Ontario tabled legislation that will get new homes and infrastructure built faster by streamlining development processes and reducing costs in close partnership with municipalities. Homebuilders that have been advocating for government action are praising the Protect Ontario by Building Faster and Smarter Act, 2025, introduced this week.
“In light of the dire housing supply and affordability crisis that we are facing, the proposed legislative changes are critical to eliminating hurdles and reducing costs so that the residential construction industry can get back on track and build the housing that Ontario needs,” said RESCON president Richard Lyall.
The province is also increasing its investment in housing-enabling infrastructure by adding $400 million in immediate funding to the Housing-Enabling Water Systems Fund (HEWSF) and Municipal Housing Infrastructure Fund (MHIP) for a total of nearly $2.3 billion over four years across the HEWSF and the MHIP.
If passed, the legislation would include measures that some municipalities have already implemented. Ontario will work with them to continue simplifying, streamlining and reducing costly local development fees that can add hundreds of thousands of dollars to the cost of new homes.
RESCON says the glacial planning approvals process and exorbitant tax burdens have been major obstacles. A report done by the Canadian Centre for Economic Analysis revealed that the tax and fee burden in Ontario averages almost 36 per cent of the purchase price of a new home – up from 31 per cent three years earlier. Hikes in development charges accounted for a big chunk of that increase.
The legislations also promises to remove barriers for Canadian manufacturers who want to introduce innovative materials, systems and building designs that could reduce construction costs and expedite project.
Actions would also improve planning and delivery for transit-oriented communities, creating more jobs and housing options near transit, reduce costs and speed-up project approvals with consistent building construction standards across Ontario municipalities, accelerate getting shovels in the ground to build major transit projects by extending measures in the Building Transit Faster Act, 2020 to all provincial transit projects, and ease development applications, land use planning approvals and contents of municipal official plans.
Ontario’s road building standards can differ across its 444 municipalities, causing unnecessary cost and delays; therefore, the province will consult with municipalities and stakeholders by fall 2025 on framework legislation for greater harmonization and clarified governance of municipal standards. The is expected to lead to cost savings through more efficient design and technical review, greater construction efficiencies and streamlined procurement processes.
Through HEWSF, the province has already allocated nearly $1.3 billion for water and waste-water infrastructure projects that will allow the construction of about 600,000 homes. Ontario has also invested approximately $700 million in MHIP. Combined with the new $400 million ($315 million for HEWSF and $85 million for MHIP) this brings the new total investment to nearly $2.3 billion.
Through the Building Faster Fund, the government has also provided municipalities with $286.8 million for community and housing-enabling infrastructure last year, along with $120 million dedicated for small, rural and Northern municipalities without housing targets which is being delivered through the HEWSF and MHIP.
“Municipalities cannot tackle this challenge alone — we need support like this to cut red tape, streamline approvals, and create the conditions for faster, more affordable housing development,” said Mississauga Mayor Carolyn Parrish. Mississauga’s Housing Task Force has demonstrated that bold reforms and innovative policies can drive real progress, and these provincial measures will encourage cities across Ontario to accelerate their own housing initiatives.”
