Ontario Takes Further Action to Increase Housing Supply By Extending Strong Mayor Powers to 26 Additional Municipalities

This morning, following a meeting with Ontario’s Big City Mayors, the Hon. Steve Clark, Minister of Municipal Affairs and Housing, announced that Strong Mayor Powers will be extended to 26 additional municipalities. Today’s announcement, as made clear from the Minister’s comments, should be viewed as the latest move by the Province to reach its target of building 1.5 million new homes by 2031.

As of July 1, 2023, the26 additional municipalities will gain the same full suite of Strong Mayor powers currently enjoyed by the Mayors of Toronto and Ottawa. Each of the 26 municipalities are single or lower-tier municipalities with a population over 100,000 or growing to 100,000 by 2031 and have submitted a housing pledge to the Province.

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With today’s announcement, all 28 Ontario municipalities that have passed a commitment to their housing pledges will have Strong Mayors in place. The Town of Newmarket was not extended these powers as they have yet to pass a housing pledge resolution. At the same time, the only Ontario municipalities with a population over 100,000 without strong Mayor powers will be Thunder Bay, Greater Sudbury and Chatham-Kent (these municipalities are members of the Ontario Big City Mayors caucus). The government is welcoming housing pledges from other municipalities as part of achieving the 1.5 million new homes target.

During the press conference, Minister Clark was asked about the Peel Region transition board, now that the Hazel McCallion (Peel Dissolution) Act has received Royal Assent, as well as the facilitators who will be assessing the Region of Durham, Halton Region, Niagara Region, the Region of Waterloo and the Regional Municipality. Minister Clark said the government is “close” to announcing the members of the Peel Region transition board and that there will be more info forthcoming “very soon.” We anticipate the facilitators and the members of the transition board will be announced at the same time, as early as next week.‍

What This Means and Why It Matters

Today’s announcement is a further reflection of the Province’s focus on achieving its target of building 1.5 million new homes by 2031. Through setting housing targets for many municipalities (which those municipalities have backed up by passing their own housing pledges) and today’s announcement, the Province is very clearly looking to both empower the Mayors of Ontario’s large and fast-growing municipalities and to make them more accountable for getting housing built.

The 28 municipalities have made housing pledges representing almost 1.3 million new homes by 2031. Minister Clark has previously spoken about the need to move beyond NIMBYism to address Ontario’s housing supply crisis. Municipalities have regularly shielded themselves behind the powers of the Province, saying their hands are tied. Even now Toronto and Ottawa, which were the first cities to be vested with the strong Mayor powers, have been reluctant to utilize them in any significant way; Ottawa’s Mayor has said he will not use them now or in the future. With today’s announcement, the provincial government is basically indicating municipalities have all the powers possible to make an increase in the housing supply happen and that it’s now their responsibility to do so.

The 26 Mayors that are being empowered have very different view points on these powers and the extent to which they intend to use them. Polling regularly shows the public sees building housing and infrastructure as priorities, yet Mayors have tended to be risk-averse in moving forward on such projects. With some media labelling the Strong Mayor power to pass by-laws with only 1/3 support from Council as “minority rule,” it is an open question how strongly these Mayors will embrace their new powers. But these Mayors will be critical figures in getting developments approved and built.

It is also of note that Ontario’s Big City Mayors (OBCM) took part in the announcement. The participation of the Mayor of London and the Mayor of Guelph could be a signal that both municipalities are looking for intensification and are “open for business.” But both also cautioned that they believe in consensus building, so it is unclear if they will utilize the new powers. At the same time, the Mayor of Burlington, who chairs the OBCM and who has traditionally not been supportive of new development, participated in the announcement; she may seek high rates of affordable housing from the development community, which might not make market sense.

Those in the development community can be assured the provincial government will continue to introduce more reforms and legislation to advance its housing supply action plan. The provincial government will also continue to strongly push for more development and to step in when it is necessary to do so. Yet, with today’s announcement, the provincial government is also making clear that when it comes to getting housing built, the ball is now very firmly in these Mayors’ hands.