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Aug 13, 2025

Bill 17 receives Royal Assent: General Implications for the Municipal, Planning, and Land Development in Ontario

On June 5, 2025, Protect Ontario by Building Faster and Smarter Act, 2025 (“Bill 17”) received Royal Assent. The provincial government passed Bill 17 with the “goal of supporting economic and community growth and keeping workers on the job” while also further standardizing the “municipal development approval process and charges” to tackle Ontario’s housing supply challenges.

This article covers the amendments made by Bill 17 to several key pieces of planning, land development, and transit legislation.  

Planning Act

Bill 17’s amendments to the Planning Act either standardized or removed items from the development approval process. For zoning by-laws and zoning by-law amendments, municipalities must comply with a provincially prescribed minimum setback distance as-of-right except for certain lands such as Greenbelt lands.[i] The Minister is now permitted to impose reasonable conditions on the “use of land or the erection, location, or use of buildings or structures” through Ministerial Zoning Orders (“MZOs”).[ii]

Bill 17 removes some approval authority from municipalities for development involving schools and their sites. For example, Bill 17 adds subsection 16(3.2.1) which prohibits an official plan from containing a policy that includes:

the use of a parcel of urban residential land for an elementary school or secondary school of a school board or any ancillary uses to such schools, including the use of a child care centre located in the school.[iii]

The site plan control process’ definition of development was amended to no longer include a timing restriction for portable classrooms on schools.[iv] The City of Toronto Act, 2006’s equivalent section was also amended accordingly.[v]

Under Bill 17, the Minister’s approval is required for an official plan amendment that “adds, amends or revokes any provisions” as it relates to certain sections of the Planning Act.[vi] This includes the studies and reports a municipality may request for the purposes of a complete application for official plan amendments, zoning by-law amendments, site plan control, plans of subdivision, and consents (severances).[vii] In addition, any official plan amendments made by municipalities on or after May 12, 2025 without receiving Ministerial consent are deemed not to have been adopted.[viii]

Development Charges Act, 1997 (“DCA”)

Bill 17 makes multiple changes to the province’s development charges (or “DCs”) framework. After Bill 17 received Royal Assent, any development or the portion of a development containing a long-term care home is exempt from DCs.[ix] A credit may be put towards part of the total DCs payable for any one of the services even if two or more services are deemed to be one service within the applicable regulations.[x]

Sections 10 to 18 of the DCA deal with the passage and appeal process for a DCs by-law. Bill 17 re-enacts certain exceptions where these sections do not apply to the amendment of a DCs by-law.[xi]

The following two changes to section 26.1 and 28 of the DCA will come into force on a later date. Residential development other than “rental housing development” is added as a type of development which is payable on either the first day of occupancy or receipt of an occupancy permit.[xii] However, a municipality is not required to issue a building permit pursuant to the Building Code Act, 1992 for a development where development charges apply with some exceptions.[xiii]

Bill 17 also amends section 59 of the DCA to determine what constitutes a “local service” by regulation.[xiv]

Building Code Act, 1992 (“BCA”)

Bill 17 makes two notable changes to the BCA. The Building Materials Evaluation Commission is not permitted to use its powers to investigate, examine, or research an “innovative material, system or building design” when it is being examined or there is an expressed intention to examine by the Canadian Construction Materials Centre of the National Research Council of Canada.[xv]

Municipalities are not authorized to pass by-laws relating to the construction and/or demolition of buildings pursuant to their general by-law powers in the Municipal Act, 2001 or City of Toronto Act, 2006.[xvi]

Transit-related Legislation

Bill 17 made a number of amendments to transit-related legislation as outlined below.

Building Transit Faster Act, 2020

A definition for “provincial transit project” is added to the Act with the necessary housekeeping amendments.[xvii]

Metrolinx Act, 2006

A definition for “municipal agencies” (e.g. local boards) is added. Municipalities and/or municipal agencies are required to provide the Minister or Metrolinx with any information and/or data as required to support the “development of a provincial transit project or transit-oriented community project” after receiving a written directive from the Minister.[xviii]

Ministry of Infrastructure Act, 2011 (“MIA”)

Bill 17 repeals Section 7.1 of the MIA which deals with investing in transit-oriented community projects and subsequent agreement making provisions in Ontario Regulation 378/24.

Similarly, through a written directive from the Minister, municipalities and municipal agencies must provide any requested information, data, or documents to the Minister of Infrastructure or Ontario Infrastructure and Lands Corporation for the purposes of supporting “the development or implementation of a project funded.”[xix]

Transit Oriented Communities Act, 2020

Bill 17 made three notable changes which include:

  1. Adding provincial transit project (as defined above) and any “other provincial transit project prescribed by regulations” to the list of projects defined as “priority transit projects”; [xx]
  2. The Minister of Transportation may also delegate its powers to the Ontario Infrastructure and Lands Corporation;[xxi] and,
  3. The Minister or its delegate may enter into an agreement for the prescribed purposes.[xxii]

Proposed Regulations Coming down the Pipeline

On May 12, 2025, a number of proposed regulations were made available for comment on some proposed regulations for the Planning Act after Bill 17 came into force which includes the following:

  1. ERO 025-0462 which proposes insertions to limit the amount of studies and reports which may be required for a number of development applications to satisfy its complete application requirements; and
  2. ERO 025-0463 which invites comments on the prescribed percentage for as-of-right variation for setback requirements. This may include changes to Ontario Regulation 299/19.  

Conclusion

Municipalities, developers, business owners, and landowners should turn their attention to understanding how Bill 17 may impact their municipal and land development needs going forward. Contact the experienced team at SV Law for individualized advice on how Bill 17 may impact your municipal, planning, and land development needs.



[i] Bill 17, Protect Ontario by Building Faster and Smarter Act, 2005, S.O. 2025 c. 9 (Royal Assent on 5 June 2025), Sched 7, s 4 (“Bill 17”).

[ii] Ibid, Sched 7, s 8.

[iii] Ibid, Sched 7, s 7.

[iv] Ibid, Sched 7, s 1.

[v] Ibid, Sched 3, s 1.

[vi] Ibid, Sched 7, s 2(1).

[vii] Ibid.

[viii] Ibid.

[ix] Ibid, Sched. 4, s 1.  

[x] Ibid, Sched. 4, s 7.

[xi] Ibid, Sched. 4, s 3.

[xii] Ibid, Sched. 4, s 4.

[xiii] Ibid, Sched. 4, s 6, which is excerpted below:

(a) in the case of a permit issued under subsection 8 (1) of that Act, all development charges have been paid except for any charges payable in accordance with section 26.1 of this Act or any charges that an agreement made under section 27 of this Act provides are payable after the permit is issued; or

(b) in the case of any other permit issued under that Act, all development charges that are payable before the issuance of the permit have been paid.

[xiv] Sched 5, s 8.

[xv] Sched 1, s 1.

[xvi] Sched 1, s 4.

[xvii] Ibid, Sched 2, s 1-3.

[xviii] Ibid, Sched 5, s 2-3.

[xix] Ibid, Sched 6, s 1-2.

[xx] Ibid, Sched 8, s 1(3).

[xxi] Ibid, Sched 8, s 2(5).

[xxii] Ibid, Sched 8, s 3.

 

The content of this article is intended to provide a general guide to the subject matter and is not legal advice. Specialist advice should be sought regarding your specific circumstance.