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HomeMy WebLinkAboutPSD-047-20Clarington Staff Report If this information is required in an alternate accessible format, please contact the Accessibility Coordinator at 905-623-3379 ext. 2131. Report To: Planning and Development Committee Date of Meeting: November 16, 2020 Report Number: PSD-047-20 Submitted By: Reviewed By: Faye Langmaid, Acting Director of Planning and Development Services Andrew C. Allison, CAO By-law Number: File Number: PLN 9.7 Resolution#: PD-191-20 Report Subject: Review of BILD Municipal Benchmarking Study Recommendation: 1. That Report PSD-047-20 be received for information. Municipality of Clarington Report PSD-047-20 Report Overview Page 2 This report summarizes the key findings of the BILD Municipal Benchmarking Study that was released in September 2020. The report identifies municipal timelines and fees involved in the development process. The report reviewed 18 Greater Toronto Area municipalities, including four in Durham Region (Clarington, Whitby, Oshawa and Pickering). The BILD Municipal Benchmarking Study used similar criteria and methodology to the Canadian Home Builders' Association national study also undertaken by Altus Group. The purpose is to determine the factors affecting affordability of homes. The overall ranking was carried out using three categories: planning features, municipal charges, and approval times. Clarington was ranked 4t" best overall and 1 st among the Durham Region municipalities rated. 1. Background 1.1 The Municipal Benchmarking Study (Attachment 1) was commissioned by BILD (the Building Industry and Land Development Association) to look at specific factors that may contribute to housing affordability issues in the Greater Toronto Area. BILD is the voice of the home building, residential and non-residential land development and professional renovation industries in the Greater Toronto Area. BILD advocates on behalf of the building industry and works with government partners on key policies and issues that affect development, building and home ownership in the Greater Toronto Area (GTA). 1.2 The purpose of the Municipal Benchmarking Study is to compare approaches that different municipalities have in place for the approval of new housing development. The report also evaluates the cost implications of the municipal processes and policies. The report was based on research conducted on 18 municipalities in the GTA by the Altus Group. 1.3 It is important to identify that the report looks at specific municipal approaches and policies that may be contributing to housing affordability issues in the GTA. The report is not an exhaustive list of all the factors or inputs that contribute to the development process and housing affordability in the GTA. 1.4 By using similar methodology and criteria to the Canadian Home Builders' Association (CHBA) national study there is the ability to compare and contrast the different approaches to planning on a provincial basis and its implications on housing affordability (Attachment 2). There is a lack of purpose-built rental housing being built in Ontario compared to the rest of Canada. It was also noted that delegating approval of applications that meet defined criteria to staff, as occurs in Saskatchewan and Alberta, had a significant impact in reducing timelines and having overall costs for the development; however, it cannot be shown that these savings are passed onto the homebuyer. Municipality of Clarington Page 3 Report PSD-047-20 Limitations of the Report 1.5 The report identifies that the information presented is the author's (Altus Group) interpretation of municipal policies, by-laws, rate schedules, etc. Other assumptions made in the report for measuring the impacts of the municipal processes on housing affordability include land values and development unit yields from hypothetical development sites. 1.6 The municipalities studied in the report were not consulted to verify if the interpretations made were correct or to ascertain if additional information was available that could have assisted in the preparation of this report. Staff participated in the October 29 briefing by BILD and Altus Group for Durham. It was explained by the consultant that they used Council and Committee reports so as not to bias the datasets, it was also noted that the tracking is of public/government process, there is no accounting for delays caused by the developer or their consultants. Typical files were selected, those with significant public resistance and those appealed to LPAT were not included. 2. Discussion 2.1 The report focuses on three categories or processes specific to municipalities. The three categories include planning features, municipal charges, and approval times. The report also identifies additional demographic background information based on the census data and information related to the trends in the types and tenure of housing being constructed in the selected municipalities. Planning Features 2.2 This refers to the number of municipal tools and processes that municipalities have implemented to assist the development community. The tools identified in the review and the percentage of municipalities that utilized each tool is provided in Table 1. Table 1: Planning features reviewed and percentage of Municipalities that implement each tool % of Municipalities with Feature Development Guide 67% Terms of Reference 47% Development Application Tracking 75% System — Active Applications Municipality of Clarington Report PSD-047-20 w Feature Development Application Tracking Database — Historic Applications (see below) Application Tracking — Map (see 2.4 below) Application Tracking — Supporting Fili and Studies Zoning — GIS file available (see 2.4 bel Zoning — GIS Portal / Mapping Page 4 2.3 Clarington was identified as utilizing 5 of the 8 tools listed in the chart above. Clarington does not currently have zoning GIS files, historic application tracking or an application tracking map publicly available. Currently, these tools are not being utilized due to limitations of the existing software available to staff. It is expected that the new Municipal Business Solution software will provide an opportunity to implement more options for communicating application information to the general public and development community. 2.4 Clarington has zoning GIS files, historic application tracking and an application tracking map; however, they are available to staff only and require a geospatial data license to access. Staff are currently building a public development application tracking application to show current and historic applications. Staff have created an open data working group that when fully implemented will make data such as zoning available to the public. Municipal Charges 2.5 Municipal charges looked at development charges, planning application fees and building permit fees imposed by municipalities. The fees were reviewed in hypothetical scenarios to measure their impact on the cost per unit for different forms of development. Development Charges 2.6 The report reviewed the increase in development charges from 2009 to 2020 in each municipality. The report identified the increases to the local and upper tier portions of the development charges. The average increase among the 18 municipalities surveyed was 137 percent between 2009 and 2020. Clarington ranked 4'" lowest in the amount Municipality of Clarington Report PSD-047-20 Page 5 of increase at 54 percent. Clarington had the lowest increase among the 4 Durham Region municipalities reviewed. Development Scenarios 2.7 The report created a low-rise and high-rise scenario to apply against each municipality's total fees to determine the municipal fees for cost per unit. The report does not identify the additional costs of development and does not provide an expected rate on return on investment that would represent the developers profit. 2.8 The average cost identified for the low-rise scenario for all municipalities was $93,700 per unit. Clarington had the lowest cost at $54,258 per unit. Clarington's fees represented 7.1 percent of the cost of developing a low-rise unit. 2.9 The average cost identified for the high-rise scenario for all municipalities was $57,800 per unit. Clarington had the lowest cost at $30,497 per unit. Clarington's fees represented 6.9 percent of the cost of developing a high-rise unit. 2.10 Overall Clarington ranked as one of the best for the municipal charges' category. In both scenarios Clarington had the lowest government charges per unit. Approval Times 2.11 There are several limitations identified in the report related to the analysis of the average timelines. In order to have significant data samples the authors reviewed and included applications dating back to 2015 where required. This may lead to the data not reflecting recent changes to municipal processes or the most recent timelines associated with each application type. 2.12 The report does not review or account for the possible reasons for delays in application timelines including the number of submissions required, elapsed time between submissions, the scale of the development or encumbrances on the lands to be developed. Municipality of Clarington Report PSD-047-20 Table 2: Average timelines for Development Application Approvals Page 6 8-37 months 9-25 months 7-25 months 8-14 months 12-30 months 9-24 months 16 months 15 months 15 months 9 months 18 months ** 12 months 13 months ** 15 months 13 months ** the consultants indicated there was not sufficient information in the Council reports reviewed to determine the timing. Clarington has between 20 and 40 Site Plans per year, approval is delegated to the Directors of Planning and Engineering and thus would not appear in Committee or Council reports. Typically, Clarington has between 3 and 6 Condominium and Official Plan applications per year. This may not have met the sample size necessary for the consultant to consider them. 2.13 Clarington was near the lowest of the identified timeframes and below the average for both Zoning By-law Amendments and Plan of Subdivision applications. 2.14 The report also indicated the estimated amount of staff allocated to the implementation of 1,000 housing starts. The average across all municipalities was 75.1 employees per 1000 housing starts. Clarington was below the average, tied for 5t" lowest overall and the lowest in Durham Region, with 57 employees per 1,000 housing starts. Of the municipalities that had lower employees per 1,000 housing starts, three had approval timeframes that were almost twice as long as Clarington's. 2.15 The report further concluded that applications appealed to the Local Planning Act Tribunal (LPAT) were approximately double the average timeframes identified, significantly delaying projects. 2.16 Overall, Clarington was identified as having some of the fastest approval timelines and has one of the lowest staff rates identified in the study. Municipality of Clarington Page 7 Report PSD-047-20 Takeaways from the BILD Municipal Benchmarking Study 2.17 The report identifies several demographic changes and housing trends across the 18 Greater Toronto Area municipalities using 2006 and 2016 Census Data. This information is useful to identify how Clarington compares to other municipalities in the GTA regarding these indicators. Clarington staff completes a Growth Trends Review each year to help identify many of the same topics identified in this report to Council and the local development industry. In addition, early in the new year Council receives an annual application report from both Planning and Building. 2.18 The report identifies several initiatives that municipalities are undertaking to help reduce their development review processes and timelines. It is important that municipalities review and evaluate their development review and service review processes from time to time to ensure their services are meeting the needs of residents and the development community. This can help identify where efficiencies can be found and help streamline the review process. Identifying what different processes and process reviews other municipalities are undertaking can provide examples. Staff can monitor the outcomes of those projects to understand if they could be beneficial to utilize or implement in Clarington. In 2018 Clarington undertook a deep dive into specific development processes as part of the Process Enhancement Program (PEP) with the local development community. Since that time the learnings have been applied across all the processes including updates to all our procedure manuals. 2.19 The BILD report highlighted emerging themes from process reviews. The themes included the need for continuous improvement, effective communication, delegating authority to senior staff, pre -zoning lands and using technology to its fullest potential. 2.20 Clarington continues to streamline by implementing and reviewing several of the themes identified in the following ways: • The recently finalized organizational review looked at how all staff involved in the development process interact. Significant changes have already been made as Building Services has joined Planning in the newly formed Planning and Development Services Department and Engineering and Operations have formed the new Public Works Department. • Clarington is in the process of implementing a new Municipal Business Solution software. This software should allow staff to implement better application tracking and relay better information to Council, the development industry and the public. • Council has delegated Draft Plan of Subdivision and Site Plan applications to the Directors of Planning and Engineering. This delegation needs to be updated to reflect the organizational review (another report on the agenda addresses this). • Clarington is currently in the process of updating the Zoning By-laws through the Zone Clarington project. Each Secondary Plan process includes the drafting of Municipality of Clarington Page 8 Report PSD-047-20 zoning by-laws to be implemented and thus reduce the number of applications required to implement development within those planning areas. • Clarington staff currently engage the public and the development community with up to date information on projects within Clarington using the E-update, website and Growth Trends Review. 3. Conclusion 3.1 The key findings of the BILD Municipal Benchmarking Study will assist in knowing where we can improve processes. Clarington ranked 4t" overall out of 18 GTA municipalities reviewed. Clarington ranked 1st out of the 4 Durham Region municipalities reviewed. The report is focused on the municipal development review process and is based on several interpretations and assumptions which limits the effectiveness of the takeaways. 3.2 Clarington has some of the lowest fees in the GTA and is one of the best municipalities at minimizing timelines, especially when looking at staff committed to achieving those approvals. Staff continue to review ways to improve our existing processes and policies and have a number of projects underway that should help Clarington excel in many of the areas identified in the report in the future. Staff Contact: Brandon Weiler, Senior Planner, 905-623-3379 x2424 or bweiler@clarington.net. Attachments: Attachment 1 — BILD Municipal Benchmark Study Attachment 2 - Altus Group presentation on national review Interested Parties: BILD and DRHBA BILD Munici Benchmarki„y ..PLu.ay September 2020 A&L AltusGroup BILD �.� . k Municipal Benchmarking Study Prepared for: Building Industry and Land Development Association (BILD) Prepared by: Altus Group Economic Consulting 33 Yonge Street Toronto Ontario WE 1 G4 Phone: (416) 641-9500 Fax: (416) 641-9501 economics@altusgroup.com altusgroup.com September 2020 September 2020 EXECUTIVE SUMMARY Altus Group Economic Consulting was retained by BILD to undertake a study of several factors that may be contributing to housing affordability issues in major housing markets across the Greater Toronto Area (GTA), such as municipal approval processes, resulting timelines for approvals, and government charges levied by municipalities. The study compares approaches that municipalities have in place to deal with the approval and ultimate development of new housing and highlights key features (and associated benefits of those features) in bringing new housing to approval and ultimate construction, as well as the cost implications of the municipal processes and policies. The analysis presented in the study was based on research done on 18 municipalities across the GTA. Statistical and Demographic Overview A review of statistical and demographic data in the municipalities under study reveals several trends that are causes of, or effects of, housing affordability issues throughout the GTA: • Population is increasing in each municipality studied, and in most cases, this trend is accompanied by falling average household sizes. This phenomenon increases housing demand in two ways. The first effect is through the straightforward addition of net new persons moving into a municipality as part of an expanding population and the second effect of household sizes falling results in needing more residential units at a minimum just to house the existing population; • There has been a significant increase in net international immigration and net non -permanent residents (e.g. temporary workers, students, etc.) in recent years, adding to demand for new housing; In some areas of the GTA (Toronto, Peel, York), there has been a large amount of net out -migration of residents from these areas to other parts of the province (i.e. intraprovincial migration), particularly by adults between ages 25 to 44 (as well as children aged 0 to 14), suggesting that persons forming households, particularly young families, are searching for locations with more affordable and/or suitable housing. The problem is most evident in higher -priced markets that have fewer ground -related family housing options being built; • There has been a shift in the types of housing being built, with an increased emphasis on apartment housing units in most municipalities studied across the GTA. However, these housing units provide less capacity for persons on a per -unit basis due to generally smaller unit sizes, fewer bedrooms, etc. than most ground -related housing units; BILD Altus Group Economic Consulting Municipal Benchmarking Study Page i September 2020 • While there has been a shift in household tenure towards renting in all municipalities studied, the construction of purpose-built rental units continue to be less than 10% of the housing starts in most municipalities in the GTA (except in Toronto and Oshawa); • Housing prices in the GTA municipalities studied have increased significantly. Over the 2006-2018 period, average prices of absorbed single detached homes have increased by an average of 158%, which equates to average annual increase of 7.6%, compounded annually. Analysis of Municipal Processes To understand whether municipal processes could be improved to expedite the review of new housing applications, or improve the quality of submissions from applicants, we have reviewed the presence and nature of several planning tools made available, or other features that may assist in making the development application and approval more efficient: • The method of implementation, level of transparency, and processes regarding decision making can differ significantly from one municipality to the next. There are large variations, such as the degree of authority delegated to municipal staff, composition of planning approval committees, structure of planning department, etc. Some features, which could potentially help reduce development approval timelines, are not used extensively by all municipalities. Examples include development tracking portals that provide both an applicant and other relevant parties insight into the status of applications under review, easy to find resources that are frequently used or requested like terms of reference for required studies, zoning maps and other parcel level data, online submission portals to facilitate easy submissions, etc. • The number of studies that may be required by municipalities was found to be onerous, with the requirements for an application in many municipalities ranging from 17 to 28 different studies for a single project, depending on the municipality, application type, and location of development. The required quantity and variety of technical studies, even if valid to ensure that developments are in the public interest, results in significant costs to the applicant both directly in terms of time and expense in retaining necessary experts to complete the required reports and studies, but also the time to allow municipal staff to review and comment on the findings of the various studies. Analysis of Municipal Approval Timelines After building a robust database of recently approved development applications for the municipalities under study, it has been found that BILD Altus Group Economic Consulting Municipal Benchmarking Study Page ii September 2020 Figure ES- 1 timelines for approvals from municipalities can, in some cases, take an average of up to 2 years to obtain. Applications requiring multiple application types took on average just 20% to 30% longer than applications that required one type of application, suggesting that generally it is more efficient to bundle applications together for concurrent review rather than to require them be submitted and approved sequentially. Applications requiring a ruling by the Local Planning Appeal Tribunal ("LPAT"), either initiated by the applicant or another party, extended timelines by nearly double compared to a municipal council approval. Seeking an approval from the LPAT is very costly, time-consuming, and risky for the applicant. Additional time associated with getting overarching land use designations approved, the pre -submission stage, and the construction approvals stages were not part of the study, however, based on feedback from development industry members, it is clear that the "pre -application" period represents significant additional time over and above the timelines estimated for development application approval. Quantifying Municipal Charges on New Housing Development The modelling of municipal charges on new housing development was based on two hypothetical development scenarios — one low-rise, and the other high-rise. The analysis found that in many municipalities there are significant charges imposed by municipalities on new development, and that these charges can vary significantly from one municipality to the next. Development Scenario Average Government Average Government Charge per Unit Charges as % of Housing Prices • - Development• 11 • ', • - Development:11 1 For example, municipal charges on new housing developments are generally the highest in municipalities located in York Region, Peel Region and the City of Toronto. The most significant charge in all of the studied municipalities is the development charge (DCs), which are levied by each lower -tier, upper -tier and single -tier municipality studied. Typically, DCs amount from 75% to 85% of the total municipal charges payable for a new low-rise development, and from 68% to 90% for high-rise. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page iii September 2020 Figure ES- 2 The second most substantial charge was usually parkland dedication requirement or cash -in -lieu payment, averaging to 17% of the total municipal charges payable for low-rise development and 26% for high-rise. Indirect Costs of Time Spent Gaining Approval This report also quantifies the financial benefits of moving towards a more efficient, responsive and/or streamlined municipal approvals, by quantifying some of the "indirect" costs of time spent gaining municipal approvals. The results of the modelling are expressed on the basis of `costs per month', which puts all of the various elements of this analysis onto one equal basis and allows for the calculation of impacts of time saved in the approvals process to be quantified. The costs modelled include: • Additional taxes payable on vacant land; • Increases to municipal charges and fees; • Carrying costs of loans; • Construction cost and wage inflation The costs stemming from each additional month a project spends in the approvals process can add significantly to total project costs, and ultimately those costs will be passed onto home buyers. Low -Rise Development High -Rise Development Best Practices $1.46 per square foot / month $2.21 per square foot / month The recently adopted Bill 108 has shortened timelines for municipal decisions on development applications. Municipalities will have to render decisions significantly more quickly in some cases. The benefit of these shortened timelines should result in not only better timelines for developers, but it could also create significant incentive for municipalities to re-examine their processes, workflow, technology, and organizational structures to find efficiencies and more effective ways of reviewing applications within the allotted time. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page iv September 2020 Figure ES- 3 ApplicationPlanning Official Plan Amendment 0• 210 Days 0: 120 Days Zoning By-law Amendment 150 Days 90 Days Plan of Subdivision 180 Days 120 Days Site Plan 30 Days 30 Days Based on a scan of programs initiated by municipalities to improve their development review processes, there are several key areas routinely identified as being areas for improvement, including: • Reducing miscommunication which can creates conflicts that lead to delays; • Pay close attention to workflows and team composition; • Empower staff with more delegated powers; • Reduce required statutory processes where possible; and • Improvements are limited without technology. Many of the best practices of the municipalities reviewed are highly transferable, however, ultimately each municipality will have its own set of unique circumstances that must be taken into account. Conclusion The overall findings in the report incorporate the rankings from the three major elements studied that feed into housing affordability — providing tools and features to improve quality of submissions, ensuring approvals are done in an expedient manner, and housing costs stemming from government charges that get borne by buyers/renters. Overall, the municipalities of Barrie, Burlington and Oakville rank atop the list, all three with top -half ranks in each of the categories. The largest municipalities by population among those studied (Toronto, Mississauga, Brampton, Markham, Vaughan) all rank on an overall basis no higher than 10th BILD Altus Group Economic Consulting Municipal Benchmarking Study Page v September 2020 Figure ES- 4 Overall Scorecard - Planning Features, Government Charges, Approvals Timelines Score Planning Government Approvals (Average Features Charges Timelines Rank) rank = es ran =owes ran = es ovver= a er Barrie 2 3 5 3.3 Burlington 2 6 3 3.7 Oakville 2 9 4 5.0 Clarington 7 1 9 5.7 Oshawa 16 5 1 7.3 Rickering 11 2 10 7.7 Innisfil 15 7 2 8.0 Milton 7 10 n.a 8.5 Whitby 16 4 7 9.0 Toronto 1 14 15 10.0 Vaughan 6 17 8 10.3 Mississauga 9 11 13 11.0 Brampton 5 15 14 11.3 Richmond Hill 11 13 11 11.7 Caledon 9 12 16 12.3 Aurora 11 16 12 13.0 BWG 14 8 17 13.0 Markham 18 18 6 14.0 Note: Government Charges based on average of low-rise and high-rise scenarios, as measured by government charges as % of housing prices Source: Altus Group Economic Consulting Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 18 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page vi September 2020 TABLE OF CONTENTS Page EXECUTIVE SUMMARY........................................................................... i 1 INTRODUCTION................................................................................1 1.1 Background & Scope of Study..............................................................................1 1.2 Approach...............................................................................................................1 1.3 Caveats.................................................................................................................3 2 MUNICIPAL DATA............................................................................. 5 2.1 Census Data.........................................................................................................5 2.2 Housing Tenure...................................................................................................10 2.3 Housing Starts & Completions............................................................................11 2.4 Other Municipal Data..........................................................................................13 2.5 Municipal Staff per Capita...................................................................................14 2.6 Summary of Findings..........................................................................................15 3 MUNICIPAL UTILIZATION OF TOOLS AND PROCESSES ...........17 3.1 Listing of Municipal Tools and Processes............................................................17 3.2 Scorecard on Planning System Features............................................................17 3.3 Study Requirements............................................................................................19 3.4 Conclusions........................................................................................................19 4 ESTIMATES OF MUNICIPAL APPROVAL AND PERMIT TIMELINES...................................................................................... 21 4.1 Approach.............................................................................................................21 4.2 Findings — Development Approval timelines.......................................................22 4.3 Additional insights...............................................................................................25 4.4 Conclusions........................................................................................................28 5 MUNICIPAL CHARGES ON NEW HOUSING ................................. 30 5.1 Development Charges........................................................................................30 5.2 Education Development Charges........................................................................32 5.3 Planning & Approval Fees...................................................................................33 5.4 Parkland Dedication / Cash -in -Lieu of Parkland..................................................34 5.5 Section 37...........................................................................................................35 5.6 Land Transfer Taxes............................................................................................37 5.7 Other Government Charges Not Included in this Report.....................................37 5.8 Emerging Trends.................................................................................................37 5.9 Quantification of Municipal Charges and Fees....................................................38 6 POTENTIAL COST SAVINGS FROM INITIATIVES TO IMPROVE MUNICIPAL PROCESSES.............................................................. 44 6.1 Taxes Payable on Vacant Land...........................................................................44 6.2 Increases to Municipal Charges and Fees..........................................................44 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page vii September 2020 6.3 Carrying Costs of Loans......................................................................................45 6.4 Cost Inflation.......................................................................................................46 6.5 Conclusions........................................................................................................47 7 BEST PRACTICES FOR IMPROVING MUNICIPAL PROCESSES 49 7.1 Overview of Current Initiatives............................................................................49 7.2 Themes Emerging from Process Reviews..........................................................54 8 CONCLUSIONS...............................................................................57 8.1 Summary of Findings..........................................................................................57 8.2 Recommendations..............................................................................................58 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page viii September 2020 Figure 1 1 INTRODUCTION 1.1 BACKGROUND & SCOPE OF STUDY Altus Group Economic Consulting was retained by BILD to undertake a study of several factors that may be contributing to housing affordability issues in the Greater Toronto Area (GTA). The study looks at several factors such as municipal approval processes, timelines for approvals, and government charges, and compares approaches that studied municipalities have in place to deal with the approval and ultimate development of new housing and makes an effort to highlight key features and associated benefits in bringing new housing to approval and ultimate construction. In addition to reviewing the direct costs municipalities place on new housing developments, the study also looks at the potential implications of approval processes and the typical approval timelines by estimating the indirect costs associated with time that applications may spend in the review and approval process. 1.2 APPROACH 1.2.1 Topics Covered This report looks at several areas that have direct links to issues related to housing supply and/or housing affordability, including factors that impact the timeliness in which developers and landowners are able to bring new housing supply onto the market, and the costs of developing new housing. Subject Area Approach Demographic and Statistical Provide overview of trends in housing construction Overview (tenure, form, prices), and shifts in population. Analysis of Municipal Planning Review of the features and tools utilized by Approval Processes municipalities to facilitate more efficient and transparent development processes. Review of Municipal Charges Using two hypothetical development scenarios, Imposed on New Development estimate the direct costs that municipalities levy on new housing developments, costs which are ultimately passed on to new home buyers (or renters) through higher prices (or rents). BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 1 September 2020 Sampling of Municipal Approvals Timelines Estimating the amount of time that typical development applications spend in the municipal approvals process. Quantification of Indirect Costs of Estimating the indirect costs associated with each Time Associated with Approval additional month a development application is in the Processes approvals process. Analysis and Review of Best A high-level review of recent and ongoing initiatives Practices that municipalities or Provincial governments are taking to streamline approvals processes, reduce costs of development, etc. The various sections of the report flow so as to create a picture of the potential causes, effects, and impacts of housing affordability. Figure 2 How Components of Report Relate to Each Other and Affect Housing Affordability The section on municipal processes attempts to show how features present in the provincial and municipal planning systems can and do impact approvals timelines. The analysis of municipal timelines analyses a robust sample of recent development approvals in municipalities across the GTA to BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 2 September 2020 Figure 3 understand what typical timelines are. The analysis of indirect costs associated with approval timelines expresses the costs that each month spent gaining approval can add to the development of residential projects. Both the indirect costs associated with approvals timelines and the government charges quantified in a separate section, which are directly charged to developers and landowners, impact housing affordability as developers and home builders seek to recover development costs through home prices. 1.2.2 Geographic Scope The study looks at the planning processes in a total of 18 municipalities in the Greater Toronto Area: Toronto MunicipalityRegion Area City of Toronto York Region Vaughan, Markham, Richmond Hill, and Aurora Peel Region Brampton, Mississauga, and Caledon Halton Region Oakville, Burlington, and Milton Durham Region Pickering, Whitby, Oshawa, and Clarington Simcoe County Barrie, Innisfil, and Bradford West Gwillimbury (or "BWG") 1.3 CAVEATS The report looks at factors that may be contributing to housing affordability issues in the Greater Toronto Area, such as planning processes, demographic factors, government charges, timelines for gaining approvals for new housing, etc. However, these factors are not meant to represent an exhaustive list of factors that contribute towards housing affordability issues. The information presented in this report is based on interpretation of various municipal policies, by-laws, rate schedules, etc. While every effort has been made to interpret these materials accurately, there can be no certainty that municipal stakeholders will apply their policies and rates in the same manner as interpreted here. The models at the core of this report frequently rely upon inputs and assumptions, such as assumed land values, estimated housing prices, and development yields from hypothetical development sites. These inputs and BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 3 September 2020 assumptions are intended for the purposes contained herein, and should not be used for any other purposes, or relied upon in any manner other than how they are used within this report. The data presented in this report is based on the latest data available as of the writing of the report, but given the types of data used, the most recent iteration of data may vary from one chart, table, or figure to the next. For example, as of the time of writing of this report, CMHC data on housing starts is available to the end of 2019, while Statistics Canada Census data is only current as of mid-2016. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 4 September 2020 Figure 4 2 MUNICIPAL DATA This section provides a high-level overview of key demographic characteristics in the studied municipalities, and presents some key statistics related to housing development and affordability in these markets. 2.1 CENSUS DATA 2.1.1 Population Change Figure 4 shows the population in each of the municipalities being studied in this report, and the average annual change over the past two five-year Census periods. The average annual change in these municipalities has been 1.68% per year for the 2006-2011 period, and 1.16% for the 2011-2016 period. Population and Average Annual Population Change, Selected Municipalities, 2006- 2016 Average Annual Population Population Change 2006 2011 2016 2006-2011 2011-2016 Municipality Persons Percent Change Burlington 164,415 175,779 183,314 1.35% 0.84% Oakville 165,613 182,520 193,832 1.96% 1.21% Milton 53,939 84,362 110,128 9.36% 5.48% Mississauga 668,549 713,443 721,599 1.31% 0.23% Brampton 433,806 523,906 593,638 3.85% 2.53% Caledon 57,050 59,460 66,502 0.83% 2.26% Toronto 2,503,281 2,615,060 2,731,571 0.88% 0.88% Vaughan 238,866 288,301 306,233 3.83% 1.21% Richmond Hill 162,704 185,541 195,022 2.66% 1.00% Markham 261,573 301,709 328,966 2.90% 1.74% Aurora 47,629 53,203 55,445 2.24% 0.83% Pickering 87,838 88,721 91,771 0.20% 0.68% Whitby 111,184 122,022 128,377 1.88% 1.02% Oshawa 141,590 149,607 159,458 1.11% 1.28% Clarington 77,820 84,548 92,013 1.67% 1.71% Bradford West Gwillimbury 24,039 28,077 35,325 3.15% 4.70% Innisfil 31,175 32,727 36,566 0.98% 2.24% Barrie 128,430 136,063 141,434 1.16% 0.78% Total 5,359,501 5,825,049 6,171,194 1.68% 1.16% Source: Altus Group Economic Consulting based on 2006, 2011 and 2016 Census Data 2.1.2 Average Household Size Figure 5 shows the number of private occupied dwellings in each municipality, and the average household size, as well as how the average household sizes have changed between 2006 and 2016. In most studied municipalities, the average household size has declined over the 10-year 2006-2016 period, significantly so in some cases. A decline in average household size in a municipality can be driven by many BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 5 September 2020 demographic factors, including declining fertility rates, an increase in the number of persons living alone, etc. However, declining average household sizes means that there is a demand for new housing even if the overall population was unchanged. Figure 5 Private Occupied Dwellings, Average Household Size, and Change in Average Household Size, Selected Municipalities, 2006-2016 Municipality Burlington Oakville Milton Mississauga Brampton Caledon Toronto Vaughan Richmond Hill Markham Aurora Pickering Whitby Os haw a Clarington Bradford West Gw illimbury Innisfil Barrie Private Occupied Dwellings Average Household Size 2006 2016 Households 63,255 71,373 56,575 66,269 18,465 34,257 214,925 240,913 125,930 168,011 18,210 21,256 979,440 1,112,929 69,535 94,253 51,000 64,116 77,195 102,676 15,655 18,851 28,220 30,919 37,240 43,529 54,925 62,595 26,850 32,838 7,950 11,591 11,400 13,364 46,515 52,476 4111I1-1 2.60 2.93 2.92 3.11 3.44 3.13 2.56 3.44 3.19 3.39 3.04 3.11 2.99 2.58 2.90 3.02 2.73 2.76 2016 Persons per Unit 2.57 2.92 3.21 3.00 3.53 3.13 2.45 3.25 3.04 3.20 2.94 2.97 2.95 2.55 2.80 3.05 2.74 2.70 Total 1,903,285 2,242,216 2.82 2.75 Source: Altus Group Economic Consulting based on 2006 and 2016 Census Data Chanae (0.03) (0.00) 0.29 (0.12) 0.09 (0.00) (0.10) (0.19) (0.15) (0.18) (0.10) (0.14) (0.04) (0.03) (0.10) 0.02 0.00 (0.07) (0.06) Of the 18 municipalities, the average household size increased in four municipalities, including Milton (+0.29 persons per unit), Brampton (+0.09), BWG (+0.02) and Innisfil where there was a slight increase. In the other 14 municipalities, there were slight -to -significant declines, with decreases upwards of 0.14 to 0.19 persons per unit in municipalities such as Vaughan, Richmond Hill, Markham, and Pickering. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 6 September 2020 Figure 6 Change in Average Household Size, 2006-2016 Persons per Unit Burlington (0.03) - Oakville (0.00) Milton - Mississauga (0.12) Brampton 0.09 Caledon (0.00) Toronto (0.10) Vaughag0.19) Richmond Hill (0.15) Markham(0.19) Aurora (0.10) Pickering (0.15) Whitby (0.04) - Oshawa (0.03) - Clarington (0.10) BWG 0.02 Innisfil 0.00 Barrie (0.07) - (0.20) (0.15) (0.10) (0.05) - 0.05 0.10 Source: Altus Group based on 2006 and 2016 Census data 2.1.3 Migration Data 0.15 0.20 0.25 Using Statistics Canada data on migration can provide information on the sources of population change within the upper -tier (or single -tier) municipalities with the GTA. Beyond natural life factors that affect population (such as births and deaths), there are four key flows of people into and out of municipalities and regions: • Intraprovincial migration - persons moving in/out of the municipality or metropolitan area, but staying within the same province; • Net immigration - persons arriving from outside of Canada (as permanent residents) minus persons that were living in Canada leaving the country; • Net Interprovincial migration — net inflow or outflow of persons moving into of a municipality or region from another province (or vice versa); • Net non -permanent residents — net inflow or outflow of persons such as temporary workers, students, etc. For example, over the 10-year period ending mid -year 2019, the City of Toronto has seen several distinct movements of population in and out of the City: • A net outflow of 277,200 persons that have left the City for other parts of the province of Ontario (intraprovincial migration); • An additional 411,400 persons residing in the City from net immigration (persons coming to reside in the City from outside of Canada); 0.29 0.30 BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 7 September 2020 • A net inflow of approximately 22,700 persons moving to reside in the City from interprovincial migration — persons moving to the City from other places in Canada outside of Ontario; and • An additional 124,600 net new non -permanent residents (comprised on international students, temporary workers, etc.). Figure 7 Migration by Census Division, 2009-2010 to 2018-2019, Ranked by Net Intraprovincial Migration Net Intraprovincial Net Interprovincial Net Non -Permanent Migration Net Immigration Migration Residents Amount Rank Amount Rank Amount Rank Amount Rank Total Census Division Persons Persons Persons Persons Simcoe County 71,112 1 2,714 6 (6,864) 4 6,120 4 73,082 Durham Region 53,487 2 14,061 5 (8,029) 5 4,731 6 64,250 Halton Region 43,342 3 18,936 4 455 2 5,687 5 68,420 York Region (2,373) 4 73,122 3 (510) 3 12,977 3 83,216 Peel Region (110,545) 5 189,668 2 (8,420) 6 53,720 2 124,423 Toronto (277,222) 6 411,423 1 22,715 1 124,639 1 281,555 Source: Statistics Canada, 2018-2019 Annual Demographic Estimates A significant outflow of persons from a municipality to other parts of a province (intraprovincial migration) can be due to households leaving an area due to a lack of desired housing options in a municipality, or the unaffordability of the housing options that are available. Of the six regions within the GTA, three (Toronto, Peel and York) are experiencing net outflows of residents to other parts of Ontario, significantly so for Toronto and Peel. In these three regions, the net number of persons leaving the regions for other pars of Ontario has been increasing in Peel and York, and more recently so in Toronto. Figure 8 Annual Net Intraprovincial Migration — Toronto, Peel and York 2006-2018 20,000 10,000 Toronto Peel York 0 - -10,000 -20,000 ' -30,000 -40,000 -50,000 2006/07 2007/08 2008/09 2009/10 2010111 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Source: Altus Group based on Statistics Canada, Annual Demographic Estimates data BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 8 September 2020 For the three other regions within the GTA that have been seeing net inflows of people from elsewhere in the province: • The net inflows in Halton have been decreasing steadily from the highs of 2006-2010, but remain positive on an annual basis; • The net inflows into Durham have generally remained steady at between 4,000 and 6,000 persons per year; and • The net inflows into Simcoe have been increasing, with the last four years the highest in the 13-year period, all at or above 8,000 persons of net inflow. Figure 9 shows the annual Intraprovincial trends for Halton, Durham and Simcoe. Figure 9 Annual Net Intraprovincial Migration — Halton, Durham and Simcoe 2006-2018 12.000 ■ Durham Halton Simcoe 10,000 8,000 6,000 4,000 2,000 0 ' 2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19 Source: Altus Group based on Statistics Canada, Annual Demographic Estimates data To understand the nature of the Intraprovincial flows to/from the six GTA regions to/from other parts of Ontario, Figure 10 below shows Intraprovincial migration by age for the year 2018-2019. Areas with outflows are seeing the net outflows driven by persons aged 25- 44. Meanwhile, Halton, Durham and Simcoe are gaining persons in this age group from other parts of the province, with a significant proportion likely coming from nearby places such as Peel, York and Toronto. The data appears to indicate that a lack of housing both affordable and suitable for families is resulting in younger families (and their children) leaving the inner parts of the metropolitan areas (Toronto, Peel, York) that BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 9 September 2020 generally have higher prices for areas with more affordably priced and suitable housing options for families. Figure 10 Intraprovincial Migration for Age Group 25-44, 2018-2019, Greater Toronto Area 4,000 Number of Persons 2,211 2,000 0 -2, 000 -4, 000 -6, 000 -8, 000 -10,000 -12,000 -12,131 1,321 -14,000 Halton Peel Toronto York Source: Altus Group based on Statistics Canada, Annual Demographic Estimates, 2018-2019 2.2 HOUSING TENURE 3,003 Durham 3,118 Simcoe An analysis of the tenure of occupied dwellings shows that there has been an increase in the share of renter households in every one of the studied municipalities. As of 2016, only five (5) of the 18 municipalities have shares of renter households greater than 20%. An increased share of renter households does not necessarily mean that there has been an increase in the amount or share of housing built as `purpose-built' rental housing. Instead, this could also mean that there has been an increase in the size of the secondary rental market (rented single - detached, semi-detached, townhouse units, and condominium apartments put on the secondary rental market). BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 10 September 2020 Figure 11 Household Tenure in Studied Municipalities, Ranked by Highest Share of Renter Households in 2016 % Increase in Share of Renter Households Households by Tenure Change in 2006 2016 Pct. Points Ow ner Renter Municipality Percent Share Percent Change Toronto 45.6% 47.2% 1.6 10% 18% Oshawa 30.1 % 31.5% 1.4 12% 19% Barrie 23.6% 28.8% 5.2 5% 38% Mississauga 25.0% 27.7% 2.7 8% 24% Burlington 20.4% 23.6% 3.2 8% 30% Brampton 18.5% 20.0% 1.5 31 % 44% Oakville 15.9% 18.3% 2.4 14% 35% Richmond Hill 13.7% 17.6% 3.8 20% 61 % Bradford West Gw illimbury 17.2% 17.3% 0.1 46% 47% Whitby 16.0% 16.7% 0.7 16% 22% Aurora 14.2% 16.1 % 1.9 18% 36% Milton 11.9% 14.1 % 2.2 81 % 120% Markham 11.3% 13.9% 2.7 29% 64% Pickering 10.9% 12.6% 1.7 7% 26% Clarington 11.2% 11.9% 0.7 21 % 30% Innisfil 6.7% 11.6% 4.9 11% 103% Vaughan 7.3% 10.4% 3.1 31% 94% Caledon 8.6% 9.2% 0.6 16% 25% Source: Altus Group Economic Consulting based on 2006 and 2016 Census of Canada 2.3 HOUSING STARTS & COMPLETIONS Figure 12 shows how housing starts by housing type have changed in the studied municipalities over the past ten years, as broken out into separate five-year periods. Figure 12 Change in Housing Starts by Structure Type Selected Municipalities, 2010-2019, by 5-Year Period 70 % Percent ■ 2010-2014 ■ 2015-2019 60 % 50 % 40 % 30% 27.00% 20.70% 20 % 12.40% 13.30% 10% 4.90% 2- .20% on 0 Single -Detached Semi -Detached Row House Source: Altus Group based on CMHC Housing Starts data 63.80% Apartment BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 11 September 2020 There has been an increasing proportion of housing starts in higher density forms such as row houses and apartment, while lower density housing forms (single -detached and semi-detached) have declined in share. Of the 18 municipalities studied, 14 municipalities have seen declines in the share of ground -related housing starts over the past two five-year periods (see Figure 13). The only municipalities with increases in share of ground - related housing have been Richmond Hill, Oakville, and Aurora, however, these increases were relatively modest, ranging from increases in share of 1.1 to 5.9 percentage points. The share of ground -related housing in Bradford West Gwillimbury has remained unchanged, at 100% in both periods. Figure 13 Change in Share of Ground -Related Housing Starts by Municipality 2010-2014 vs. 2015-2019 100 90 80 70 60 50 40 30 20 N 10 % o a N 'm OD N N N `t0 c�0 V 6�J 0% 0J\cA�oc Oa�;;e �\tioc eyyyaJ�a �`a�Qoc aoc ae G Source: Altus Group based on CMHC Housing Now data ■2010-2014 ■2015-2019 c�A era aka , oc G� An analysis of the tenure of occupied dwellings shows that despite the number of renter households increasing, there has been a lack of purpose- built rental housing construction in the Greater Toronto Area, with only two municipalities seeing more than 10% of new housing starts be purpose-built rental in the last five years (Oshawa at 24.5% of housing starts, and Toronto at 13.0%). BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 12 September 2020 Figure 14 Share of Rental Tenure Housing Starts, by Municipality 2010-2014 vs. 2015-2019 25.0 % ■2010-2014 ■2015-2019 20.0 15.0 10.0 5.0 0 c o= o c o lido 0 0.0 % — aAa°c `°c�O Source: Altus Group based on CMHC Housing Now data The number of rental housing starts increased by 87% from the 2010-2014 period to the 2015-2019 period. On average, among studied municipalities, rental housing starts comprised just 8.4% of all housing starts over the past five years, although that share was higher than the 4.9% share of rental housing in the prior five-year period. 2.4 OTHER MUNICIPAL DATA 2.4.1 Housing Prices Housing prices in the studied municipalities have increased significantly. Over the 2006-2018 period, based on CMHC data, average prices of absorbed single -detached homes have increased by an average of 158%.1 Figure 15 shows the changes in absorbed single -detached housing prices over the 2006-2018 period. The percentage change in absorbed single -detached housing prices should be used with some caution as the data does not control for size of single -detached dwellings in the sample, meaning that the data set could be skewed towards luxury estate lots in one period, but smaller single - detached dwellings in a residential subdivision in another period. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 13 September 2020 Figure 15 Change in Absorbed Single -Detached Housing Prices 2006-2018 450 416% 400 % 350 % 300 % 288% 257% 250% 241 200 % 150% 100 % 50 % 0% �\ a� JAa rac ��oc coca �A 0 aka oc`O tioc a y�J cca oa�oca �a�r yyaya JaJ� Pa �c A Oaa �o� G`�cc0 Oav \cam �a Source: Altus Group based on CMHC Housing Now data 83% 65 17% �Q, oc �a``cA �Co aaoc � a Ica Quo G 2.5 MUNICIPAL STAFF PER CAPITA Using available municipal data, an analysis was undertaken to estimate the number of staff (expressed as Full -Time Equivalent or FTE) that municipalities have made available to review development and building permit applications as a significant part of their day-to-day work. Figure 16 Municipal Planning Employees per 1,000 Housing Starts 160 Employees per 1,000 Housing Starts 143 140 120 104 97 100 88 82 80 80 74 14 74 Avg: 75.1 60 57 53 49 40 30 20 0 'o�G� ao� ,\ y5���mJ�\� �\�o� '�o Note: Housing Starts in denominator are based on annual average over 2015-2019 period Note: Staff counts include planning and development staff, and staff responsible for building permits Source: Altus Group based on CMHC Housing Now data, municipal data 93 86 57 71 41 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 14 September 2020 To compare municipal staffing across municipalities of varying sizes, we have put all employee counts on a per 1,000 housing starts basis, based on an average of housing starts from the past five years. Across the studied municipalities there is an average of approximately 75 municipal planning staff per 1,000 housing starts. For those municipalities with below average staffing levels, the relative outliers are Aurora, Toronto and Innisfil, which each have less than 50 municipal planning staff per 1,000 annual housing starts. This suggests that these municipalities may not have sufficient staffing resources to process applications going forward, particularly in busy years, although it could also suggest that staff at municipalities at the low -end of the scale have to -date been relatively efficient in getting housing applications processed with the resources available. However, in several cases (Aurora, Innisfil, Toronto, Brampton), low staffing levels coincides with longer municipal approval timelines. Those municipalities with above -average staffing levels are Burlington, Richmond Hill, and Mississauga, each of which have more than 95 planning staff per 1,000 annual housing starts. This suggests these municipalities would have the capacity available to take on a surge in housing development, should one arrive in the coming years. 2.6 SUMMARY OF FINDINGS Based on our review of demographic and statistical information for the studied municipalities, we have found the following: • Population is increasing in each municipality studied, but in many cases, this trend is accompanied by falling average household sizes. Both of these add to housing demand — one from net new persons moving into a municipality, and a second from more housing units being needed just to house the existing population; • In several parts of the GTA (York, Peel and Toronto), there has been a net out -migration of residents from these areas to other parts of Ontario, particularly by adults between aged 25-44 (as well as children aged 0- 14), suggesting that persons forming households (particularly families) are leaving to other areas where they're able to better afford and/or more readily find their desired housing product. Halton, Durham and Simcoe have seen net inflow of persons aged 25-44, suggesting that these areas are currently able to meet the demands of younger families for affordable and suitable housing; • Each of the studied municipalities have seen an increase in the number of renter households, however, purpose-built rental housing construction remains a relatively minor component of overall housing construction; BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 15 September 2020 • There has been a shift in the types of housing being built, with much more emphasis on apartment housing units in most municipalities studied; • The staffing levels at municipalities are generally consistent when expressed on a `per 1,000 housing starts' basis, though there are a few outliers (high and low), which may indicate municipalities that are able to respond (or not) to surges in housing development activity going forward. In some cases, low staffing levels coincides with longer municipal approval timelines (Aurora, Innisfil, Brampton, Toronto). BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 16 September 2020 3 MUNICIPAL UTILIZATION OF TOOLS AND PROCESSES This section of the report reviews the tools that are available to municipalities to assist staff in reviewing development applications, or help applicants navigate the requirements for their development submissions. 3.1 LISTING OF MUNICIPAL TOOLS AND PROCESSES We have identified numerous features or approaches taken by Ontario municipalities that may positively or negatively influence the ability to get new housing approved and ultimately built in a more expedient fashion than otherwise possible. Each municipality is scored on whether they have tools or utilize processes that can be deemed beneficial to an efficient planning approvals system or to increase transparency for developers and other stakeholders. The features reviewed are as follows: • Online development application submission or building permit application portal; • The availability of a "development guide", which shows required studies and components of various planning applications, to ensure applicants understand the requirements of applications and achieve `complete application' status; • Clear terms of reference for required studies; • Online status list or tracking system for active development applications, as well as whether mapping of applications is provided, and supporting studies and plans are provided; • Online zoning, including whether a GIS file and/or a GIS portal available. The following section of the report presents our measures of how each studied municipality utilizes these tools and features, and what proportion of the 18 municipalities studied are each tool or feature. 3.2 SCORECARD ON PLANNING SYSTEM FEATURES Based on our review, many tools and processes are already present in most of the 18 municipalities, though no single feature is fully present in more than three-quarters of municipalities. The most frequently utilized tool is a tracking system for active development applications, while very few municipalities provide clear terms of reference for studies required to be submitted with development applications. A lack of clarity regarding study requirements can result in unnecessary re - submissions and delay the ability to submit a fully complete application. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 17 September 2020 Figure 17 Figure 18 Feature Development Guide % of Municipalities with Feature 67% Terms of Reference 47% Development Application Tracking System — Active Applications 75% Development Application Tracking Database — Historic Applications 42% Application Tracking — Map 64% Application Tracking — Supporting Files and Studies 56% Zoning — GIS file available 22% Zoning — GIS Portal / Mapping 72% Another feature explored, but complicated due to COVID-19 adaptation by municipalities is the availability of online submission portals for development applications and/or building permit applications. Of the studied municipalities only one municipality utilized all eight tools (Toronto) and processes, and some only utilized a few of the tools and processes. of Features (out of 8) 7 or more MunicipalitiesNumber Features Barrie, Brampton, Oakville, Burlington, Toronto Between 5 and 7 Clarington, Milton, Vaughan Between 3 and 5 BWG, Pickering, Caledon, Mississauga, Richmond Hill, Aurora Below 3 Innisfil, Whitby, Oshawa, Markham BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 18 September 2020 3.3 STUDY REQUIREMENTS Many planning applications require numerous studies, plans and technical reports to be submitted to satisfy municipal staff regarding the nature of the proposal and detailing any potential impacts on the community. A review of development guides for seven municipalities, including some lower -tier, upper -tier and single -tier municipalities shows the range of potential studies that may be required for a development application — the full list of potential studies is presented in Figure 19. We have found almost 60 different types of studies, with most applications usually requiring some combination of 20-30 of these studies, depending on the municipality, location of the development and the type of building(s) and uses being proposed. 3.4 CONCLUSIONS The review of utilization of planning tools and processes has found that some tools that could assist with potentially streamlining municipal processes and commenting periods, or would improve the quality of submissions from applicants, such as online submission portals and detailed terms of reference for technical studies required for review of development applications are often not used in many of the municipalities studied. A review of the list of studies that may be required by municipalities shows that some development applications may be burdened with a vast array of study requirements - in some cases potentially in the range of 20-30 studies for a single project, depending on the municipality, application type, and location of development. The required quantity and variety of technical studies, even if necessary to ensure that developments are in the public interest, results in significant costs to retain experts necessary to complete the studies and adds significant time for the studies to be completed, and then reviewed by municipal staff. The greater the number of studies also likely increases the likelihood of revisions and resubmissions, adding more time to the approvals process. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 19 September 2020 Studies and Technical Reports / Plans That May Be Required in Select Municipalities Figure 19 Municipality Toronto Durham Clarington Halton Oakville Simcoe Barrie Affordable Housing Report X X Agricultural Impact/ Assessment X X X X Air Quality Study X Arborist Tree Reservation Report X X X X Archeological Assessment X X X X X X Block Master Ran X Community Services and Facilities Study X Contaminated Site Assessment X X Contamination Management Plan X Earth Science Heritage Evaluatio X Electromagnetic Field Management Ran / Study X Energy Strategy X X Enviromental Site Assessment X X X X Environmental evaluation study X Environmental Impact Study X X X X X X X Erosion or Natural Hazard Assessment X X X Financial Impact Study X X X X X Fire Access Plan Fisheries ImpacttMarina Impact Study X X Floodplain Report X X Geotechnical Study / Soils Report X X X X X X Healthy Communities X Heritage Impact Report X X X X X X Housing Issues Report X Hydrogeology / Groundwater Assessment X X X X X X Landfill Impact Study X Landform Conservation Ran X Landscaping Plan X Lighting Plan X X X Linkage Assessment X Loading Study X Marine archaeological assessment X Market Impact Study X X X Natural Heritage Impact Study X X X Noise Impact Study X X X X X X Odour/Dust/Nuisance Imapct Report X X X X X Parking Study X Parkland Impact Study / Recreation Needs X Planning Rationale / Justification X X X X X X X Public Consultation Strategy Report X Rental Housing Conversion Report X Servicing Report X X X X X X X Slope Stability Report X X X Stormvater Management / Drainage Report X X X X X Streetscape Plan X Sun/Shadow Study X X Sustainability Report X Topographical Survey X Traffic Operations Assessment X X Transportation Impact Study X X X X X X X Urban Design Report X X X X Vegetation Inventory Vibration Study X X X X X X X Water conservation plan X Water Quality Study X Watershed Study X Wellhead Risk Assessment Report X X Wind Study X X X Note: Some studies shown as not being required may actually be required within other larger studies shown, depending on the specific terms of reference for each study. In most instances, the studies listed may only be required for some application types, or only in some circumstances. Source: Altus Group Economic Consulting based on Municipal Off ical Plans BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 20 September 2020 4 ESTIMATES OF MUNICIPAL APPROVAL AND PERMIT TIMELINES Lengthy timelines for development application approvals from municipalities are a common complaint of development industry stakeholders. This section reviews findings from exhaustive research into timelines for recently approved applications for most municipalities studied in this report. 4.1 APPROACH Altus Group endeavoured to measure typical approval timelines for development applications in various municipalities across the Greater Toronto Area. The approval timelines were measured from the date a municipality provided acknowledgment that an application was deemed 'complete'2 to when a planning approval was provided by the municipality. The nature of a `planning approval' can take many forms, including approvals provided by a municipality for official plan amendments, zoning by-law amendments, draft plan of subdivision, draft plan of condominium, site plan approval, or a combination thereof. Although contingent on the availability of data provided by municipalities, it was possible to undertake a few types of analyses of approval timelines for different applications types for municipalities in the study. However, not every municipality made available all necessary information to do the analysis for all application types, and there are some municipalities where certain types of applications are relatively rare (i.e., subdivision applications in the City of Toronto). Only in instances where it was possible to obtain robust samples for particular application types are findings shared. An overview of the sources for data informing our analysis are summarized in the following table. It should be noted that while the analysis focuses on the time between complete application and municipal approval, it does not account for the significant period of time that an application may take to achieve a 'complete application' status (i.e. "pre -submission"), nor the period of time from development approval to building permit approval. There are also significant timelines associated with the process of getting vacant land designated for urban uses (e.g. greenfield development) — often this process can take several years, and in some cases can take upwards of 10 or more years. z Such as, direct affirmations of an application's complete status date or the date a notice of a public meeting was provided. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 21 September 2020 Figure 20 Figure 21 Data Source• • Municipal Some municipalities provide comprehensive lists of recently approved applications. Application Often, data can be extracted from the published records about date of complete Status Lists application, date of approval(s), etc. Council / Each municipality studied makes some amount of information regarding development Committee approvals through agendas, minutes, and associated documents and reports Agendas, available through Council / Committee meeting portals. Council / committee agendas Minutes, Staff were carefully reviewed to tabulate development approvals, with searches then Reports undertaken for sources with a recorded date of complete application — often this information is contained within the staff report recommending approval. Open Data Some municipalities make datasets available with recently approved development Portals applications, which often include data regarding the date of complete application, and approval (and for which planning instruments planning approvals were obtained). The diagram below depicts the major elements of the land development and building approval process and highlights the element that this analysis of municipal timelines focuses on. Designation of Lands for Urban Uses •Amendment to otAalal Plan: at Secondary Plan. etc, coost"on with municipality to understand requirements far submissions Securing experts, and preparauan orreports --------------- v Development - - • I I t I + I I I I I I I I I I I I ' SUbml55ion o cample* I appllcatlon I I •Municipal review I I al planning I Instruments I tzonmg t amendment, I subdivision. site plan, etc_) I I I Focus of Analysis 4.2 FINDINGS - DEVELOPMENT APPROVAL TIMELINES 4.2.1 Overview of Methodology The analysis summarized below is based on a significant amount of work to collect a robust sample as possible. Nearly 1,000 development applications that were approved by a municipality were reviewed and recorded in the process of data collection. However, it should be noted that this analysis does not include timelines associated with the following: • Developments that were refused by the municipality and may have been subject to an appeals process (in this instance, likely appealed by the BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 22 September 2020 applicant). Where those applications are ultimately approved by the Local Planning Appeals Tribunal (LPAT), this adds considerable time to the approvals process, but the timelines associated with these developments are not included in our analysis. The approval periods for applications that were subject to LPAT appeal processes are left out as the additional time required to obtain approval from an LPAT process is not necessarily reflective of issues with municipal processes, and timelines for applications subject to the LPAT process can be lengthy due to productive reasons such as time spent in settlement discussions, or other reasons that are not in the control of the municipality, such as LPAT case backlogs that delays the scheduling of hearings; • Appeal periods related to developments that were approved by the municipality, but appealed by other stakeholders to LPAT, which would add considerable time onto the approval period — this additional time is not accounted for in this study; • Applications that are obvious outliers - records where the timelines significantly exceeded the average of most other data points in the sample. Some application approvals may, for example, involve lands that have been sold to a new owner who has decided to make modifications to a pre-existing submission, however as these instances are not necessarily the fault of the municipality, they have not been included. The data sample includes the most current application approvals for each municipality. However, given the scale of development in some municipalities, it was necessary to collect information for applications that received an approval as far back as 2015 in order to reach a robust sample size. Therefore, the `average' timelines presented may not necessarily be reflective of a typical timeline in 2019/2020 or capture impacts of more recent improvements that municipalities may have made in the last 12-24 months. The data averages presented in Figure 22 looks at how long, on average, a development application took for the municipality to approve but does not distinguish between applications that had multiple concurrent submissions and applications that were submitted as consecutive submissions (one after another), or submissions that required only one application. The timelines for developments requiring only `single' approval versus `multiple' approvals is analyzed separately and presented in a later section of this report. 4.2.2 Findings The analysis shows significant variations in the approval timelines of municipalities. Generally, the more populous and urban municipalities (i.e. Mississauga, Brampton, and Toronto) had longer timelines, while more suburban or exurban municipalities had shorter timelines. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 23 September 2020 Figure 22 Only four municipalities, Oshawa, Innisfil, Burlington and Oakville had average approval timelines below 12 months, while another nine municipalities had averages that fell within a range from 12 to 18 months. In four municipalities, the average timeline for municipal approvals ranges from 18 to 24 months. For one municipality (Milton), there was not enough available data found on municipal approvals to include in the report. Average Approval Timelines by Application Type, by Municipality Municipality Official Plan Zoning By-law Plan of Plan of Site Plan Average SubdivisionAmendment Amendment .. Oshawa (n=29) ** 9 months 9 months 8 months ** 9 months Innisfil (n=24) 9 months 9 months 10 months* *' 9 months Burlington (n=26) 13 months 11 months 7 months' ** 11 months Oakville (n=96) 12 months 12 months 11 months 8 months 15 months 11 months Barrie (n=30) 10 months 11 months 12 months *' 18 months 12 months Markham (n=33) 11 months 14 months 9 months 13 months Whitby (n=29) 10 months 13 months 15 months 11 months '* 13 months Vaughan (n=78) 14 months 15 months 11 months 8 months 12 months 13 months Clarington (n=31) ** 12 months 13 months 13 months Pickering (n=37) 16 months 13 months 13 months 13 months* 14 months Richmond Hill (n=26) ** 18 months 18 months 14 months 16 months 16 months Aurora (n=23) ** 19 months 25 months 8 months 18 months 17 months Mississauga (n=18) 18 months 17 months ** ** ** 18 months Brampton (n=85) 26 months 19 months 19 months ** ** 20 months Toronto (n=76) 32 months 25 months *" 8 months 30 months 21 months Caledon (n=18) ** 23 months 23 months "* *" 23 months BWG (n=23) *' 21 months 25 months 24 months Overall Range 8-37 months 9-25 months 7-25 months 8-14 months 12-30 months 9-24 months Overall Average 16 months 15 months 15 months 9 months 18 months 15 months ** denotes where either data was not available, or the sample size was too small to be statistically robust BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 24 September 2020 The analysis by application types shows that applications with official plan amendments (OPAs) take the longest to be approved with municipal averages ranging from 8 to 37 months, while the quickest type of application to gain approval on average is plan of condominium, with municipal averages ranging from 8 to 14 months. The findings relating to approvals timelines may not necessarily be consistent with the findings on the availability of tools or features of planning systems in the studied municipalities or staffing levels in the municipalities. Even with full usage of the identified tools and features, or large amounts of staff on -hand, an approvals process can still be slow without the right deployment of tools or features, or the efficient allocation of staff resources. The results regarding average timelines for approved applications in each municipality should be used with some caution as the complexity of development applications was not controlled for, given the subjectivity of any evaluation, measurement or adjustment for complicating factors adding to an application's complexity. However, it is understood that complexity can be elevated by variables such as the scale of development proposals (land area, number of units, height, etc.), environmental issues, concerns about community impact, political issues, etc. These complicating factors will vary from one application to the next, and may be especially prevalent in certain municipalities studied. 4.3 ADDITIONAL INSIGHTS 4.3.1 High -Density vs. Low -Density For analytical purposes, the development applications within the collected data set were broadly categorized as either'low-density' projects, or'high- density' projects. Low -density projects were generally defined as being applications that were predominantly oriented towards ground -related housing (singles, semis, townhouses), while high -density projects were defined to be development applications that predominantly include multi- family homes such as apartments and condominium high-rises. It was found that there was no significant difference in the average timelines for the two types of development applications, with low -density applications taking an average of 14.4 months to be approved, and high -density applications taking an average of 14.3 months. However, when averages were compared for specific municipalities, some disparities in averages between the two types are evident (see Figure 23) BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 25 September 2020 Figure 23 Averages for Low -Density Averages for High -Density significantly less than High- Density significantly less than Low - Density Toronto (low -density 11 months Richmond Hill (9 months faster for faster than high -density) high -density than low -density) Burlington (low -density 8 months Vaughan (3 months faster for high - faster than high -density) density than low -density) Brampton (low -density 4 months Whitby (3 months faster for high - faster than high -density) density than low -density) 4.3.2 Multiple Applications vs. Lone Applications Municipalities often promote the submission of multiple applications at the same time (e.g. an official plan amendment with a zoning by-law amendment) with the notion that it can save both time and fees for the developer. The benefit to municipalities is that it in theory, concurrent review of applications more efficiently uses staff resources because it allows staff to save time reviewing aspects of a development proposal that may overlap between different application types. While potential for time savings for developers can provide significant benefits, there are also risks to developers. First, because staff are dealing with more expansive aspects of a development proposal all at once, their recommendation report to council may take longer to submit, delaying final approval. Second, a major issue delaying review or approval of one application may cause other applications to be delayed. The chart below (Figure 24) shows the difference in average approval timelines for single applications versus multiple applications reviewed concurrently. While lone applications take generally less time individually by application type, should a developer sequentially go through the application process gaining one approval only after others have been received, it would take significantly longer than a bundle of application submitted all at once. The data obtained and reviewed in this exercise shows that when there are multiple applications submitted, it generally takes just 2 to 3 months longer for the bundle of applications to be approved than just an individual application. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 26 September 2020 Figure 24 ApplicationApplication Official Plan Amendment ** Application 16 months Zoning By-law Amendment 13 months 16 months Plan of Subdivision 12 months 15 months Plan of Condominium 8 months 10 months Site Plan 16 months 23 months Average 13 months 16 months Overall, applications submitted alone made up about one-third of the total sample, while applications that were concurrently submitted with others made up the remaining two-thirds. This information suggestions that a large majority of applications are already being bundled together with others, however, there is still a significant minority that are not, and potentially could be bundled together. If there is any possibility for the avoidance of certain planning applications, and consolidation of planning applications into one type of submission, it appears that there would be a benefit to the applicant of reduced timelines. 4.3.3 Approval by Municipal Council vs. Local Planning Appeals Tribunal While applications that were approved by the LPAT were not included in the main dataset, some information was collected that provided a sub -sample that could be used to analyze and contrast with average timelines for municipal approvals. While the sub -sample was sufficiently large for aggregate comparison purposes (with 100 records), it was not large enough to allow for analysis by any single municipality. On average, applications approved by the LPAT took on average roughly twice as long to gain approval as those approved by a municipality, with the overall approval period for applications approved by LPAT inclusive of the time the applications spent in the municipal review process, and the time spent getting through the LPAT process. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 27 September 2020 Figure 25 Approval Timelines by Source of Approval Months 30 28 ■ Municipal Council Approvals 25 25 20 16 15 15 15 LPAT Approvals 24 24 10 9 5 0 OPA ZBL Subdivision Condominium Source: Altus Group based on various municipal and LPAT records 27 18 Site Plan Having to gain approval through the LPAT and that taking roughly double the amount of time to gain municipal approval, if approval is obtained at all, illustrates a risk associated with the current appeals system — getting an approval via an appeal adds significant cost in terms of the additional time required to gain approval, over and above the expense of the hearing itself with additional costs for the legal counsel and experts required to navigate the LPAT process. 4.4 CONCLUSIONS The analysis of average development approval timelines finds that the average period of time to get a development approval from a municipal council in the Greater Toronto Area ranges from 9 to 24 months, however, there is significant variation between the municipalities studied: • The more urbanized municipalities have application approval timeline averages around 20 months, while suburban and exurban municipalities generally take significantly less time to provide approvals. Some of this variation can likely explained by the generally higher level of project complexity for projects submitted to more urban municipalities, as well as, and the volume of submissions in those municipalities; • Bundled applications only take 20% to 30% longer to approve than submissions requiring only one type of application, suggesting that there are significant economies of scale and efficiencies for bundled applications, providing benefits to both municipality and applicant; BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 28 September 2020 • While the success rate at the LPAT was not examined as part of this study, gaining a development approval through an LPAT appeal can take, on average roughly twice as long as an approval from a municipality. Gaining approval through the LPAT can be incredibly costly and time consuming. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 29 September 2020 5 MUNICIPAL CHARGES ON NEW HOUSING This section gives further detail on the various municipal charges levied on newly built homes, and charged to developers, home builders and/or purchasers of newly built homes. The charges reviewed include those levied by lower -tier or upper -tier municipalities and school boards. 5.1 DEVELOPMENT CHARGES 5.1.1 Municipal Development Charges The Ontario Development Charges Act grants authority to municipalities to enact a development charges by-law to impose a charge against land to be developed where the development will increase the need for municipal services, thus offsetting capital costs. Municipal development charges collect funds for services deemed as being eligible in the Development Charges Act, such as Parks & Recreation, Libraries, Fire Services, Police Services, Water, Sewer, Roads, Transit, etc. Where there is both an upper -tier and lower -tier municipality, the services included in each respective municipality's DC by-law are based on which tier is the provider of each service. Each of the lower-tier/single-tier municipalities reviewed in this report imposes development charges for a variety of services. As required under the Development Charges Act, development charge by-laws are to be reviewed at least every five years, and in the interim periods between DC by-law reviews see DC rates indexed either annually or semi-annually, depending on the approach adopted by each municipality. Figure 26 shows the significant increases to development charge rates since the 2009 in the studied municipalities, on a per single -detached unit basis. Since 2009, DC rates have increased by an average of 137% in the municipalities surveyed. Toronto, Innisfil, Vaughan, and Mississauga have had DC rate increases at or greater than 200% since 2009. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 30 September 2020 Figure 26 Municipal Development Charges from 2009-2020, Selected Ontario Municipalities Dollars per Single -Detached Unit 120,000 I York Region Halton Region Peel Region I I I ■ 2009 Lower/Single-Tier 2009 U T' 100,000 80,000 R m 60,000 ' 40,000 Pt 20,000 N 0 O @ E O O S Y F > _ clL m I ct kN oIq O Q O y E m N m U Total Change ®®®®®®®®®a Source: Altus Group Economic Consulting based on Municipal DC By-laws 5.1.2 GO Transit Development Charges ■ pper- ler ■ 2020 Lower/Single-Tier ■ 2020 Upper -Tier simcoe County Durham Region ILFpo M e� U > O @ - a v Development charges are also levied to collect funds for growth -related projects associated with the GO Transit system. Most regions in the Greater Toronto Area have been allocated a share of the projected growth -related capital costs associated with the GO Transit system, with the municipal, provincial and federal governments each in total funding one-third shares of the capital costs. The GO Transit development charge was originally approved for a two-year period, with the by-laws expiring December 31, 2003. Since then, the GO Transit development charges have been updated regularly to fund a rolling ten-year budget. 5.1.3 Area -Specific Development Charges Six of the municipalities reviewed in this report impose area -specific development charges ("ASDC"). We have therefore made assumptions regarding the area that the hypothetical developments would fall within: • Halton Region — Halton Region imposes a higher DC for homes built in the greenfield area than those built within the Region's built boundary. For this analysis we have assumed that the low-rise scenario is within the greenfield area, and that the high-rise development scenario is located within the built boundary area; • City of Barrie — The City of Barrie imposes different DC rates for the parts of the City within the former City boundaries, and for the Hewitt and BILD Municipal Benchmarking Study Altus Group Economic Consulting Page 31 September 2020 Salem Secondary Plan areas on the lands annexed from the Town of Innisfil. For this analysis, we have assumed that both the low-rise and high-rise development are within the former City boundaries; Town of Innisfil - The Town of Innisfil imposes numerous ASDCs applicable to different parts of the Town. For this analysis we have assumed that the low-rise development is in Innisfil North and the high- rise project is in Innisfil Central; City of Markham — The City of Markham imposes additional area - specific DC rates for homes built in certain areas within the City and levies them on a per hectare basis. For this analysis we have assumed that the development is located outside the areas subject to ASDCs; and Town of Richmond Hill — The Town of Richmond Hill imposes additional ASDCs on a per net hectare basis in selected greenfield areas in the Town, over and above the Town -wide charges. For the low-rise scenario included in our analysis of government charges, we have taken the average of these greenfield ASDCs and added that onto the Town -wide development charges. 5.2 EDUCATION DEVELOPMENT CHARGES In Ontario, education development charges (EDC's) are collected by local municipalities on behalf of local school boards that qualify to impose such charges under the Education Act and associated regulations. EDC's are used by school boards to fund the acquisition of school sites and related costs (site preparation, legal costs, etc.) to accommodate net new growth -related pupils. EDC's are usually charged by both English -language public and separate school boards and are usually levied on both residential and non-residential growth. Funding for school building construction is provided by the Province on an as -needed basis stemming from requests for funding submitted by local school boards. EDC's on residential development are imposed solely on a per unit basis, meaning that single -detached units are charged the same rate as townhouse and apartment units. The Education Act and associated regulations enable school boards to impose these charges on a differentiated basis (i.e., higher rates for single -detached units, lower for apartment units), but to -date, this approach has not been utilized. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 32 September 2020 Figure 27 Education Development Charges by Jurisdiction Dollars per Unit 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Toronto York Halton Peel Durham (excl. Clarington Simcoe Clarington) Note: Part of "Peel' EDC applies to part of Dufferin County, part of "Simcoe" EDC applies to part of Muskoka, and the "Durham" rates are not applicable in Clarington, which is under jurisdiction of Kawartha Pine Ridge DSB and Peterborough Victoria Northumberland and Clarington Catholic DSB Source: Altus Group Economic Consulting based on various EDC By-laws 5.3 PLANNING & APPROVAL FEES There are various fees and charges associated with the municipal approval for a development, several fees for the permits required for the construction of the building(s), and engineering fees and permits for the infrastructure works associated with a development. The modelling undertaken groups these fees into three main categories outlined in the subsections below, but in many municipalities, there is no clear delineation between the departments that review plans, approve plans, and/or issue permits, meaning that in some cases, engineering review fees may be covered within the costs recovered through planning review fees. 5.3.1 Planning Review Fees For this analysis, it is assumed that the low-rise scenario would require both lower- and upper -tier official plan amendments, a zoning by-law amendment, and plan of subdivision approval. It is assumed that the high-rise development scenario would require an official plan amendment, a zoning by- law amendment, as well as plan of condominium and site plan approval. Often there is considerable overlap between the studies and reports required for different planning applications. To acknowledge this, some municipalities provide reduced or discounted costs for joint applications where more than one planning instrument is being amended. In imposing 'per unit' fees for planning review fees, some municipalities acknowledge that certain 'economies of scale' exist for larger applications, BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 33 September 2020 and so levy discounted per unit rates beyond certain unit thresholds, a feature sometimes referred to as a `declining' fee rate. This approach to structuring the planning review fees is based on the notion that there are certain fixed costs to reviewing planning applications whether the application has 10 units or 100 units. Some municipalities treat the diminishing marginal costs for larger applications through both a declining fee rate, but also a `cap' on planning fees. For example, the City of Brampton (as of December 2019) caps fees for development applications requiring some combination of zoning by-law amendment, official plan amendment or subdivision approval at $359,220 and caps fees for site plan approvals at $85,219. 5.3.2 Building Permit Fees Each of the lower -tier and single -tier municipalities being reviewed charge building permit fees for the construction of residential buildings, charged on a per square metre basis. 5.3.3 Engineering and Servicing Fees Each lower -tier and single -tier municipality reviewed charges a variety of engineering and service fees for the development, review, inspection, connection and/or assumption of a development's water, sanitary sewer and storm sewer services. The various engineering and servicing related fees may include servicing fees, subdivision agreement and assumption fees, and engineering inspection fees, which are typically charged as a percentage of costs of the engineering works to be done. 5.4 PARKLAND DEDICATION / CASH -IN -LIEU OF PARKLAND Although Bill 108 (passed June 2019) was intended to alter how municipalities collected funds for parkland acquisition, the recently passed Bill 197 (assented July 2020) essentially restores most of the current parkland dedication / cash -in -lieu of parkland system. Currently municipalities acquire parkland and other forms of open space through parkland dedication requirements imposed on new developments. Alternatively, a developer is able to provide "cash -in -lieu" ("CIL") of parkland dedication to a municipality. The Ontario Planning Act says that as a condition of development or redevelopment of land, that land in an amount not exceeding 5% of the land to be conveyed to the municipality for park or other public recreational purposes. Alternatively, for residential developments, the land conveyed to the municipality may also be provided at a rate of 1 hectare per 300 dwelling units. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 34 September 2020 The Ontario Planning Act also says that in lieu of providing the land for parkland to the municipality, the developer may instead provide a payment to the municipality in the amount of the value of the land to be conveyed, at a rate not to exceed 1 hectare per 500 dwelling units. The value of the land is to be determined as of the day before approval of the draft plan of subdivision. The statutory parkland rates are used in each Ontario municipality reviewed in this report, except as follows: • City of Toronto: The City has an alternative parkland dedication rate of 2% of land area, or 0.4 hectares per 300 units. In Toronto, cash -in -lieu of dedication payments are also capped based on the size of the development site and the value of the site: o For smaller sites (less than 1 hectare), this cap is 10% of the value of the site; o For 1-to-5-hectare sites, the value of the payment cannot exceed 15% of the value of the site; o For larger sites (greater than 5 hectares) this cap is 20% of the value of the site. • City of Mississauga: The City of Mississauga follows the statutory parkland rates, except for medium- and high -density development which has a fixed rate of $8,970 per unit; City of Vaughan: The City of Vaughan's cash -in -lieu of parkland contributions are calculated at a rate of 1 hectare per 500 units, except for high density development which has a rate of $8,500 per unit; • Town of Richmond Hill: The Town of Richmond Hill requires landowners to convey land at the greater of 5% of the land within the development application, or the lesser of: o 1 hectare of land of land per 300 dwelling units; or o 1 hectare of land for each 730 persons to be housed. 5.5 SECTION 37 The former Section 37 of the Ontario Planning Act (as it was prior to the passage of Bill 108) allowed for increases in permitted height and/or density through the zoning by-law in return for community benefits, provided that Official Plan policies are in place. These contributions are typically directed to community infrastructure needs arising from the expected surplus in housing units/people being accommodated in a development relative to the original plans. While Section 37 is used in some 905 municipalities, it is most frequently utilized in the City of Toronto. The City of Toronto Official Plan sets out BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 35 September 2020 several community benefits that may be provided in return for increased height and/or density, including parkland/park improvements, streetscape improvements, public art, childcare facilities, etc. While Section 37 contributions are often provided by private developers when developing in Toronto, there is no publicly available formula or method for how these are calculated and/or arrived at. These section 37 contributions can also be provided in the form of cash contributions, or in -kind contributions. Based on our review of various zoning by-laws in the City, the cash contributions agreed to by developers and the City can vary significantly from one development to the next — in some cases less than $1,000 per unit, and in others in excess of $15,000 per unit, and up to over $22,000 per unit in some select instances. The average section 37 cash contribution has been steadily increasing since the year 2000, and over the 2015-2017 period, the average section 37 cash contribution amounted to approximately $3,800 per unit, on average. The City also regularly secures non -cash contributions, such as rental housing replacement units, public art, playgrounds, daycare spaces, recreation facilities, etc., which are not accounted for in the average cash contributions depicted in Figure 28. Figure 28 Average Section 37 Cash Contributions, City of Toronto Dollars per Unit 4,000 3.500 3,000 2,500 2,000 1,500 1.000 500 7 2000 02 2003-05 2006-06 2009.11 2012.14 2015-17 Source- Altus Group Economic Consulting based on various City of Toronto Zoning By-law Amendments. 2000-2017 The former Section 37 density bonusing system, under Bill 108 and Bill 197 will be effectively replaced with a Community Benefits Charge ("CBC"), which would see a percentage of land value payable for developments with both 10 or more residential units that are also 5 or more storeys in height. As of the time of writing this report, the prescribed CBC percentage has not been set. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 36 September 2020 5.6 LAND TRANSFER TAXES Land transfer taxes ("LTT") are levied by the Province of Ontario, and so those charges are not included in our modelling of charges imposed by municipalities. However, the City of Toronto, under authority granted to it by the City of Toronto Act, does levy its own municipal land transfer tax. The Toronto Municipal Land Transfer Tax is imposed on the value of property being transferred from a seller to a buyer, at rates of: • Value up to $55,000 — 0.5%; • Value from $55,000 to $250,000 — 1.0%; • Value from $250,000 to $400,000 — 1.5%; • Value from $400,000 to $2,000,000 — 2.0%; and • Value over $2,000,000 — 2.5%. No other municipality among those studied in this report levies a municipal land transfer tax. 5.7 OTHER GOVERNMENT CHARGES NOT INCLUDED IN THIS REPORT Government charges levied on new homes by Provincial or the Federal government are not included in this report, as the focus of the analysis is on charges and fees levied by municipal governments. Therefore, charges such as the provincial land transfer tax, sales taxes (provincial and federal), and CMHC mortgage insurance are not included in this study. However, unlike municipal charges, which are typically incurred by the developer (and ultimately passed onto new homebuyers through prices), the charges levied or required by upper -levels of government are typically incurred directly by homebuyers, and so also have a significant impact on the affordability of housing in Canada. 5.8 EMERGING TRENDS 5.8.1 Bill 108 and Bill 197 Bill 108, passed in June 2019, eliminated the former Section 37 density bonusing provisions of the Planning Act and combined with Bill 197 (introduced in July 2020) alter how development charges are collected in municipalities across Ontario. The other two substantial changes to government charges are first, the removal of the 10% statutory deduction to certain `soft' services such as indoor recreation, libraries, etc., which will cause DC rates to increase modestly. The legislated changes to the calculation of DCs have not been accounted for in DC by-laws as of the time of writing this report. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 37 September 2020 Second, the two bills would see the introduction of a Community Benefits Charge (CBCs) which would allow municipality to fund capital costs on development with 5-or-more storeys and 10-or-more dwelling units, as a percentage of land value the day before building permit issuance. However, as the province has not yet produced a finalized set of CBC regulations, which will include the prescribed 'cap' on what municipalities can impose as CBCs, the costs associated with CBCs are not incorporated into the modelling summarized by this report. Bill 108 also included several changes to the Development Charges Act as it pertains to the timing of calculation of DCs payable and the period in which DCs are paid. • For the development of rental housing, institutional, industrial, commercial and non-profit housing, DCs are set either at the time of site plan application or zoning by-law amendment application, rather than at the time of building permit issuance. • For these same land uses, DCs are now payable in six equal annual installments, with the first payment due at the issuance of an occupancy permit, or the date the building is first occupied. • The calculation and timing of payment of DCs for condominium and freehold residential homes remains unchanged in Bill 108. 5.9 QUANTIFICATION OF MUNICIPAL CHARGES AND FEES This subsection of the report aims to provide a high-level overview of the charges levied by municipal governments on new development and attempts to quantify the costs these charges and fees payable by developers, home builders, and ultimately, home buyers. 5.9.1 Scenarios To model and estimate the charges and fees imposed by the municipalities studied in this report, we have devised two development scenarios — one 'low-rise' consisting of a mix of single -detached and townhouses, and one 'high-rise' consisting of a condominium apartment building. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 38 September 2020 Figure 29 Feature Low -Rise Scenario High -Rise Scenario Unit Types 75 single -detached, 50 125 condominium apartment units (75 townhouses 2+bedrooms, 50 bachelor and 1- bedroom) Land Area 6.91 hectares (17.06 acres) 0.52 hectares (1.29 acres) Unit Sizes Single -detached: 2,500 sf Large apartments: 900 sf Townhouses: 1,800 sf Small apartments: 650 sf 5.9.2 Findings 5.9.2.1 Low -Rise Scenario Figure 30 Our modelling of charges imposed on low-rise development was done on all 18 municipalities included in the study. On average, for the municipalities studied, the charges imposed by municipalities amount to $93,700 per unit, or 9.7% of the housing price. Municipal Charges per Unit, Ranked, Low -Rise Scenario 1 Vaughan Markham Toronto Richmond Hill Aurora Mississauga Brampton Caledon Oakville Whitby Rickering Barrie Oshawa Innisfil Milton Burlington BWG Clarington York York n.a. York York Peel Peel Peel Halton Durham Durham Simcoe Durham Simcoe Halton Halton Simcoe Durham 148,083 138,154 134,653 124,723 116,232 108,976 103,019 96,647 88,224 75,607 74,923 73,997 72,827 72,149 71,644 66,826 65,984 54,258 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 39 September 2020 The results vary significantly by municipality — from $148,100 per unit in Vaughan to $54,300 in Clarington. Seven of the eight municipalities with the highest municipal charges on low-rise development are in York or Peel Regions, owing to the significant amount of development charges imposed on new housing developments by those regional municipalities. In particular, the municipal charges in York Region municipalities may be driven by infrastructure costs for water and wastewater owing to the Region being landlocked, which increases costs associated with finding solutions to water and sanitary infrastructure needs. When the municipal charges are expressed as a % of housing prices3, the charges range from 5.6% in Burlington to 14.5% in Vaughan. Figure 31 Municipal Charges as % of Housing Price Ranked, Low -Rise Scenario 1 Vaughan Brampton Markham Toronto Innisfil Aurora Caledon Richmond Hill Barrie Oshawa Mississauga Whitby BWG Oakville Pickering Milton Clarington Burlington York Peel York n.a. Simcoe York Peel York Simcoe Durham Peel Durham Simcoe Halton Durham Halton Durham Halton 14.5% 11.8% 11.6% 10.7% 10.6% 10.3% 10.2% 10.0% 9.8% 9.7% 9.5% 9.4% 9.0% 8.5% 8.4% 8.3% 7.1 % 5.6% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 The most significant charge in almost all the surveyed municipalities is the development charge, typically amounting to 75% of the municipal charges 3 The `housing price' used to contextualize municipal charges is a weighted average of assumed housing prices for single -detached units and townhouse units, based on the distribution of each unit type in our low-rise scenario. Assumed prices are based on $/sf asking prices for housing developments in each municipality, with this per square foot average then applied to the assumed unit sizes of single -detached and townhouse units within the low-rise scenario. Therefore, given the unit size and unit mix employed in our low-rise scenario, the 'average price' assumed in our model is not indicative of typical average or median prices of absorbed units in a municipality BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 40 September 2020 payable for a new low-rise development, and over 85% in some cases (Aurora, Clarington, Caledon and Barrie). The second most substantial charge is typically the parkland dedication requirement or cash -in -lieu payment (though most low-rise developments will dedicate parkland rather than pay cash -in -lieu of dedication), averaging 17% of municipal charges payable. The remainder of charges imposed on low-rise development are comprised of planning fees, building permit fees, and other minor charges. 5.9.2.2 High -Rise Scenario Figure 32 Our modelling of charges imposed on high-rise development was done on all 18 municipalities included in the study. The charges imposed on high-rise developments vary widely by municipality — from $96,200 per unit in Markham and $30,500 in Clarington. On average, the high-rise charges imposed by municipalities are $57,800 per unit, or 10.7% of the price of the residential units. Out of top three municipalities with the highest charges, two were in York Region (Markham and Vaughan). Municipal Charges per Unit, Ranked, High -Rise Scenario 1 Markham Vaughan Burlington Toronto Aurora Richmond Hill Mississauga Brampton Oakville Caledon Milton Barrie Innisfil Oshawa Whitby Pickering BWG Clarington York York Halton n.a. York York Peel Peel Halton Peel Halton n.a. Simcoe Durham Durham Durham Simcoe Durham 96,233 81,216 77,680 76,762 72,466 68,823 67,994 60,206 57,498 55,488 51,373 46,946 43,840 41,671 38,828 38,213 34,037 30,497 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 181 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 41 September 2020 Figure 33 When the municipal charges imposed are expressed as a percentage of housing prices, the charges levied on new housing development are upwards of 16% in the Town of Aurora and the City of Markham. Municipal Charges as % of Housing Price Ranked, High -Rise Scenario 1 Aurora Markham Brampton Vaughan Burlington Richmond Hill Milton Caledon Toronto Mississauga Oakville BWG Whitby Oshawa Innisfil Pickering Clarington Barrie York York Peel York Halton York Halton Peel n.a. Peel Halton Simcoe Durham Durham Simcoe Durham Durham n.a. 16.3% 15.8% 13.8% 12.8% 12.4% 11.7% 11.2% 11.1 % 11.0% 10.8% 10.5% 9.9% 8.0% 8.0% 7.5% 7.1% 6.9% 6.9% 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 Similar to the results of our low-rise analysis, the most significant charge in almost all of the surveyed municipalities are the development charge, typically amounting to 68% of the municipal charges payable for a new high- rise development, and over 90% in some municipalities (Aurora and Innisfil). The second-largest charge imposed on high-rise is also usually the land dedication requirement or cash -in -lieu payment, which makes up an average of 26% of municipal charges payable. 5.9.3 Conclusions Based on the modelling done on the two hypothetical development scenarios, there significant municipal -imposed charges on new development, but that these charges can vary significantly from one municipality to the next. However, generally, charges imposed by municipalities on new housing development are generally the highest in Toronto and municipalities within York Region and Peel Region. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 42 September 2020 • The average municipal -imposed government charges for low-rise development in the studied municipalities is $93,700 per unit or 9.7% of housing prices. Six of the eight highest charges per unit were in York and Peel municipalities; • For high-rise, the average works out to $57,800 per unit, or 10.7% of housing prices. Three of the four highest charges per unit on high-rise development are in municipalities located in York Region. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 43 September 2020 6 POTENTIAL COST SAVINGS FROM INITIATIVES TO IMPROVE MUNICIPAL PROCESSES This section of the report quantifies the costs (or potential cost savings) for developers and landowners involved in the time spent gaining approval for development projects. In each case, we have attempted to put the estimates of costs associated with waiting for approvals on the basis of `costs per month'— this puts all of the various elements of this analysis into a comparable metric, and allows for the calculation of impacts of time saved in the approvals process to be quantified, by multiplying the `per month' costs by the number of months deemed possible to be cut off of the approvals process. The cost estimates are modelled using the same hypothetical low-rise and high-rise development scenarios used for the analysis of charges and imposed by municipalities. 6.1 TAXES PAYABLE ON VACANT LAND For each month in the development process, assuming a vacant site, the developer/landowner must continue to pay property taxes to the municipality. The sooner the site can receive approvals, be developed, and turned over to the ultimate buyers, who will become the taxpayers for the property, the less expense to the developer/landowner. Based on estimated land values in each of the municipalities studied in this report, and tax rates in the studied municipalities, each month in the approvals process for a high-rise development costs an average of $1,830 per month. For a low-rise development, the average cost of each month in the approvals process is less than that of the high-rise development, averaging $406 per month. 6.2 INCREASES TO MUNICIPAL CHARGES AND FEES As evident from the modelling done on charges imposed by municipalities on development, there are significant costs that must be paid by developers to municipalities to pay for things such as growth -related infrastructure, planning and approvals fees, etc. Many of the charges imposed by municipalities regularly increase — some increase at the same rate as inflation (many planning fees increase 1-3% per year to stay in line with general inflation), while others are much more volatile and subject to periodic, but significant increases (such as development charges). As the most significant charge levied by most municipalities is development charges, we have looked at what DCs were in the studied municipalities, both BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 44 September 2020 at the time of writing this report and in addition to prior years, in order to estimate what a typical `per month' change in DCs has been, to see what the potential effect of each additional month spent gaining approvals can mean. One potential issue with this approach worth acknowledging is that it does not account for the typical way in which DCs change over time - DCs are relatively static for several years, except for some modest inflationary indexing usually in the range of 1-2% per year, but then a significant increase can come into effect at the time of a DC by-law review, which usually range anywhere from 10% to 50%, but can sometimes be much more. On average, it is found that DCs increase by an average of approximately $379 per month for single -detached units, and approximately $143 to $211 per month for apartment units (depending on the size of unit). Figure 34 Average Per Month Change in Development Charges in Select Municipalities % Increase 2009-2019 10-Year Change 2009-2019 10-Year Change 2009-2019 Single- Large Small Single- Large Small Single- Large Small Detached Apartment Apartment Detached Apartment Apartment Detached Apartment Apartment Municipality Percent Dollars per Unit Dollars per Unit per Month Oakville 96% 54% 70% 41,145 14,605 12,537 342.87 121.71 104.48 Burlington 55% 13°% 34% 21,218 3,128 5,605 176.82 26.07 46.71 Milton 69% 34% 52% 27,812 8,453 8,981 231.77 70.44 74.84 Brampton 134% 98% 135% 56,110 30,366 23,038 467.58 253.05 191.98 Mississauga 216% 183°% 220% 68,347 42,533 28,765 569.56 354.44 239.71 Caledon 132% 104% 133% 51,526 28,698 21,337 429.38 239.15 177.81 Toronto 507 % 446 % 465 % 65,413 38,162 25,722 545.11 318.02 214.35 Markham 162% 149°% 128% 66,043 39,350 28,092 550.36 327.92 234.10 Vaughan 227% 221% 145% 85,201 52,389 33,856 710.01 436.58 282.13 Richmond Hill 147 % 154 % 89 % 52,683 33,985 19,303 439.03 283.21 160.86 Rckering 80% 89°% 38% 23,437 15,438 6,321 195.31 128.65 52.68 Whitby 104% 93% 46% 30,563 17,569 7,882 254.69 146.41 65.68 Oshawa 123% 129% 49% 33,424 21,323 8,325 278.53 177.69 69.38 Clarington 62% 45°% 26% 20,228 9,112 4,718 168.57 75.93 39.32 Aurora 155% 152% 108% 57,082 35,142 22,769 475.68 292.85 189.74 Bradford West Gw illimbury 127 % 98 % 123 % 39,784 19,919 18,476 331.53 165.99 153.97 Barrie 157% 150°% 113% 42,115 23,922 15,318 350.96 199.35 127.65 Innisfil 298°% 260% 248% 35,603 20,970 17,218 296.69 174.75 143.48 Average 378.58 210.68 142.71 Source: Altus Group Economic Consulting 6.3 CARRYING COSTS OF LOANS During the approvals process, applicants will have typically obtained financing for their project and will pay interest on the construction loan until all proceeds from sales have been received. The estimate of additional carrying costs per month is based on a high-level model that estimates the cost of construction financing, with one version assuming a 30-month construction financing period, and a second version assuming a 31-month construction financing period, with the difference in the BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 45 September 2020 total cost of construction debt in the two versions the estimated `per month' difference. It is estimated that the cost of construction debt is approximately $91,600 for each additional month that construction financing is required for high-rise. For low-rise, each additional month would add $139,600 per month in financing costs associated with construction loans. 6.4 COST INFLATION When a development is in the approvals process the costs associated with the construction of the building can increase. This includes the costs of both materials and labour. 6.4.1 Construction Cost Inflation The construction costs of building typically increase over time. Over the Q1 2017 to Q3 2019 period, construction costs have increased by 11.8% for high-rise apartment buildings, 15.1 % for single -detached homes, and 14.8% for townhouse units. This equates to an average monthly increase of between 0.34% and 0.42% per month, depending on the unit type. Each additional month that an application is in the municipal approvals process adds to project construction costs, for all unit types. Based on the hard construction costs of a hypothetical high -density residential building, we were able to model the average monthly increase in construction costs as a result of municipal processing time - each additional month would add approximately $181,800 monthly in construction costs for a low-rise development and approximately $93,900 per month for a high-rise development. 6.4.2 Wage Inflation Based on Statistics Canada data on wage rates by worker types, the hourly wage of various contractors involved in the construction of a building increase by an average of $1.21 per hour, per year. On a per month basis, this would be a $0.10 per hour increase for each contractor involved in the project. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 46 September 2020 Figure 35 Average Hourly Wage, Select Construction Trades, 2013-2018 Crane Cement Total / Carpenter Operator Finisher Bectrician Labourer Humber BricMayer Roofer Average Year Dollars per Hour Toronto CMA Sep-13 52.75 52.66 49.68 58.58 48.66 59.71 52.95 51.66 53.33 Sep-18 59.43 58.88 54.72 65.64 53.75 66.70 58.25 57.51 59.36 5-Year Increase 6.68 6.22 5.04 7.06 5.09 6.99 5.30 5.85 6.03 Average Monthly $ Increase 0.11 0.10 0.08 0.12 0.08 0.12 0.09 0.10 0.10 Average Monthly % Increase 0.20% 0.19% 0.16% 0.19% 0.17% 0.18% 0.16% 0.18% 0.18% Source: Altus Group Economic Consulting based on CANSIM, Table 327-0003 Based on Altus Group's model that estimates construction -related employment associated with residential developments, a 125-unit apartment building would generate 319 person -years of employment, which is equivalent to 319 persons working for an average of one year each (or 638 persons working for an average of 6 months each, etc.). For a low-rise development (of 75 single -detached and 50 townhouses), approximately 432 person -years of employment would be required. Figure 36 Estimate of Additional Wage Costs per Month (Average), Toronto CMA 1 ..... o:-- LJ:..I1 o:-- rerson- rears Person -Years 432 319 Person -Months Person -Months 5,186 3,832 Dollars per Hour Average Monthly Increase in Hourly Wages 0.10 0.10 Dollars per Month Average Monthly Increase in Labour Costs 87,539 64,687 Source: Altus Group Economic Consulting based on Statistics Canada Assuming each of these workers would be subject to a similar increase in wages evident from the Statistics Canada data, each additional month an application is subject to the municipal approvals process would add, on average, roughly $64,700 per month in additional labour costs to the high- rise project due to wage inflation. For the low-rise project, the additional wage inflation expected each month amounts to approximately $87,500. 6.5 CONCLUSIONS Figure 37 combines the various elements modelled and estimates the total monthly cost to a developer / landowner for each month an application is within the development approvals process. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 47 September 2020 Figure 37 Summary of Per Month Costs of Application and Approvals Process, Toronto CMA Estimates based on low-rise scenario and high-rise scenario (125 units each) Carrying Increased Taxes on Costs of Municipal Construction Labour Cost Vacant Land Loans Charges Cost Inflation Inflation Total Development Scenario Dollars Low -Rise 735 139,571 46,027 181,798 87,539 455,669 High -Rise 2,290 90,564 24,371 93,854 64,687 275,766 Source: Altus Group Economic Consulting Overall, the estimated costs associated with each additional month a project is in the approvals process adds approximately $455,700 in costs per month for the hypothetical low-rise project, and $275,800 in costs per month for the hypothetical high-rise project. These costs equate to an additional $1.46 per buildable square foot per month for the low-rise project, and $2.21 per buildable square foot per month for the high-rise project. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 48 September 2020 7 BEST PRACTICES FOR IMPROVING MUNICIPAL PROCESSES Figure 38 While our study is generally limited to the 18 municipalities, in this section of the report, which scans for best practices for improving municipal processes, we have allowed for the scan to include any community within Ontario that may be undertaking positive steps towards improvement to the municipal approval process. It is important to note that development application timelines on decisions have recently been shortened under Bill 108. Municipalities will have to render decisions significantly more quickly in some cases. The benefit of these shortened timelines should result in not only better timelines for developers, but it will also create significant incentives for municipalities to re- examine their processes, workflow, technology, and organizational structures to find efficiencies and more effective ways of reviewing applications. Planning Application Official Plan Amendment 0• 210 Days 108 120 Days Zoning By-law Amendment 150 Days 90 Days Plan of Subdivision 180 Days 120 Days Site Plan 30 Days 30 Days 7.1 OVERVIEW OF CURRENT INITIATIVES 7.1.1 City of Hamilton - Open for Business Initiative The City of Hamilton started an Open for Business initiative, with one of the goals being to improve the City's development application process. One of the identified solutions was for the City to review its draft plan of subdivision approval process, with the new process being enacted in early 2017. One key change was making sequential processes into parallel processes, so the City allows applicants the option to have processes for minor variances, water service assessments, site plan approvals, engineering reviews and building permit applications run concurrently, with the caveat that some processes are still conditional on others, and a change in one may result in a re -submission being required. However, in the case of BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 49 September 2020 resubmission, applications requiring only modest revisions receive priority processing. The City has also started issuing fewer circulation letters, instead opting for one standard consultation letter for all reviewing parties. The City has estimated that this change alone typically saves five business days for applicants. The City found that prior to making the improvements to the subdivision approvals process, the average processing time from complete application to draft plan approval was 1,350 days (or approximately 44 months), with approximately half of that time related to City review, but the other half due to awaiting comments, permits or consents from ministries or regional agencies, as well as time taken by applicants responding to comments, or revising plans to address comments made. Within this period, the City found that it took an average of 187 days from receiving an application to provide an initial set of comments, and resolving comments required an average of 2 to 4 revisions to the submitted plans. 7.1.2 City of Brampton —Streamlining Development Application System The City of Brampton is in the process of adopting a community planning permit system ("CPPS") for the Queen Street East Precinct, which covers lands along the Queen Street East corridor from Highway 410 in the east to Etobicoke Creek in the west. The CPPS would merge the currently separate processes of rezoning, minor variance and site plan control into one process. The objectives of the CPPS is to 'front-end' many of the required technical studies, meaning that once the CPPS is done, a developer only has to deal with site -specific issues, rather than larger -scale issues. This system is expected to significantly reduce the typical planning process timelines., 7.1.3 City of Toronto End -to -End Review The City of Toronto has commenced with an "End to End Review" of its development review process. As part of this review process, the City retained consultants that submitted a report to Council in the fall of 2019 which identified 31 systematic challenges that negatively impact development application outcomes in terms of efficiency, consistency, transparency, timeliness.e In total, the KPMG report provides 20 recommendations on how the City Planning can improve its operational model and service delivery. An integral part of the proposed transformation is to replace the current "hub and spoke" 4 Association of Municipalities of Ontario, Reducing Business Burdens ....... , City of Brampton, Staff Report re: Queen Street Corridor Land Use Study, (Sept 27, 2019) 6 KPMG, End -to -End Review of the Development Review Process, (August 16,2019) BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 50 September 2020 system, where a community planner solicits comments from other colleagues and departments, as this creates divisional conflict and disperses accountability. The proposed new system is based on a multi -disciplinary team model where there are team members representing various departments that collaboratively work on development applications together. Within the KPMG report, there are various proposals geared towards operational izing the new transformational model. These include but are not limited to: • Establish a formal mechanism to identify and accelerate applications with City-wide significance; • Shift specialized work to specialized teams to enhance system capacity; • Adopt a standard, City-wide approach to the use of guidelines and draft policies, and make that approach publicly available; • Establish circulation limits and automatic escalation to reduce application timelines and incentivize collaboration; • Establish a new, senior -level, Business Transformation Lead reporting to the Chief Planner with interdivisional accountability for the development review process; • Modernize the existing application workflow and management system; • Improve online application tracking to enhance transparency and improve customer service; • Improve the availability of development review -related information and data to enhance application quality; • Enhance transparency and consistency by defining stakeholder roles and developing standard operating procedures; • Improve project management -related tools and techniques to empower multidisciplinary teams; and • Modernize performance measures and adopt a review mechanism to monitor their on -going effectiveness. Many of the recommendations can be categorized within the `buckets' of technology improvement, project management enabled team collaboration, operational standardization, and stakeholder communication improvements. The KPMG report placed a lot of emphasis on improving communications and information transfer between applicant and planning staff and between staff. Improved communication was also deemed important to create consistent operational standards to enhance predictability, transparency, and accountability. As of July 2020, this initiative has led to the establishment of the "Concept to Keys" team that is focusing on improving the development review process, by BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 51 September 2020 consulting with customers on the nature and quality of the interactions they've had with the City. The insights yielded are being used to help drive improvements to process and operational izing technology. 7.1.4 City of Burlington — Cutting Red Tape Red Carpet Task Force In early 2019, the Mayor of Burlington assembled a "Red Tape Red Carpet Task Force" that spent 5 months collecting insights and ideas from the City's business community, partner organizations, and staff. This resulted in a report submitted to council in the fall of 2019 with 22 recommendations to improve department operations and customer service. The recommendations include the establishment of a Chief Business Development position at City Hall to deal with outreach and expediting applications, as well as, the creation of key performance indicators ("KPI"). In addition, the City hired consultants to take a deep dive into service delivery and functional improvements of various departments, including the development application process. The review looked at the site plan approval and building permit issuance stages of the process for infill development, both multi -residential and non-residential types. The report highlighted that as part of a building permit issuance process, applicants require both a zoning clearance and grading/drainage certificate before they apply for a permit. 7 This process came about due to streamlining efforts that were in reaction to Bill 124 (2005) that required a decision on a building permit to be issued within 10 business days. As of part of the certificate process, there is an aspirational target of having these completed in 5 to 7 days, before the 10-day building permit process begins. Despite there being many interwoven technical issues that are addressed in both certificate processes, each can be applied for separately. As well, often an applicant will require a tree clearance permit, but this is almost never applied for at the same time as the other certificates, notwithstanding there being an interplay between the zoning, tree preservation, and the building permit bylaws. The report noted that many applicants are unaware of the relationship between these processes and the City's website does not sufficiently highlight them. Other issues noted in the report include an organizational design that is not optimally designed for an efficient certificate review process with staff currently working on a "best effort" timeframe. Performance Concepts Consulting & Dillion Consulting, City of Burlington Service Delivery Reviews Technical Report, (December 19th, 2019). BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 52 September 2020 The report notes that there is consensus of four "best practices" emerging within the Greater Golden Horseshoe with regards to the site plan approval process. They are: 1. Mandatory pre -consultation meetings between applicants and city staff — this ensures that when applications are submitted, they are of a high -quality "complete" nature. 2. Zero -tolerance rule regarding the acceptance of incomplete application submissions — incomplete applications waste finite municipal staff resources that could be used on complete applications. 3. E-portal and workflow software implementation — helps staff organize and track applications, as well as communications internally and externally with the applicant. 4. Delegated site plan approval to senior City staff — allows for timelines to be compressed while continuing to be democratically accountable with more controversial applications being elevated to the attention of Council. Unlike other jurisdictions, Burlington already allows for staff delegation of site plan approval, as it is estimated to save an estimated 50 to 60 days from the usual approval process. However, further improvements in this regard would be to continue the default processing rule with as few escalations to council as possible. Currently, the vast majority of Burlington's progress on the recommendations established by the task force and consultants report have an "in -progress" status. The municipality is currently only in the early stages of this project, it is expected that it will take some time before implementation is complete. 7.1.5 City of Kawartha Lakes — Planning Approvals Task Force The City of Kawartha Lakes has been experiencing a steady and significant increase the demand for development planning staff usage, such as a 35% increase pre -consultation meetings between 2016 and 2017. In early 2017, City Council adopted a series of recommendations by the Planning Approvals Task Force, which was setup to help improve application processing and business engagement. A common complaint from stakeholders was a perceived lack of customer service by planning staff with the perception of negative or adversarial attitudes towards applicants, especially those with lesser knowledge of the building process. To rectify this issue, staff were required to take customer service training, and standards were created in operational processes, such as returning phone and emails within 2 business days or general inquires within business 5 days. Even if staff were not able to deal with an inquiry due BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 53 September 2020 to resource limitations, they were encouraged to engage with the stakeholder so that they know the message has been received. In addition to interpersonal operational improvements, the task force identified other types of resources to help improve operations. This included the creation of report requirement checklists and processing cost outlines to be provided to applicants during pre -consultation meetings. In the summer the 2017, the City implemented new software called "Cityworks", which allows staff to digitally store all information on properties, including the ability to track applications. While this tracker is not made available to the public yet, the software allows any staff member to view the application and answer general inquiry questions rather than requiring the specific planner on the file's attention, enabling a more efficient division of labour and a better use of staff time. In addition to providing staff with new internal technological capabilities, the City embarked on a rebuild of their municipal website to facilitate better communication. This new portal was completed in July 2017 and includes features such as development guides, checklists, and the ability to examine a properties official plan land -use designation or zoning within a dedicated page. Finally, the municipality also examined the possibility of expanding the power of the Director of Development Services with the ability to approve subdivision agreements after a council has permitted a Draft Plan Approval. However, staff found an LPAT case related to this process and recommended back to council that they continue to have oversight on the execution of subdivision agreements.$ At this time, the Director only has the ability to provide site plan approvals. 7.2 THEMES EMERGING FROM PROCESS REVIEWS There are several key themes involved in the process reviews underway, or recently completed Improving the Application Process Requires a Continuous Improvement Plan. There is no single `fix -all' that will improve development application processes other than through continuous examination and refinement. This requires a first step of identifying and standardizing as many processes as possible to foster an environment of consistency, accountability, and transparency. Standardization can involve creating simple rules such as the timeframes within which staff must respond to inquiries, or it can become as complex as creating templates for development application comments. Once processes F Local Planning Appeal Tribunal, formerly known as the Ontario Municipal Board ("OMB") BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 54 September 2020 have a baseline standardization, they can then be tracked and examined under the lens of a key performance indicator ("KPI") and from there be improved upon. Miscommunication Creates Conflicts that Lead to Delays The development application process requires the transfer of information not just between a single developer and the planner on the file. The process includes many different staff members in various departments for both the applicant and the municipality, as well as, outside consultants and other stakeholders like council members. It is important to examine information flows and how best to minimize potential areas of miscommunication, such as not knowing if an inquiry was received. Strategies to deal with this include providing a one -window portal that can be accessed either internally or externally to track developments, the creation of checklists and other materials that can be retrieved before a pre -consultation and are provided during the meeting, having a website with up-to-date information with detailed explanations of processes and other features like property data, contact information, online submission forms or payment options, etc. Pay Close Attention to Workflows and Team Composition How municipal staff deal with development applications affects how long it takes to process. There is no one correct organizational structure that can be implemented, however, many larger municipalities are finding a multi- disciplinary team -based approach is more effective in dealing with large volumes of very complex applications rather than a "hub and spoke" model. Regardless of the ultimate model used, careful attention should be paid to conflicts and redundancy in the workflow process. Empower Staff with More Delegated Powers Many municipalities are looking at ways to transfer approval authority to senior planning staff. This allows councils more to focus attention on difficult files, while allowing less complex applications to be fast -tracked. Providing an applicant with the ability to appeal a decision from staff to council ensures that applicants are still able to maintain accountability for their projects, even when approval authority is delegated outside of the municipal Council. Reduce Required Statutory Processes Where Possible Pre -zoning systems are a tool that some municipalities have implemented but many others have not. There is a potential to significantly improve the overall development process by using this tool, and minimizing the effort and technical studies required to bring an application forward. Have a Staff Member That "Owns" Transformation and Outreach BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 55 September 2020 While costly, many municipalities are creating senior -level positions that while not part of the direct development application process, have oversight and interactions with other staff members involved in the development review process. This provides another contact point between applicants and municipal staff that can help identify, escalate, and solve major problems in a timely manner and more importantly, prevent a similar problem from arising again in the future by transforming processes where needed. Improvements are Limited Without Technology There are many software packages that municipalities are using to help with internal project tracking and workflow management. These software packages can allow for more standardized project management -based team collaboration, so staff can focus more time on value-added tasks, such as examining the proposed grading of a building, instead of more administrative tasks, like dealing with minor inquiries or spending time trying to find a paper copy of a file that would be more readily accessible with an electronic file management system. While the trend of adopting internally -oriented technology tools is apparent in many municipalities, most municipalities have yet to adopt external -facing tools. The benefit of this technology and things such as e-portals, is that they can provide a convenient access point for application submissions or fee payments, as well as, reduce delays associated with intake. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 56 September 2020 8 CONCLUSIONS Based on a review of municipal planning processes, planning features, government charges, and other elements of research undertaken into the studied municipalities, there are several overarching findings about how municipalities compare, and recommendations for municipalities. 8.1 SUMMARY OF FINDINGS Figure 39 summarizes the findings from the three major elements studied that feed into housing affordability — getting housing approved, ensuring approvals are done in an expedient manner, and government charges that get borne by buyers/renters. Overall, the municipalities of Barrie, Burlington and Oakville rank atop the list, with all three municipalities having top-6 ranks in each of the categories. The largest municipalities by population among those studied (Toronto, Mississauga, Brampton, Markham, Vaughan) all rank on an overall basis no higher than 10tn Figure 39 Overall Scorecard -Planning Features, Government Charges, Approvals Timelines Score Planning Government Approvals (Average Features Charges Timelines Rank) rank = est rank = owest rank = est) etter Barrie 2 3 5 3.3 Burlington 2 6 3 3.7 Oakville 2 9 4 5.0 Clarington 7 1 9 5.7 Os haw a 16 5 1 7.3 Rickering 11 2 10 7.7 Innisfil 15 7 2 8.0 Milton 7 10 n.a 8.5 Whitby 16 4 7 9.0 Toronto 1 14 15 10.0 Vaughan 6 17 8 10.3 Mississauga 9 11 13 11.0 Brampton 5 15 14 11.3 Richmond Hill 11 13 11 11.7 Caledon 9 12 16 12.3 Aurora 11 16 12 13.0 BWG 14 8 17 13.0 Markham 18 18 6 14.0 Note: Government Charges based on average of low-rise and high-rise scenarios, as measured by government charges as % of housing prices Source: Altus Group Economic Consulting Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 16 18 BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 57 September 2020 8.2 RECOMMENDATIONS 8.2.1 8.2.2 8.2.3 Need for Increased Transparency and Simplicity Many municipalities do not have clear development guidelines or application checklists. An even greater number of municipalities not provide specific terms of reference for required technical studies and reports. Increasing transparency and specificity surrounding application requirements is a proactive, and relatively easy way to cut down on incomplete application submissions and reduce the number of resubmissions required. Delegate More Approval Authority to Staff and Officials That development approvals can be delayed because of Excerpt from City of Toronto Development Guide APPLICATION REQUIREMENTS R EO UWE N E NTS of the CITY OF TO RONTO ACT, PLA N N ING ACT andlor Regulahon, AO DITIONAL REOUIREPIEN TS of tht OFFICIAL PLAN In .ddr:'p to:he Pn•e W ryuriwnema of xha Pt•nninq Ace, ,f,f lW3owmq nnn•pn.<nhe0 infprma,ion well .lap M repoued to Malua,• . oiinning appllCWro unitse,t a d.l•ffnln ed that C•rtaM nWlq, plan.. el a "■ and hirROM an not ."b-hl.. Pronllon of The oft"nal infMh6l4n+ndK/led under the Chi Plan. Ion'rq By-law- Flan of Suhdrn44n, Pon of Candommium aid C-1 lo, 5•e•r hoadmgs . m.ndatwy under the Place-9 A" and [his Olhc.at plan Php lion of the add,tgnal inforrrytgn ind"tod undo,,h• Silo Ptah Contrpt Appforal head.nq rl ml rcy ndaW DO may M neuested by the City ire order to enahte a ute plan control aPp6-11-10 he evaluated. Completed ApplkeilWri FPrm- .nclud•rg Permraeion C. R.produce ar Pro a- Pf Re —ite Cpyes. Applicanla an re4"— fP dal'rant Lary permission m npnene•, m whpte u m part am tlocum•n, w■mittM •. an of a enmpf n appl+dwon far.=al o_.;nrwemn in gaff ,rpa . or di.[rrpupo� tp the puhl+c fpr,h. purpose of • • • • • ■ app4caI_ __ and (hl proyide. na,oruh[e number o! cop.ea of any �ch.eo._' rr part. rhrrcrf, m pope• arwler elrrtrenrr ,ae Cin ary for tern., cm uu one ""hvn n tn. puhpr for th. purpose of appuc-rh Oopndary Sur ay - shewnhq and gW,ndylnq,he orals] of all land puCelfll relevant 10 the d"topmefa prop t. ■ • • ■ is is Appr•p—le, Plans am Orawugs Planniiho Rationale -coma In �nq a il—riptwn of pm- i ppUcatio ,u1,.tiPn. mc[u elnq any cmnmu nay wnnach. puwc nenueemeetmg[� an6 nse p—re. r,fax r—led try tM.ca ppLn, ut.,.:nce ' • a ' • wnh C'ly s"hOarda 0 r.lt Am•n6menfs Aew Nut, 0-9n S,aneards Ch-11isl • ■ A, Ouatity Study Ar horisl Tna Pne r leen Report ■ • is issues with timing of Arclaeoloq;c IA,ees,m.nt- for ph,w"iea ,•lM Cny', data hoe a.1 Wdl coma•n.nq arc naeo:egr[a1 p•terd.l • ' municipal committee or Anelt-t—L Ceentreel 6md.U-- when warr.Med* 0.-4 Pr nature •f 0. prep d! 6—lopmant. council meetings is a A,e Segment Review -when r".hid! by: he pr ono d. Swrn . . .:3 potentially avoidable issue for some Source: City of Toronto Official Plan applications. Staff should be given the authority to assess and approve applications that broadly meet official plan requirements but need additional zoning changes, where those zoning changes are within the bounds of permitted discretion for the delegated authority. This can be done through increased use of development permit systems, or other forms of delegated authority. This can reduce council workloads and can eliminate unnecessary political interference in applications that meet the intent and policies of municipal plans. Use of Technology Its important that municipalities invest in more advanced development tracking software, and potentially gradually phase -in online development submission systems. The changes to municipal development submission BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 58 September 2020 systems in response to the COVID-19 pandemic will be an important first step in getting e-portal systems acceptance on a broad scale. Technology can be a critical component in improving development approval timelines by supporting improved workflows, transparency, and creating a more collaborative environment within and across planning and related municipal departments involved in the development application review process. BILD Altus Group Economic Consulting Municipal Benchmarking Study Page 59 BILD AltusGroup Municipal Benchmarking Project Study Overview DURHAM REGION / SIMCOE October 29, 2020 Study Objective How are municipal rocesses, fees, and AltusGroup charges contributing to housing affordability issues in the Greater Toronto Area? altusgroup.com Changes in Absorbed Single -Detached Housing Prices 2006-2018 Percent Change 450% (0 Tripling+ 400% 350% a 00 00 300% � N o LO o N '�t 250% N 200% 150% 100% 50% 0% Doubling+ 0 0 CO o C � o LO - cc N o N o o' 0 �01�1 ���e Source: CMHC Housing Now, 2006 and 2018, Year -End, Absorbed Single -Detached Housing Prices altusgroup.com li&' AltusGroup High -Rise Price Index (GTA): 2006: $314,370 2018: $774,554 Change: +146% 0 (O c o N o m00 CO o CD 0 r` G� 3 _�_ Altus Overview of Study Methodology and Results Major Elements of Study AltusG • Demographic and Other Municipal Data Population, dwelling units by type, tenure Housing starts Migration Municipal staffing levels • Government Charges Analysis DCs Parkland CIL Section 37 Planning / Permit Fees • Timelines Analysis Average timelines for municipal approvals Costs of delay ($ / sf / month) 5 altusgroup.com Interpretation of Results Included in the Rankings Municipal charges Planning tools, features Transparency and availability of information needed to meet application requirements Approvals timelines May be above average due to sound work processes, having sufficient staffing resources, etc. These are factors largely in a municipality's control A high ranking means that absent other factors (see list to the right), a solid foundation is otherwise in place to positively impact the ability of affordably priced, timely housing to be approved / built. altusgroup.com IAL AltusGroup 6 Findings (Demographic & Statistical Analysis) Change in Housing Starts by Structure Type GTA Study Municipalities, 2010-2019, by 5-Year Period �� AltusGroup GTA (excl. City of Toronto) City of Toronto 100% 100% ° 90 /o • 2010-2014 2015-2019 ■ 2010-2014 2015-2019 0 90/o 0 80% 80% c) . o 70% 70% 60% 60% 50% 50% 40% 40% 0 30% M 00 30% 20% M o 20% OCO o 10% o N 10% (0 o 0 0 C 0 0% N � 0% CI?O ■ o O o = cli Singles Semis Row Apt Singles Semis Row Apt 7 altusgroup.com Findings (Demographic &Statistical Analysis) Change in Share of Rental Tenure Housing Starts by Municipality 2010-2014 vs. 2015-2019 60% 55% ■ 2010-2014 2014-2019 50% 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% ■ 1 1 1 1 1 G° "\ae altusgroup.com GTA lacking new rental supply (only Toronto & Oshawa > 10%) 0 CP M 1 I , M hoc ���, �v tea P� 0 � o G AL AltusGroup x°� C.. C,, s Findings (Demographic &Statistical Analysis) Sources of Migration, Greater Toronto Area, 2009/10 - 2018/19 400,000 200,000 I -200,000 -400,000 7i709)924 207,874 International flows in/out International Immigration (net) Non -Permanent Residents (net) Students, temporary workers, etc. Overall Net Change: +694,946 persons (doesn't include births/deaths) Domestic flows in/out -653 -222,199 Interprovincial Migration (net) In/out of Ontario from other Provinces �� AltusGroup Intraprovincial Migration (net) In/out of GTA to/from other parts of Ontario 9 altusgroup.com Findings (Demographic & Statistical Analysis) Intraprovincial Migration by Age Group, 2018-2019, Durham Region 2,500 Number of Persons 2,269 2,000 1,500 1,000 500 0 -43 -500 0-14 15-24 altusgroup.com 1,731 1,272 25-34 35-44 -207 45-54 -192 55-64 122 65-74 AltusGroup 60 75+ 10 Findings (Demographic & Statistical Analysis) Intraprovincial Migration by Age Group, 2018-2019, Simcoe County 2,500 Number of Persons 2,000 1,574 1,500 1,000 500 0 0-14 altusgroup.com 462 15-24 2,001 9 25-34 35-44 1,103 45-54 1,004 Ow 55-64 512 65-74 AL AltusGroup 245 75+ Findings (Demographic & Statistical Analysis) Intraprovincial Migration by Age Group, 2018-2019, Peel Region 3,000 Number of Persons - 2,000 1,000 0 -1,000 -1,179 -2,000 -1,981 -2,239 -2,457 -3,000 -2,730 -3,257 -4,000 -5,000 -5,152 -6,000 0-14 15-24 25-34 35-44 45-54 55-64 65-74 altusgroup.com AL AltusGroup -541 75+ 1 Findings (Demographic & Statistical Analysis) Intraprovincial Migration by Age Group, 2018-2019, York Region 3,000 Number of Persons 2,500 2,000 1,718 1,500 1,000 500 39 0 -500 on -1,000 -936 -1,088 -1,027 -1,500 -1,360 -2,000 altusgroup.com -258 0-14 15-24 25-34 35-44 45-54 55-64 65-74 AL AltusGroup -115 75+ 13 Findings (Demographic & Statistical Analysis) Intraprovincial Migration by Age Group, 2018-2019, Halton Region 2,000 Number of Persons 1,667 1,500 1,359 1,000 852 500 1 P 0 -302 -500 -401 -1,000 altusgroup.com 62 -362 �� AltusGroup 37 0-14 15-24 25-34 35-44 45-54 55-64 65-74 75+ 14 Findings (Demographic & Statistical Analysis) AltusGroup Intraprovincial Migration, Age Group 25-44, 2018-2019, Greater Toronto Area 4,000 3,003 3,118 2,211 2,000 I -2,000 -1,321 -4,000 -8,000 -7,133 -10,000 -12,000 -12,131 -14,000 Halton Peel Toronto York Durham Simcoe 15 altusgroup.com Findings (Demographic & Statistical Analysis) Municipal Planning Employees per 1,000 Housing Starts AL AltusGroup 160 mployees per 1,000 Housing Starts 143 Canada Average (excl. GTA): 58 140 0 GTA Average: 75 120 100 80 69 60 40 40 10 21 20 0 88 74 53 57 104 jjU7177 ■57 59 41 35 41 �a�.\��o�o� 6 o� °o,o� oo� o,�0 �4o�°Go§ ��og�o\x\Oc' 5 Note: employee counts are FTE, and include community planning, urban design, building departments. Does not include departments such as transportation, engineering, etc. 16 altusgroup.com Methodology — Government Charges aituoup • Municipal charges imposed on new housing development Includes the following municipal charges: Development Charges, Planning Fees, Density Bonusing, Parkland CIL, etc. Does not include provincial / federal charges (sales taxes, mortgage insurance, etc.) Modelling based on two hypothetical developments scenarios: Low -Rise Scenario: 125 ground -related units (75 single -detached, 50 townhouses) High -Rise Scenario: 125 unit condominium apartment building 17 altusgroup.com �� Changes in Development Charge Rates, by Municipality, 2009-2019 AltusGroup Percent Change 600% 0 N LO 500% 400% 0 300% N c -11 N 00 200% o 0 0 c CO8_0 o \° rl- LO CO CO CO LO ti � o 0 100% rn o LO o 0 0 0% ■ °a°���A G �°�°� ' d ��a�� Gam o �� O�� � G� 0J Source: Altus Group Economic Consulting based on Municipal DC by-laws and pamphlets 18 altusgroup.com Findings (Municipal Charges —Low-Rise) Municipal Charges per Unit, Ranked, Low -Rise Scenario Municipal Charges as % of Housing Price Ranked, Low -Rise .senaric �� AltusGroup I (Vaughan Markham Toronto Richmond Hill Aurora Mississauga Brampton Caledon Oakville }ldhitby Pickering Barrie Oshawa Innisfil Mifton Burlington RWG Clarington Yark Yark n.a. Yark Yark Peel Peel Peel Halton Durham Durham 5imcoe Durham simcoe Halton Halton simcoe Durham 148.083 133,1 EA 134,653 124,723 116.232 168,978 103,019 96,647 W,224 75,647 74,923 73,997 72,827 72,149 71,644 66,M5 65,954 54,258 'I Vaughan Brampton Markham Toronto Innisfil Aurora Caledon Richmond Hill Barrie Oshawa Mississauga Whitby BWG Oakville Pickering Milton Clarington Burlington York Peel Yark n.a. simco-e ar Peel Yark simcoe Durham Peel Durham 5imcoe Halton Durham Marlon Durham Haftcn 14.5% 11.8% 11.6% 14.7% 14.6% 14.3% 16.2% 10.0% 9.8% 9.7% 9.5% 9.4% 9.0% 8.5% 8.4% 8.3% 7.1 % 5.6% 2 2 3 3 4 4 E 5 6 7 8 9 10 10 11 11 12 12 13 13 14 14 15 15 16 1B 17 17 18 18 19 altusgroup.com Findings (Municipal Charges —High-Rise) IAL AltusGroup Municipal Charges as % of Housing Price Ranked, High -Rise Municipal Charges per Unit, Ranked, High -Rise Scenario Scenario 1 Markham YDrk 96,233 1 :aurora YDrk 16.3% 2 Vaughan YDrk 31,216 2 Markham YDrk 15.13% 3 Burlingto-n Habn 77,65D 3 Brampton Peel 13.3% 4 Taranto- n.a. 76,762 4 Vaughan YDrk 12.3% 5 Aurora YDrk 72.466 5 Burlington Halton 12.4% 6 Richmond Hill YDrk 63.323 6 Richmond Hill Ynrk 11.7% 7 Mississauga Peel 67,9M 7 Milton Halton 11.2% 8 Brampton Peel 64,206 8 Caledo-n Peel 11.1% 9 Oakville Halton 57.493 9 Toronto n.a. 11.0% 10 Caledon Peel 55.493 19 Mississauga Peel 10.8% 11 11ilton Halton 51.373 11 Oakville Halton 14.5% 12 Barrie n.a. 46,946 12 BWG Simcoe 9.9% 13 Innisfil Simcoe 43,840 13 Whitby Durham 3.0% 14 Oshawa Durham 41.671 14 Oshawa Durham 3.0% 15 }Nhitby Durham 38,828 15 Innisfil Simcoe 7.5% 16 Pickering Durham 38,213 16 Pickering Durham 7.1% 17 BING Simcoe 34.037 17 Clarington Durham 6.9% 18 Clarington Durham 36,497 18 Barrie n.a. 6.9% 20 altusgroup.com Findings (Municipal Charges) Canadian Average (excl. GTA) $33,600 .0% GTAAverage $93,700 9.7% Durham Region municipal avg. $69,400 8.7% Canadian Average (excl. GTA) $20,600 4.1 % GTA Average Durham Region municipal avg. altusgroup.com $57,800 10.7% $37, 300 7.5% IAL AltusGroup 21 Findings (Municipal Charges) Canadian Average (excl. GTA) $33,600 .0% GTAAverage $93,700 9.7% Simcoe municipal avg. $70, 700 9.8% Canadian Average (excl. GTA) $20,600 4.1 % GTA Average Simcoe municipal avg. altusgroup.com $57,800 10.7% $38, 900 8.7% IAL AltusGroup 22 Findings (Process) � AltusGroup - • • Ability to appeal land use decisions X Mandated timelines for appeal decisions X Triggering of appeal rights after certain number of days X Timed review of preliminary submissions / declaration of complete X submission Online application portal X Development guide showing required studies for various types of X X applications Clear terms of reference for required studiesINEW& Requirement to review Municipal Plans on regular basis X Requirement for a minimum supply of designated and/or serviced lands Have development application status tracker X X Online zoning information portal 23 altusgroup.com Findings (Best Practices) AltusGroup Some municipalities are undertaking reviews of their development application and related processes. Key themes/directions emerging from reviews (CHBA/BILD reports): • Pre -zoning systems (community planning permits) to help reduce required processes; • Delegated approval authority for certain `obvious' applications; • Simplifying/combining certain planning amendment processes; • Increasing transparent and predictability of application process; Improved customer service Improved communication regarding application requirements • Since COVID-19, have seen numerous municipalities move to online application submission 24 altusgroup.com Methodology - Municipal Processes and Approvals AltusG Review of Municipal Processes • How long are typical municipal approvals taking? Created database of recent development approvals for each municipality We collected almost 1,500 recently approved developments (between CHBA and BILD studies), with significant samples for most municipalities (including 680 in GTA) Each approval was categorized by type of approval (zoning, subdivision, site plan, etc.), type of development (low -density, high -density) to allow for more refined analysis Start: Date of Complete Application / Finish: Date of Municipal Approval Doesn't include timelines for refused applications, or timelines for applications ultimately approved by courts/tribunals (those some of those are sampled separately), etc. Doesn't include timelines for initial land designation, pre -submission, building permit stages, etc. 25 altusgroup.com Findings (Approval Timelines) Regina Charlottetown Saskatoon London Edmonton St. John's Winnipeg Calgary Surrey Vancouver 4 months 8 months 12 months 16 months J L- Oshawa Innisfil Burlington Oakville Barrie altusgroup.com Markham Whitby Vaughan Clarington Pickering Richmond Hill Aurora Mississauga Hamilton Delta Halifax Ottawa Burnaby 20 months 24 months 28 months Brampton Toronto Caledon BWG �� AltusGroup 32 months 26 Preliminary Findings (BILD Study -Timelines) • Timelines for Municipal Approvals by Type of Application Official Plan Amendments 16 months 8-37 months 12 months Zoning By-law Amendments Plan of Subdivision Plan of Condominium Site Plan altusgroup.com 15 months 15 months 9 months 18 months 9-25 months 7-25 months 8-14 months 12-30 months 12 months 13 months 11 months 04 months IAL AltusGroup 27 Preliminary Findings (BILD Study -Timelines) • Timelines for Municipal Approvals by Type of Application Official Plan Amendments Zoning By-law Amendments Plan of Subdivision Plan of Condominium Site Plan altusgroup.com 16 months 8-37 months 19 months 15 months 9-25 months 13 months 15 months 7-25 months 16 months 9 months 8-14 months 8 months 18 months 12-30 months 18 months IAL AltusGroup M 28 Findings (Approval Timelines) • Gaining approval from LPAT (including time for municipality to make decision) takes just under double the time it takes to gain municipal approval altusgroup.com Approval Timelines by Source of Approval Manttl� 2d ■ Muni 6pal Cuumil Approvals ■ LRAT Approvals 0 25 24 'S 15 b O PA ZBL Sub , &On QnLrce: ARus Gmup bas-d on ;&Mus munlotal and LPAT records *Above table presents averages for all GTA municipalities Ir 24 AL AltusGroup ,s 27 CDndDm Hum 31te Plan 29 Findings (Costs of Delay) • Estimated the following indirect costs: Taxes payable on vacant land Increases to municipal charges and fees Carrying costs of loans (interest costs) Construction cost / labour wage inflation • Put indirect costs on a `per month' basis to allow for scalability of estimates Used two hypothetical scenarios, one low- rise, one high-rise Same scenarios as Municipal Charges analysis altusgroup.com AltusGroup Low -Rise $1.46 / sf /month High -Rise $2.21 / sf /month 30 Overall Findings • Combined Ranking - combination of rankings for planning features, government charges and approval timelines • Potential subsequent studies will allow for time -series analysis of how things are changing (improving or deteriorating) Note: rankings include things municipalities can control (municipal charges, planning tools, approval timelines), and do not include many things they do not necessarily control (LPAT timelines, servicing constraints, community opposition). Therefore, rankings should be thought of as the "potential" municipalities have to ensure an affordably priced housing supply to meet housing demand, if other potential impediments were not present altusgroup.com AL Altus Rank: Planning Features + Rank: Government Charges + Rank: Approvals Timelines Overall Score Clarington #4 #14 Oshawa #5 #21 Pickering #6 #18 Whitby #9 #27 *Note — relative rankings may differ slightly between two studies due to different elements considered in planning feature scoring across the two studies Overall Findings • Combined Ranking - combination of rankings for planning features, government charges and approval timelines • Potential subsequent studies will allow for time -series analysis of how things are changing (improving or deteriorating) Note: rankings include things municipalities can control (municipal charges, planning tools, approval timelines), and do not include many things they do not necessarily control (LPAT timelines, servicing constraints, community opposition). Therefore, rankings should be thought of as the "potential" municipalities have to ensure an affordably priced housing supply to meet housing demand, if other potential impediments were not present altusgroup.com AltusGroup Rank: Planning Features + Rank: Government Charges + Rank: Approvals Timelines Overall Score Barrie #1 #4 Innisfil BWG #7 #23 32 _�_ Altus Thank You Questions / Comments