Toronto City Council finally votes for Inclusionary Zoning

Following nearly three years of consultations, Toronto City Council has voted for the adoption of an Inclusionary Zoning (IZ) policy. This means that new housing developments near major transit areas in Toronto will be required to have a specific percentage of affordable units, whether it be condominiums or rental buildings. It is a welcome decision to see Toronto join nearly 500 other North American municipalities in adopting IZ.

Toronto’s IZ is mandatory which demonstrates the commitment to ensuring that developers participate in making our city more affordable for residents. We are glad to see that the period of affordability has been extended to 99 years, essentially making the housing developed affordable for many years to come. The definition of affordability is also based on a household’s income, ensuring that they do not spend more than 30% of their income on housing.

While we applaud the passing of IZ in Toronto, we want to acknowledge that this policy could have been bolder. The policy passed requires a much lower set-aside rate and a slower phase-in period than what some studies had shown to be feasible. What this means for our residents is the loss of an opportunity to build a higher number of affordable housing our residents need.

We hope that by passing IZ, City Council will now have the policy tool it needs to build more affordable homes and to review this policy in a timely manner so it becomes stronger and more effective in increasing affordable housing choices. We also hope that the integrity of the policy will be upheld over the long haul, where such reviews will be grounded in a rights-based framework, similar to that recognized in the HousingTO 2020-2030 Action Plan.