Minister of Municipal Affairs and Housing.

My question is to the Premier. Desjardins Credit Union just released a report showing short-term rentals are having a negative impact on housing affordability. The report found that neighbourhoods with a lot of short-term rental listings see their rents rise faster, have lower vacancy rates and higher home sale prices.

To increase the number of homes available for long-term rentals, Desjardins is calling for governments to crack down on short-term rentals in investment properties.

My question is this: Can you move forward on this simple request?

Back to the Premier: Justin is a University of Toronto student living in downtown Toronto. When his apartment was bought by a US investor landlord, he became a victim of illegal harassment to drive himself and his neighbours out of their homes. When his neighbours had given up and moved out, their landlord turned their homes into pricey short-term rentals where you can rent out one bedroom in an apartment by the week. That is the new reality for students in Toronto today.

Justin and his neighbours have called provincial bylaw officers begging for help, and no one has returned their calls. Can this government work with these tenants to enforce our rental laws?

Thank you, Speaker. It’s great to be here. Please know that I’ll be sharing my time today with the parliamentary assistant to municipal affairs and housing.

As the minister has in the past informed us and has outlined, our proposed Greenbelt Statute Law Amendment Act resets decisions made by the government at the end of 2022 by proposing to restore all of the properties that were redesignated or removed from the greenbelt. It protects those lands, and in doing so, redefines how changes to the greenbelt boundaries can be made in the future—through legislation instead of regulation.

It’s clear that while our government remains committed to tackling Ontario’s housing supply crisis, we have to do it in a way that maintains and reinforces public trust and is sensitive to the concerns of communities across this province. Achieving this demands a multi-faceted approach, which is why, in addition to the proposed bill before the House today, you will hear and have heard us speak in support of Bill 150, the proposed Planning Statute Law Amendment Act.

That proposed legislation, if passed, would reverse provincial changes made to municipal official plans, except where these changes are needed to align with legislation or regulations. This includes winding back changes to urban boundaries while maintaining protections for the greenbelt.

We are seeking municipal feedback on potential changes in addition to those already included in Bill 150 and made by the province that affected municipalities would like to see maintained. That proposed legislation provides us with an opportunity to reset our relationship with our municipal partners. It recognizes that municipalities are in the best position to understand the unique needs and concerns of their communities.

While we are certainly interested in hearing from the municipalities on provincial changes they’d like to see kept, our government has proposed to maintain a handful of provincial changes under this legislation. These are changes that directly support provincial priorities. For example, changes related to the greenbelt are among those we are proposing to maintain. Similarly, we are also proposing that provincial-official-plan modifications be kept to protect the Niagara Escarpment Plan area from incompatible uses. The Niagara Escarpment, just like the Oak Ridges moraine and the protected countryside, forms an important part of the greenbelt area. So you see, Speaker, two pieces of legislation before this House are reinforcing greenbelt protections while reinforcing public trust in our land use planning processes.

Speaker, in resetting our relationship with our municipal partners, these pieces of legislation are recognizing that we all share the same fundamental goals: to confront Ontario’s housing crisis; to create sustainable, livable communities; and to do this by working together as partners in a manner that maintains and reinforces the public trust. An indication of the buy-in we have received is that almost all of our 50 largest and fastest-growing municipalities have committed in writing to their provincially assigned housing targets. In turn, the province has given the mayors of 46 Ontario municipalities strong-mayor powers as another tool to help get shovels in the ground faster.

I continue to encourage all municipalities to commit to their provincially assigned housing targets. We want Ontario to be a place where everyone—including newcomers, young families and seniors—can afford to call somewhere in Ontario home.

We’ve also heard loud and clear from communities that our main focus should be on building housing on land that is already within urban boundaries. This is land that can typically be developed faster because of proximity to existing or planned infrastructure—the roads, utilities and community services. So we are working with our municipal partners to unleash housing potential within their boundaries. At the same time, we have doubled down on infrastructure projects that support these many initiatives.

Speaker, as I said earlier, our intent with this proposed legislation and with the proposed Planning Statute Law Amendment Act is to write a new chapter on land use planning in Ontario. Our commitment to effective, transparent and community-focused land use planning complements other key goals of our government—that is, building at least 1.5 million homes by 2031. To some, these two objectives might seem at odds with one another, but our government is nimble, innovative and capable of balancing growth with sustainability and protections with prosperity.

Speaker, I’d like to talk about some of the ways we are working with our partners to build more homes faster. Since we took office, our government has introduced four housing supply action plans to ensure that economic and population growth are paired with rapid growth in housing. These plans address the full continuum of housing. This includes affordable, community, market and rental, high-rise, low-rise, long-term care—the full range to meet the needs of Ontarians. The plan put forward is a comprehensive range of actions to get shovels in the ground faster. We’re reducing red tape that slows construction and pushes home prices even higher. We are making development costs more predictable and reducing municipal fees and charges on priority types of housing. We’re permitting more gentle density as of right—in other words, without the need to apply for rezoning to allow for additional residential units. We’re promoting building up and around transit. And we’re encouraging thinking outside the box on ways to build more homes; for example, laneway houses and modular construction.

Just last week, we convened more than 75 organizations, including municipal partners, as part of Ontario’s first-ever annual housing forum. Together, we discussed how we can continue to get more shovels in the ground sooner and build more homes faster. The insights gathered at the forum will help inform our next housing supply action plan next year. The forum focused on four main themes or four pillars. The first was building housing-enabling infrastructure: the roads, the utilities and the amenities essential for new development. Next, we discussed barriers to the missing middle—thinking of this as this gap in housing options that exists between single, detached homes and high-rise buildings. A further topic was ensuring housing meets the needs of all Ontarians—what we build, how we build, and where we build. And finally, we looked at ways to leverage innovations like modular housing.

It really was a great convention, a great gathering. I called it a cross-pollination of ideas. With all stakeholders together, we got some great insights that, again, are going to provide scale and are going to provide speed to our next housing supply action plan. This type of pragmatic, realistic suggestions that people with front-line experience and expertise provided so well is important. This collaborative and solutions-based forum will be invaluable as our government works on its next housing supply action plan, delivering more homes, built faster, throughout Ontario.

As I mentioned earlier, municipalities are critical partners for our government as we help communities get shovels in the ground faster and work to build more homes.

This past August, we launched the Building Faster Fund to reward municipalities that build homes. This is a three-year, $1.2-billion program to provide funding to municipalities, and it’s based on their performance against assigned municipal housing targets. The Building Faster Fund can be used to help pay for the infrastructure that supports housing development—because you can’t have housing without the infrastructure to support it. We’re talking here about infrastructure like roads, water, waste water, and related costs to support community growth. While, in total, there are 50 municipalities with housing targets, I should also add that the program reserves some of the funding for small, rural and northern communities that have not yet been assigned a housing target. The fund has $400 million to distribute each year for the next three years, obviously totalling $1.2 billion, and the allocation to each eligible municipality’s portion of the $400 million will be determined by their share of the overall provincial housing supply goal. A municipality’s performance will be evaluated by how close they come to their assigned annual target when comparing the number of housing starts and additional residential units they manage to the beginning in a given calendar year. Municipalities can access a portion of their allocation if they achieve 80% or more of their annual target, and those exceeding their target will be eligible to receive additional funding. Municipalities falling short of achieving at least 80% of their annual target will not receive any funding. Funding from this program will begin to flow in 2024-25.

Speaker, you can’t have housing without the roads, water and waste water to support it. In short, housing and infrastructure go hand in hand. That’s why we recently announced our new Housing-Enabling Water Systems Fund. This fund will invest a further $200 million over three years to help municipalities repair, rehabilitate and expand their critical drinking water, waste water and stormwater infrastructure. This responds directly to our municipal partners’ needs and wants. They told us they needed more funding options to meet the growing demand for infrastructure in their communities. Municipalities need to be able to service the new homes we need them to build, and they’re strategic partners to get shovels in the ground. This fund will help build stronger, more prosperous communities.

And there’s more, Speaker. In our fall economic statement, we announced the launch of the Ontario Infrastructure Bank. This will enable public sector pension plans, other trusted institutional investors and Indigenous communities to become even more involved in large-scale infrastructure projects right across this province. Through a new arm’s-length, board-governed agency, this plan will work.

I’d like to take this opportunity to repeat our government’s call to the federal government. We’d like them to come and join us on a new federal-provincial infrastructure fund to help us meet our infrastructure needs—so badly needed throughout the province.

Our federal government partners have heeded our call to help people in Ontario needing access to rental housing. We are working closely with them to increase the supply of purpose-built rentals. Ontario is working to remove the full 8% of the provincial portion of the harmonized sales tax on qualifying new, purpose-built rental housing. Removing the HST will make it easier and cheaper to build this important type of housing in Ontario, and we’re hoping this measure will help spur more construction of badly needed rental units.

Speaker, this list of innovations and incentives I have discussed are already making a difference in helping us build more homes Ontarians need and deserve. We are proving that governments committed to collaborating with partners and the public can successfully develop and protect land, even in the face of the housing crisis that we have today.

By supporting our proposed Greenbelt Statute Law Amendment Act, the members of this House have the opportunity to help us write a new chapter on land use planning in Ontario—one that resets the boundaries of the greenbelt, that restores all of the properties that were redesignated or removed in 2022, that protects greenbelt lands, that reinvigorates it by keeping the 9,400 acres that were also added, that remakes how changes to its boundaries can be made in the future, that reviews it through a non-partisan lens—I repeat: that reviews it through a non-partisan lens—and that rebalances it with our commitment to build at least 1.5 million homes by 2031 in a way that maintains and reinforces public trust.

I will now turn it over to the parliamentary assistant.