Ontario Proposes Changes to Accelerate Housing Delivery and Reduce Cost Pressures

On October 23, 2025, the Ontario government unveiled a new package of proposed measures under draft legislation, the Fighting Delays, Building Faster Act. The proposal forms part of the province’s ongoing effort to address housing supply pressures by making it faster and less costly to bring projects from approval to construction.

If passed, the legislation would introduce more than 40 separate initiatives across housing, infrastructure, transportation, planning, and rental regulation systems. These include overhauling municipal approval processes, revising the way development charges are calculated, removing certain site-level environmental requirements, and making procedural changes to the Landlord and Tenant Board.

The proposals are still before the legislature and would require enabling regulations and municipal coordination before taking effect. The Ministry of Municipal Affairs and Housing has indicated that consultation with industry and municipal stakeholders will take place over the coming months. Some measures, especially those tied to cost and building efficiency, such as the removal of green development standards and updates to the Building Code, are positioned to be implemented by the spring 2026 construction season, contingent on passage and regulatory readiness.

Reducing Development-Related Cost Uncertainty

The province is seeking to standardize how development charges (DCs) are calculated and applied. DCs are fees used to fund infrastructure required for new housing, but calculation formulas and cost attributions vary between municipalities. Consultations have raised concerns about land costs being used in ways that inflate DC rates, and about disagreements over which party is responsible for financing supporting infrastructure.

Proposed amendments would prevent land acquisition costs from being factored into DC calculations in ways that raise charges beyond what is tied to servicing needs.  It would also provide clearer provincial guidance on which infrastructure elements are the responsibility of municipalities vs. developers. More transparent reporting and easier public access to DC data would be required.

The intent is to create more predictability in total development cost structures and reduce disputes that delay project timelines. 

Changes Affecting Building Requirements and Site-Level Standards

Since 2009, Toronto has required green roofs or alternative roof systems for most new buildings above 2,000 square metres, a mandate not applied elsewhere in Ontario. The new proposal would prohibit Toronto from requiring green roofsprohibit the City of Toronto from requiring green roofs or other alternative roof surfaces, bringing its requirements in line with the rest of the province.

Additionally, municipalities often impose “green development standards” at the lot level, such as features related to landscaping, stormwater management, energy systems, or other enhanced environmental performance elements. These requirements are typically enforced through site plan control and vary significantly by municipality, which can add both cost and design complexity.

The province intends to remove the ability to require these enhanced site-level environmental standards outside the building envelope, with the stated goal of lowering build costs and reducing inconsistencies from one jurisdiction to another. The government indicated these measures are targeted for implementation by the spring 2026 building season, pending passage and regulation. 

Building Code Modernization

Ontario plans to conduct a section-by-section review of the Building Code with the aim of removing outdated provisions and reducing unnecessary regulatory complexity. The focus is on reducing administrative burden and design friction while maintaining safety and performance requirements. 

Rental Housing System Changes

The province has also proposed reforms to the Landlord and Tenant Board (LTB) intended to reduce case backlogs and provide faster resolution of disputes. While the number of adjudicators has increased and average hearing wait times have shortened, the government notes that delays still deter rental supply.

One of the main changes would remove the current ability for tenants to introduce new issues at a rent arrears hearing without giving prior notice. Under the existing rules, tenants can raise additional claims or counterarguments on the day of the hearing if they can justify why the issue was not submitted earlier. This practice often leads to adjournments and months-long delays. The proposed amendment would require all such issues to be disclosed in advance, ensuring hearings proceed without unexpected procedural interruptions.

Another change would limit the ability to raise new claims in rent arrears cases unless at least half of the outstanding rent has been paid. The government describes this as a measure to discourage strategic non-payment while preserving fairness for tenants who demonstrate good faith by addressing a portion of the arrears before the hearing. This would require further regulation and consultation before being implemented.

The time frame to request a review of an LTB decision would also be shortened from the current 30 days to 15 days, except in specific circumstances. The goal is to reduce the period that disputes remain unresolved and minimize financial uncertainty for both sides.

A new regulatory framework would also be introduced to define what constitutes “persistent late payment” of rent. Although the Residential Tenancies Act currently allows eviction for habitual late payment, it does not clearly specify what frequency or duration meets that standard. Setting consistent criteria through regulation would create more uniform outcomes across cases. Details would be determined through future consultation and regulation.

Finally, the province intends to simplify and revise the standard notice forms used by the LTB, including the N4 notice to end a tenancy for non-payment. The updated forms would use clearer language to outline rights, obligations, and timelines, making them easier to understand for both landlords and tenants and reducing procedural errors that can delay proceedings.