Crossing the New Frontier: 10 Highlights from the Provincial Planning Statement, 2024

On October 20, 2024, the Provincial Planning Statement, 2024 (the “PPS 2024”) came into force.¹ On the same day, the province revoked the Provincial Policy Statement, 2020 (the “PPS 2020”) and the A Place to Grow: Growth Plan for the Greater Golden Horseshoe (the “GGH Growth Plan”).²

The Ministry of Municipal Affairs and Housing has stated that PPS 2024’s purpose is to consolidate the PPS 2020 and GGH Growth Plan into a single document.³ For example, Table 1 illustrates some new (often seen in the GGH Growth Plan) and revised definitions in PPS 2024 on issues including housing, transit, infrastructure, agriculture, water, energy, and heritage.

This article will provide 10 highlights from PPS 2024, as follows:

1. Housing and Density Targets

It comes as no surprise that the PPS 2024 requires municipal measures to encourage housing when PPS 2024’s vision includes building “at least 1.5 million homes” for 2031.⁴

Municipalities must establish and implement minimum targets for housing on (1) “affordable to low and moderate income households” and (2) the “intensification and redevelopment within built-up areas, based on local conditions.”⁵ In addition, the PPS 2024 encourages residential intensification on sites including “shopping plazas and malls”⁶ and density targets in “designated growth areas, based on local conditions.”⁷

2. Growth Areas

The PPS 2024 imports and expands the scope of strategic growth areas previously seen in the GGH Growth Plan. For example, municipalities are encouraged to “identify and focus growth and development in strategic growth areas.”⁸

Generally, municipalities should support the “achievement of complete communities” by planning for strategic growth areas, as follows:

1. to accommodate significant population and employment growth;
2. as focal areas for education, commercial, recreational, and cultural uses;
3. to accommodate and support the transit network and provide connection points for inter-and intra-regional transit; and
4. to support affordable, accessible, and equitable housing.⁹

However, the introduction of “strategic growth areas” or “designated growth areas” does not create any new or alter any previous land use designations.¹⁰

3. Sewage, Water and Stormwater

PPS 2024 provides provincial direction for municipalities to consider how housing development must address water and wastewater infrastructure realities. For example, sewage and water services planning must integrate “servicing and land use considerations at all stages of the planning process” and promote “water and energy conservation and efficiency.”¹¹

In rural settlement areas, new developments are permitted to use partial services only where its individual on-site water services are combined with either (1) municipal sewage services or (2) private communal sewage services.¹²

Further, municipalities must consider:

opportunities to allocate, and re-allocate if necessary, the unused system capacity of municipal water services and municipal sewage services to support efficient use of these services to meet current and projected needs for increased housing supply.¹³

This also compliments a municipality’s authority to pass by-laws and adopt policies surrounding the allocation of water supply and sewer capacity after Bill 185 came into force.¹⁴

Notably, PPS 2024 does not contain a similar provision to section 1.6.6.7 of PPS 2020 that mandates specific stormwater management planning requirements.

4. Coordination as a Priority

PPS 2024 encourages municipalities to coordinate with other stakeholders including other municipalities, levels of government, public agencies, Indigenous communities, and the public in land use planning matters.¹⁵ For example, all municipalities are encouraged to engage in watershed planning with conservation authorities.¹⁶

Municipalities must also collaborate with conservation authorities to identify hazardous lands and hazardous sites.¹⁷ This aligns with the recently enacted section 9(1)(b) of Ontario Regulation 41/24: Prohibited Activities, Exemptions, and Permits to include permit conditions for conservation authorities to permit conditions for natural hazards.

5. Agriculture

PPS 2024 continues to require the use of an agricultural system approach.¹⁸ It also adopts an agricultural impact assessment approach which may apply, as follows:

• When calculating the impacts of new/expanding non-agricultural uses on an agricultural system to minimize and mitigate effects where avoidance is not possible.¹⁹
• Where calculating the impacts on the agricultural system, to minimize and mitigate effects, where avoidance is not possible, to determine the extend of feasibility when identifying new settlement areas or allowing a settlement area boundary expansion;²⁰ and
• When determining the extraction of mineral aggregate resources as an interim use on prime agricultural area impacts.²¹

The PPS 2024 includes policies focused on dwelling units in agricultural areas. Where there is an agricultural operation, a principal dwelling is permitted “in prime agricultural areas as an agricultural use, in accordance with provincial guidance, except where prohibited in accordance with policy 4.3.3.1.c.”²²

In prime agricultural areas, where a residential dwelling is already permitted, up to 2 additional residential units will also be permitted so long as one of the additional residential units is located within or attached to the principal dwelling.²³ A second additional residential unit must satisfy the following:

1. comply with the minimum distance separation formulae;
2. are compatible with, and would not hinder, surrounding agricultural operations;
3. have appropriate sewage and water services;
4. address any public health and safety concerns;
5. are of limited scale and are located within, attached, or in close proximity to the principal dwelling or farm building cluster; and
6. minimize land taken out of agricultural production.²⁴

6. Settlement Areas and Boundary Expansion 

Municipalities must consider a number of factors when identifying whether to expand into a new settlement areas and settlement area boundary expansions including:

1. the need to designate and plan for additional land to accommodate an appropriate range and mix of land uses;
2. if there is sufficient capacity in existing or planned infrastructure and public service facilities;
3. whether the applicable lands comprise specialty crop areas;
4. 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;
5. whether the new or expanded settlement area complies with the minimum distance separation formulae;
6. 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
7. the new or expanded settlement area provides for the phased progression of urban development.²⁵

This aligns with recent developments to the Planning Act by Bill 185 with a right to appeal a private application for settlement area boundary expansions where it does not contain any lands in the Greenbelt Area.²⁶ However, municipalities must demonstrate “the infrastructure and public service facilities to support development are planned or available” before identifying a new settlement area.²⁷

7.Employment 

PPS 2024’s definition of employment area aligns with the new definition of “area of employment” as described in subsection 1(1) of the Planning Act by Bill 97 (Helping Homebuyers, Protecting Tenants Act, 2023).²⁸ The Planning Act’s “area of employment” definition also comes into force on October 20, 2024.

8. Land Use Compatibility 

PPS 2024 contains less stringent requirements for planning development adjacent to sensitive land uses compared to PPS 2020.²⁹ Previously, an applicant would need to demonstrate a number of conditions pursuant to section 1.2.6.2 of PPS 2020. In contrast, PPS 2024 only requires that an applicant where any proposed adverse effects are minimized and mitigated “in accordance with provincial guidelines, standards, and procedures.”³⁰

9. Cultural Heritage & Archaeology 

Protected heritage property must be conserved which may contain “built heritage resources or cultural heritage landscapes.”³¹ However, the PPS 2024 has no requirement to preserve any non-designated properties listed on a municipality’s heritage register because the definitions of built heritage resources and cultural heritage landscape are revised to no longer include a direct reference to the Ontario Heritage Act, R.S.O. 1990, c. O.18.

In addition, municipalities are encouraged to develop and implement “proactive strategies for conserving significant built heritage resources and cultural heritage landscapes.”³²

Municipalities must now engage early with Indigenous communities “when identifying, protecting and managing cultural heritage and archaeological resources.”³³

10. Transition Provisions

There appears to be no transition provisions for the PPS 2024 after the public consultation, the Minister communicated in response to the consultation feedback, as follows:

The Minister of Municipal Affairs & Housing is not of the opinion that there are any matters for transition that are necessary or desirable to facilitate the implementation of PPS 2024 policies. Consequently, the Minister has decided to not make a transition regulation under the Planning Act.³⁴

Conclusion

PPS 2024 reflects the province’s legislative consistency with other recent pieces of legislation that targets housing development and necessary municipal infrastructure. Through incorporating the PPS 2020 and GGH Growth Plan into PPS 2024, the province has expanded the scope of these concepts to province wide. Generally, the PPS 2024 make specific mention of what is required for large and fast-growing municipalities (which are enumerated in a schedule) compared to encouraged for other municipalities.³⁵

Table 1: New and Revised Definitions in PPS 2024

¹ See Order-in-Council No.1099/2024.
² Ibid; Order-in-Council No. 1100/2024; O Reg 416/05: Growth Plan Areas, s 2.
³Ministry of Municipal Affairs and Housing, “Ontario Giving Municipalities the Tools They Need to Get More Homes Built Faster” (20 August 2024), online: Government of Ontario < https://news.ontario.ca/en/release/1004950/ontario-giving-municipalities-the-tools-they-need-to-get-more-homes-built-faster >.
⁴Ontario, Ministry of Municipal Affairs and Housing, Provincial Policy Statement 2024, (2024) at 1 [“PPS 2024”].
⁵ Ibid, s 2.2.1(a), 2.3.1.4.
⁶ Ibid, s 2.2.1(b).
⁷ Ibid, s 2.3.1.5
⁸ Ibid, s 2.4.1.1. Ibid at 53, strategic growth areas is defined, as follows: Strategic growth areas include major transit station areas, existing and emerging downtowns, lands in close proximity to publicly-assisted post-secondary institutions and other areas where growth or development will be focused, that may include infill, redevelopment (e.g., underutilized shopping malls and plazas), brownfield sites, the expansion or conversion of existing buildings, or greyfields. Lands along major roads, arterials, or other areas with existing or planned frequent transit service or higher order transit corridors may also be identified as strategic growth areas.
⁹ Ibid, s 2.4.1.3. Ibid, at 41, PPS 2024 defines complete communities as meaning “places such as mixed-use neighbourhoods or other areas within cities, towns, and settlement areas that offer and support opportunities for equitable access to many necessities for daily living for people of all ages and abilities, including an appropriate mix of jobs, a full range of housing, transportation options, public service facilities, local stores and services. Complete communities are inclusive and may take different shapes and forms appropriate to their contexts to meet the diverse needs of their populations.”.
¹⁰ Ibid, s 6.1.11.
¹¹ Ibid, s 3.6.1(b),(d) [emphasis added].
¹² Ibid, s.3.6.5.
¹³ Ibid, s 3.6.1(e).
¹⁴ See Municipal Act, 2001, S.O. 2001 c. 25, s 86.1.
¹⁵ See generally, PPS 2024, supra note 4, s. 6.2.
¹⁶ Ibid, s 4.2.5. Large and fast-growing municipalities are required to undertake watershed planning pursuant to section 4.2.3 of PPS 2024.
¹⁷ Ibid, s 5.2.1.
¹⁸ section 4.3.1.1
¹⁹ Ibid, s 4.3.5.2.
²⁰ Ibid, s 2.3.2.1(f).
²¹ Ibid, s 4.5.4.1(a).
²² Ibid, s 4.3.2.4.
²³ Ibid, s 4.3.2.5.
²⁴ Ibid, s 4.3.2.5.
²⁵ Ibid, s 2.3.2.1.
²⁶ See Planning Act, R.S.O. 1990 c P.13, s 22(7.1) & 34(11.0.4)(a).
²⁷ Ibid, s 2.3.2.2.
²⁸ Ibid, at 42.
²⁹ Ibid, s 3.5.2.
³⁰ Ibid, s 3.5.2.
³¹ Ibid, s 4.6.1.
³² Ibid, s 4.6.4(b).
³³ Ibid, s 4.6.5.
³⁴ See especially ERO No. 019-9065.
³⁵ Ontario, Ministry of Municipal Affairs and Housing, Provincial Policy Statement 2024, (2024) at 56 (“PPS 2024”), the list of large and fast-growing municipalities are the following 29 municipalities:

Town of Ajax, City of Barrie, City of Brampton, City of Brantford, City of Burlington, Town of Caledon, City of Cambridge, Municipality of Clarington, City of Guelph, City of Hamilton, City of Kingston, City of Kitchener, City of London, City of Markham, Town of Milton, City of Mississauga, Town of Newmarket, City of Niagara Falls, Town of Oakville, City of Oshawa, City of Ottawa, City of Pickering, City of Richmond Hill, City of St. Catharines, City of Toronto, City of Vaughan, City of Waterloo, Town of Whitby, and City of Windsor.