Ontario Releases Provincial Policy Statement, 2024
Introduction
On August 20, 2024, the Province of Ontario (the “Province”) released the final version of the Provincial Planning Statement, 2024 (the “PPS, 2024” or the “Statement”) which is set to take effect on October 20, 2024. The PPS, 2024 was approved by the Lieutenant Governor in Council by Order in Council No. 1099/2024. This issuance of the PPS, 2024 comes after a significant period of public consultation on two prior drafts and is welcome news for anyone with an interest in land development in Ontario.
Our office has been tracking the evolution of the PPS, 2024, and our summaries can be found below:
Ontario Releases a Revised Draft Provincial Planning Statement (April 12, 2024)
Ontario Makes a Statement: An Overview of the Proposed Provincial Policy Statement, 2023 (April 14, 2023)
The PPS, 2024 contains limited revisions to the last draft issued in April 2024. Below we provide a comprehensive summary of the PPS, 2024, highlighting important changes from the Provincial Policy Statement, 2020 (the “PPS, 2020”).
Provincial Planning Statement
The PPS, 2024 replaces A Place to Grow: Growth Plan for the Greater Golden Horseshoe (“Growth Plan”) and the PPS, 2020 by integrating them into a single planning document which applies province-wide.
The PPS, 2024 introduces some entirely new policies and definitions that were not contained in the PPS, 2020. The PPS, 2024 carries forward and, in some cases, modifies policies and definitions from the PPS, 2020. The PPS, 2024 also incorporates and, in some cases, modifies a number of existing Growth Plan policies and definitions.
The PPS, 2024 is considered a policy statement for the purpose of section 3 of the Planning Act. 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, subject to a possible transition regulation. From then on, subject to any transition regulation, all municipal decisions, as well as comments, submissions or advice affecting planning matters, will be required to be consistent with the PPS, 2024 pursuant to subsections 3(5) and 3(6) of the Planning Act.
With its focus on intensification and freeing up new land for development, the Province’s Minister of Municipal Affairs and Housing anticipates that the PPS, 2024 will set the stage for a “long-term building boom.”
29 Large and Fast-Growing Municipalities
The PPS, 2024 contains certain policies that only apply to large and fast-growing municipalities, which are those with the greatest need for housing. The Statement defines large and fast-growing municipalities by reference to the 29 municipalities listed in a schedule to the Statement.
Vision
The PPS, 2024 contains an updated vision with an emphasis on “the building of more homes for all Ontarians.” The vision also restates the Province’s goal of getting at least 1.5-million homes built by 2031.
Planning for People and Homes
Policy 2.1.1 provides that planning authorities shall base population and employment growth forecasts on Ontario Population Projections published by the Ministry of Finance and may modify these projections as appropriate. Notwithstanding this policy, policy 2.1.2 provides that municipalities may continue to forecast growth using population and employment forecasts previously issued by the Province for the purposes of land use planning.
Policy 2.1.3 provides that, 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. The policy also provides that planning for infrastructure, public service facilities, strategic growth areas and employment areas may extend beyond this time horizon.
Policy 2.1.3 further provides that where the Minister of Municipal Affairs and Housing has made a zoning order, the resulting development potential is to be considered in addition to projected needs over the planning horizon established in the official plan. At the time of the municipality’s next official plan update, this additional growth would be required to be incorporated into the official plan and related infrastructure plans.
Policy 2.1.6 removes the concept of “healthy, liveable and safe communities” contained in the PPS, 2020 and instead provides that “[p]lanning authorities should support the development of complete communities.” Complete communities is a new defined term. Certain considerations for planning authorities that were contained in the PPS, 2020, such as “avoiding development and land use patterns which may cause environmental or public health and safety concerns” and “promoting development patterns that conserve biodiversity,” among others, are not included in the PPS, 2024.
Housing
Policy 2.2.1(a) re-introduces the requirement from the PPS, 2020 that planning authorities establish and implement minimum targets for the provision of housing that is affordable to low and moderate income households. The Statement re-introduces low and moderate income households as a defined term (with slight modifications from the PPS, 2020 definition). This policy requires Service Managers to address the full range of housing options, including affordable housing.
Policy 2.2.1(b)2 continues to require planning authorities to permit and facilitate the development and redevelopment of underutilized commercial and institutional sites for residential development. The policy has been further revised to specifically identify underutilized shopping malls and plazas as potential commercial sites for redevelopment. Additional references to the development of underutilized shopping malls and plazas have been incorporated into other sections of the PPS, 2024. This policy continues to promote the introduction of new housing options within previously developed areas and redevelopment which results in a net increase in residential units.
Settlement Areas and Settlement Area Boundary Expansions
The PPS, 2024 includes significant changes, modifications and additions to previous policies in relation to settlement areas. For example, policy 2.3.1.4 now requires (instead of encourages) planning authorities to establish minimum targets for intensification and redevelopment. Policy 2.3.1.5 has also been modified to provide that planning authorities are encouraged (but not required) to establish density targets for designated growth areas (rather than settlement areas). For large and fast-growing municipalities, this policy encourages (but does not require) a density target of 50 residents and jobs per gross hectare in designated growth areas.
New policy 2.3.1.6 directs planning authorities to establish and implement phasing policies, where appropriate, to ensure that development within designated growth areas is orderly and aligns with the timely provision of infrastructure and public service facilities.
The PPS, 2024 permits a planning authority to identify a new settlement area or allow a settlement area boundary expansion at any time (i.e., outside of the Municipal Comprehensive Review process). It also removes the current conditions required to be satisfied before settlement area additions or boundary expansions are permitted. Policy 2.3.2.1 now provides that in identifying a new settlement area or allowing a settlement area boundary expansion, planning authorities “shall consider” the following:
the need to designate and plan for additional land to accommodate an appropriate range and mix of land uses;
if there is sufficient capacity in existing or planned infrastructure and public service facilities;
whether the applicable lands comprise specialty crop areas;
the evaluation of alternative locations which avoid prime agricultural areas and, where avoidance is not possible, consider reasonable alternatives on lower priority agricultural lands in prime agricultural areas;
whether the new or expanded settlement area complies with the minimum distance separation formulae;
whether impacts on the agricultural system are avoided, or where avoidance is not possible, minimized and mitigated to the extent feasible as determined through an agricultural impact assessment or equivalent analysis, based on provincial guidance; and
the new or expanded settlement area provides for the phased progression of urban development.
In light of Bill 185’s amendments to the Planning Act, which restored appeal rights for settlement area boundary alterations or expansions outside of the Greenbelt Plan area, we understand that “planning authority” as referenced in the policies includes the Ontario Land Tribunal, on appeal.
The PPS, 2024 includes a new standalone policy 2.3.2.2, which provides that planning authorities may identify a new settlement area only where it has been demonstrated that infrastructure and public service facilities to support development are planned or available.
Strategic Growth Areas
A new policy 2.4.1.1 encourages planning authorities to identify and focus on growth and development in strategic growth areas.
The PPS, 2024 imposes general policies for strategic growth areas that focus on achieving complete communities, a range and mix of housing options, intensification and mixed-use development. New policies provide that within strategic growth areas, planning authorities should prioritize planning and investment for infrastructure and public service facilities, identify the appropriate scale and type of development and the transition of built form to adjacent areas, permit development and intensification to achieve complete communities and compact built form, consider a student housing strategy and support redevelopment of commercially designated retail lands (e.g., underutilized shopping malls and plazas) to support mixed-use residential development.
Major Transit Station Areas
Section 2.4.2 imports and, in some cases, modifies the current Growth Plan policies for major transit station areas. Notably, the PPS, 2024 imports the existing minimum density targets for major transit station areas from the Growth Plan.
Policy 2.4.2.1 applies to all municipalities with major transit station areas (not only large and fast-growing municipalities). This policy requires planning authorities to delineate the boundaries of major transit station areas on higher order transit corridors through a new official plan or official plan amendment adopted under section 26 of the Planning Act. The policy provides that the delineation shall define an area within a 500- to 800-metre radius of a transit station that maximizes the number of potential transit users that are within walking distance of the station.
Similarly, policy 2.4.2.2 modifies an existing Growth Plan policy and applies mandatory minimum density targets within major transit station areas on higher order transit corridors to all municipalities with major transit station areas (not only large and fast-growing municipalities). The minimum density targets are carried over from the Growth Plan as follows:
200 residents and jobs combined per hectare for those that are served by subways;
160 residents and jobs combined per hectare for those that are served by light rail transit or bus rapid transit; or
150 residents and jobs combined per hectare for those that are served by commuter or regional rail.
A new policy 2.4.2.3 encourages planning authorities to promote development and intensification within major transit station areas by supporting the development of surface parking lots within the major transit station areas, including commuter parking lots, to be transit supportive and promote complete communities.
The major transit station areas policies are further enhanced through the addition of policy language that encourages multi-modal access to stations and connections to nearby major trip generators, and supports both infrastructure that accommodates a range of mobility needs and active transportation including sidewalks, bicycle lanes, secure bicycle parking and commuter pickup/drop-off areas.
The PPS, 2024 implements a new policy 2.4.2.7 which requires planning authorities to plan for intensification on lands that are adjacent to existing and planned frequent transit corridors. Frequent transit is a new term that means “a public transit service that runs at least every 15 minutes in both directions throughout the day and into the evening every day of the week.”
Rural Areas
The PPS, 2024 does not make significant changes to the PPS, 2020 policies related to rural areas. It is notable that policy 2.6.1 of the PPS, 2024 does not specifically identify multi-lot residential development as a permitted use on rural lands.
Employment
Policy 2.8.1.1(e) is a new policy which requires planning authorities to promote economic development and competitiveness by addressing land use compatibility adjacent to employment areas by providing an appropriate transition to sensitive land uses.
For lands outside of employment areas, policy 2.8.1.2 encourages the development of industrial, manufacturing and small-scale warehousing uses that can be operated adjacent to sensitive land uses without causing adverse effects. This adjacency is encouraged within strategic growth areas and within other mixed-use areas where frequent transit service is available.
A new policy 2.8.1.3 states that “on lands within 300 metres of employment areas, development shall 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” to support the achievement of complete communities.
Another noteworthy change is the removal of the existing PPS, 2020 policy requiring separation or mitigation from sensitive land uses within employment areas planned for industrial and manufacturing uses. Instead, policy 2.8.2.4 requires planning authorities, when planning for employment areas, to “maintain land use compatibility between sensitive land uses and employment areas” in accordance with the land use compatibility policies contained in section 3.5, “to maintain the long-term operational and economic viability of the planned uses and function of these areas.”
Policy 2.8.2.5 significantly modifies the PPS, 2020 policies related to the removal of lands from employment areas. This is often referred to as an “employment conversion.” The PPS, 2024 permits planning authorities to remove lands from employment areas at any time (rather than through a Municipal Comprehensive Review), only where it has been demonstrated that:
a) there is an identified need for the removal and the land is not required for employment area uses over the long term;
b) the proposed uses would not negatively impact the overall viability of the employment area by:
avoiding, or where avoidance is not possible, minimizing and mitigating potential impacts to existing or planned employment area uses in accordance with policy 3.5;
maintaining access to major goods movement facilities and corridors;
c) existing or planned infrastructure and public service facilities are available to accommodate the proposed uses; and
d) the municipality has sufficient employment lands to accommodate projected employment growth to the horizon of the approved official plan.
The definition of employment area is revised and now references the amended definition of “area of employment” in the Planning Act that was adopted through Bill 97 and which will come into force on October 20, 2024. The PPS, 2024 defines employment areas as, “those areas designated in an official plan for clusters of business and economic activities including manufacturing, research and development in connection with manufacturing, warehousing, goods movement, associated retail and office, and ancillary facilities. An employment area also includes areas of land described by subsection 1(1.1) of the Planning Act. Uses that are excluded from employment areas are institutional and commercial, including retail and office not associated with the primary employment use listed above.”
The Provincially Significant Employment Zones identified in the Growth Plan are not carried forward into the PPS, 2024.
Land Use Compatibility
Based on our assessment, the policies set out in section 3.5 will make it easier to establish sensitive land uses in the vicinity of existing or planned industrial, manufacturing or other major facilities that are vulnerable to encroachment.
Policy 3.5.2 removes the criteria contained in the PPS, 2020 for permitting sensitive land uses adjacent to existing or planned industrial, manufacturing or other uses that are vulnerable to encroachment. Instead, the PPS, 2024 now provides that where it is not possible to avoid potential adverse effects or health and safety risks, planning authorities must ensure that the planning and development of proposed adjacent sensitive land uses is only permitted if potential adverse effects to the proposed sensitive land use are minimized and mitigated, and potential impacts to industrial, manufacturing or other major facilities are minimized and mitigated in accordance with provincial guidelines, standards and procedures.
Sewage, Water and Stormwater
The PPS, 2024 updates existing policies regarding sewage, water and stormwater.
Policy 3.6.1(a) provides that planning for sewage and water services shall accommodate forecasted growth in a timely manner that promotes the efficient use and optimization of existing municipal sewage services and municipal water services, as well as existing private communal sewage services and private communal water services. Policy 3.6.1(b) now makes a reference to ensuring that services are provided in a manner that protects the quantity and quality of water and aligns with comprehensive municipal planning for these services where applicable. Policy 3.6.1(c) now includes a reference to energy conservation. Policy 3.6.1(d) requires the integration of servicing and land use considerations at all stages of the planning process, including consideration of opportunities to allocate and reallocate, if necessary, the unused system capacity of municipal water services and municipal sewage services to support the efficient use of these services to meet current and projected needs for an increased housing supply. This policy is especially relevant in municipalities experiencing a lack of servicing capacity until infrastructure upgrades are complete. Policy 3.6.1(f) requires planning for sewage and water services to be integrated with source protection planning.
Policy 3.6.4 contains provisions that would allow individual on-site sewage services and individual on-site water services in certain circumstances, and requires planning authorities to assess the long-term impacts of individual on-site sewage services and individual on-site water services at the time of the official plan review or update.
Policy 3.6.5(c) provides that partial services may be permitted within rural settlement areas, where new development will be serviced by individual on site water services in combination with municipal sewage services or private communal sewage services.
The PPS, 2024 also provides minor revisions to existing policies regarding planning for stormwater management.
Natural Heritage
Aside from amending certain definitions, the PPS, 2024 does not make any changes to the natural heritage policies of the PPS, 2020.
Water
A new policy 4.2.3 encourages municipalities, and requires large and fast-growing municipalities, to undertake watershed planning. A new policy 4.2.4 provides that where planning is conducted by an upper-tier municipality that includes one or more lower-tier large and fast-growing municipalities, the upper-tier shall undertake watershed planning in partnership with lower-tier municipalities, including the lower-tier large and fast-growing municipalities. Municipalities are encouraged to collaborate with applicable conservation authorities.
Agriculture
The Statement makes changes to policies related to the development of lands in prime agricultural areas.
The PPS, 2024 now requires (instead of encourages) planning authorities to use an agricultural system approach, based on provincial guidance, to maintain and enhance a geographically continuous agricultural land base and support and foster the long-term economic prosperity and productive capacity of the agri-food network.
The PPS, 2024 still requires agricultural areas and specialty crop areas to be designated and protected for long-term use for agriculture. However, as set out below, it will be easier under the PPS, 2024 to establish more housing within prime agricultural areas.
Policy 4.3.2.4 permits a principal dwelling associated with an agricultural operation to be located in prime agricultural areas as an agricultural use, in accordance with provincial guidance, except where prohibited by policy 4.3.3.3.1(c) (lot creation and adjustments).
Policy 4.3.2.5 provides that where a residential dwelling is permitted on a lot in a prime agricultural area, up to two additional residential units shall be permitted in accordance with provincial guidance, provided that specified criteria are met. This criteria includes compliance with the minimum distance separation formulae, compatibility with surrounding agricultural operations, the appropriate provision of sewage and water services, the ability to address public health and safety concerns, the requirement for additional units to be of a limited scale and located within, attached or in close proximity to the principal dwelling or farm building cluster and minimizing land taken out of agricultural production. The Province’s stated intent of this policy is to permit more housing on farms for farmers, farm families and farm workers, without creating new lots.
The Province noted that during its consultations on an earlier draft of the PPS, 2024, it heard concerns from agricultural stakeholders regarding the proposed policies that would allow severances in prime agricultural areas. Certain changes have been implemented as a result and are discussed below.
The PPS, 2024 generally maintains the PPS, 2020 policies regarding lot creation in prime agricultural areas. Specifically, policy 4.3.3.1 discourages lot creation and would only permit lot creation for agricultural uses, agriculture-related uses and infrastructure (where the facility or corridor cannot be accommodated through the use of easements or rights of way). This policy also permits lot creation for up to one residence surplus to an agricultural operation, provided certain criteria are met, including limiting the new lot to a minimum size needed to accommodate the use, the availability of appropriate sewage and water services, and the requirement that new dwellings and additional residential units are prohibited on any remnant parcel of farmland created by the severance.
The PPS, 2024 has largely maintained the lot creation and lot adjustment provisions of the PPS, 2020 which permits the creation of one additional lot from an existing lot but, as noted above, only for lots containing a residence surplus to an agricultural operation. This definition has been updated from the PPS, 2020 to replace the word “farming” with “agriculture.” The term is defined as “one existing habitable detached dwelling, including any associated additional residential units, that are rendered surplus as a result of farm consolidation (the acquisition of additional farm parcels to be operated as one farm operation).”
Policy 4.3.5.2 requires an agricultural impact assessment or equivalent analysis based on provincial guidance where it is not possible to avoid impacts from any new or expanding non-agricultural uses on surrounding agricultural lands and operations.
A new policy 4.3.6.1 encourages planning authorities to support local food, facilitate near-urban and urban agriculture and foster a robust agri-food network.
Policies 4.5.4.1 and 4.5.4.2 modify the existing PPS, 2020 policies related to the extraction of mineral aggregate resources in prime agricultural areas. These policies state extraction is permitted as an interim use, provided that impacts are addressed as determined through agricultural impact assessment (per policy 4.3.5.2) and the site will be rehabilitated back to an agricultural condition. Rehabilitation to an agricultural condition is not required if the depth of the planned extraction makes restoration of pre-extraction agricultural capability unfeasible and agricultural rehabilitation in remaining areas is maximized. The above revisions mark a departure from the PPS, 2020 which imposed more stringent requirements for the rehabilitation of lands, especially in specialty crop areas.
Cultural Heritage and Archaeology
The PPS, 2024 requires protected heritage property to be conserved. The previous requirement in the PPS, 2020 was for significant built heritage resources to be conserved. This modified language means that properties which have been listed on a municipality’s heritage register but which have not been designated would no longer be required to be conserved.
New policy 4.6.4(b) encourages planning authorities to develop and implement “proactive strategies for conserving significant built heritage resources and cultural heritage landscapes.”
Policy 4.6.4.5 modifies an existing PPS, 2020 policy and requires planning authorities to engage “early” with Indigenous communities. It has also been broadened to ensure their interests are considered when identifying, protecting and managing not only archaeological resources but also built heritage resources and cultural heritage landscapes.
Natural Hazards
Policy 5.2.1 is carried over from the PPS, 2020 but requires planning authorities to collaborate with conservation authorities, where they exist, to identify hazardous lands and hazardous sites, and manage development in these areas in accordance with provincial guidance.
Human-Made Hazards
The PPS, 2024 removes the current PPS, 2020 policy requiring planning authorities to support, where feasible, on-site and local re-use of excess soil through planning and development approvals while protecting human health and the environment.
Implementation and Interpretation
Policy 6.1.5 explicitly requires planning authorities to keep their zoning by-laws and development permit by-laws up to date with the PPS, 2024 by establishing permitted uses, minimum densities, heights and other development standards to accommodate growth and development. It also requires planning authorities to keep their official plans up to date with the PPS, 2024 to protect provincial interests.
Policy 6.1.7 provides that where a planning authority must decide on a planning matter before its official plan has been updated to be consistent with the PPS, 2024, or before other applicable planning instruments have been updated accordingly, it must still make a decision that is consistent with the PPS, 2024.
Policy 6.1.12 carries over a policy from the Growth Plan which provides that density targets represent minimum standards and that planning authorities are encouraged to go beyond these minimum targets, where appropriate. Policy 6.1.13 requires minimum density targets to be revisited at the time of each official plan update.
The oft-referred-to policy of the PPS, 2020 which provides that “the official plan is the most important vehicle for implementing [the] Provincial Policy Statement” is removed but remains part of the non-policy preamble.
Co-ordination
The PPS, 2024 contains new policies in section 6.2 requiring planning authorities to engage with the public, school boards and publicly assisted post-secondary institutions in efforts to implement the PPS, 2024. In particular, policies 6.2.5 and 6.2.6 direct planning authorities to collaborate with publicly assisted post-secondary institutions to facilitate early and integrated planning for student housing and to develop a strategy that includes consideration of off-campus housing targeted to students.
Defined Terms
The PPS, 2024 introduces a number of additional defined terms. Some of these terms have been imported from the PPS, 2020 and the Growth Plan (with modifications in some cases), while others are entirely new.
New defined terms which are not currently included in the PPS, 2020 are: additional needs housing (formerly special needs housing); agricultural impact assessment; compact built form; energy storage system; frequent transit; higher order transit; large and fast-growing municipalities; low-impact development; major transit station area; major trip generators; multi-modal; strategic growth areas; transit service integration; urban growth areas; watershed planning; critical minerals; water resource system and urban agriculture.
The PPS, 2024 also modifies a number of existing definitions, primarily for the purpose of clarification and housekeeping.
Transition
On August 20, 2024, the Province announced that, on October 20, 2024, it will revoke section 2 of O. Reg 416/05 which designates the geographic areas forming the Greater Golden Horseshoe growth plan area. By this action, it appears that the Growth Plan will remain in force but it will have no application.
The Province is expected to make an administrative amendment to the Greenbelt Plan to ensure that its policies remain in effect once the PPS, 2024 comes into effect.
The Ministry of Municipal Affairs and Housing is currently seeking feedback on whether a transition regulation for the PPS, 2024 is necessary to address matters such as development applications that are currently under appeal.
The Province is not considering making changes to the applicability of the Greenbelt Plan or Oak Ridges Moraine Conservation Plan in connection with the PPS, 2024.
The Municipal & Land Use Planning Group at Aird & Berlis LLP is well-acquainted with the ever-evolving legislative regime governing and affecting development in Ontario. If you have questions or require assistance, please contact a member of the group. Stay tuned for an upcoming webinar on the topic of the Provincial Planning Statement, 2024!