CMHC launches pilot to streamline permits

November 15, 2022




A pilot program in Ontario by Canada Mortgage and Housing Corporation (CMHC) is meant to lower one of the big barriers to new home construction—delays in development permits at the municipal level.
CMHC announced $2.35 million in pilot funding on October 6, 2022 to implement the One Ontario digital platform to streamline and modernize the residential development approvals process in Simcoe County. Funding is being provided through CMHC’s Housing Supply Challenge.
The announcement coincided with the Housing Supply Summit 2.0: Progress Report hosted by the Residential Construction Council of Ontario (RESCON). AECO Innovation Lab (which spearheaded the One Ontario Coalition), RESCON, and partner organizations say the pilot could be used as a model across Ontario and Canada.
“Simcoe County is very representative of upper tier or regional jurisdictions across Canada, with a mixture of rural, urban, and First Nations perspectives, so it seems like an ideal jurisdiction for the pilot,” said Mark Anderson, director of business development, AECO Innovation Lab.
As for the platform itself, Anderson says nothing like it is currently in use.
“There are no standard processes for development applications—every municipality has different requirements. Outside of the municipality, there can be 40-plus agencies and groups that get involved reviewing, commenting on, or approving applications,” he said. Not only does this slow down the approval process, but it makes it impossible for developers to anticipate how long an application will be in limbo. “Without exception, the development community wants faster permits, but on top of that they want standard intake, consistent process, and transparency into where their application is at,” Anderson added.
Ontario is apparently making progress.
RESCON praised changes announced by Ontario’s Municipal Affairs and Housing Minister Steve Clark in October aimed at speeding construction of new homes.
“The More Home Built Faster Act will reduce bottlenecks, streamline development approvals and increase the pace of residential construction across Ontario,” said RESCON president Richard Lyall. Changes include allowing more homes to be built near transit hubs, revisting development cost charges, and removing site plan control requirements for projects with less than 10 units.
The housing bill is part of the Ontario government’s plan to build 1.5 million homes over the next decade.
RESCON cites studies stating the cost of delays in site plan reviews represents $300 million to $900 million a year. Each month of delay in a high-density residential development adds $2,600 to $3,300 in construction costs.