Bill 17 Game Changer Legislation For Developers

How These Changes Benefit Developers and Investors

As-of-Right 10% Variance – Less Red Tape: Small adjustments to building plans (like minor setback reductions) no longer trigger a months-long minor variance process. If your project is within 10% of the required setback, you can proceed without a rezoning or Committee of Adjustment hearing. This saves time and fees, enabling faster project starts. Fewer minor variance applications also mean less uncertainty and carrying costs for projects – a clear win for infill developers and homebuilders.

Development Charge Reforms – Lower Upfront Costs: Perhaps the most impactful changes are to development charges, which can be a significant upfront cost for builders, especially on multi-residential projects. Key benefits include:

• Pay at Occupancy: Instead of paying tens of thousands (or more) in DCs per unit at permit issuance, residential developers can now defer DC payments until occupancy. This deferral frees up capital during construction and reduces financing burdens – you start generating revenue (occupancy or closing sales) before paying major fees. For multi-family condo projects, this aligns cash outflow with project completion, improving project cash flow and viability.
• No Interest on Deferrals for Rentals: For rental housing developments (and institutional builds), Bill 17 stops municipalities from charging interest on DCs during the deferral period. Previously, even if a city allowed delayed DC payment, interest could accrue, adding cost. Now, rental developers effectively get an interest-free loan on DCs until occupancy – a significant incentive to build much-needed rental units.
• Flexible & Lower DCs: Municipalities can react more quickly to market conditions by reducing or freezing DC rates without a lengthy process. If economic conditions call for it, cities could temporarily cut or hold DCs to stimulate development. DC credits are also more useful now – if you front-fund infrastructure (e.g. roads, pipes) for your project, the credits can offset charges in other categories, potentially reducing your overall costs. Additionally, if DC rates are cut by the time your project is ready for permit, you get to pay the lower rate (versus being locked into a higher earlier rate), protecting you from overpaying in a falling DC environment.
  
  

A More “Builder-Friendly” Planning Process: Beyond dollars and cents, Bill 17 includes changes that simplify and speed up approvals:

• Standardized Application Requirements: By removing the need for certain studies (like wind or shadow impact studies) at the initial application stage, the province is cutting down on pre-construction hurdles. This means less money spent on consultants and faster time to get an application deemed complete. In turn, that leads to quicker decisions and shovels in the ground sooner.
• Consistent Building Standards: Developers will no longer face a patchwork of municipal building requirements exceeding the Ontario Building Code. Bill 17 ensures one uniform building code province-wide. For example, if a city had extra “green” building standards or unique technical demands, those can no longer be enforced through local bylaws. This reduces costs (you only build to one standard – the provincial code) and provides certainty, especially for builders operating across multiple municipalities.
• Encouraging Community Infrastructure: By allowing schools as-of-right in residential zones, the government has made it easier to integrate schools into new communities or redevelopments. For developers, this could streamline approvals for master-planned communities that include schools, or make zoning more flexible when repurposing lands.