The Ontario government recently passed Bill 23, also known as the More Homes Built Faster Act. This legislation aims to increase the availability of affordable housing by making it easier to build additional residential units (ARUs) in existing homes and on private properties across the province.
The new law requires municipalities to permit the use of ARUs in single-family homes, townhouses, and semi-detached houses. These units can be either attached or detached from the primary residence and can include apartments, basement suites, dwelling units and backyard cottages.
The purpose of ARUs is to create additional housing options without requiring the construction of new buildings (subdivisions, condo towers…etc.), thereby making better use of existing infrastructure and land. This approach can also help to address the growing demand for affordable housing in Ontario, particularly in urban areas where housing costs have risen sharply in recent years.
The new law includes several provisions designed to make it easier for homeowners to build ARUs. For example, municipalities are required to process building permit applications for ARUs within 30 days, and fees for these permits must be reasonable and transparent.
The legislation also includes provisions that promote the creation of affordable housing through ARUs. For example, municipalities can require that a certain percentage of ARUs be rented at below-market rates or that they be designated as affordable housing for a certain number of years.
The passing of Bill 23 is a response to the growing housing crisis in Ontario, particularly in cities like Toronto, where a lack of affordable housing has become a significant problem. The new legislation recognizes that the solution to this crisis requires a multi-faceted approach that includes both new construction and the better utilization of existing buildings.
ARUs are an important part of this approach because they allow homeowners to generate income from their properties while also increasing the supply of rental housing in Ontario's urban centers. By making it easier for homeowners to build these units, the new legislation will help to create more affordable housing options for renters and ease the pressure on Ontario's increasingly tight rental market.
In addition to its benefits for renters, the new legislation is also likely to have positive economic impacts. The construction and operation of ARUs will generate new jobs and stimulate economic activity, while also increasing the supply of rental housing and reducing rental costs for tenants. This, in turn, will help to support Ontario's economic recovery and promote sustainable economic growth in the province over the long term.
Overall, the passing of Bill 23 represents an important step forward in Ontario's efforts to increase the supply of affordable housing. By making it easier for homeowners to build ARUs, the new legislation will help to create more housing options for Ontarians, particularly those who are struggling to find affordable housing in the province's increasingly competitive rental market. The legislation also includes important provisions designed to ensure that the creation of ARUs benefits all Ontarians, including those who are most in need of affordable housing.