The Ontario government faced backlash from municipalities after introducing changes to the fees developers pay when building new homes under Bill 23 at the end of 2022. Local leaders criticized the government, claiming the new rules would cost them millions and lead to property tax increases for residents. Premier Doug Ford and housing minister Steve Clark launched audits in response to the uproar, focusing on six cities including Toronto, Brampton, and Mississauga. However, the audits were cancelled without sharing the results, with the housing minister citing a desire to improve relationships with municipalities as the reason for their termination.
Municipalities involved in the audits, including Newmarket and Mississauga, were left in the dark about the findings before the cancellation. Freedom of information requests for the audit reports were rejected by privacy officials with the Ministry of Municipal Affairs and Housing, further adding to the mystery surrounding the audits. Housing Minister Paul Calandra later revealed that the audits were cancelled, in part, due to the dissolution of the Region of Peel and ongoing reviews of Bill 23 and 109. The decision to cancel the audits raised questions about whether the findings indicated that cities were losing money.
In response to concerns raised by cities, the Ontario government proposed changes in a new housing bill in April, which aimed to address some of the issues brought up by municipalities. The proposed changes included walking back certain aspects of Bill 23 and Bill 109 to appease local governments. The latest reversal eliminated a plan to phase in municipal development charges and shifted some costs back to developers. While the changes were informed by municipal feedback, cities like Mississauga and Newmarket acknowledged that these adjustments did not fully address all of their financial concerns.
Despite the changes in the latest housing bill, municipalities like the Region of Peel expressed that the new legislation falls short of making them financially whole. However, officials indicated that the revisions emphasized the government’s commitment to addressing municipalities’ financial needs and working collaboratively with local partners. Housing Minister Calandra stated that with the changes, including additional infrastructure and building funds, the government was making strides in a more cooperative approach to municipal finances. While some city leaders appreciated the government’s efforts, concerns over the financial impact of the new law on municipalities remained.
