Toronto zoning rule could force developers to build more affordable homes

A new Toronto zoning law could force developers to build more affordable homes in the city.

On October 10th, city councillors voted to approve guidelines called the ‘Inclusionary Zoning’ (IZ) policy that will force developers to build rental and ownership units in some regions of the city starting in 2022.

“When we hear criticisms of percentages, I sit in a position where I have heard them on both sides. On the one side, I have heard the housing advocates who say that the policy isn’t anywhere near strong enough in terms of the requirements placed on the development industry. On the other side, I have the development industry who we have to rely on to build the housing, saying it is too stringent. So I tend to think when I hear that, that you are doing too much or too little, that you have landed in perhaps the right place,” said Toronto Mayor John Tory during a heated city council debate regarding the regulation. The motion was eventually carried forward 23-2.

Implementation guidelines regarding how the policy will actually work will be put forward in the first half of 2022. In total, between five and 10 percent of condos built in Toronto will be subject to the rule, with this rate increasing to 22 percent by 2030. It’s also important to note that the IZ applies to units available for rent and purchase.

According to the policy, the units will go to people with a household income of between $32,486 and $91,611 for 99 years after their construction. One-bedroom apartments would be available for rent for $1,090 a month, while two-bedroom apartments would go for $1,661, and three-bedroom apartments would cost $1,858. On the ownership side, costs would be capped at $190,100 for a one-bedroom unit, $242,600 for a two-bedroom unit and $291,700 for a three-bedroom unit.

In terms of areas of the city, the police will apply to the City of Toronto, North Toronto, the western part of North York, South Etobicoke, Scarborough City Centre, Southwest Scarborough and the North Yonge Corridor.

Via: CTV, blogTO

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