London, Ont. risks losing ground in its effort to meet affordable housing target

The list of council-approved affordable housing units needs an asterisk— they may never be built.

New zoning applications could nullify agreements struck with developers to include affordable units in residential buildings that have yet to break ground.

The loophole puts many planned units in doubt, according to downtown Councillor David Ferreira, “We have something like 20 or 30 applications on paper right now with bonus [zoning] provisions and I’m worried about the precedent that would set.”

A planning process called “bonus zoning” had allowed city council to negotiate an agreement with developers that would permit a slightly larger building on a property in exchange for a public benefit like including a percentage of affordable units.

However, the province scrapped bonus zoning as a tool for municipalities last September.

On properties where construction has not begun, a new zoning application would no longer be subject to the previous bonus agreement for affordable units.

A rezoning sign recently returned to 599-601 Richmond St. at the southwest corner with Central Avenue.

In June 2022, council rezoned the property for an eight-storey, 57 unit, mixed-use building based on a bonus zone agreement that includes four residential units at 85 percent average market rent.

Rendering of a proposed 12-storey building at 599-601 Richmond St. (Daryl Newcombe/CTV News London)

A new zoning application seeks to permit up to 12 storeys and 89 units on the existing parking lot, and “removal of the previous bonus zone and requirements for affordable housing units and quality urban design.”

President of Westdell Development Corporation Iyman Meddoui explained that the bonus zone couldn’t be included in the new request— but he is willing to fulfill the previous commitment.

“Bonusing rules don’t apply, however, we’ve told staff [in the] planning department that we’ve agreed to this, we’re going to honour it,” Meddoui told CTV News. “We are going to continue forward with what was provided as part of the original application.”

“There’s only about four affordable units there, but we need every single unit we can get,” explained Ferreira, referencing council’s commitment to 3,000 new affordable units over a five-year period.

Ferreira points out that negotiating the original bonus zone had a cost to the municipality, “Extra staff resources, extra money from the taxpayer purse that is being paid for stuff like this when we already put the work in.”

Until the province enacts new planning tools, the inclusion of affordable units in new construction is up to developers.

A 35-storey high-rise at the corner of King Street and Waterloo Street was approved by council on Tuesday— but with no requirement to include affordable units.

Ferreira and city staff are hoping to negotiate the inclusion of some affordable units after-the-fact through goodwill discussions with the developer.

“We’re still trying to cut into the 3,000 affordable units with tools that don’t necessarily have the teeth that I would personally like to see,” he said.