development project and subtracting the project costs (hard and soft) as well as developer profit. If the residual value is more than the purchase price of the property, the project is viable. If it is less than the purchase price, it’s assumed that the property would not be developed. Requirements to include affordable units within a development would decrease the project revenue and the residual land value.
The analysis found that for condominium developments within strong Toronto markets (e.g. Downtown and areas surrounding subway or Go transit stations) a 20% affordable housing requirement would be economically viable. Note that inclusionary zoning requirements only applied to increased density permitted through Section 37 by-law in the analysis. In moderate markets (e.g. Etobicoke, Scarborough, and Yonge-Eglinton Centre) a 10% affordable housing requirement would be economically viable. In emerging markets (e.g. areas where new transit infrastructure has been approved but not yet funded) no level of inclusionary zoning requirement would be economically viable.
The economic viability of purpose-building rental projects is more sensitive than condominium projects due to more challenging financing requirements, delayed revenue, and greater market risk. Accordingly, Toronto’s analysis only assumed a 5% affordable housing requirement on increased density for purpose built rental projects.
Toronto’s study was based on the provisions of s.37 PA. However Bill 108, the More Homes, More Choice Act, 2019 repealed Section 37 of the Planning Act and replaced it with a Community Benefits Charges framework. This legislation will come into effect upon proclamation by the Lieutenant Governor. We are unaware of the proclamation date at the present time. The repeal of s.37 PA may have put the conditions precedent to the use of inclusionary zoning into jeopardy.
Home Together: Windsor Essex 10 Year Housing and Homelessness Master Plan
The City of Windsor is the Consolidated Municipal Service Manager for the delivery housing and homelessness programs in Windsor and the County of Essex. In 2019, the Housing Services Department completed the Legislated Five-Year Review of the Home Together: Windsor Essex 10 Year Housing and Homelessness Master Plan (HHMP), a report that will be instrumental in shifting the City’s responses in service delivery to reflect effective solutions and best practices to address housing and homelessness needs. The HHMP was endorsed and approved by City Council (CR612/2019) on December 2, 2019 and the Ministry of Municipal Affairs and Housing on March 24, 2020.
The Best and Promising Practices Review report, an accompanying report to the HHMP, informs the HHMP and presents findings on evidence based and promising practices for housing and homelessness systems. The Regulatory and Planning