Ontario introduced legislation to cut red tape and build at least 1.5 million homes by 2031.

The Cutting Red Tape to Build More Homes Act, 2024, announced on Wednesday, contains a variety of measures to remove barriers for municipalities and homebuilders who are having a tough time getting shovels in the ground.

“This legislation is certainly positive news for builders,” said Richard Lyall, president of the Residential Construction Council of Ontario. “Bureaucracy and red tape are two significant obstacles that builders must overcome in trying to get housing projects underway. This legislation will help to streamline and accelerate approvals and has a number of proposals to reduce building costs and prevent delays.”

If passed, the legislation would also help municipalities build homes faster at a lower cost, let homebuyers and homebuilders decide on the number of parking spaces in new residential developments near major transit stations, and make it easier to build more garden, laneway and basement suites.

The legislation would also reduce project delays by streamlining the system to get quicker planning approvals from the Ontario Land Tribunal, exempt publicly assisted universities from the Planning Act, allowing them to accelerate the building of new student housing, which would ease demand on market-housing options. It would also support standardized designs to reduce delays and costs, including for modular homes and support innovative construction methods such as mass timber.

The Ontario government also intends to release the next edition of the Ontario Building Code, with a focus on enabling more housing supply, which will also be good news for the industry, RESCON noted.

“The new legislation reiterates the government’s commitment to tackling the housing supply and affordability crisis,” said Lyall. “To keep the dream of home ownership alive in Ontario, we must get shovels in the ground quicker and make them affordable. Presently, the system is on life support.”