After much anticipation, on August 20, 2024, the Province released the final version of the Provincial Planning Statement, 2024 (the “PPS 2024”), which is set to come into effect on October 20, 2024. On the same day, the Province issued Ontario Regulations 328/24 and 329/24, which revoke the designation of the Greater Golden Horseshoe (“GGH”) Growth Plan Area and the applicable transition provisions for the Growth Plan for the GGH as of October 20, 2024, effectively bringing an end to the Growth Plan for the Greater Golden Horseshoe. In addition, the Lieutenant Governor proclaimed that the amendments to the Planning Act definition of “area of employment” introduced under Bill 97, Helping Homebuyers, Protecting Tenants Act, 2023 (“Bill 97”) will come into effect as of October 20, 2024.
According to the Ministry of Municipal Affairs and Housing’s news release, this new set of planning changes will help municipalities support growth by reducing and streamlining planning rules, simplifying approvals to build homes, and eliminating duplication.
Provincial Planning Statement, 2024
The Province published the first draft of the proposed Provincial Planning Statement on April 6, 2023. Our blog summarizing the first draft is found here. Two more drafts have been released since: on June 16, 2023 and April 10, 2024 (see blogs here and here respectively). The PPS 2024 replaces the Provincial Policy Statement, 2020 (the “PPS 2020”) and the Growth Plan and proposes significant changes to the planning regime. However, after the latest consultation period, only minor changes were made from the April 2024 version (the “April Draft”) to this final version.
Below is a summary of the key changes in the final PPS 2024, which has been updated from our initial blog posts to incorporate the Province’s subsequent revisions.
Large and Fast-Growing Municipalities
The PPS 2024 introduces a new definition for “large and fast-growing municipalities”, which are municipalities listed in Schedule 1. Certain policies of the PPS 2024 only apply to the 29 listed municipalities. For example, large and fast-growing municipalities:
- Are encouraged to plan for a minimum density target of 50 residents and jobs per hectare; and
- Shall undertake watershed planning to inform planning for sewage and water services and stormwater management, including low impact development, and the protection, improvement or restoration of the quality and quantity of water.
Notably, policies identified in previous drafts of the Provincial Planning Statement directing only large and fast-growing municipalities to identify strategic growth areas (“SGAs”) and major transit station areas (“MTSAs”) were removed from the final PPS 2024. Instead, all planning authorities are encouraged to identify SGAs and shall identify MTSAs. The policies in relation to SGAs and MTSAs carry forward the same principles as those within the Growth Plan.
Growth Targets
Municipalities will no longer be required to plan for specific population and employment forecasts for an identified horizon year, as was the case pursuant to Schedule 3 of the Growth Plan. Instead, planning authorities shall base population and employment growth forecasts on Ontario Population Projections published by the Ministry of Finance, which they may modify as appropriate. In addition, at the time of creating a new official plan or updating an official plan, sufficient land shall be made available to accommodate an appropriate range and mix of land uses to meet projected needs for a time horizon of at least 20 years, but not more than 30 years, informed by Provincial guidance. Notably, planning for infrastructure, public service facilities, SGAs, and employment areas may extend beyond this time horizon.
The PPS 2020 housing policy requirements to maintain lands designated and available for residential growth for a minimum of 15 years, and to maintain zoned lands with servicing capacity sufficient to provide at least 3 years of supply of residential units are maintained.
Housing
The PPS 2024 amended the PPS 2020’s housing policies so that planning authorities shall provide for an appropriate range and mix of housing options and densities by, among other things, permitting and facilitating all types of residential intensification, now also including the conversion of existing commercial and institutional buildings (e.g. shopping malls and plazas) for residential use, the introduction of new housing options within previously developed areas, and redevelopment that results in a net increase in residential units.
The term affordable housing is now also included in the PPS 2024’s definition of “housing options”. The inclusion of affordable housing in this definition builds off the expansion of the “housing options” definition introduced in the first draft of the Provincial Planning Statement, which introduced laneway housing, garden suites, rooming houses, and multi-residential buildings as defined housing options. Notably, the first draft also proposed to delete the defined term “affordable”; however, it was reintroduced in the April Draft and remains in the PPS 2024.
Municipal Comprehensive Reviews
The Growth Plan contained various policies that generally only permit conversion of employment lands and the expansion of settlement areas through a municipal comprehensive review (“MCR”). The concept of the MCR was removed in the PPS 2024, and as a result, the conversion of employment lands to non-employment lands and the expansion of settlement areas will be able to occur at any time.
Settlement Areas and Settlement Area Boundary Expansion
The policies relating to settlement areas and settlement area boundary expansions were revised substantially. Under the PPS 2024, a new settlement area or expansion may occur at any time provided that planning authorities consider the following criteria:
- The need to designate and plan for additional land to accommodate an appropriate range and mix of land uses;
- If there is sufficient existing or planned capacity of infrastructure and public service facilities;
- Whether lands are specialty crop areas;
- The evaluation of alternative locations which avoid prime agricultural areas and, where avoidance is not possible, whether there are reasonable alternatives on lower priority agricultural lands in prime agricultural areas;
- Whether the new or expanded settlement area complies with the minimum distance separation formulae;
- Whether impacts on the agricultural system are avoided, or where avoidance is not possible, minimized and mitigated to the extent feasible as determined through an agricultural impact assessment or equivalent analysis, based on provincial guidance; and
- Whether the new or expanded settlement area provides for the phased progression of urban development.
This revision, along with the changes to the Planning Act that permit appeals of settlement boundary expansions, will make it easier for landowners to submit applications to bring their lands within the settlement area boundary.
In relation to settlement areas more generally, in previous drafts of the Provincial Planning Statement, new policy 2.3.1.4 “encouraged” planning authorities to establish and implement minimum targets for intensification and redevelopment within built-up areas, based on local conditions; however in the final PPS 2024, policy 2.3.1.4 directs that planning authorities “shall” establish and implement these minimum targets.
Employment Areas
Similar to the above settlement area boundary expansion policies, through the deletion of the MCR, employment conversions may occur at any time, subject to the conversion criteria, which are mostly the same as those in the PPS 2020 with some clarification added. However, unlike the settlement area boundary expansion policies, no changes were made to the Planning Act provisions that prohibit landowners from appealing a municipality’s decision on an employment area conversion request to the Ontario Land Tribunal. As a result, while one can file an application for employment conversion with the municipality at any time, there is little recourse if the municipality does not approve it.
The PPS 2024 introduced new policy 2.8.1 to require development on lands within 300 metres of employment areas to avoid, or where avoidance is not possible, minimize and mitigate potential impacts on the long-term economic viability of employment uses within existing or planned employment areas, in accordance with provincial guidelines.
The Land Use Compatibility policies at section 3.5 were also amended by the PPS 2024. While the PPS 2024 still requires the development of major facilities and sensitive land uses to avoid or minimize and mitigate any potential adverse effects and impacts to major facilities, there is no longer a requirement to demonstrate that there is an identified need for the sensitive land use or that there are no reasonable alternative locations.
The definition of an employment area was also amended to be consistent with the definition introduced to the Planning Act by Bill 97, which also becomes effective on October 20, 2024. The amendments propose to exclude office, institutional and commercial (retail) uses from the definition of employment area, unless associated with a primary employment area use.
Agriculture
The PPS 2024 modifies the agricultural policies of the PPS 2020 to facilitate more residential development in prime agricultural areas. Policy 4.3.2.4 permits a principal dwelling associated with an agricultural operation with some limited exceptions as well as up to two additional residential units provided the proposed units meet the conditions outlined in policy 4.3.2.5. In the final PPS 2024, policy 4.3.2.5 was clarified to emphasize that, where two residential dwellings are proposed in a prime agricultural area, at least one of the additional residential units must be located in or attached to the principal dwelling, and any additional residential units must meet the outlined criteria.
New policy 4.3.6.1 was added which encourages planning authorities to support local food, facilitate near-urban and urban agriculture, and foster a robust agri-food network. Urban agriculture is also now a defined term.
Vision Statement
Each draft of the Provincial Planning Statements has updated the Province’s Vision Statement. One notable change from the April Draft to the final PPS 2024 is that it now emphasizes that Ontario is a “fast growing province” and that a prosperous Ontario will see the building of more homes for all Ontarians. The Vision Statement was revised to specifically reference the Provincial goal of getting at least 1.5 million homes built by 2031 in the first paragraph. Other revisions include the removal of references to planning for “complete communities”, the addition of prioritizing compact and transit-supportive design where locally appropriate, and the addition of optimizing investments in infrastructure and public service facilities. While not a policy, the Vision Statement demonstrates the Province’s current direction and intent in planning for future growth. These minor revisions signify Provincial direction to prioritize building more homes, faster, in a compact and efficient manner.
Other Changes
The PPS 2024 adds the phrase “all municipal” to policy 4.2.1(e)(1) to clarify which water supplies planning authorities shall protect when implementing necessary restrictions on development and site alteration on matters relating to water supply.
The PPS 2024 introduces new policies on the coordination of different stakeholders and agencies through Policy 6.2. These new policies place greater emphasis on collaboration with Indigenous communities, the public, schools and post-secondary institutions.
Various definitions have been added or expanded for terms such as energy storage system, water resource systems, reserve sewage system capacity, reserve water system capacity, and urban agriculture. Definitions for terms such as high quality, recreational, residential intensification, comprehensive review, and provincial plan have been removed.
Transition
While the PPS 2024 applies to all decisions made by any authority that affects a planning matter on or after October 20, 2024, the Province is consulting on whether there are any specific planning matters or types of matters in process that should be addressed through a transition regulation. Applications already under appeal have been identified as potential examples that could be subject to transitioning. The Province will also be consulting on how transitioned matters should be dealt with ie. allowing them to be decided consistent with the PPS 2020 and/or providing for exemptions from specified policies. The comment period is open until October 4, 2024 and the Environmental Registry posting is found here.
Proclamation of Bill 97 Definition of Employment Areas
As mentioned above, another change to the planning landscape is the Bill 97 amendment to the Planning Act definition of “area of employment”. Under the new definition, an area of employment is an area designated in an official plan for business and economic uses including manufacturing uses, uses related to research and development in connection to manufacturing, warehousing, certain retail and office uses associated with these uses and ancillary facilities. Lands designated for institutional uses and commercial uses, including retail and office uses, will no longer fall within the definition of an area of employment.
As October approaches and we enter this new regime, feel free to reach out to the Davies Howe LLP team for assistance navigating these changes and/or a pumpkin spice latte.
