Toronto City Council has adopted a new Inclusionary Zoning policy framework intended to get more affordable housing built across Toronto.

The City of Toronto is the first city in Ontario to implement inclusionary zoning which will require certain new residential developments to include affordable housing units.

Council approved an Inclusionary Zoning Official Plan amendment, a Zoning Bylaw amendment and draft Implementation Guidelines, which will make it mandatory for certain new developments around Protected Major Transit Stations Areas to include affordable rental and ownership housing units beginning in 2022.

TRREB’s input to the City, during consultations on this policy, indicated that inclusionary zoning may be able to help Toronto’s housing needs, but raised numerous issues including the need for a delayed and phased implementation, which were included by City Council in the final version that was adopted. TRREB’s detailed submission to the City is available here.

Details of the Inclusionary Zoning Policy include:

  • will require five to 10 per cent of condominium developments (over minimum unit thresholds) as affordable housing, increasing gradually to between eight per cent to 22 per cent by 2030,
  • the amount of affordable housing required will vary depending on where in the city the development is located and whether the units are intended for rental or ownership, with the highest requirements in the Downtown area, followed by Midtown and Scarborough Centre. The policy also requires that the affordability of these units is maintained for 99 years,
  • will be closely monitored and reviewed after one year to allow for adjustments that may be required, including changes to the phase-in and/or set aside rate, alterations to the minimum development size threshold and any other changes needed to ensure market stability and production of affordable housing units,
  • rent and ownership prices will be centred on new income-based definitions of affordable housing, targeting households with an annual income of between $32,486 and $91,611.

More detail on the City’s policy is available here.

TRREB will be monitoring the implementation of this policy and provide input to the City, as appropriate.