Ottawa’s Housing Plan Accelerates Development

One of the last adjustments made by city councillors to a significant housing plan was the cancellation of a refund for developers. Mayor Mark Sutcliffe positioned the plan as a move towards making Ottawa the most accommodating city for housing in Canada, and it was officially approved by the council on Wednesday.

The Ottawa housing acceleration plan consists of 53 recommendations aimed at expediting housing construction processes and reducing associated costs.

Mayor Mark Sutcliffe commended the plan as a substantial advancement, emphasizing its positive impact on the housing landscape in Ottawa.

This plan, formulated by a task force predominantly composed of members from the real estate and construction sectors, is focused on expediting the approval process for new housing projects in the city. It involves simplifying procedures and adjusting or deferring developer fees to accelerate housing development.

Council members overwhelmingly endorsed the package of reforms, with all but one recommendation approved without modifications.

While showing strong support for the reforms, some councillors raised concerns that incentivizing developers with financial benefits might compromise the quality of residential neighborhoods.

Councilor Shawn Menard expressed appreciation for many aspects of the plan but cautioned against excessive public funding for private developers, emphasizing the need to strike a balance.

Cancellation of Fee Refund

During a joint meeting of the planning and finance committees last week, councilors focused on a proposal to eliminate the city’s community benefits charge for a five-year period.

The community benefits charge is a fee paid by developers to contribute to public amenities like park enhancements and traffic management initiatives.

Instead of completely scrapping the fee, councilors opted to reduce it from four percent to two percent of the land’s value, with further reductions in high-transit zones.

At the recent council session, Councilor Ariel Troster proposed to halt the refund of benefits charges already collected by the city for ongoing projects.

Troster argued against returning the money to developers, highlighting that the funds are allocated for various projects across the city in different wards.

According to the city, approximately $1.6 million in community benefits charges have been collected from ten developments. Although the funds remain unspent, they are designated for four distinct projects related to parks and traffic improvements, as outlined by Marcia Wallace, the city’s planning general manager.

Troster stressed the significance of such projects and characterized the housing plan as an extensive subsidy program benefiting private developers.

Streamlining the Approval Process

Despite reservations expressed by some councilors, they were willing to accept the potential risks in order to revamp a slow-moving system.

Councilor Jeff Leiper, who heads the city’s planning committee, criticized the current housing approval process as rigid and burdened by excessive bureaucracy and oversight.

Mayor Sutcliffe shared positive feedback he received on the plan, indicating broad support from various stakeholders, including those involved in addressing homelessness, affordable housing, and market developments.