Inclusionary Zoning Framework Approved in Toronto

  • January 10, 2022
  • Pitman Patterson, Lee English, Isaac Tang, Adam Shipowick, BLG

On November 9, 2021 the City of Toronto approved Official Plan and Zoning Bylaw amendments as well as draft Implementation Guidelines introducing Inclusionary Zoning requirements. These requirements will make Inclusionary Zoning mandatory for new developments that meet certain criteria in approved Protected Major Transit Stations Areas (PMTSA) to include affordable rental and ownership housing units beginning in late 2022. The city also made changes to definitions related to affordability in the Official Plan.

The new planning tools include:

Authority and legal framework

  • The Planning Act enables inclusionary zoning as a planning tool in official plans under s. 16(4)-(13) and through by-laws in s. 35.2
    • O. Reg. 232/18 prescribes requirements for a municipality’s Inclusionary Zoning approach
  • The Planning Act allows for inclusionary zoning to be implemented within approved PMTSAs (s. 16(5))
  • The Planning Act permits municipalities to delineate PMTSAs (s. 16(15, 16))
    • The Growth Plan requires upper- and single-tier municipalities to delineate MTSAs (Policy 2.2.4.2) by July 1, 2022 (the Ministry-directed deadline for all municipalities to complete their conformity exercises, known as Municipal Comprehensive Reviews or MCRs)
    • It is the responsibility and jurisdiction of a municipality to determine which MTSAs it identifies as PMTSAs, but PMTSAs require Ministry approval.
    • Identifying a PMTSA allows for inclusionary zoning to be implemented and used by municipalities as an affordable housing planning tool.