With Ontario’s new Bill 23, the More Homes Built Faster Act, 2022, it is now easier and faster for new homes to be built. This bill includes many initiatives that will have a positive impact on the construction of new residential units in the province. A few highlights of these initiatives include updates to the Development Charges Act, 1997, the New Home Construction Licensing Act, 2017, and the Supporting Growth &Housing in York and Durham Regions Act, 2022. We’ll take a look at what each of these initiatives means for new home buyers and home builders in Ontario.
What is Bill 23?
On November 28, 2022, the Ontario government passed the More Homes Built Faster Act, 2022 (Bill 23), a bill that significantly amends and creates new legislation affecting planning and land development. The government has described the plan as “part of a long-term strategy to increase housing supply and provide attainable housing options for hardworking Ontarians and their families,” with a goal of building 1.5 million homes in 10 years.
DEVELOPMENT CHARGES ACT, 1997
The changes proposed in Bill 23 have the potential to benefit both homeowners and developers. Homeowners may find it easier to access affordable housing and non-profit housing developments. Developers will benefit from a reduction in development charges for rental housing developments, as well as a longer time period for the expiration of development charge by-laws. The changes also provide for a maximum interest rate for certain services and require municipalities to allocate 60 percent of their reserve funds annually. These changes will make it easier and faster to build new homes and could make housing more accessible and affordable in Ontario.
NEW HOME CONSTRUCTION LICENSING ACT, 2017
The New Home Construction Licensing Act, 2017, is part of Ontario’s new Bill 23 – More Homes Built Faster Act. It was introduced to increase consumer protection and reduce red tape when it comes to building new homes in the province.
This act requires that all persons engaging in the construction of new homes must be licensed. This will help to ensure that new home builders have the qualifications, experience, and insurance needed to safely and competently build homes to a high standard.
The New Home Construction Licensing Act also requires that builders must provide disclosure documents to potential buyers and offer warranties that meet certain minimum standards. These documents must be signed by both parties before any new home construction can take place.
By introducing this new act, the government of Ontario hopes to create an environment where new home construction is safe and efficient, protecting both homeowners and builders from unnecessary risk.
SUPPORTING GROWTH AND HOUSING IN YORK AND DURHAM REGIONS ACT, 2022
The Supporting Growth and Housing in York and Durham Regions Act, 2022 was recently enacted to expedite the planning, development, and construction of proposed York Region sewage works projects and to improve the York Durham Sewage System. The Act also expedites the development, construction, and operation of the Lake Simcoe Phosphorus Reduction Project, which is intended to capture and treat drainage from the Holland Marsh to remove phosphorus before discharge into the West Holland River.
Under this Act, certain orders and approvals under the Environmental Assessment Act are terminated, while the projects are exempted from the Environmental Bill of Rights, 1993. This Act also allows for land to be designated as project land, and permits may be necessary for certain work to be performed on such land. The Minister can also require removal of obstructions to these projects.
In addition, adjustments to the expropriation process under the Expropriations Act are set out, as well as rules regarding compensation for those affected by these projects.
The material and information contained on this website are for general information purposes only. For more information, please visit https://www.ola.org/en/legislative-business/bills/parliament-43/session-1/bill-23
UPDATE: AMENDMENTS RELEASED ON MARCH 27, 2023 FOR MORE INFORMATION PLEASE VISIT THE LINK HERE.