On May 12, 2025, the Government of Ontario unveiled a major initiative to combat the housing crisis and to reinvigorate the Ontario development industry: Protect Ontario by Building Faster and Smarter Act, 2025. The objectives of this bill are to streamline complex construction processes, accelerate critical project delivery and protect Ontario workers from the impact of U.S. tariffs. The bill introduces a series of changes to various legislative frameworks and approval processes, which are expected to directly affect many developers and indirectly impact numerous other stakeholders.

In short, these ambitious changes aim to expand the provincial government’s authority and involvement in the development sector. This increase in provincial oversight is accompanied by a deliberate and explicit delineation of municipal powers within the development process. In addition, the proposed reforms focus on eliminating unnecessary complexity and addressing the housing crisis by streamlining approval procedures and facilitating development. Several changes are also proposed to the Development Charges [“DC”] framework, with a focus on standardization, clarity and predictability.

The Ministry of Municipal Affairs and Housing [“MMAH”] published a technical briefing on May 12, 2025. The Government of Ontario also held a press conference where several ministers gave comments.

Summary of proposed changes

The proposed changes touch different areas. We have organized them in seven different categories:

  • Municipal authority and governance
  • Zoning and land use flexibility
  • Building code Modernization & Innovation
  • Infrastructure, water and wastewater services
  • DC reform
  • Digital transformation & process modernization
  • Education & infrastructure acceleration

While the new bill introduces several significant reforms, we have highlighted below the most impactful proposals.

  1. Municipal authority and governance

    The provincial government has conducted an examination of municipal dynamics and is proposing to clarify power boundaries and intervene in certain processes by:

    • Reaffirming the primacy of the Ontario Building Code by prohibiting municipalities from passing or enforcing local bylaws related to the construction of buildings. Municipalities will not have the authority to require their own unique standards beyond the Building Code.
    • Prohibiting municipalities from adding or altering required studies and reports for complete development applications under the Planning Act and City of Toronto Act. They will be limited to what is currently in the Planning Act/City of Toronto Act and their official plans except where/if MMAH approves new requirements – only the province would have the authority to allow additional requirements.
    • The provincial government will act to limit the requirements for a complete application, specify the allowable study types and force municipalities to accept studies signed off by certified professionals. This will also limit the municipal study requirements for development applications. (removing the “provide any other information or material that the council considers it may need” from section 34(10.2) of the Act, for example).
    • Ontario is considering case-by-case discretion for the Minister to make decisions under the Planning Act, such as official plan approvals, without being bound to provincial policy consistency.
    • Giving Ontario regulation-making powers to:
      • List topics that cannot be required for a complete application;
      • Specify all allowable study types; and,
      • Require municipalities to accept studies signed off by certified professionals
  2. Zoning and land use flexibility

    In line with its goal to streamline and enhance the efficiency of the development process, the Ontario government is proposing to:

    • Allow minor zoning relief, such as reduced setbacks, in most residential areas without needing approval from a municipal committee of adjustment, if within a prescribed percentage of the required standard. More specifically, MMAH would have the regulation-making authority to allow variations to be permitted “as-of-right” if a proposal is within a prescribed percentage of setback requirements in specified lands. Rates will be adjustable by MMAH.
    • Allow the MMAH to impose conditions that must be fulfilled—typically by the developer—before an MZO comes into effect.
  3. Development charges reform

    Given that DCs are a critical and often controversial issue, they are proposed to be reformed by:

    • Creating a new regulation-making authority to allow eligible development charges services to be combined for the purpose of applying DC credits. This same new regulation-making authority is proposed to define what qualifies as local service infrastructure for DC purposes and to set clear limits and exceptions on which capital costs (e.g., land, buildings, computer equipment) can be included in DC rate calculations, as suggested by OHBA and AMO.
    • Deferring all residential (non-rental) DC payments until occupancy, rather than at permit issuance, and to remove interest charges on all deferred DCs—including rental, institutional, and ownership projects.
    • Allowing municipalities to reduce DC rates without completing a full DC background study or other procedural steps.
    • Future developments would pay either the current DC rate or the frozen rate from the time of site plan or zoning application—whichever is lower.
  4. Infrastructure acceleration

The Ontario government is also taking measures to expedite the construction timelines for key infrastructure such as transit, roads, water and wastewater projects.

Conclusion

While these changes represent a promising effort to improve several key aspects of the development industry, the sheer volume of reforms may raise questions and cause confusion among the ranks of developers and other stakeholders. We will monitor the progress of legislation through the legislature, and will report further as needed. Gowling WLG boasts a dedicated team of municipal and infrastructure lawyers with decades of experience, ready to assist anyone navigating these significant changes.