What is the supporting Provincial policy framework for Inclusionary Zoning in Ontario?

    Ontario's approach to implementing Inclusionary Zoning is governed by the following legislation and the accompanying regulation:

    The Planning Act sets the rules for land use planning in Ontario. Sections 16(4) and 16(5.1) allow municipalities to require affordable housing in Protected Major Transit Station Areas (PMTSAs). In Markham, York Region was responsible for defining PMTSA boundaries under Section 16(16), but this role shifted to lower-tier municipalities on July 1, 2024, under Bill 185(External link), the Cutting Red Tape to Build More Homes Act, 2024. Once approved by the Minister of Municipal Affairs and Housing, PMTSA and Inclusionary Zoning policies are shielded from appeals to the Ontario Land Tribunal. 

    Ontario’s framework for Inclusionary Zoning requires municipalities to first complete a Housing Needs Assessment, analyzing factors such as demographics, household incomes, housing supply and demand, average market price, and potential impacts to affordability if developers are mandated to include a certain percentage of affordable units. After adopting an Inclusionary Zoning By-Law and Official Plan amendment, municipalities must publish a review report every two years, assessing the policy's implementation.  

    What is the process to implementing an Inclusionary Zoning By-Law?

    Under Ontario Regulation 232/18, there are several steps a municipality must take before they can adopt Inclusionary Zoning. 

    • Conduct a Housing Needs Assessment to identify trends in demographics, income, affordability thresholds, home prices, rent prices, vacancy rates, location of recent housing development applications, and growth forecasts. More information on Markham’s Housing Needs Assessment can be found here
    • Conduct studies to model the feasibility of Inclusionary Zoning, considering factors such as set aside rate, affordability length, unit sizes, parking requirements, density, land values, and possible financial incentives.
    • Hold meetings with stakeholders, public engagement sessions, and workshops to gather feedback before submitting the Inclusionary Zoning framework for City Council’s consideration.
    • Pass an Official Plan Amendment and a Zoning By-Law to authorize Inclusionary Zoning within Protected Major Transit Station Areas.

    What is a Protected Major Transit Station Area (PTMSA)?

    Protected Major Transit Station Areas (PMTSAs) are designated areas by the Minister of Municipal Affairs and Housing where municipalities are required to plan for higher density transit-oriented development within a 500- to 800-metre radius from a GO station, subway station, or bus rapid transit stop. Inclusionary Zoning is mandated in these locations, unlike Major Transit Station Areas (MTSAs) where Inclusionary Zoning does not apply because they may be subject to an appeal to the Ontario Land Tribunal due to a lack of Ministerial approval. More information can be found in the Ontario Planning Act.

    Where are the Protected Major Transit Station Areas within Markham?

    York Region has identified 22 Protected Major Transit Stations Areas across Markham, which are located around GO stations, VIVA bus rapid transit stops, and proposed stations along the Yonge North Subway Extension. More information about the locations and boundaries of the PMTSAs can be found in this interactive map.