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HomeMy WebLinkAboutPDS-069-23Clarftwn 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: Council Date of Meeting: December 18, 2023 Report Number: PDS-069-23 Submitted By: Carlos Salazar, Deputy CAO, Planning and Infrastructure Reviewed By: File Number: Report Subject: Mary -Anne Dempster, CAO PLN 11.27 By-law Number: Resolution#: C-174-23 Housing Pledge for 13,000 Units by 2031 — Units Issued and Starts Update, 2023 Recommendation: 1. That Report PDS-069-23 and any related delegations or communication items, be received; 2. That a copy of Report PDS-069-23 be forwarded to the Ministry of Municipal Affairs and Housing with final unit count as of December 31, 2023; and 3. That any funds allocated to the Municipality of Clarington for meeting the 2023 Housing Targets be directed to the Municipality's non-profit housing fund. Municipality of Clarington Report PDS-069-23 Report Overview Page 2 As of December 6, 2023, Clarington has met the unit target allocated by the Province for 2023 and is now eligible to receive funding from the Building Faster Fund (BFF). The fund is a new three-year, $1.2 billion program that will provide up to $400 million per year to municipalities that meet or exceed their annual housing targets. The provincial Government assigned a target of 13,000 residential units by 2031 and a target of 953 units 2023 for the Municipality of Clarington. In March 2023, Clarington Council signed the required Housing Pledge to meet this target and outlined a series of actions to meet the targets. These actions include service improvements, and efficiencies in the Planning and Infrastructure Services Department. We are confident that, subject to external market and economic conditions, the municipality will meet its annual targets as applications in Secondary Plan areas get approval, and infill developments and additional dwelling units in existing and new residential buildings get developed. 1. Background 1.1 On October 25, 2022, the Minister of Municipal Affairs and Housing (MMAH), issued a Minister's Order to 29 large and rapidly growing Ontario municipalities, including Clarington, to sign a Housing Pledge to meet the Provincial Government's target of providing 1.5 million new homes in the next decade (Province ERO bulletin No. 019- 6171). Clarington was assigned 13,000 new units as a target. 1.2 On February 27, 2023, Council endorsed Clarington's Housing Pledge to the Province. that the Pledge commits Clarington to support the Ontario Government's initiative to build 1.5 million new homes over the next decade through a series of planning policy and process improvement initiatives. The signed pledge was forwarded to the Province on March 1, 2023, ahead of the March 22, 2023, deadline (see Attachment 1). 1.3 On August 21, 2023, Premier Ford announced the new BFF, a new three-year $1.2 billion program to help municipalities meet or exceed the housing targets they have pledged to achieve by 2031. The BFF is intended to provide up to $400 million over three years in financial support for municipalities that can be directed toward housing - enabling infrastructure and related costs that support community growth. 1.4 On October 23, 2023, the Municipality received a Letter from MMAH outlining Clarington specific annual housing targets under the BFF (see Attachment 2). 1.5 Clarington's annual housing targets under the BFF are outlined in Table 1 below. Municipality of Clarington Report PDS-069-23 Target 2023 2024 2025 Municipality of Clarington 953 1,083 1,300 Table 1 — Clarington's Annual Housing Start Targets Under the BFF Page 3 1.6 As of December 6, 2023, the Municipality has met the housing target under the BFF, see Table 2 below. Municipality of Clarington Units Issued, 2023 1 1015 Municipality of Clarington Starts, 2023 1956 Table 2 — Municipality of Clarington units Issued and Started, 2023 (As of December 6, 2023) 2. Discussion and Comments Building Faster Fund (BFF) 2.1 Annual targets are determined by taking each municipality's proportion of the overall 1.5 million home goal and applying that proportion against province -wide annual targets, which will increase each year over the course of the Building Faster Fund. For example, if a municipality's target represents 5% of 1.5 million homes, the annual targets for that municipality would be 5% of the province -wide targets for 2023, 2024 and 2025. For the first year of the program, 2023, province -wide annual housing targets will start at 110,000 new housing starts. From there, housing targets will ramp up to 125,000 in 2024, 150,000 in 2025 and 175,000 beginning in 2026 (one year beyond the end of the BFF program period). 175,000 units per year beginning in 2026 would be the pace needed to achieve 1.5 million homes by 2031. Based on these calculations, if Clarington meets 100% of the annual target, we would be eligible to receive 4 million dollars, with the ability to receive additional funding should the target be exceeded. Municipality of Clarington Report PDS-069-23 Page 4 2.2 Based on the fund calculations by the Municipality, if Clarington meets 100% of the annual target, we would be eligible to receive up to 4 million dollars, with the ability to receive additional funding should the target be exceeded. 2.3 On October 23, 2023, the Municipality received a Letter from MMAH outlining Clarington specific annual housing targets to be eligible for the BFF (see Attachment 2). CMHC Starts and Completions Survey 2.4 For the Province to determine a Municipality's unit starts, Canada Mortgage and Housing Corporation (CMHC) completes a monthly Starts and Completions Survey. The survey is conducted through site visits. These visits are used to confirm that new residential units have reached set stages in the construction process. 2.5 A "Start" is defined as the beginning of construction work on a building. This is usually when the concrete has been poured for the whole of the footing around the structure or an equivalent stage where a basement will not be part of the structure. 2.6 In a letter dated October 23, 2023, from the Province, the Minister clarified that in addition to single -detached, semi-detached, townhouses, and apartments, additional dwelling units and other institutional housing types (such as Long -Term Care beds) could be included when calculating unit starts in relation to local targets. 2023 Clarington Housing Unit Starts 2.7 As seen in Table 1, the Municipality of Clarington was provided a 2023 start target of 953 units, to be eligible to receive 100% of the BFF funding. As described in section 2.6 of this report, the start of a unit is considered when construction has begun, more commonly the footing concrete has been poured. 2.8 As of December 6, 2023, Staff has confirmed that the 956 units have started, and foundation has been poured in 2023, exceeding our provincial target, see Table 2. 2.9 The commitments within the Housing Pledge in Attachment 1 will assist in streamlining the development approval process and undertaking major development policy initiatives like the review of our Official Plan and completion of Secondary Plans as we continue towards achieving our 13,000-unit pledge. 3. Financial Considerations 3.1 It is anticipated that 100% of the BFF funding allocated to the Municipality will be awarded as a result of meeting the provided targets. Municipality of Clarington Report PDS-069-23 Page 5 3.2 Increased development could result in the need to provide services to the lands (including parks, roads, sidewalks) which may be development charge eligible. Further, resources in Planning and Infrastructure Services may be necessary to carry out the land use planning policy initiatives, and process development applications and building permits to meet the annual targets. 4. Concurrence This report has been reviewed by the Deputy CAO, Finance and Technology/Treasurer who concurs with the recommendations. 5. Conclusion 5.1 It is respectfully recommended that Council receive this report and the associated residential housing start numbers for 2023. Following Council receipt, Staff will forward the report and associated information to the MMAH requesting our share of the Building Faster Fund. We also recommend that funds be allocated to the non-profit Housing Fund created by the municipality. Staff will bring forward the framework for the funds in the Spring of 2024. 5.2 As demonstrated, the Municipality has met the housing starts as allocated by the Province to be eligible for the Building Faster Fund. It is essential to note that the realization of the units is subject to market conditions and available regional infrastructure. Staff Contact: Staff Contact: Brendan Grigg, Deputy Chief Building Official 905-623-3379 x 2313 or bgrigg(a clarington.net and Amanda Tapp, Manager of Development Review Division 905-623-3379 ext. 2427 or atapp(a)_clarington.net. Attachments: Attachment 1 — Clarington Signed Housing Pledge (March 2023) Attachment 2 — October 23, 2023, Letter from MMAH Interested Parties: There are no interested parties to be notified of Council's decision. Attachment 1 to PDS-069-23 Municipal Housing Pledge Clarington's Municipal Housing Target is 13,000 by 2031 The following represents actions that may be facilitated by the Municipality of Clarington to implement the Municipal Housing Pledge: Facilitating Growth • Official Plan: Completing the Secondary Plans currently in progress by 2026 will facilitate housing units within Clarington's existing urban areas that will contribute towards the achievement of the short-term target to 2031. Concurrently, staff will initiate and complete the Clarington Official Plan Review that will address longer -term growth and development to 2051. • Zoning: Develop zoning to implement newly approved and updated Secondary Plans to provide for zoning that aligns with approved built forms and densities, and complete new urban area zoning by-law to provide permissions outside of secondary plan areas that support new housing units and reduce the need for site -specific zoning amendments, which can be costly and resource consuming. Zoning for the Bowmanville and Courtice MTSAs will be prioritized to be completed within a year of the Province's approval of Durham's MTSAs, as required. • Consider Community Planning Permit System: The Clarington Official Plan provides for the use of the Community Planning Permit System tool, which combines zoning, minor variances and site plan into one process. Upon the completion of the necessary secondary planning and zoning work, staff will explore locations and situations in which a Community Planning Permit System might be appropriate and support the housing target commitment, such as for affordable housing or within MTSAs. • Community Improvement Plans: Clarington's existing CIPs are due to be updated in 2023/2024. Opportunities to support the development of affordable housing units through CIP programming will be explored as part of the review and update. • Municipal Heritage Register: Clarington's Municipal Register will be reviewed and cultural heritage resources list can be updated to better enable staff to proactively address the conservation of resources on lands subject to residential development applications. • Engineering Design Standards: Continue initiative to update Clarington's Engineering Design Standards to align with current best practices and improve processing timelines during the detailed engineering review stage of residential subdivision applications. • Streamlining Development Approvals Processes: A comprehensive set of initiatives is underway by the Municipality to modernize, streamline, improve accessibility to, and accelerate processes for managing and approving housing applications, including maximizing capabilities of new software and technology, implementing an application prioritization process, hiring of necessary staff resources and consultant expertise, modification of pre -consultation processes, and delegation of additional authorities to staff. Supportive Servicing and Infrastructure Infrastructure Master Planning: Clarington is committed to doing its part to work with Durham Region to align land use planning and infrastructure planning to maximize the efficiency of servicing secondary plan areas to support the construction of new homes. Staff will explore an Infrastructure Master Plan where it would be beneficial to align local municipal transportation and servicing infrastructure capital projects with secondary planning to support development. Enhancing Support for Housing Encouraging Additional Dwelling Units: Build on recent official plan and zoning amendments that permit 2nd and 3'd residential units to incorporate additional Bill 23 direction. Encourage developers to provide additional units in the design of dwellings at the time of purchase and sale to increase ADUs and affordable housing options. A citizen -friendly guide to ADUs and promotion on the Municipality's social media site may be explored. Affordable Housing Toolkit: Continue to implement initiatives endorsed as part of Clarington's Affordable Housing Toolkit, including the use of surplus municipal lands for non-profit housing. An inventory of available lands will be generated and the requirements of new developments to provide affordable housing, either through monetary contributions or land. Prioritize Applications: Clarington will consider criteria that prioritize applications that achieve the Municipality's affordability and sustainability objectives and which are an overall benefit to the community. The proposed criteria to prioritize applications is: o non-profit housing and long term care facilities, o applications that provide for a minimum ten percent affordable units, o applications that incorporate significant sustainable and walkable design features, o projects that exceed the minimum parkland and open space requirements to the benefit of the residents and the broader community, and o applications on the former Greenbelt lands at Nash and Hancock Roads, in accordance with provincial direction and timelines. Standardized Terms of Reference: Staff will create or update terms of reference for studies required in support of development applications to provide a clear expectation of requirements and minimize processing time and number of submissions. Collaboration and Partnerships • Provincial and Federal Partners: Clarington is committed to collaborating with the Province (including Metrolinx) and Federal partners to support and implement projects and funding initiatives that support affordable and quality housing, including the timely development of the Bowmanville and Courtice GO Train Stations. • Development Industry: The Municipality will continue to foster its collaborative relationship with the development industry, including regular meetings bi-annually with the development industry to identify opportunities for mutual improvement to facilitate the achievement of the housing target. Monitoring and Reporting • Key Indicators: Key performance indicators will be developed to inform annual monitoring reports to Council on the delivery of the target, including (i) number of registered or draft approved units in the pipeline (ii) length of time units have been approved without proceeding to the next stage of development (iii) which lands are not proceeding once approved (iv) number of additional dwelling units (v) number of refunded application fees, and (vi) OLT appeals based on non -decisions. • Annual Monitoring Report: Staff will provide a yearly monitoring report to update Council on the status of initiatives, progress towards Clarington's 13,000 housing unit target, infrastructure availability, influencing market conditions, opportunities and challenges, staff resources and any amendments to the pledge that may be required. • Dormant Application Follow-up: Focus staff resources on applications that are progressively moving forward, close applications that have been dormant, and allow to expire those approvals for applications that have not proceeded to building permit. Staff will contact the developer(s) subsequent to the release of staff's annual housing monitoring report to encourage them to advance execution of the appropriate agreements and/or build. Consideration will be given to a measurable deadline for developers to complete their projects within a two -to -three-year time frame. External Influencing Factors outside of Clarington's Control The Pledge and Action Items provided herein is a commitment that the Municipality will strive to do its part to meet the assigned housing target for Clarington. However, housing markets, rising interest rates, borrowing requirements, senior government policies, cost of materials, land values, delivery of public services, labour shortages, and ability for the private sector to construct the units are outside of the Municipality's control and will influence and affect the achievement of the target. With the above in mind, the Municipality of Clarington pledges to the Minister of Municipal Affairs and Housing to facilitate the construction of 13,000 housing units by 2031. Mayor Adrian Foster Attachment 2 to PDS-069-23 Ministry of Municipal Affairs and Housing Office of the Minister 777 Bay Street, 17th Floor Toronto ON M7A 2J3 Tel.: 416 585-7000 October 23, 2023 Your Worship Mayor Adrian Foster Municipality of Clarington mayor@clarington.net Dear Mayor Foster: Ministere des Affaires municipales et du Logement Bureau du ministre 777, rue Bay, 17e etage Toronto (Ontario) M7A 2J3 Tel.: 416 585-7000 234-2023-5137 As you know, on August 21, 2023, Ontario announced the Building Faster Fund, a new three-year, $1.2 billion program that will provide up to $400 million per year to municipalities that meet or exceed their annual housing targets. Ten per cent of the overall funding will be reserved for small, rural and northern communities that have not yet been assigned a housing target. This program is currently in the final stages of program design, informed by consultations underway with the Association of Municipalities of Ontario, the City of Toronto, and the Housing Supply Action Plan Implementation Team. However, I am writing today to provide details on your municipality's annual housing targets to inform municipal planning for the year ahead. These are the targets that would apply under the Building Faster Fund provided you commit in writing as head of council to your overall municipal housing target if your municipality has not already previously pledged to meet this housing target and have provided feedback on the recommendations of the Housing Affordability Task Force by October 16, 2023. We also hope and expect that municipalities will submit a council -approved pledge by December 15, 2023, if they have not already done so, outlining the steps they will take to achieve their housing targets, but approval of this pledge is not a condition for accessing funding under the Building Faster Fund. Annual targets will be determined by taking each municipality's proportion of the overall 1.5 million home goal and applying that proportion against province -wide annual targets, which will increase each year over the course of the Building Faster Fund. For example, if a municipality's target represents 5% of 1.5 million homes, the annual targets for that municipality would be 5% of the province -wide targets for 2023, 2024 and 2025. This ambitious and realistic approach will provide time for municipalities to ramp up approvals processes to the necessary levels. For the first year of the program, 2023, province -wide annual housing targets will start at 110,000 new housing starts. From there, housing targets will ramp up to 125,000 in 2024, 150,000 in 2025 and 175,000 beginning in 2026 (one year beyond the end of the BFF program period). 175,000 units per year beginning in 2026 would be the pace needed to achieve 1.5 million homes by 2031. .J2 -2- For your municipality, this means your annual housing targets under the BFF would be: Target 2023 2024 2025 Provincial 110,000 125,000 150,000 Municipality of Clarington 953 1,083 1,300 Performance against these targets will be evaluated based on housing starts, as defined by Canada Mortgage and Housing Corporation's Starts and Completions Survey, as well as Additional Residential Units (for example, basement suites) and other institutional housing types (such as Long -Term Care beds) created in a given calendar year. Please note that the data source for Additional Residential Units is to be determined and more information on what counts will be available once consultations are completed and a final program design is announced. For additional details on the design of the Building Faster Fund at this stage, please refer to the Backgrounder at this link: https://news.ontario.ca/en/backgrounder/l003396/ontario- providing-new-tools-to-municipal ities-to-build-more-homes-sooner Finally, please note that beginning in October 2023, the Ministry of Municipal Affairs and Housing will begin publishing on its website each municipality's annual housing targets, as well as progress towards those targets to date based on housing starts data, on our ministry website. Other data types, such as Additional Residential Units, will be added as they become available in the future. I look forward to continuing our work together to ensure that more people can afford a place to call home. Sincerely, Hon. Paul Calandra Minister of Municipal Affairs and Housing c: Mary -Anne Dempster, CAO, mdempster@clarington.net June Gallagher, Clerk, jallagher@clarington.net Hon. Rob Flack, Associate Minister of Housing Michael Klimuntowski, Chief of Staff, Minister's Office Martha Greenberg, Deputy Minister Joshua Paul, Assistant Deputy Minister, Market Housing Division Sean Fraser, Assistant Deputy Minister, Planning and Growth Division Caspar Hall, Assistant Deputy Minister, Local Government Division