Ontario Proposes Changes to Facilitate Brownfield Redevelopment and Building Conversions

The Government of Ontario is advancing plans to streamline regulatory requirements for redeveloping brownfields and converting existing commercial or community-use properties into mixed-use or residential spaces. Through proposed amendments to Ontario Regulation 153/04 under the Environmental Protection Act (EPA), the Ministry of the Environment, Conservation and Parks aims to accelerate housing development, reduce unnecessary costs, and address barriers raised by stakeholders, all while maintaining protections for human health and the environment.

These changes focus on reducing the need for Records of Site Condition (RSCs) in specific circumstances and expanding exemptions for converting buildings into residential or mixed-use spaces. If implemented, the proposals would support Ontario’s housing goals by making it faster and less expensive to repurpose underutilized spaces, particularly for residential development.

Records of Site Condition (RSCs)

RSCs summarize the environmental state of a property based on assessments conducted by qualified professionals. They are typically required when transitioning a property from a less sensitive use, such as industrial or commercial, to a more sensitive one, like residential or parkland. These documents ensure that potential contamination is identified and managed.

However, RSCs are sometimes filed unnecessarily when no contamination risks are present, at times due to third-party requirements such as municipal planning approvals or financing conditions. This can create delays and costs without providing meaningful environmental or public health benefits.

Key Proposed Changes

Restricting Unnecessary RSC Filings

The first amendment would prohibit the filing of RSCs in cases where they are not required by the EPA or the RSC Regulation. Specifically, if a Phase One Environmental Site Assessment (ESA) identifies no evidence of contamination or potentially contaminating activities, the property owner would generally not be allowed to submit an RSC unless it is for their own purposes.

For example, if a municipality asks for an RSC as part of site plan approval under the Planning Act, this would be prohibited if only a Phase One ESA is needed. However, property owners could still voluntarily file an RSC if they wish to do so for reasons like liability protection.

This change aims to reduce regulatory burdens and unnecessary costs, while still allowing RSC filings where contamination concerns warrant further investigation through Phase Two ESAs.

Expanding Exemptions for Building Conversions

Under current rules, existing commercial or community-use buildings of up to six storeys can add residential units without filing an RSC, provided certain conditions are met. These conditions include ensuring no history of industrial or high-risk uses on the property and limiting changes to the building’s structure.

The proposed amendments would:

Remove the six-storey height restriction, allowing taller buildings, such as office towers, to qualify for the exemption.
Permit limited exterior additions, such as those for safety or accessibility improvements on the ground floor or new outdoor structures like porticos.
Maintain other safeguards, such as ensuring the property has no history of industrial contamination.

These updates are aimed at encouraging more adaptive reuse of existing buildings, as a cost-effective and sustainable way to create housing.

Purpose of the Proposed Changes

The amendments are expected to offer significant cost and time savings for developers, municipalities, and property owners. By eliminating unnecessary RSC filings, property transactions and redevelopment projects can proceed more quickly. 

Similarly, expanding exemptions for building conversions would open up new opportunities to repurpose office buildings and other commercial properties for residential use, supporting Ontario’s efforts to address housing shortages.

The proposal indicates that it will not have a significant environmental impact as requirements for submitting an RSC for filing would remain in place where contamination is a concern. Key requirements associated with proposed exemptions will remain in place.

Supporting Ontario’s Broader Goals

These proposed changes align with Ontario’s broader push to reduce red tape, accelerate housing development, and encourage innovative land use. The province aims to repurpose underutilized spaces efficiently while ensuring public health and environmental safety remain priorities.

If approved, these changes could make it easier for municipalities and developers to contribute to Ontario’s housing supply, particularly by transforming existing infrastructure into much-needed residential units.

Consultation 

The Ministry of the Environment, Conservation and Parks is seeking public input on these proposals. The consultation period is open until January 10, 2025, and stakeholders are encouraged to submit their comments. Once finalized, the changes would take effect immediately upon filing.

For more information or to provide feedback, visit the Government of Ontario website.

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