The Planning and Growth Management Committee recommends that:

1. City Council forward the report (January 24, 2018) from the Acting Chief Planner and Executive Director, City Planning and the Director of the Affordable Housing Office to the Province as the City of Toronto's response to the proposed inclusionary zoning regulation.

2. City Council request the Province to amend the proposed inclusionary zoning regulations as proposed in the report (January 24, 2018) from the Acting Chief Planner and Executive Director, City Planning and the Director of the Affordable Housing Office.

3. City Council request the Province to further consult municipalities and stakeholders on an appropriate and flexible implementation framework for inclusionary zoning prior to proclaiming the regulation.

The Senior Planner, Strategic Initiatives, Policy and Analysis, City Planning gave a presentation on Bill 7:  Response to the Proposed Inclusionary Zoning regulation.

This report summarizes, comments on and provides recommendations for Council's consideration on the proposed provincial inclusionary zoning regulation released under Bill 7: Promoting Affordable Housing Act, 2016.

Bill 7 and the proposed regulation released on December 18, 2017 provide an inclusionary zoning framework for municipalities to enact inclusionary zoning policies and by-laws. Inclusionary zoning is a land use planning tool that enables municipalities to secure the provision of affordable housing as part of the development approval process.

Over many years, the City has made repeated requests to the Province to provide the authorities needed to implement inclusionary zoning.  It is for this reason the City welcomed in 2016 the introduction and passing by the Ontario legislature of Bill 7.

However, the recently released inclusionary zoning framework outlined in the proposed regulation falls short in providing municipal flexibility and in delivering the affordable housing outcomes necessary to provide a full range of affordable housing. The provision of purpose-built new affordable rental housing is a strategic objective of the City's Official Plan and Housing Opportunities Toronto Action Plan.  While the proposed regulation provides the opportunity to create affordable ownership housing in condominiums, it fails to provide the opportunity to create much needed affordable rental housing.

To respond to the provincial deadline for comments of February 1, 2018, this report recommends City Council request the Province to amend the proposed inclusionary zoning regulation as proposed in this report and forward its decision on this report to the Province as the City of Toronto's response to the proposed regulation.

This report was prepared in consultation with staff from the City's Legal Services, City Manager's Office, and Corporate Finance divisions.