On November 28, 2022, the Province passed Bill 23, the More Homes Built Faster Act which changes how municipalities operate and plan for the future. The Provincial government states these changes will increase housing supply and affordability in Ontario by reducing costs to home builders and requiring that municipalities make decisions faster about development.

These changes include:

• Reducing the amount and limiting the circumstances when developers are required to pay Development Charges to municipalities. Development Charges are used by municipalities to pay for infrastructure and amenities that are required to accommodate the growth from new development, such as sewers, watermains, roads, community centres, libraries and fire stations.
• Capping parkland dedication and limiting community benefits charges, meaning that municipalities will be limited in how to plan for park space for residents now and in the future.
• Limiting public input and consultation on the merits of a development proposal and prohibiting third-party appeals to consent and minor variance applications.
• Limiting the City’s ability to regulate development, such as compatibility with existing neighbourhoods, exterior design and landscaping for development proposals that have 10 residential units or less.

In addition, Richmond Hill will now be required to accommodate 27,000 new housing units over the next ten years. This is more than is contemplated in our Official Plan and will require a greater investment in infrastructure to support than previously forecast.

The Province has heard from developers that these changes remove their barriers to building more housing to accommodate Ontario’s growth in the coming decades.

However, there are a number of factors that will still impact the amount and affordability of housing that Bill 23 does not take into account:

• There is no guarantee that the savings to home builders resulting from their having to spend less time, resources and pay less fees, will be passed on to home buyers.
• With less revenue from Development Charges, municipalities may be faced with raising property taxes to be able to pay for the services needed to accommodate these new homes, which impacts affordability to existing residents.
• Many municipalities, including Richmond Hill, have a large number of approved residential units that developers have not yet broken ground on. Efforts to speed up municipal approvals will have no impact on these as they are already approved. It’s in developers’ hands when these units will be built.

On January 30, 2023, Council received a staff report outlining a preliminary summary of Bill 23 and its impact to Richmond Hill, as well as a Memorandum on the Financial Impacts of Bill 23. The report identifies that as a result of Bill 23, the City will have revenue losses of $329.8 million or a loss of 49% of our forecast revenues over the next 10 years. This directly impacts the City’s ability to plan for growth with sustainable infrastructure and community amenities. Council called on the Province to respond to these concerns.

Richmond Hill agrees that housing and housing affordability are significant issues facing municipalities, which is why Council approved an Affordable Housing Strategy in 2021. This is especially important as Richmond Hill looks forward to welcoming the new residents who want to call Richmond Hill home in the coming years and as the Yonge North Subway Extension to Richmond Hill Centre enables increased density.

However, we are concerned that Bill 23 will have unintended consequences that will have a negative impact on planning for our future as a community, as well as our financial sustainability.

The City continues to analyze the legislative changes to understand the financial and other impacts to the City and how we work with residents to plan for the future of the community. An initial assessment was outlined in a January 30 staff report about Bill 23 as well as a Memorandum on the Financial Impacts of Bill 23. What is clear is that the Province’s changes will have significant impact to the City and services to residents.

Aside from the changes to how the City can collect revenue to pay for infrastructure to support growth, there are a number of changes in Bill 23, many of which are still unknown (pending the release of Provincial regulations) that will have impacts to the City. These include our current processes to consult with residents and stakeholders on development proposals, while at the same time requiring the City to develop additional expertise and capacity to deliver on prescribed timelines. For example, the City currently relies on the expertise of the Toronto and Region Conservation Authority for input on development proposals relating to a wide range of environmental matters. Bill 23 prohibits Conservation Authorities from commenting on matters beyond flooding and erosion. Without the input from the TRCA, the City will have additional resource requirements to ensure that expertise on ecology, wetlands and biodiversity, among others, are understood.

While we are still working to understand and implement the changes directed by the Province in Bill 23, it is clear that the City’s Land-Use Planning process will need to change.

New time limits from the Province mean less opportunity for residents to provide input on development proposals, limiting your ability to have a say on changes in your neighbourhood.

Without additional revenue to cover the changes to Development Charges and other growth-related fees paid by developers, other sources of revenue to support the infrastructure needed to accommodate Richmond Hill for the future will need to be found. It is likely this will include property taxes.