On April 6, 2023, the Ontario government released the proposed Provincial Planning Statement 2023 ("PPS") which is intended to simplify and integrate existing policies to achieve housing objectives while providing tools for municipalities to deliver on housing objectives. The PPS recognizes that the objectives for achieving housing outcomes are not universal and provides a more flexible approach for municipalities to adapt and implement policies based on the municipality's requirements.
The following are highlights of the changes within the proposed PPS:
Building Homes, Sustaining Strong and Competitive Communities
The proposed PPS has removed the requirement that municipalities meet specific intensification and density targets to accommodate forecasted growth, with the exception of density targets for major transit station areas in large and fast-growing municipalities. Instead of this requirement, municipalities are encouraged to establish density targets that are appropriate for the municipality's needs. The proposed PPS identified 29 municipalities that are required to identify and focus growth in strategic growth areas, including identifying an appropriate minimum density target and planning to meet minimum density targets for major transit station areas.
The proposed PPS further provides broader permissions to expand residential housing to facilitate further development, including converting existing commercial and institutional buildings for residential use, developing and introducing housing options within previously developed areas, and redeveloping areas to increase the number of residential units. In addition to increasing the number of residential units, the proposed PPS provides that planning authorities shall promote economic development and competitiveness by providing an appropriate mix of employment, institutional, and broader mixed uses to meet the long-term needs of residents, including identifying sites suitable for building infrastructure for employment purposes.
The proposed PPS permits multi-lot residential development on rural lands where appropriate sewage and water servicing can be provided and removes the test for when infrastructure is proposed to be expanded for rural development, providing greater flexibility for private servicing – municipalities must consider "locally appropriate" rural characteristics when directing development in rural settlement areas. Lastly, municipalities must engage in planning with an eye towards reducing greenhouse gas emissions and to prepare for the impacts of climate change through approaches that support and incorporate climate change considerations in developing infrastructure.
Employment
The proposed PPS further overhauls the employment protection scheme in Ontario as it actively promotes mixed-use development where the mix of uses are compatible, and protects and preserves areas that are largely industrial and manufacturing areas. The definition of employment areas prohibit institutional uses and commercial uses unless those commercial uses are associated with primary employment use which include manufacturing uses, research and development uses. As such, the change to the definition of employment areas draws a clear distinction between commercial uses, institutional uses, and retail/office uses, that are not associated with primary employment.
The proposed PPS further clarifies the test for employment conversion requests and removes the requirement for municipal comprehensive review. The new test outlines that planning authorities may remove lands from employment areas only where it is demonstrated that:
- There is an identified need for the removal and the land is not required for employment area uses over the long term;
- The proposed uses would not negatively impact the overall
viability of the employment area by
- avoiding, or where avoidance is not possible, minimizing and mitigating potential impacts to existing or planned employment area uses in accordance with policy 3.5; and
- maintaining access to major good movement facilities and corridors; and
- Existing or planned infrastructure and public service facilities are available to accommodate the proposed uses.
Lastly, the proposed PPS suggests selecting provincially significant employment zones or portions of provincially significant employment zones to protect employment uses.
Settlement Area Expansion
The proposed PPS removes the need for a municipal comprehensive review and allows settlement area expansion as long as policy tests are met. In addition to removing references to a municipal comprehensive review, the municipality must be able to demonstrate that:
- that there is sufficient capacity in existing or planned infrastructure and public service facilities;
- the applicable lands do not compromise specialty crop areas;
- the new or expanded settlement area complies with the minimum distance separation formulae;
- impacts on agricultural lands and operations that are close to the settlement area are avoided, or minimized and mitigated if avoidance is not possible;
- the new or expanded settlement area provides for the phased progression of urban development.
Land Use Compatibility
The proposed PPS provides enhanced protections for industrial and manufacturing uses as well as other major facilities from encroachment on sensitive land uses and revises the test planning authorities must consider where it is not possible to avoid adverse effects from odour, noise, and other contaminants. The proposed PPS also removes any reference to adverse effects to the proposed sensitive land use being minimized and mitigated, revealing a greater focus on protecting longer-term viability of industrial and manufacturing uses, as well as major facilities.
Agriculture
The proposed PPS would no longer require municipalities to use the provincially mapped Agricultural System in developing lands within prime agricultural areas. Municipalities will still be required to designate and protect prime agricultural areas for long-term use but it will be easier to establish more housing within prime agricultural lands. The policy would also allow principal dwellings associated with agricultural operations to be located within prime agricultural areas as an agricultural use and permit residential lot creation in these areas in accordance with provincial guidelines for "new residential lots created from a lot or parcel of land that existed on January 1, 2023". Lastly, the proposed PPS would require an agricultural impact assessment to avoid impacts from any new or expanding non-agricultural uses on surrounding agricultural lands and operations.
Natural Heritage System/Management of Resources
The proposed PPS provides that planning authorities prioritize protecting or restoring the quality and quantity of resources including water, minerals, as well as cultural heritage and archaeological sites from land alterations. The development of new housing and site alteration should be limited to surface water features and sensitive ground water features. The proposed PPS favours balancing the use and management of natural resources with attention to appropriate housing supply and considers the mitigating effects of vegetation and green infrastructure in developing housing supply.
As noted above, the proposed PPS has the potential to change the planning regime in Ontario.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
