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iv) the range of housing types and sizes of units that would be authorized as affordable housing units.
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v) the number of affordable housing units that would be required.
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vi) the period of time for which affordable housing units would be maintained as affordable.
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vii) how measures and incentives would be determined.
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viii) how the price or rent of affordable housing units would be determined.
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ix) percentage of the net proceeds to be distributed to the municipality from the sale of an affordable housing unit.
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x) The circumstances under which off-site units would be considered.
Zoning By-law Requirements
Where Official Plan policies have been adopted a zoning by-law must be passed to give effect to the policies. The zoning by-law must specify:
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the number of affordable housing units or gross floor area to be included in particular development;
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the period of time that dwelling units must be maintained as affordable;
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the price at which affordable units may be sold or leased; and
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any other prescribed matters.
Along with passing an inclusionary zoning by-law — a procedure for monitoring and ensuring the units remain affordable must be created.
Toronto has been studying the issue for the past ten years and is proceeding to create an inclusionary zoning framework. Toronto’s analysis has focussed on requiring a percentage of affordable dwelling units within any increase in density approved under Section 37 of the PA. Section 37 concerns increased height and density by-laws that allow buildings to exceed the maximum height and dwelling unit density specified in the Zoning By-law. Additional height and density is typically authorized in exchange for community benefits such as affordable housing, protection of natural or cultural heritage resources, provision of public parking, or parkland.
For example, if the zoning by- law permits 100 dwelling units ‘as -of- right’ and a Section 37 by-law authorizes an additional 30 units — a certain percentage of these additional units would have to be affordable (e.g. 20% requirement would result in 6 affordable units). Financial impact analysis conducted by N. Barry Lyon Consultants Limited, on behalf of the City of Toronto, focussed on residual land value assessment applying inclusionary zoning in three market scenarios: strong, moderate, emerging markets.
Residual land value is calculated by starting with the revenue expected from a proposed