What you need to know about the More Homes Built Faster Act (Bill 23)

By the Ministry of Municipal Affairs and Housing

In October 2022, we announced a new plan aimed at tackling Ontario’s housing crisis. The More Homes Built Faster Act, or Bill 23, is part of a long-term strategy to help build more homes and make life more affordable for Ontario families. Our goal is to build 1.5 million homes by 2031.

We know that achieving our goal won’t be easy. A housing crisis many decades in the making can’t be fixed overnight. We must work with municipalities, the private sector, not-for-profits and the federal government to create sustainable change.

As we prepare for change, one important step you can take is to learn about the policies in Bill 23 that will provide the groundwork for growth. To make it easier for you, we’ve compiled some of the most common misconceptions and myths about the More Homes Built Faster Act, along with a breakdown of important facts and details.

Myth: Bill 23 does not protect renters and tenants

This is not true. In fact, we’re protecting renters and helping build more rental housing to meet demand. Bill 23 achieves renter and tenant protection through the following: 

• More missing middle: We’ve allowed up to three residential units to be built on each lot “as-of-right” in many existing residential areas, without a zoning by-law amendment. Some examples of an additional residential unit could include an in-law or basement suite, or a laneway or garden home. These units would be exempt from development charges and parkland dedication fees. This will create a broader mix of rental housing, increasing the number of units with minimal impact on existing neighbourhoods.
• Reducing fees and charges: We’ve reduced development charges on new rental housing — with deeper discounts of up to 25% for family-friendly units.
• Encouraging more rental housing: We want to ensure renters in Ontario have a safe and properly maintained place to call home. Through Bill 23, the minister can make rules that limit how municipalities regulate or prevent the demolition and conversion of existing apartment units with six or more rental units. This will lead to more rental housing renewals and supply. 

We will continue to increase protections for renters, especially when it comes to evictions and “renovictions”. Landlords can face serious fines for breaking the law.

Myth: Bill 23 will not lead to more affordable housing

Bill 23 will make it easier and cheaper to build affordable housing. For example, non-profit housing developments are now exempt from various municipal fees, including development charges.

Similarly, affordable housing and select attainable housing will also be exempt from municipal fees to help build a wide range of affordable homes.

More supply means more affordability. A 2022 report shows Ontario is short by about half-a-million homes, with at least one million more additional homes needed in the next 10 years to meet demand for a total of 1.5 million. The best way to help more Ontarians find a home they can afford is to build more homes of all types — and that’s what Bill 23 aims to do.

Housing starts in Ontario continue to trend in the right direction.

In 2022, despite high interest and a challenging economy, Ontario’s housing starts surpassed 96,000 — the second-highest number since 1988 and 30% higher than our 20-year annual average.

Additionally, 2022 saw nearly 15,000 purpose-built rental starts — the most ever recorded in a single year!

Myth: Bill 23 will lead to sprawl rather than density

Bill 23 supports increased density and more homes near major transit stations so people can easily get to work, school and back home. The plan requires municipalities to update their zoning by-laws to specify minimum heights and densities, as well as permitted uses, “as-of-right” within one year.

Additionally, by allowing up to three units per lot to be built in most existing residential areas, we’re aiming to increase multi-family and multi-generational housing in existing neighbourhoods.

Myth: Bill 23 stops municipalities from collecting development charges

Municipalities can still collect development charges to help them pay for infrastructure.

Did you know that municipal charges and fees on new homes significantly increase the cost of housing? One recent study found these fees add an average of $116,900 to the price of an average low-rise home in the Greater Toronto Area, and nearly $100,000 to the cost of a condo in Toronto. Over time, municipal development charge reserves across Ontario ballooned to close to $9 billion by the end of 2021!

That’s why we’ve frozen, reduced and exempted some of these fees to encourage new home construction, with a particular focus on non-profit housing and purpose-built rental housing.

However, for most market-rate housing, municipalities are still able to charge fees to support the construction of new infrastructure, which we know is an important part of many municipal budgets.

Myth: Bill 23 only puts the burden on municipalities to address the housing crisis

All levels of government are working together to solve the housing crisis.

We are committed to working in partnership with municipalities to build much-needed housing. In addition to the significant COVID-19-related supports provided to municipalities since 2020, the Province has provided over $1.2 billion to support municipalities through programs such as the Ontario Municipal Partnership Fund, the Municipal Modernization Program and the Audit and Accountability Fund.

To complement this, we have invested nearly $4.4 billion over the past three years to enhance community and supportive housing, respond to COVID-19 and to address homelessness for vulnerable Ontarians.

Additionally, we’re working with the federal government to ensure municipalities continue to get support for critical infrastructure projects and much-needed housing supply — including through the Housing Accelerator Fund. 

Several of Ontario’s largest and fastest growing municipalities have reached record levels of housing starts in the past year. For example, the City of Toronto saw a 16% increase in housing starts in 2022 — one of the highest totals for the City on record. Ottawa, Mississauga and Brampton saw 7%, 9% and 6% increases respectively since 2021. 

Myth: Bill 23 paves over the Greenbelt and threatens environmental protection

Bill 23 does not make changes to the Greenbelt. In a separate action, the government expanded the Greenbelt by 2,000 acres overall, while amending its boundaries to support the construction of at least 50,000 new homes in the near term.

Homebuilders must still obtain necessary approvals from municipalities and meet requirements, including environmental protection, before any construction can begin.

We expect that at least 10% of the homes built will be affordable/attainable and that the proponents will bring forward detailed plans to ensure these sites include public infrastructure such as roads, community centres, schools and hospitals. If these conditions are not met, the government is prepared to put the land in question back into the Greenbelt.

Myth: Bill 23 removes protections for conservation areas

Conservation authorities continue to protect the public and the environment. They will continue to review and comment on development proposals and applications within the scope of their core mandate of protecting people and property. This will ensure development does not occur in hazardous areas, like floodplains, or have an impact on the control of natural hazards, such as flooding and erosion.

Bill 23 also helps clarify and coordinate the roles and responsibilities between conservation authorities, municipalities and the Province to reduce duplication in approvals and speed up new home construction.