This bill calls on the government to establish a committee to come up with a plan to make the Union Pearson Express affordable, to integrate it into the TTC so it costs a TTC fare to ride; to increase capacity; and to electrify the line. This would be the cheapest mass-transit line Toronto could ever get. It’s very sensible, and that’s what this bill proposes to do.

Mr. Shamji moved first reading of the following bill:

Bill 203, An Act to amend the Commitment to the Future of Medicare Act, 2004 with respect to payments to nurse practitioners / Projet de loi 203, Loi modifiant la Loi de 2004 sur l’engagement d’assurer l’avenir de l’assurance-santé à l’égard des honoraires à verser aux infirmières praticiennes et aux infirmiers praticiens.

This petition asks that the rates for Ontario Works and the Ontario Disability Support Program be doubled in order to address poverty in Ontario.

I support this petition, and I will be affixing my signature to it and giving it to page Sophia.

My question is to the Premier. We have learned the Conservatives are failing to build affordable housing along the Ontario Line. Of the 13,000 homes scheduled to be built along the line, only 213 of them are required to be affordable.

My question is very simple: Can this government commit to building more affordable housing near transit?

Back to the Premier: Toronto has submitted over 104 requests to this government to require developers to build some affordable housing in big buildings near transit. The Conservatives have not approved any of these requests—not one of them. If the government had approved these requests when asked, we’d be on track to build 6,000 affordable homes. This is a massive wasted opportunity.

My question is very simple: When is this government going to require developers to build some affordable housing in big developments near transit?

My question is to the member for Mississauga–Erin Mills. Bill 23, just to be clear, has removed the fee that developers have to pay to affordable housing projects. Every development no longer has to pay the fee for affordable housing projects, and that part of Bill 23 is in force. What that has meant is that municipalities have lost funding for affordable housing and shelter at a time when we have a homelessness crisis. The city of Toronto has lost $200 million in funding just for affordable housing and shelters.

My question to the member for Mississauga–Erin Mills is, what is this government going to do to make municipalities whole so there’s funding available for affordable housing?

Back to the Premier: It’s like “affordable housing” is a little bit too hard, so let’s try “attainable housing.”

Speaker, 18 months ago, the Conservatives said they would come up with an exact definition of “attainable housing” in order to further construction of attainable homes. It’s 18 months later, and the law is still not enforced. The government still cannot decide what the definition of “attainable” is going to be, and not one home has been built under this new program either.

Why on earth is it taking the government so long to get these programs off the ground?

Interjections.

My question is to the Premier.

A new report by the National Bank of Canada shows that home affordability in Ontario has reached alarming levels. In Toronto, you need to earn $235,000 to buy a home. In Hamilton, you need to earn $220,000 a year to buy a home.

The Conservatives are not fixing the housing crisis; they’re making it worse. It has never been more expensive to rent or buy a home.

How expensive does housing have to get for the Conservatives to recognize their plan is not working?

Not only has the dream of home ownership gone up in smoke, but Ontarians can’t even find an affordable place to rent. The latest report by rentals.ca has just come out, and rent for available apartments continues to skyrocket. In North York, rent is up 24% year over year; in Scarborough, rent has gone up 30%; in Brampton, it’s up 30%; and in Markham, it’s up 30%. There is nowhere affordable left for people to live.

Once again, this is my question to the Premier: How bad does it have to get for the Conservatives to change course and seriously address the housing affordability crisis that we have in Ontario today?

Interjections.

I noticed that the Ontario government has made a decision to change the definition of affordable housing. Currently, the city of Toronto has a definition of affordable housing that would put a one-bedroom unit at a purchase price of $190,000; that means you could buy that if you were earning about $58,000 a year. Well, now the Ontario government is looking at changing the definition of affordability so that a one-bedroom unit would cost $444,000, requiring a household annual income of at least $130,000, which is really shocking.

What is this government’s plan to build more affordable housing in Ontario?

I know, right? I started reading this at 5 a.m.

So the definition of “affordability”—this is the definition that they’re looking at proposing: A unit is affordable—which means it would get a reduction in development charges—if it is 80% of market rent or 80% of the purchase price of the average area, and those definitions of affordability will be set by the Ministry of Municipal Affairs and Housing.

There are a few concerns that we’re already hearing about. One is that having developers get a development charge exemption—which is what you’re proposing—by only having an affordable unit for 25 years seems very generous to developers. And to give you an example, in the city of Toronto we just passed an inclusionary zoning law—which the Ontario government is sabotaging—which would require developers to get a development charge discount if the affordable housing units were for 99 years.

There is a move here that I’m seeing with this change to affordable housing where they’re affordable for less period of time and the definition of affordability is linked to market rents, as opposed to what a renter can afford—so based on income—and the discount of fees that developers get has gone from a little bit to completely.

There is a benefit in having lower development fees for affordable housing units, but we have a lot of concerns around this decision to change the definition of affordability. We’re exploring that a little bit more and we’ve got a lot of concerns.

The other piece that we have concerns with when we’re talking about development charges is, how does this impact municipalities? The reason why I say this is because municipalities across Ontario rely on development fees to fund the services that current and future residents use. We’re talking garbage pickup, parks, child care, schools, constructing affordable housing, transit and sewage. When there is a reduction on development fees—some of them are good if it’s for non-market housing, non-profit housing, deeply affordable housing—it means that municipalities are in the hole. And it’s a significant hole.

In the case of Toronto, Toronto has an $800-million funding shortfall. That’s the shortfall that they’re facing right now. We just got a report here. This is the budget that the new city council is going to be debating. They have a deficit of $857 million. What is challenging is that they’re already having to make cuts. The city of Toronto is going to make cuts of $300 million to planned maintenance and repair projects because they don’t have enough money. The provincial and the federal governments have said that they don’t want to pay.

Then we also have the case where interest rates are going up. That means that the ability to access money and pay back money is going to become tougher and tougher and tougher. Matt Elliott, this reporter here, explains it. He says, “As inflation hammers the global economy, interest rates on new city debt have been going up fast. City hall was getting 30-year interest rates as low as 2.4% in 2020. Toronto’s latest 30-year debt issue carried an interest rate of 4.4%.”

So we’ve got this challenge now with this bill where the government has said, “We need affordable housing, we need to reduce development charges to incentivize more affordable housing, but we’re not going to cover the shortfall. We’re going to make municipalities just deal with it”—at a time when we have an inflationary crisis, we have budget shortfalls and we have interest rate hikes, which make these fees, or the ability to borrow, higher and higher and higher.

That is very concerning, that there is not a commitment from the provincial government to help out with this development fee shortfall so that we get the affordable housing but we also have the transit and the services and the child care and the parks and the sewage infrastructure and the electricity infrastructure that is necessary to house current and future residents. That is a big concern.

It’s a concern that AMO shares. They issued a press release—wow, they were quick. They introduced it at 5:51 last night, so maybe they got a heads-up this bill was coming. Who knows? They say, “Municipalities will welcome some of the proposed changes”—like I said, it’s a mixed bag—but are “very concerned about others, such as changes to the Development Charges Act. We will work with the government on the ideas that have the potential to make housing more affordable, and we will oppose changes that undermine good economic and environmental policy.” So they’ve got some concerns about how they’re going to balance their budgets and provide services to residents given that this bill guts their ability to access development fee charges. That’s the concern, and I’m not seeing this government come up with economically wise solutions to that. That’s a concern.

The next piece—like I said, this is a big bill—is schedule 5. Schedule 5 is called the New Home Construction Licensing Act. We heard a lot about this issue in the media because, across Ontario, people are buying homes that, in some cases, are shoddily built. The developer does not build the home to the standard that the homeowner expects: There’s mold, there are leaks, and then the homeowner has to pay the bill because the regulatory authorities are not strong enough at holding developers to account.

We’re also seeing this disturbing trend where homeowners will buy a home pre-construction. They’ll put down the deposit in the hope of getting access to this home, of buying their home and moving into it within two or three years once the home is built. Their dreams, their hopes are all tied up in this; as well their money is all tied up in this future prospect of living in a home. What we have seen as housing prices have risen, changed, and risen again and changed is that developers have turned around, often for no good reason, and said, “Actually, I know we said that we would let you buy this home for $600,000, but we took another look and we think that you’re going to have to pay $800,000 for that home, and if you don’t like it, too bad, so sad. We’ll give you your deposit back and we’ll just cancel the contract.” Then they turn around and sell it to someone else at a higher bid. That is really unethical. If developers sign a contract with a potential home buyer, that contract should be upheld by the Ontario government in a court of law, and the developer has a responsibility to honour that contract.

We have seen the Premier talk a good talk about how he’s going to slap developers on the wrist and fine them and ensure they have consequences if they do the wrong thing, but we have seen very little action—close to none—to ensure that developers build the homes that they say they’re going to build at the price that they committed to in the contract. It’s a huge concern.

In this schedule, the New Home Construction Licensing Act, there has been a decision to increase the maximum fines for developers that break contracts with first-time home buyers, with home buyers who are looking at moving into these homes. That is a good thing. There is also a broader range of actions the developer can be fined on, which is good. They’ve expanded the powers and the number of things that can be fined—good. It gives the minister the power to decide how much of a fine goes to the home owner. This is a bit confusing to me, because Minister Clark says one thing—that he’ll give it to the home owner—but when I actually read the schedule it says something else. I’m trying to get some more information there. It could be good, could be—I don’t know.

The big thing that we’re not seeing and what we’re hearing from stakeholders, such as Canadians for Properly Built Homes, is that there’s no commitment to actually enforce the laws on the books and ensure that developers are actually held to account. Doubling the fines, good, but it’s not worth anything unless you’re actually going to fine developers that aren’t doing the right thing. That’s what people are calling for and that’s what this government needs to do.

As Karen from Canadians For Properly Built Homes tweeted, “Please show us evidence, any evidence, that you’re ‘cracking down on unethical developers.’ There’s no disciplinary action on the website of your regulator, @hcraontario.” That’s what they’re looking for: They’re looking for enforcement. Let’s see if the government moves through on that.

There are other measures in this bill that we are talking to stakeholders about that could have a significant impact. One is changes to the Ontario Heritage Act, schedule 6. Schedule 25.2 gives the minister the power to override any heritage designation on any provincial property or any public property. That’s a lot of power. I welcome feedback from residents and municipalities on these proposed changes because they seem pretty significant.

Interjection.