Item - 2022.PH35.9

The Planning and Housing Committee:

1. Directed City Planning staff to continue consultations with stakeholders on the draft Inclusionary Zoning Implementation Guidelines and report back with final recommended Implementation Guidelines in the first quarter of 2023.

This report presents the results of stakeholder consultations conducted throughout this spring on the draft Inclusionary Zoning (IZ) Implementation Guidelines and provides an update on ongoing area-specific analysis.

City Council adopted IZ Official Plan policies, a Zoning By-law Amendment and draft Implementation Guidelines on November 12, 2021. The Official Plan policies require between 5 and 22 per cent of new residential gross floor area to be secured as affordable rental or ownership housing for a period of 99 years.

As part of City Council's adopted IZ policy framework, Council directed staff to consult and report back with final recommended Implementation Guidelines in the first half of 2022. The draft Guidelines were developed to ensure clarity and transparency with respect to the City's implementation of IZ. They address a number of matters in order to provide clear and transparent outcomes, including guidance on the size and functional layout of the affordable units, household eligibility, tenant selection and access, resale provisions, details about what would be secured in s.35.2 agreements, direction on when offsite development would be supported, and reporting and monitoring.

A stakeholder working group was initiated with members of the development industry and non-profit housing providers in early 2022 in order to gather input on the draft Guidelines. Input was solicited on the following areas: building and unit design, administration of affordable rental units, administration of affordable ownership units, offsite requirements, and transition. Based on input from stakeholders, City staff recommend conducting additional consultations prior to finalizing the Guidelines and report back in the first quarter of 2023 on the final recommended Guidelines.