Ontario Construction News staff writer
Critical delays in Ontario’s municipal site plan approval process are costing the province billions annually and significantly hindering efforts to build more housing, according to a new study released by the Ontario Association of Architects (OAA).
The report, commissioned by the OAA and conducted by Altus Group, found that municipalities across the province are taking an average of 23 months to review site plan applications. This timeframe dramatically exceeds the provincially mandated 60-day timeline for such approvals.
These prolonged delays come with hefty price tags, adding significant costs to housing development. For a typical 100-unit apartment building project, the study estimates that site plan holdups translate into additional monthly costs ranging from $230,000 to $299,000. These escalating costs inevitably place further financial strain on developers and are ultimately passed down, impacting housing affordability for potential homeowners and renters.
On a broader scale, the study estimates the annual economic cost of these inefficiencies in the site plan approval process at approximately $3.5 billion in lost opportunities across Ontario. This figure represents a staggering increase from the $900 million estimated when the OAA conducted a similar study in 2018, highlighting a worsening problem despite provincial efforts to accelerate development.
The OAA, the self-regulating body for architecture in the province, undertook the study to update previous reports from 2013 and 2018. The findings arrive amidst ongoing government efforts to address the housing crisis, including legislation like Bill 23, the More Homes Built Faster Act, 2022. The OAA stated the results underscore an urgent need for policy reform to reduce these housing-related delays and the associated costs.
“These findings highlight an urgent need to streamline the site plan application process across Ontario to address the province’s housing crisis,” said Ted Wilson, president of the OAA’s governing Council, in the release accompanying the report. “Meaningful policy changes are necessary to ensure municipalities adhere to timelines and build the housing supply Ontarians urgently need.”
Site plan approval is a critical step in the development process, dealing with the technical and design aspects of a proposed project beyond the basic zoning, such as building placement, landscaping, parking, drainage, and site access. While essential for ensuring well-designed communities, the OAA study suggests the current process is deeply flawed and counterproductive to housing supply goals.
The OAA emphasized its role in protecting the public interest through the regulation of architectural practice and stated it intends to use the study’s findings to push for change. The association plans to leverage these insights in discussions with government stakeholders, advocating for specific, targeted reforms. The goal is to expedite the approval process, reduce development costs tied to delays, and encourage the timely construction of needed housing projects across Ontario.
The OAA report itself provides a more detailed analysis of the findings and methodologies used. The association indicated its leadership is available for further discussion on the report’s implications.
The study adds quantifiable data to the long-standing concerns voiced by the development and construction industry regarding the complexities and timelines associated with municipal approvals in Ontario, pointing towards a systemic issue that impacts affordability and the province’s ability to meet its housing targets.