By Andy Tran: Founder of Suite Additions
If you’re not aware of “Bill 108, More Homes, More Choice Act, 2019”, it is an act which amends various statutes that will significantly change housing development in Ontario, and it received Royal Assent in 2019.
It has very specific implications for housing intensification. And has some distinct policy changes that will affect low-rise neighbourhoods across Ontario. In particular, the possibility for third unit garden suites.
We’ll discuss that shortly, but first let’s quickly highlight a few important changes.
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There are a number of adjustments with the Local Planning Appeal Tribunal (known as LPAT) that aligns itself very similarly back to the system of the Ontario Municipal Board (OMB). This is basically the appeal process. We won’t get into the details.
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Secondly, this bill will significantly change how cities will be able to charge developers for additional services. For example, if a new condo tower is being built, there will be some adjustments on how much the developer needs to contribute for things like schools, parks, and community centers.
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A number of changes that will speed up the development process. For example, when requesting amendments for city official plans, zoning by-laws, as well as applications for subdivisions.
So far what we’ve discussed is pretty high level stuff for large developers. In short, it is designed essentially to make things less onerous for the overall development industry.
Most of what this bill entails does not affect the average homeowner or small investor a great deal (probably you and I). There is however a change that kind of flew under the radar, and it’s in Schedule 12 Planning Act. Here it states:
The Schedule amends the Planning Act. The amendments include the following: Additional residential unit policies
Currently, subsection 16 (3) of the Act requires official plans to contain policies authorizing second residential units by authorizing two residential units in a house with no residential unit in an ancillary building or structure and by authorizing a residential unit in a building or structure ancillary to a house containing a single residential unit. The subsection is re-enacted to require policies authorizing additional residential units by authorizing two residential units in a house and by authorizing a residential unit in a building or structure ancillary to a house.
That last sentence is the big one. So it’s essentially saying that previously cities only had to allow 2 units within a house (main house & second suite). It will eventually be required to have policies to allow a 3rd unit as an ancillary structure.
Basically, a garden suite, coach house, detached accessory dwelling unit or whatever you wish to call it. Basically a house in your backyard.
This is BIG.
I’ll explain why later.
Yes this is the inside of an actual garden suite I visited – not too shabby right?
Understand that cities will have their very own local by-laws to integrate these into their neighbourhoods, similar to how second suites got rolled into the by-laws gradually since Bill 140 got passed in 2012.
I will be providing more information as I look into various cities, running proformas and analyzing design options.
This will probably have a big impact on cash flow levels, which haven’t been priced into the current market yet.
Stay tuned!
You can view the bill here: https://www.ola.org/en/legislative-business/bills/parliament-42/session-1/bill-108
This article was originally posted HERE.