Developers, buyers, sellers, landlords, and tenants often disagree when it comes to legislation governing real estate. Ontario's new housing plan has received criticism from some of these stakeholders, who say the real estate law changes may have enough of an impact given the high cost of housing in some provincial cities. Critics say that the changes do not require enough affordable housing to meet the needs of residents, while developers disagree and say that more affordable housing would burden developers unfairly.
The executive director if the Federation of Metro Tenants said that the number of units pegged for affordable housing, a maximum of 10 percent in each development, does not meet the current need in the busy metro area. The industry of developers, meanwhile, argues that mandating too much below-market housing would be problematic. They say it could force up prices for other residences.
Municipalities also have an opportunity to respond under the new Ontario real estate law. The province is allowing for an "inclusionary zoning" system wherein a municipality can require new developments to include a number of below-market-price homes. Toronto, Ottawa, and Hamilton are among the cities who have been asking the province for this power.
Under the new system, cities will need to reimburse developers 40 percent of the difference between the affordable homes and the market rate. It is a good idea for buyers, sellers and developers alike to educate themselves on the new Ontario real estate law standards. Speaking with a lawyer in the case of any conflict or confusion is also a good idea.
Source: Toronto - CBC News, "Key part of Ontario's housing plan slammed as 'giving in' to developers", Mike Crawley, Jan. 23, 2018