In Saturday’s edition of the Government Relations Update (GRU), we included a link to a TVO Today discussion of Ontario’s leading housing professionals asking the question “Why Can’t Housing Developers Get Shovels in the Ground?” The following was a thoughtful conversation examining the challenges and opportunities facing homebuilders in their Province. This led to a more local examination of the potential opportunities for the homebuilding sector here in our own province.
We acknowledge that the BC Provincial Government, through its enactment of the Housing Supply Act, and subsequent legislation, including Bills, 44, 46 and 47, have made significant change in how new housing is planned for and with new financing tools available to local government. And HAVAN staff and members have been actively engaged for the past many years on new policy and legislation.
With the Province of Ontario having enacted its latest housing legislation last week, Bill 17, “Protect Ontario by Building Faster and Smarter Act,” it seemed timely to look at what Ontario and BC are doing the same, and what they are doing different and where we may find inspiration.
Opportunity: A Reduction in Number and Scope of Required Studies
In it’s recent passage of Bill 17, “Protect Ontario by Building Faster and Smarter Act, 2025,” the Province of Ontario introduced sweeping changes to the a number of existing legislation, with the intention to remove barriers to building, accelerate the delivery of vital infrastructure, and protect Ontario jobs during a period of economic uncertainty. Our OHPA colleagues are optimistic about the potential unlocked capacity the Bill allows for.
One of the highlights of the legislation is a reduction in the number of required studies and reports that a municipality can ask for, limited to only those already identified in their official plan. Additionally, municipalities will be required to accept studies prepared by certain certified professionals from a list to be prescribed by future regulation. Reports and studies are proposed to be restricted and could potentially prohibit the requiring of studies related to sun/shadow, wind, urban design or lighting.
Opportunity: Reduce Development Cost Charges and Provide for Flexibility in Payment Schedules
Both the Cities of Vaughn and Mississauga have taken recent steps to adjust their Development Charges (DCs) to encourage new housing starts and to address affordability.
City of Vaughn has reduced their DCs charges by 50% (yes you read that correctly), noting that “Development charges have become an unfair tax burden on homebuyers.” New fees will be revised to the rates in effect until November 2029, a move that is supported by BILD.
The City of Mississauga took an alternate, but just as significant, approach in reducing their residential development charges and is deferring collection of those fees until occupancy. With the goal of reducing costs for end users, the City has now reduced residential development charges by 50% and by 100% for 3-bedroom units in purpose built rental projects. As well, the City will defer the collection of DCs for all residential development and collect them at time of occupancy approval.
Opportunity: Removal of Site Plan Control and Approval on Lower Dense Applications
And in the enacting of Bill 23, “More Homes Built Faster Act, 2022,”, residential developments with ten or fewer units are exempted from site plan control, meaning a municipality cannot impose site plan control requirements, although building and fire codes and health and safety requirements still apply.
Opportunity: Using Artificial Intelligence
Not specific to what’s happening in Ontario legislation, but Edmonton saw an increase in building permits in 2024 over 2023 using new technology to auto-review residential homebuilding applications. The City was the first in Canada to use this system and reports that a typical 20-day wait for a permit can now be reduced to one day and while it is only just for detached and semi-detached homes, they are exploring how to expand this tool for other housing types.
Both the City of Vancouver and Surrey are in the early stages of implementing Archistar, a leading-edge building permit compliance assessment that digitally checks building permit submissions.
Vancouver’s early-stage programming included a 2024 pilot program for laneway homes, with technology digitizing plan checks, reducing processing times and improving the applicant experience.
Supported by a $95 million HAF Grant, the City of Surrey is using Archistar to speed up permitting for affordable housing, improving its compliance accuracy through a reduction in back-and-forth with applicants and a pilot to self-serve the digital application system.
Other municipalities, including Delta (aptly named chatbot Burns Bot) and White Rock are using artificial intelligence in a chatbot format for planning and land use related enquiries by members of the public.
Opportunity: Use of On-Demand Surety Bonds in Lieu of Letters of Credit
An on-demand surety bond is a financial guarantee that requires the surety to pay the local government upon demand, without any conditions or disputes, if the principal fails to fulfill their contractual obligations. Slightly different than current performance bonds, on-demand bonds allow for municipalities to ask for payment without investigation. The benefit to homebuilders is the unlocking of capital that can be used to build much needed new homes.
Currently in the lower mainland, the City of Burnaby and Mission have been using these bonds and Surrey has expanded their pilot project they have been using and other municipalities are exploring the option as well.
Where Are We Going in British Columbia?
Here in British Columbia, a number of local governments have been asking the Provincial Government and Housing Minister Ravi Kahlon to help address the cost-of-delivery crisis by allowing for reform to Development Cost Charges legislation, specifically addressing alternative payment schedules and methods of security.
The City of Delta has asked for legislative change to provide flexibility in the timing of DCC payments and to explore mechanisms to secure payment at the time of occupancy.
Vancouver is proposing a suite of legislative changes, to be addressed at Council this week, including deferment of Development Cost Levies (DCLs), and modifying requirements for Community Amenity Charges (CACs).
Hosuing Minister Kahlon, in a number of public settings, has acknowledged his Ministry is actively exploring ways and means to alleviate the financial pressures facing homebuilders and allow local governments flexibility in how they implement Development Cost Charges, CACs/ACCs, and payment schedules.
On The National Front
Nationally, our colleagues at BILD, in partnership with members and advocacy groups including our own CEO Wendy McNeil, have sent an Open Letter to Prime Minister Carney, calling for reform to our outdated Rebate System, which hasn’t been adjusted since 1991. Recommendations include:
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Raising the rebate thresholds to reflect current market realities
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Extending full rebates to homes under construction and sold inventory
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Encouraging provincial alignment on similar tax relief measures
Read more here and learn how you can indicate your support for a change at the provincial level as well.
And in Closing, Asking and Answering Their Own Questions…
Dr. Mike Moffatt is an executive in residence at the smart prosperity institute (SPI) a national research network and policy think-tank based at the University of Ottawa. In a recent interview, he asks and answers his own question “How Do We Solve the Housing Crisis?”
“How Taxes and Taxes-on-Taxes Add Over $250K to a Vancouver Condo,” the Missing Middle Initiative reports that the federal GST, the provincial property tax and municipal development cost charges and related fees cause the price of a home to be over $250,000 higher than it would be otherwise.
And let’s leave on a somewhat tongue-in-cheek but provocative question of “What if We Built Cars Like We Build Housing? In their latest edition of “Homes Don’t Just Get Built” series, HAVAN member Wesgroup examines what it would look like if car manufacturing worked the same way housing delivery does in Canada: overlapping permits, conflicting local rules, ever-changing policies, and taxes stacked at every turn. The result? Sky-high prices and endless delays.
HAVAN continues to work with CHBA BC and CHBA to advocate for all levels of government to work together to address the challenges of the housing industry including zoning restrictions, density limits, and NIMBYism.
Looking to stay up-to-date on Metro Vancouver’s residential housing industry? Sign up for Wendy’s weekly Monday Briefing and other HAVAN emails here.
QUICK BITES …
Kananaskis, Alberta is host this week to the G7 Summit, Presidents and Ministers meeting to discuss issues ranging from international peace, global economic stability and more locally, Prime Minister Carney will sit down with President Trump to discuss a trade deal that Trump thinks is “achievable”.
CHMC reports that Canadian housing starts remain largely flat in May compared with April as the seasonally adjusted annualized rate of housing starts was down 0.2%.
Its the time of year that local governments start on their submission of policy recommendations to the provincial government through the Union of BC municipalities and the District of Sooke is advocating for European-style elevators to cut costs and boost accessibility. CHBA BC past-president Mark Bernhardt supports the idea.
