On 9 November 2021, the Inclusionary Zoning Policy was tabled in the Toronto council meeting and was finally approved by the votes 23 to 2.  It compels the developers to set aside 5 - 10% of total square footage for the affordable rental or ownership units  at first in new towers with 100 or more units effective from September 2022.  The brief policy content is :

• covered areas - within 500 metres of major transit stations
• the % of affordable units to be gradually increased to 8 - 22% by 2030
• the affordable rental range from 1 bedroom - $1090; 2 bedrooms - $1661 and 3 bedrooms  - $1858
• the affordable ownership costs for the units capped at 1 bedroom - $190,100; 2 bedrooms  - $242,600 and 3 bedrooms - $291,700
• target households $32,486 and $91,611 per year (not more than 30% of monthly income on shelter costs)
• the goal of creating 40,000 affordable homes by 2030
• The City of Toronto’s current approach will transfer approximately $67,000 to cost of a new condominium apartment

IMPLEMENTATION AND IMPACT ON HOUSING MARKET

TORONO LAND TRANSFER RATE

Value of Consideration                      MLTT Rate

Up to and including $55,000.00        0.5%

$55,000.01 to $250,000.00               1.0%

$250,000.01 to $400,000.00             1.5%

$400,000.01 to $2,000,000.00           2.0%

Over $2,000,000.00                           2.5%

In this new inclusionary zoning policy, it looks that Toronto provincial government and politicians are the final winners.  The affordable home idea can obtain favourable responses from the public and the government will gain the huge land transfer tax when the home prices are pushed further upwards.  

You are much welcome to contact us for further discussion about your ideas.