Onerous policy requirements only worsen housing supply situation in Toronto
Toronto is in the process of developing its inclusionary zoning policy. The term inclusionary zoning refers to policies that bring together industry and municipalities in partnership to encourage the building of more affordable housing units.
Unfortunately, the requirements in Toronto’s draft policy framework are so onerous that they will act as a disincentive to the delivery of affordable housing in the City and may, in fact, worsen the housing supply situation in what is already one of Canada’s most constrained markets.
Under the partnership model, inclusionary zoning policies typically involve equitable agreements between industry and municipalities, providing builders and developers with incentives or offsets in exchange for building units to sell or rent for below-market rates. A study prepared for BILD that reviewed inclusionary zoning practices in 10 cities found that only Toronto is omitting cost offsets as a starting point and thus taking a markedly different approach to the norm.