What Would Bill 23 Do? (If Passed)

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Bill 23, the More Homes Built Faster Act

Here are just some of the things Bill 23 would do if passed: 

  • It re-defines “affordable” housing as housing that is at 80 per cent or less of average market rent. For some time, “affordable” has been defined as the lower of the 80 per cent figure or 30 per cent of the gross income of a household. Thirty per cent is often lower and has been the national measure since the 1980s. What does this change mean? Well, in October 2021, Canada Mortgage and Housing Corp. said average market rent in the old city of Hamilton was $1,175. 80 per cent of that is $940 and that is affordable (by the 30 per cent definition) only if your household income is $37,600 or more. So, the new provincial measure means builders can now qualify for any subsidies for building “affordable” housing without providing housing that is affordable to those Hamilton households that earn less than $37,600. In the latest census, 34,000 Hamilton households earned less than $35,000.  “Affordable” also now means a home for purchase that is priced at 80 per cent or less of the average market price. 
  • Bill 23 exempts certain projects from having to pay development charges, saving tens of thousands of dollars in upfront costs and thus potentially allowing lower rent or lower prices. 
          • Non-profit and co-operative housing projects are exempt. Indwell CEO Jeff Neven has praised this provision as a significant help to building more units. 
          • “Affordable” housing units, whether rental or for ownership, are exempt if they remain “affordable” for 25 years. Note that since “affordable” rent is defined in terms of market rents, an “affordable” rent will rise as market rents rise. In Hamilton, the average rent rose by about 10 per cent in just two years. 
          • “Affordable” units created through inclusionary zoning (see below) are exempt.
  • Bill 23 also sets maximums for the amount of parkland dedication and community benefit charges that can apply to any of those non-profit, co-op and “affordable” units. 
  • The Bill also imposes across-the-board reductions in development charges for all developments, of 20 per cent in the first year, 15 per cent in the second, 10 per cent in the third and 5 per cent in the fourth. 
  • There is no provision for the province to repay municipalities for any of these lost development and other charges. Those fees pay for essential infrastructure related to urban growth, so a city’s capacity to have development pay for new development is reduced. 
  • The rules around inclusionary zoning will be narrowed. Inclusionary zoning allows a city to require that a percentage of new housing units built be affordable. The province had earlier restricted its use just to areas along major transit routes. Now they have limited municipalities to not more than five per cent of new units being “affordable”. A fair portion of Hamilton’s new council agreed with Hamilton ACORN that 40 per cent of units should be required to be affordable. Now that won’t be possible.
  • Second and third units are permitted on any residential property, with only a minor tweak to existing rules. This doesn’t go as far in allowing greater density (more units) as Vancouver has gone or as Ontario’s own task force on housing affordability recommended. The task force proposed allowing up to four units and four stories on single family lots. Some of our local councillors have encouraged that greater density. 
  • Public input will be much reduced. For instance, only the proponent of a development, the municipality and various services providers such as a hydro utility will be able to appeal an official plan amendment. 
  • The role of conservation authorities will be greatly narrowed, in ways only partially clear. Their right to review and comment on development proposals could end. Their ability to prohibit development on hazard lands, wetland and river and stream valleys will be gone in certain municipalities. 
  • Site plan approval will be much reduced and eliminated entirely for residential buildings of 10 units or less. Site plan control now governs design, scale, character and other measures of how well a development fits in an area. Most of that will be gone. 
  • The minister of Municipal Affairs will have authority to regulate demolition or conversion of buildings with six or more residential rental units. Hamilton is currently revising its rules around both demolitions and conversions but would lose that authority if the bill passes.
  • The ability to designate heritage properties would also be reduced.