Critics warn Ford government’s new plan to meet housing target will boost sprawl

In a new push to reach its target of 1.5 million new homes by 2031, Premier Doug Ford’s government is proposing a slew of changes that include allowing municipalities to build faster on undeveloped land -- which critics warn will fuel sprawl into farmland.

Thestar.com
April 11, 2023
Rob Ferguson

In a new push to reach its target of 1.5 million new homes by 2031, Premier Doug Ford’s government is proposing a slew of changes that include allowing municipalities to build faster on undeveloped land -- which critics warn will fuel sprawl into farmland.

Municipal Affairs and Housing Minister Steve Clark said Thursday his wide-ranging measures are intended to provide better protections for tenants and home buyers in a housing crunch of supply and affordability.

“More action and more progress is required,” Clark told a news conference on the eve of the long weekend, citing challenges to the 1.5-million target posed by high inflation and high interest rates that are out of his control.

Last month’s provincial budget forecast about 80,000 new housing starts annually in the next three years, well below the 150,000 needed annually to meet the 2031 goal.

Under the changes, fines for landlords would double, tenants could install air conditioners, some 74 fees would be frozen to reduce the cost of building homes, and it would be easier for municipalities to expand their “settlement boundaries.”

While the protective measures were generally welcomed, the increased potential for expansion earned swift rebukes from opposition parties and environmental groups calling for more emphasis on intensifying development in populated areas and near public transit.

“What worries me is the Conservatives are going to continue doubling down on suburban sprawl,” said New Democrat MPP Jessica Bell (University-Rosedale), her party’s housing critic.

Green Leader Mike Schreiner said any moves to loosen land-use planning rules for municipalities across the province will “open the floodgates to reckless, expensive sprawl” and do nothing to ease the crisis in the supply and affordability of homes.

“There is more than enough land within existing boundaries to build the homes we need -- where people already spend their time -- while protecting farmland and the environment at the same time.”

Clark said “intensification around transit is something this government is committed to” but maintained “all of Ontario is a place to grow.”

The changes are in Clark’s new Helping Homebuyers, Protect Tenants Act, and proposals to amend provincial land use planning rules are open to public comment until June 5.

The Ontario Real Estate Association and the Residential Construction Council of Ontario said they support the changes, which the council said will “streamline land-use planning policy and speed up approvals of projects.”

Tim Hudak, chief executive of the real estate association, said the “increased flexibility” will help fast-growing municipalities, and called for the province to do more on the conversion of underused commercial buildings to residential space.

In response to critics, Clark said “all existing Greenbelt protections are maintained” in the package of reforms. The Progressive Conservatives have been under fire for expanding development into the 7,400 acres placed under protection by a previous Liberal government.

Bell said Clark’s assurance is far from a promise there will not be further incursions.

Environmental Defence executive director Tim Gray said he fears “five-storey apartment buildings in the middle of a cornfield.”

As previously reported by the Star, the government’s changes would also provide more protections for “renovictions,” double the number of adjudicators on the backlogged Landlord and Tenant Board that is swamped with complaints, and allow tenants to install air conditioners provided they notify landlords in writing.

In return, landlords would be allowed to charge a “seasonal fee” if they, not the tenant, pay for electricity. That fee would be based on energy usage for the air conditioner, which would have to be safely and properly installed, government officials said in a briefing Thursday.

Maximum fines for landlords over violations such as “bad faith evictions” would double to $100,000 for individuals and to $500,000 for corporations, which the government said would be the highest in Canada.

To better avoid evictions, renters who fall behind on their payments could enter into repayment agreements with their landlords.

Bell said the higher fines are admirable, but that such sanctions are too often “not enforced.”

And the tenant protections don’t attack the root cause of “renovictions” by leaving in place rules that allow landlords to raise rents on new tenants by as much as they want, said lawyer Dania Majid with the Advocacy Centre for Tenants Ontario.

“That is the financial driver of the incentive for these bad faith evictions,” Majid said. “Unless we close this loophole, no fine is going to be big enough.”

The government said it will consider requiring rental buildings being torn down for replacement or undergoing substantial renovations to maintain the same core features, such as the number of bedrooms, and giving existing tenants “the right to move back in the same unit at the same rent.”

The Association of Municipalities of Ontario said the legislation would address some of the barriers to housing that municipalities have identified, such as doubling the number of adjudicators for backlogged landlord-tenant disputes.

“Municipalities across Ontario will welcome positive changes for landlords and renters. These investments will speed access to timely decisions from the Landlord and Tenant Board,” said AMO president Colin Best.

Clark is also proposing to allow “cooling off periods” for buyers of new freehold homes, in case they need to back out for financial or other reasons, and would provide “unlimited deposit insurance” for First Home Savings Accounts at credit unions.

In rural areas, farmers hoping to keep their farms in the family would be allowed to build up to three new residences on their land for children or others who will eventually take over operations.