Proposed Regulation to Prohibit Mandatory Enhanced Development Standards as a Condition of Land Division Approvals

The government is seeking public feedback on proposed legislative changes under the proposed Building Homes and Improving Transportation Infrastructure Act, 2026 and related regulatory changes to further support housing, economic, and infrastructure development, and advance key transportation and transit priorities.

The government is seeking feedback on a proposed Minister’s regulation that would have the effect of removing authority to require, as a condition of land division approvals, mandatory enhanced development standards at the lot level (outside of buildings), that are not specifically required for health, safety, accessibility or protection of adjoining lands (e.g., stormwater management). 

Enhanced development standards (EDS) at the lot level vary across jurisdictions, which results in inconsistent requirements, added complexity, and may add to project costs for some developments.

Consultation was undertaken as part of Bill 60 initiatives to help identify understand the issue and explore solutions (Consultation on Enhanced Development Standards – Lot Level (outside of buildings) | Environmental Registry of Ontario).

To address the above, a regulation would be created under the Planning Act to prohibit “sustainability” conditions as part of land division approvals.

Related legislative amendments are proposed that, if passed, would involve changes to the Planning Act, Municipal Act, Building Code Act, and City of Toronto Act. Information about this proposal can be found under ERO (insert broader PA changes ERO #026-0300

Taken together, the proposed legislative and regulatory changes would help to create a more consistent approach to development standards across Ontario municipalities by scoping and limiting municipal authority to require certain enhanced development standards elements in connection with development approvals. 

The changes would create a shift from a mandatory to a voluntary approach for enhanced development elements (i.e. green development standards) that are not required for purposes of health and safety or environmental functionality (i.e. stormwater management). 

Analysis of Regulatory Impact  

Building on previous legislative and regulatory changes, the initiative is anticipated to further support streamlining land use planning processes; building more homes faster; and creating more certainty in the development approvals processes.  

Costs  

The proposed regulation would result in additional costs related to municipal staff learning about the regulatory change. There could also be additional costs to municipalities related to the proposal as a result of limits being placed on what municipalities can compel of developers as a condition land division, thus shifting burden from the development sector to municipalities for sustainability measures and/or for addressing unintended environmental impacts.  

There are no direct compliance cost implications to other parties, including consumers, businesses, and the government, because of the proposed regulation. 

Benefits  

The proposed regulatory change would create the conditions for improved transparency and clearer expectations. Moving to a voluntary approach for enhanced design standards will aid in shifting from a patchwork system of requirements across municipalities to a predictable, province-wide approach.