The Ford government is cancelling its audits of six municipalities, and pitching some other ways to help out cities' bottom lines.
Auditors will stop working on their reviews of Toronto, Peel Region, Mississauga, Caledon, Brampton and Newmarket as the government pivots to "consultations" about how best to fund more homebuilding. Municipal Affairs and Housing Minister Paul Calandra announced the halt on Wednesday as part of yet another package of walk-backs including the planned dissolution of Peel Region and, potentially, several minister's zoning orders (MZOs).
Calandra's predecessor, Steve Clark, had promised to make cities "whole" after his government cut development charges for non-profit, affordable and purpose-built rental housing under Bill 23. The audits, launched five months ago, were to find out just how to do that.
Instead, Calandra pointed to the government's recent "significant investments" like the $1.2-billion Building Faster Fund, which will be doled out based on housing target completion rates, and the $200-million Housing-Enabling Water Systems Fund.
The exemptions to development charges — fees levied on builders by municipalities — will not change, Calandra said. But other DC-related tweaks could be in store. In consultations for its upcoming housing plan, he said the government will ask municipalities what they think about the following Ford government changes:
- The requirement for municipalities to phase in development charges passed after Jan. 1, 2022, over five years;
- Barring municipalities from recovering study costs through DCs; and
- The requirement for municipalities to refund application fees if it doesn't meet deadlines for decisions
The government will also consult on a definition of "attainable" housing, Calandra said. That housing will also be exempt from development charges, but it will only apply to modular homes built on surplus government land.
“Looking ahead, we’ll continue to work with our municipal partners to ensure that they have the tools and revenue streams needed to get shovels in the ground. As we do, we need the federal government to be a willing and able partner in supporting our province’s growth," he said.
The president of the Association of Municipalities of Ontario, which has estimated Bill 23 will cost cities and towns a combined $5 billion, said the announcement showed the government was listening to municipal recommendations.
"AMO looks forward to working with the province to ensure that municipal governments have the tools and resources needed to support the creation of new housing — a goal shared by municipalities across Ontario," Milton councillor Colin Best said in a statement.
Mississauga Mayor and Liberal Leader Bonnie Crombie said the audits are almost complete. She called on the government to release them, as she said they'd bolster her pro-dissolution argument.
"I'm confident that they will show Mississauga in a good financial position and ready to become independent while laying bare the true financial picture and the health of all three cities for everyone to see, " she said.
The audit was divided into two parts. Ernst & Young, the auditor, was drafting its final report on the impacts of Bill 23, City Manager Shari Lichterman said. The other part was a value-for-money audit that was "just beginning," she said.
A Caledon spokesperson said the city provided the information requested by the auditor but also hadn't seen any completed work.
Calandra didn't say how much the government has spent on the audits, only that it's "a very small amount."
As for why he is backpedalling now, Calandra said things like the new deal with Toronto, Peel Region staying intact, the upcoming definition of attainable housing, and the recent definition of affordable housing have “completely changed the outlook of where we’re going.”
Opposition leaders said a constant stream of about-faces is no way to govern.
"For all we know, by the time Mr. Calandra made it to the end of the hall outside the media room, maybe the plans changed again," NDP Leader Marit Stiles said. "If they can't get this done they should move aside and let somebody else do it."
"The list of wrong turns gets longer every day," Green Leader Mike Schreiner said in a statement. "My message to the Ford government: stop wasting Ontarians’ time and money with petty partisanship and dirty deals, and start delivering on the housing and affordability solutions we needed five years ago."
Municipalities have said the Building Faster Fund isn't fair as it holds them accountable for the number of homes completed, but they only have control over issuing permits to developers — they can't force those developers to build.
Calandra said the upcoming Housing Supply Action Plan will help build housing-enabling infrastructure like water treatment plants. Some local politicians have complained that they want to build more housing, but can't due to service infrastructure bottlenecks.
