Mounting pressures on housing and infrastructure are shaping Ontario’s policy decisions. In recent years, Ontario has struggled with significant issues, including growing housing costs, supply shortages, and massive infrastructure demands. These challenges are becoming increasingly severe due to the province’s rapidly rising population, which is set to jump by 27.4% by 2051, adding more than 4.4 million people.
On May 12, 2025, against the backdrop of these challenges, the government introduced the Protect Ontario by Building Faster and Smarter Act, 2025 (Bill 17). The new legislation aims to address the need for housing and infrastructure by streamlining development approvals, reducing red tape, and promoting more efficient land use. It builds on previous measures such as the More Homes Built Faster Act, 2022 and the More Homes for Everyone Act, 2022. Together, these laws signal the government’s ongoing efforts to simplify development rules, standardize municipal processes, and accelerate approvals for new projects.
In this blog, we review Bill 17’s key provisions, discuss its potential impacts and the legal risks associated with them, and offer some practical tips for developers.
Key Changes Under Bill 17
Bill 17 introduces a wide range of reforms. It amends eight acts in total, including the following:
Development Charges Act, 1997
Through Bill 17, Ontario proposes simplifying and standardizing development charges, the one-time fees imposed by municipalities on developers to help cover various costs. The bill amends the Development Charges Act, 1997 by reducing or eliminating development charges for affordable and rental housing.
Building Code Act, 1992
The new legislation will also make notable changes to the Building Code Act, 1992. This Act will be updated to prevent municipalities from passing bylaws about the construction or demolition of buildings.
Planning Act
The Planning Act will also be the subject of significant changes:
- Inclusionary zoning: A new regulation sets a maximum of 5% of units as affordable, for up to 25 years, in major transit areas.
- Complete application rules: The studies developers must submit in the application phase will be limited. Certain reports, like sun/shadow, wind, urban design, and lighting, may no longer be required.
- Minister approval for official plans: Municipalities will need written approval from the Minister of Municipal Affairs and Housing if they wish to change the rules for what a complete application must include.
- School zoning: Schools can be built on urban lands zoned for residential uses.
- Conditional Minister’s Zoning Orders: Section 47 of the Planning Act sets out the Minister’s power to impose a Minister’s Zoning Order (MZO). MZOs allow the Minister to expedite development projects, including affordable and transit-oriented housing. Under Bill 17, the Minister can now impose reasonable conditions on the “use of land or the erection, location, or use of buildings or structures” through MZOs.
Bill 17’s Impacts on Developers
The Protect Ontario by Building Faster and Smarter Act, 2025 is consequential for various stakeholders, including municipalities and property owners. For developers, however, it presents a unique set of opportunities and challenges, including:
Faster Approvals
By limiting what municipalities can require in complete applications, developers may benefit from shorter timelines and fewer studies, which can be costly. The process of streamlining planning approvals can significantly reduce delays.
Lower Costs
Reduced or waived development charges can make projects more financially feasible. By lowering upfront costs, the Act may enable developers to move forward with projects that would otherwise be difficult to advance, particularly those involving affordable or rental housing.
New Project Opportunities
The new inclusionary zoning regulation and expanded use of MZOs may open doors for strategic development near major transit hubs.
Along with these opportunities comes a degree of uncertainty. Developers may benefit from the Minister’s greater power to override municipal decisions and allow more flexible zoning. But they should be wary that this could mean sudden policy shifts that might unexpectedly derail their projects.
Practical Tips for Developers
Developers who wish to take advantage of the opportunities afforded by Bill 17 should consider the following practical tips:
1. Communicate Project Plans
Developers should be proactive about communicating their project plans to municipal and provincial authorities. This will help identify whether the site in question could qualify for streamlined approvals and prevent any surprises under the new legislation.
2. Reassess Projects in Light of Reduced Development Charges
With lower or waived development charges for certain properties, revisit your financial models to determine whether a project might now be more feasible.
3. Align Projects With Provincial Priorities
The government is showing support for affordable, rental, and transit-oriented development. Consider positioning projects within these categories for quicker approval timelines and other benefits.
4. Update Internal Documentation
Ensure your application templates, checklists, and study requirements align with the new rules for “complete applications.” Submitting outdated materials could lead to delays.
5. Seek Out Opportunities for Conditional MZOs
The Minister’s newfound ability to impose conditions on MZOs could create opportunities for fast-tracked projects, especially those aligned with provincial housing and infrastructure goals.
6. Monitor Evolving Regulations
The government may continue refining the regulations and guidance under Bill 17. Monitor updates and consult planning or legal experts to ensure compliance and mitigate risks.
Bill 17: A New Chapter in Ontario’s Growth Strategy
In summary, Ontario’s Building Faster and Smarter Act, 2025 represents another major step in the province’s ongoing effort to accelerate housing delivery and infrastructure development. While the Act introduces clear benefits, such as faster approvals, reduced costs, and more flexibility through MZOs, it also shifts power to the provincial level, which could create new uncertainties for developers.
To succeed under this new framework, developers should focus on proactive engagement, careful compliance with evolving requirements, and a willingness to adapt project strategies to align with provincial priorities. Developers who stay informed, reassess their portfolios, and build strong relationships with municipal and provincial authorities will be best positioned to navigate the changes and seize emerging opportunities.
Contact Baker & Company for Innovative Commercial Real Estate Services in Toronto
The skilled commercial real estate lawyers at Baker & Company help property owners and developers understand and comply with Ontario’s Building Faster and Smarter Act, 2025, as well as all other relevant rules and regulations. We have extensive experience with residential and commercial construction contracts, commercial leasing, and public sector and mixed-use developments. Our work includes projects such as hotels, residential and commercial condominiums, office towers, shopping centres, industrial facilities, and development properties. To book a consultation on your commercial real estate matter, please call 416-777-0100 or contact us online.
