Last Updated on December 5, 2024 by CREW Editorial
The City of Ottawa’s Planning and Housing Committee has approved its portion of the Draft Budget 2025, taking a significant step in addressing housing affordability and urban development challenges. At a meeting held on November 20, the committee endorsed an $88.2 million operating budget alongside $34.4 million in capital funding, towards a continued focus on housing and planning priorities.
A key component of the budget is the City’s decision to allocate $22.9 million towards the creation of affordable and supportive housing. This funding was adjusted upward from an initial $18.9 million due to additional revenue generated by the enhanced Vacant Unit Tax program.
Long-Term Investment Strategy for Housing
The $22.9-million investment is part of a broader plan to significantly expand affordable housing capacity over the next six years. The City aims to grow its annual housing investments incrementally, resulting in anticipated total contributions ranging between $138.3 million and $162.7 million during this period. By leveraging federal and provincial funds, the City plans to deliver at least 500 new affordable and supportive housing units annually to address both current needs and future growth.
Supporting Initiatives in Planning and Development
Beyond affordable housing, the budget includes allocations for key planning and development projects. The committee approved $3 million to fund an update to Ottawa’s Official Plan, a critical document that sets out the city’s growth framework until 2046. The update, set to begin in 2025, will ensure the plan aligns with the City’s evolving priorities, particularly around intensification and sustainability.
Additionally, $7.5 million has been allocated for the purchase and implementation of a new Land Management Solution software. This is aimed at streamlining land use planning and permitting processes, making development projects more efficient and transparent. Another $900,000 is earmarked for completing Ottawa’s new Zoning By-law, which, if approved, would replace the current By-law 2008-250 and modernize the city’s zoning framework.
New Zoning By-law
The upcoming Zoning By-law is a key component of the City’s planning strategy. Once finalized in 2025, it would implement the policies outlined in the Official Plan, promoting growth to align with Ottawa’s goals for intensification and housing affordability. A central feature of the new by-law is the introduction of Neighbourhood Zones, which replace the existing Residential Zones (R1-R5). These zones aim to simplify the regulatory framework while promoting housing diversity.
The new zoning regulations will prioritize form and function rather than housing typologies, encouraging flexible development. Under a form-based approach, zoning rules focus on the size, shape, and overall design of buildings rather than strictly limiting what types of homes can be built (like single-family houses or apartments). This allows more flexibility to create a mix of housing options as long as they fit the neighbourhood’s look and function.
The Neighbourhood Zones will also allow mixed uses, such as retail and services, to be integrated into residential areas to encourage walkability and meet the daily needs of residents.
The Neighbourhood Zones will be subdivided into six primary zones (N1 to N6), based on height and density limits, and six subzones (A to F), which address lot width and setbacks. This streamlined structure is expected to be easier to interpret and enforce while maintaining neighbourhood character.
Neighborhood Uplift Zoning Strategy
The new zoning framework also includes a “Neighborhood Uplift Zoning Strategy,” designed to increase housing density in strategic areas. For instance, areas near transit corridors, hubs, and rapid transit stations will benefit from higher density allowances under the Evolving Neighborhood Overlay designation. Meanwhile, low-rise infill redevelopment will be encouraged in interior neighbourhoods, ensuring growth aligns with existing community contexts.
Next Steps
The Planning and Housing Committee’s budget recommendations, including the $22.9-million housing investment, will be considered by City Council on December 11.