Inclusionary Zoning in Waterloo Region: Update

Waterloo Region to see increased growth, development, and residential high rises

By Slonee Malhotra

Last year we posted this article, about inclusionary zoning. To recap, inclusionary zoning is a regulatory tool intended to increase the availability of affordable housing by requiring developers to either contribute a set amount toward affordable housing or sell off a percentage of the units at a lower price point.[1]

In Waterloo Region, inclusionary zoning is of growing importance. As the region grows rapidly, affordable housing is an increasing concern to residents.

At the time of our article last year, there were no Development Permit System areas identified in Waterloo Region. However, recently, the Ontario Government has put forward its newest initiative to combat housing unaffordability and unavailability in the form of the More Homes Built Faster Act. Read this article for more information on the Act. This Act will further mandate a percentage of new development units that must be considered affordable housing.

In light of these provincial efforts and reforms, we are now seeing city and regional planners in Waterloo Region working together to implement inclusionary zoning.

The Inn of Waterloo site may soon be a location for this in action.

Drewlo Holdings is a local developer that has set it eyes on developing eight residential towers, between 16 and 28 stories high. The development would create 1,682 rental apartments and 96 rental townhouse-style units.

In order for this vision to come to life, city council needs to bend its planning rules. More public and planning review will occur before city council will vote on the matter. If approved, it could be 2032, or later, when the development is completed.

There are a lot of questions about this development and the impact on Waterloo Region. Although inclusionary zoning rules will mandate a certain percentage of these units to be affordable housing, local experts have weighed in that this does not go far enough. Even at affordable housing rates, many local residents are priced out of the rental market.

These inclusionary zoning rules and the impacts of the More Homes Built Faster Act are important developments for developers and residents to keep in mind.

If you have any questions about these local real estate developments or inclusionary zoning, reach out to one of our qualified real estate lawyers today!