The Provincial Planning Statement, 2024 - Summary of Key Changes
On August 20, 2024, the Minister of Municipal Affairs issued the Provincial Planning Statement, 2024 (the “PPS 2024”), as a policy statement under subsection 3(1) of the Planning Act. On the same day, the Province issued Ontario Regulations 328/24 and 329/24, which revoke the designation of the Greater Golden Horseshoe Growth Plan Area and associated transition provisions under Ontario Regulation 311/06, as of October 20, 2024.
A copy of the PPS 2024 can be accessed here.
As of October 20, 2024, the PPS 2024 will replace the Provincial Policy Statement 2020, and A Place to Grow: Growth Plan for the Greater Golden Horseshoe, 2019 (the “Growth Plan”). This new planning document includes a number of changes to the current planning regime as it applies across the Province.
Of note, the Province released the first draft of the proposed Provincial Planning Statement on April 6, 2023. Further drafts were released on June 16, 2023, and April 10, 2024. Only minor changes have been made since the last proposed draft was released on April 10, 2024.
Transition
The PPS 2024 will apply to all decisions in respect of the exercise of any authority that affects a planning matter made on or after October 20, 2024. In other words, the exercise of any authority that affects a planning matter on or after October 20, 2024, shall be consistent with the PPS 2024.
Subsection 3(6.1) of the Planning Act allows the Minister to make regulations providing for transitional matters which, in the opinion of the Minister, are necessary or desirable to facilitate the implementation of a policy statement issued under subsection 3(1).
The Ministry of Municipal Affairs and Housing is currently seeking feedback on whether there are any specific planning matters in process that should be addressed through a transition regulation. This could include, for example, development applications or planning matters under appeal.
The comment period is currently open until October 4, 2024 on the Environmental Registry, which can be accessed here.
Key Changes
The following is a high-level summary of the key policy changes that have been introduced by the PPS 2024. We welcome opportunities to engage in a more detailed discussion of these changes, please contact us for more information.
Municipal Comprehensive Reviews
“Municipal Comprehensive Review” was previously defined in the Growth Plan. This definition was not carried into the PPS 2024.
The Growth Plan contained policies that generally only permitted conversion of employment lands and the expansion of settlement areas through a municipal comprehensive review. As of October 20, 2024, the conversion of employment lands to non-employment lands and the expansion and creation of new settlement areas may occur at any time, provided that the requirements have been met.
However, as noted below, the Planning Act will still govern if private requests for such changes are eligible to be appealed.
Growth Forecasts (Policy 2.1)
The PPS 2024 does not require municipalities to plan for specific population and employment forecasts for an identified horizon year, which was previously the case pursuant to Schedule 3 of the Growth Plan.
The PPS 2024 states that planning authorities shall base population and employment growth forecasts on Ontario Population Projections published by the Minister of Finance, which may be modified as appropriate (Policy 2.1.1).
Despite this requirement, the PPS 2024 permits municipalities to continue to forecast growth using population and employment forecasts previously issued by the Province for the purposes of land use planning (Policy 2.1.2).
At the time of creating a new Official Plan and each Official Plan update, sufficient land shall be made available to accommodate an appropriate range and mix of land uses to meet projected needs for a time horizon of at least 20 years, but not more than 30 years, informed by provincial guidance. Planning for infrastructure, public service facilities, strategic growth areas and employment areas may extend beyond 30 years (Policy 2.1.3)
The PPS 2024 also requires municipalities to keep their zoning by-laws up to date by establishing minimum densities, heights and other development standards to accommodate growth and development (Policy 6.1.6).
Housing (Policy 2.2)
The PPS 2024 amends the PPS 2020 Housing Policies so that planning authorities shall provide for an appropriate range and mix of housing options and densities by, among other things, permitting and facilitating all types of residential intensification, including the development and redevelopment of underutilized commercial and industrial sites such as shopping malls and plazas for residential use, development and introduction of new housing options within previously developed areas, and redevelopment which results in a net increase in residential units (Policy 2.2.1.b).
The term “affordable” housing has also been incorporated into the PPS 2024 definition of “housing options”. The definition for affordable in the PPS 2024 reads:
“a) in the case of ownership housing, the least expensive of:
1. housing for which the purchase price results in annual accommodation costs which do not exceed 30 percent of gross annual household income for low and moderate income households; or
2. housing for which the purchase price is at least 10 percent below the average purchase price of a resale unit in the municipality;
b) in the case of rental housing, the least expensive of: 1. a unit for which the rent does not exceed 30 percent of gross annual household income for low and moderate income households; or 2. a unit for which the rent is at or below the average market rent of a unit in the municipality.”
We note that this definition is similar to the previous definition in the PPS 2020, however it replaced “regional market area” with “municipality.”
Settlement Areas and Settlement Area Boundary Expansions (Policy 2.3)
The PPS 2024 directs that planning authorities shall establish and implement minimum targets for intensification and redevelopment within built up areas, based on local conditions (Policy 2.3.1.4). This is a change from prior drafts of the PPS 2024 which only “encouraged” planning authorities to establish and implement these minimum targets. Municipalities are also encouraged to establish density targets for designated growth areas, based on local conditions (Policy 2.3.1.5).
The PPS 2024 now allows private applications to expand a settlement boundary by eliminating the requirement that expansions can only occur through a municipal comprehensive review. As of October 20, 2024, Municipalities will be able to consider new settlement areas and settlement area boundaries at any time.
The tests to be applied in considering settlement area boundary expansions and identifying a new settlement area only require municipalities to “consider” certain criteria (Policy 2.3.2.1).
However, where a municipality seeks to identify a new settlement area, it must be demonstrated that the infrastructure and public service facilities to support the development are planned or available (Policy 2.3.2.2).
This change follows the Bill 185 amendments which permitted private applicants to appeal a municipality’s refusal or failure to adopt an official plan amendment that seeks to alter any part of the boundary of a settlement area, (as long as the boundary alteration does not include any land within the Greenbelt).
Strategic Growth Areas and MTSAs (Policy 2.4)
The concept of strategic growth areas in the Growth Plan has been integrated into Policy 2.4 of the PPS 2024. Planning authorities are encouraged to identify and focus growth in strategic growth areas which include major transit station areas (“MTSAs”).
The PPS 2024 requires that planning authorities delineate the boundaries of MTSAs on higher order transit corridors through a new Official Plan or official plan amendment. The delineation must define an area within an approximately 500 to 800 metre radius of a transit station which maximizes the number of potential transit users that are within walking distance to the station (policy 2.4.2.1).
The PPS 2024 requires municipalities to plan for specified minimum density targets for residents and jobs within MTSAs on higher order transit corridors (Policy 2.4.2.2). However, planning authorities may make a request to the MMAH to approve an Official Plan or official plan amendment with a target that is lower than the applicable target established in Policy 2.4.2.2 where it can be demonstrated that the target cannot be achieved (Policy 2.4.2.4). The PPS 2024 also permits planning authorities to plan for MTSAs that are not on higher order transit corridors by delineating boundaries and establishing minimum density targets (Policy 2.4.2.5).
The PPS also introduces a new category of strategic growth area: “frequent transit corridors”. “Frequent Transit” is defined as “a public transit service that runs at least every 15 minutes in both directions throughout the day and into the evening each day of the week”. Planning authorities are required to plan for intensification on lands that are adjacent to existing and planned frequent transit corridors, where appropriate (Policy 2.4.3). We note that although “Frequent Transit” was a concept, and a defined term under the Growth Plan, “frequent transit corridors” were not specifically recognized as a category of strategic growth area. Previously, “areas with existing or planned frequent transit” may have been identified as strategic growth areas. Under the PPS 2024, frequent transit corridors are now recognized as strategic growth areas on their own merit, and shall be planned for, not just potential intensification areas as previously.
Employment Areas (Policy 2.8)
The PPS 2024 updates the definition of “employment area” to be consistent with the definition introduced to the Planning Act under Bill 97, which also takes effect on October 20, 2024. The PPS 2024 excludes office, institutional and commercial (retail) uses from the definition of employment area, unless associated with a primary employment use.
The following chart provides a side-by-side comparison of the definitions of “Employment Area” and “Area of Employment” in the PPS and Planning Act respectively, as amended:
The development of industrial, manufacturing and small-scale warehousing uses that can be operated adjacent to sensitive land uses without causing adverse impacts is also encouraged outside of employment areas, in strategic growth areas and other mixed-use areas where frequent transit services are available (Policy 2.8.1.2)
The PPS 2024 also requires development on lands within 300 metres of employment areas to avoid, or where avoidance is not possible, minimize and mitigate potential impacts on the long-term economic viability of employment uses within existing or planned employment areas, in accordance with provincial guidelines (Policy 2.8.1.3).
It is noted that notwithstanding the new definitions in Bill 97 and the PPS 2024, the provincial legislation also provided the opportunity for municipalities to attempt to shelter office, institutional, and retail uses from exclusion from employment areas. For example, the City of Toronto has adopted OPA 668 and OPA 680 in response to these new definitions.
Employment Area Conversions
The PPS 2024 now permits municipalities to remove lands from employment areas at any time (i.e. without requiring a municipal comprehensive review), subject to satisfying the conversion criteria set out in Policy 2.8.2.5.
However, unlike the settlement area boundary expansion policies, no changes were made to the Planning Act provisions that prohibit landowners from appealing a municipality’s refusal or failure to decide an official plan amendment or zoning by-law amendment that seeks to permit an employment land conversion request. As a result, while one can file an application for employment conversion with the municipality at any time, there is no right to appeal the municipality’s refusal or non-decision to the Ontario Land Tribunal.
Large and Fast-Growing Municipalities
The PPS 2024 introduces a new definition for “Large and Fast-Growing Municipalities” which are listed in Schedule 1. The list identifies 29 Large and Fast-Growing Municipalities, such as Toronto, Vaughan, Pickering, Ajax, Markham, Richmond Hill, Hamilton, Mississauga and Whitby, among others.
Large and Fast-Growing Municipalities are encouraged to plan for a minimum density target of 50 residents and jobs per hectare (Policy 2.3.1.5), and are required to undertake watershed planning to inform planning for sewage and water services and stormwater management, and the protection, improvement, or restoration of the quality and quantity of water. All other Municipalities are also “encouraged” to undertake these efforts (Policy 4.2.3).
Disclaimer: This document is for information purposes only and does not constitute legal advice to any party. The contents of this document reflect our firm’s general review and observations concerning legislative and regulatory instruments, which are subject to change. Please seek professional legal advice on matters of direct concern to you.