ‘further revenue loss’ and ‘less oversight’ for Richmond Hill: Mayor

‘It means that all the work that our staff and council had done in 2021 is now nullified’

Yorkregion.com
Jan. 23, 2023
Sheila Wang

As the City of Richmond Hill works to tackle the impact of Bill 23, Mayor David West said Ontario’s recent decision on granny flats has posed more challenges for the local government to maintain growth.

West made the comment after the province posted a decision Jan. 6 on an updated additional residential units framework, which allows up to three units per lot in many existing residential areas.

“I do have concerns with the province overriding the changes that council made,” the mayor said. “It means that all the work that our staff and council had done in 2021 is now nullified.”

The updated framework prohibits all municipalities from applying minimum unit sizes or requiring more than one parking space in connection with these units.

The local governments are also not allowed to impose development charges or require parkland dedication or cash-in-lieu in connection with some of the additional units, according to the decision.

These changes will result in “further revenue loss,” and the city will have “even less oversight” on building and property standards in the neighbourhoods, West said.

The province posted the decision shortly after approving Bill 23, or the More Homes Built Faster Act, in November, which the Ontario government said was designed to streamline the construction of new housing and help address the housing shortage in Ontario.

The mayor said he understood and agreed that there is the need to provide more housing, and additional residential units are currently allowed in the city as a way to help meet the demand.

“The city has not been consulted nor given the opportunity to provide feedback. Had that happened, we could have informed the province that we already have a similar policy in place,” West said.

An additional residential unit, also known as granny flat, secondary suite or laneway house, is a self-contained unit with a private kitchen, bathroom facilities and sleeping areas in a main residential building or a separate building on the same property.

In March 2021, the city started to allow for these types of units, with requirements including parking to make sure they can be integrated into the neighbourhoods.

Statistics show Richmond Hill has since approved 103 building permit applications to facilitate these residential units.

Currently, the city exempts one additional unit from development charges.

However, under the new framework, the city is prohibited from imposing the charges on two additional units, which would further curtail its revenue.

“The province expects municipalities to increase density and development while taking away our revenue streams like development charges and community benefit charges. Without financial support, I am concerned the existing taxpayer will have to pay for the cost related to growth,” West said.

The Richmond Hill mayor previously raised concerns about the legislative changes, which would see reductions, exemptions or freezes on the development charges, parkland charges and community benefits charges for certain types of new buildings such as inclusionary zoning units, non-profit housing and rental construction.

City staff is working on assessing the totality of all the impacts from Bill 23 and relevant changes, West noted.