Doug Ford new planning rule actually slowing housing construction, say builders

Some municipalities have imposed new, cumbersome pre-approval processes for development because of a new tighter provincial deadlines for approvals.

Thestar.com
Feb. 6, 2024
Noor Javed

The Ford government's Bill 109 was designed to to speed the construction of housing, but builders say the way municipalities are coping with its tight timelines the new law has had the opposite effect.

A provincial directive forcing cities to fast-track housing has actually made the approval process more expensive and slower, according to building industry sources.

As part of the Ford government’s Bill 109, the More Homes for Everyone Act, municipalities are required to refund application fees to developers if plans aren’t approved within a set number of days, such as 60 days for approving a site plan, or 90 days for a zoning change.

As a result, municipalities across Ontario have imposed mandatory pre-application meetings that include lengthy checklists, fees and in some cases public hearings before the official process -- and clock -- starts. A builders' group has taken some municipalities to the provincial land tribunal for imposing mandatory multi-stage pre-application meetings, which can take several months to navigate.

The province’s “move has backfired and made the process so much worse,” said Jordan Grant, president of real estate developer Seaton Group. “It’s much more expensive and time consuming to get your application approved.”

Cities say the pre-application meetings are a way to ensure that planning documents are thoroughly vetted, complete and include public input -- especially given the tight timelines imposed by the province. But developers say instead of creating efficiencies, the pre-application process has no hard and fast rules and has created more steps in an already cumbersome process.

Grant estimates he has paid tens of thousands of dollars more for the pre-application phase for a Caledon townhouse project, in addition to what he expects to pay for the regular planning application processing.

But the long-time builder says even more importantly than the money, it's how much longer the process takes as cities try to find a balance between the province's rules and maintaining standards. The Town of Caledon did not respond to requests for comment.

“Instead of trying to identify what can we cut out to streamline the process, and let’s set realistic timelines that everyone thinks are achievable, the government arbitrarily set these rules without any consultation,” said Grant.

The group that represents builders and developers in Ontario, is appealing a mandatory public hearing requirement with the pre-application process for nine GTA-area municipalities at the Ontario Land Tribunal, according to David Wilkes, president and CEO of the Building Industry and Land Development Association.

“We can confirm that we have nine active appeals that challenge the way municipalities have reacted to Bill 109,” Wilkes said.

In a statement, Minister of Municipal Affairs and Housing Paul Calandra said the province is aware, after speaking to “both community builders and our municipal partners that Bill 109 was not having the positive impact we had hoped it would.”

Since becoming Minister in September, Calandra has reversed several contentious land-use planning decisions of the previous housing minister, Steve Clark, including the opening of the Greenbelt and questionable minister zoning orders.

“I have said that we all need to adopt a culture of ‘yes’ if we are to meet our very ambitious targets,” said Calandra. “That's why, in December, I announced a review of that provision in Bill 109. If it does not help build homes, it will be replaced with a tool that does.”

This is not the first time the development industry has spoken out about the province’s failures on the housing file. In December, BILD criticized the province for the lack of a “coherent plan” to fix the housing crisis.

Cities like Toronto, Burlington and Oakville, which are the subject of BILD’s appeal, said they had a version of the preconsultation process in place before Bill 109, but in some cases, the province’s directive pushed them to formalize the process.

Brynn Nheiley, executive director, community planning, regulation and mobility for Burlington, said the pre-application process is to provide “developers with a clear path to approval before application submission.”

She said that receiving applications that “require a great deal of back and forth between the city and applicant or that do not consider public input until a later stage, cause delays in issuing approval.”

Kerri Voumvakis, interim chief planner and executive director for the city of Toronto, said its pre-application consultation came into effect in April. Instead of causing delays, it has established consistent rules for developers, such as a mandatory 40-day limit between when an applicant asks for a pre-application meeting, and when it receives a “planning application checklist package” to guide it through the process.

Voumvakis said that in the past, there was enough time for a back and forth between developers or community members an application. Under Bill 109, the formal review process is so focused on approval and the timelines are so much shorter that a more comprehensive preconsultation process is necessary.

Burlington Mayor Marianne Meed Ward said that for too long, the government has put the blame for the housing crunch on municipal approval, when it is a multi-faceted crisis.

“It's not just the municipalities’ responsibility...we need quality application from developers,” she said, adding that her city has thousands of approved housing units waiting for site plans and permits to be requested by developers. "Why aren't they? That's where we need to have a thoughtful conversation around what might impact us from reaching our housing pledge."

She said the city has struck a standing committee made up of various stakeholders including politicians, BILD and the public to discuss what the barriers to housing are in the city.

But Ward also points out that Bill 109 has some serious flaws, such as the same timeline for approving both complex projects such as a condo tower near transit and a single family home. "The timelines don't distinguish," she said, adding that they have brought this up with the minister.

Grant also believes that fixing the system requires getting the development industry and municipalities at the table to fix any bottlenecks. "This has not streamlined anything," he said.