What is affordable housing? Province updating definition to ease access to construction incentives

The provincial government will soon clarify the term “affordable housing” in an effort to get more units constructed.

In the midst of a housing affordability crisis, Municipal Affairs and Housing Minister Steve Clark told a capacity crowd at the 2023 Association of Municipalities of Ontario (AMO) Conference on Tuesday that updating the definition could help unlock financial incentives to get more units built faster.

According to Clark, legislation will likely come forward this fall in order to, “Update the definition of affordable housing for the purpose of accessing development charge discounts and exemptions.”

Development charges (DCs) are municipal fees on new construction intended to offset the financial impact of growth on city services like libraries, fire halls and sewage treatment.

The minister added that the updated definition of affordable housing is still being finalized, but it will likely reflect recent changes to provincial policy statements.

London is in the midst of a commitment by council to create 3,000 new affordable housing units over five years.

Those units typically include a 25 or 30 year term during which time the rental rate will be at least 20 per cent less than average market rent in the London-St. Thomas region.

Clark’s speech was consistent with the provincial government’s message at the AMO Conference that municipalities must prioritize housing construction and affordability.

He said updating the definition aims to ensure that affordable housing is truly affordable — everywhere.

“Reflect the ability of local households to pay for housing, and reflect the reality of different housing markets,” Clark said.