Bill 17 - Pay your DC when you Turn the Key

Introduction

Bill 17, titled the Protect Ontario by Building Faster and Smarter Act, 2025, (The Proposed Act)  was introduced on May 12, 2025 for first reading.[1] It is not yet law.

Bill 17 represents the next in a series of legislation relating to housing we have previously reported on. This Bill, however, is literally about the waterworks of development. With one notable exception, this particular bill is unlikely to attract the media attention of its predecessors. The bill aims to expedite building infrastructure and homes. As with many of its predecessors, the Bill seeks to amend existing statutes to attack barriers to housing construction. The Ontario government has also released a technical briefing outlining initiatives that promote housing development, which are summarized below.[2]

For the Community Housing Sector, who turn to our pages for updates, there is no direct change to how non-profits and co-ops carry out business in this Bill. However, the Bill aims to speed some of the infrastructure and planning matters that impact all developments, including those aimed at low income housing.

Proposed Changes

Development Charges

The most significant proposed change for housing builders, would be the deferral of development charges until building occupancy. Even if the amount of development charges remains the same, this change in timing is a material savings to a developments financing cost. Builders of long term care homes will be yet more pleased - if passed, the Bill will exempt any building or structure designed to be used as a long-term care home from development charges, adding that type of housing to previous exemptions introduced by the government.

The proposed Act will also provide the province with the authority to define the term “local services”, reducing potential disputes between developers and municipalities that currently delay housing developments. In addition, the Bill will propose a consistent formula to calculate the benefit of new infrastructure on existing development. This increases transparency from municipalities about costs and provides homebuilders with greater certainty about their development charges.

Municipal Development

The Bill will update municipal development processes by implementing changes to the Planning Act and the City of Toronto Act, 2006. This will eliminate current inconsistencies in application study requirements across Ontario municipalities. The Ministry of Municipal Affairs and Housing will approve minor variances if a certain percentage of setback requirements is met, which reduces the need for applications. This will also reduce costs and time attributed to a development project. Further, the Ministry will consult with municipalities to make changes to municipal official plans, which will streamline and simplify the process.

The Building Code Act will be amended, removing the requirement of secondary provincial approval for construction projects. The proposed Act also aims to expand water and wastewater infrastructure through a public utility model, allowing for greater expansion of housing projects. At the moment, many four-storey townhouses require the expensive and complex process of an Alternative Solutions pathway. The Bill proposes to amend the Ontario Building and Fire Codes for more flexible design and construction options, contributing to an increased development of four-storey townhouses.

Transportation

The proposed Act would amend the Building Transit Faster Act, 2020 (“BTFA”) and the Metrolinx Act, 2006. Amending the BTFA will expedite the construction of transit by expanding its applicability to all provincial transit projects and eliminating the need for regulation. Amending the Metrolinx Act will allow the Minister of Transportation to receive information from municipalities regarding provincial transit projects. Similarly, amending the Ministry of Infrastructure Act, 2011 will allow the Minister of Transportation to request information from a municipality critical to supporting provincially funded projects.

Road Construction

Through the new Bill, the government of Ontario proposes that the Ministry of Transportation conduct a review of current highway corridor management requirements. This review is designed to ensure that the Ministry’s processes and standards are harmonized with the government’s priorities. The Ministry will propose recommendations regarding several matters, including building and land use permits, corridor setback standards, and an implementation plan. The Bill also proposes that road construction standards be harmonized across municipalities. To this end, the Ministry of Transportation will liaise with municipalities before fall 2025 to create a framework, resulting in cost savings from improved design and streamlined processes.