What is Inclusionary Zoning and How Will It Affect Your Development?
Inclusionary zoning (IZ) 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. The tool will be implemented in Toronto on September 18, 2022, and in Kitchener, Waterloo, and Cambridge sometime during 2023. The policy will be tailored to the region's specific housing needs.
IZ is introduced to combat the current housing market crisis and create mixed-income developments where the market has not done so on its own. The tool has three objectives. First, to increase the supply of affordable housing for low to moderate-income households (between $32,000-$92,000/year, depending on household size). Second, to encourage market housing development by supporting a diverse range of housing supply. Third, to create inclusive and equitable communities. 
Which Developments will be Impacted?
IZ will apply to residential developments that are:
- Located within an identified IZ Market Area;
- Located near public transit or where a Development Permit System exists; and
- Contain more than 100 dwelling units and have 8000m2 of residential gross floor area.
IZ will only apply to developments located within proximity, approximately 800m, from major public transit stations. In Toronto, these areas are known as Protected Major Transit Station Areas, a complete list of which should be before the minister before July 2022. In Kitchener and Waterloo, the Ontario government requires IZ within 800m of ION stations.
IZ can apply where the city implements a Development Permit System (DPS). As of yet, no DPS areas have been identified within Toronto or Waterloo Region.
 Terry Pender, Province limits affordable housing to region’s ‘urban spine’ (August 21, 2021), online:” The Record <https://www.therecord.com/news/waterloo-region/2021/08/21/province-limits-affordable-housing-to-regions-urban-spine.html?rf> [Pender].
 Cristine Ono, Inclusionary Zoning Policy, online: Toronto https://www.toronto.ca/city-government/planning-development/planning-studies-initiatives/inclusionary-zoning-policy/ [Ono].
 Morrey, supra note 1.
 Andrew L. Jeanrie, Robert Blunt, & Stephanie Brazzel, Toronto City Council Adopts Inclusionary Zoning Framework (November 24, 2021), online: Bennet Jones <https://www.bennettjones.com/Blogs-Section/Toronto-City-Council-Adopts-Inclusionary-Zoning-Framework>.
 Pender, supra note 2.