Ontario Municipal Law — Planning Act, Zoning, and Development Approvals

Planning Act Framework

The Planning Act RSO 1990 c P.13 is Ontario's primary land use planning statute. It establishes the framework for official plans, zoning by-laws, development approvals, subdivision and condominium approvals, and appeals to the Ontario Land Tribunal (OLT). Land use planning in Ontario operates in a hierarchy: Provincial Policy Statements (PPS) and provincial plans (Greenbelt Plan, Growth Plan for the Greater Golden Horseshoe) set provincial policy; official plans translate provincial policy into local planning frameworks; and zoning by-laws implement official plan policies at the property level.

The Municipal Act SO 2001 c 25 and the City of Toronto Act SO 2006 c 11 Sch A govern the general powers of Ontario municipalities. Municipalities may pass by-laws for the purposes of exercising their jurisdiction over matters including land use, buildings, drainage, parks, and local services. Municipal by-laws are subject to judicial review for compliance with enabling legislation and may be challenged at the OLT under the Planning Act.

Provincial Policy Statement

The Provincial Policy Statement (PPS 2020) is issued by the Minister under Planning Act s.3 and sets out the province's land use planning policies. Planning decisions must be consistent with the PPS (the "consistent with" standard replaced the "have regard to" standard as of 2005). Key PPS 2020 policies include: directing growth to settlement areas; protecting agricultural land and the natural heritage system; intensification and compact development; transit-supportive development; and adequate housing supply.

Note: Bill 23 (More Homes Built Faster Act 2022) and subsequent housing legislation significantly amended the Planning Act and related statutes to accelerate housing approvals, reduce appeals rights, and limit the ability of municipalities to restrict housing development in certain contexts. Ontario lawyers advising on development matters must be current with the rapidly evolving legislative environment.

Official Plans

An official plan under Planning Act Part II (ss.17-42.2) is a statutory policy document adopted by a municipality that sets out the long-term vision and land use policies for the community. Official plans designate land for residential, commercial, industrial, institutional, open space, and natural heritage uses, and establish policies for development and redevelopment.

Official plans must be reviewed every five years to ensure conformity with provincial plans and consistency with the PPS (s.26). Amendments to official plans (Official Plan Amendments — OPAs) may be proposed by property owners or initiated by the municipality. OPAs require a statutory public meeting and notice under Planning Act s.17. Following approval, OPAs may be appealed to the OLT by persons who have objected during the public process (subject to the restricted appeal rights introduced by Bill 23).

Zoning By-Laws

Zoning by-laws implement official plan policies at the property level, specifying permitted uses and development standards (setbacks, height, lot coverage, parking, etc.) for every property in the municipality. Ontario municipalities may also adopt Holding (H) zones that permit development only when specified conditions are met, and Temporary Use By-Laws under s.39 for specified temporary uses.

Zoning by-law amendments (ZBAs) are required for changes in permitted uses or development standards. A ZBA application involves a statutory public meeting under Planning Act s.34(12), public notice, and council consideration. ZBAs may be appealed to the OLT.

A comprehensive zoning by-law review (CZR) — rewriting the entire municipal zoning by-law — requires conformity with the official plan and consistency with the PPS. The City of Toronto completed its comprehensive zoning by-law (By-law 569-2013) with OLT proceedings ongoing on various issues.

Minor Variances

A minor variance under Planning Act s.45 allows a property owner to obtain relief from a specific zoning requirement without requiring a full zoning by-law amendment. The Committee of Adjustment (CoA) hears minor variance applications and applies the four-part test from s.45(1): (1) the general intent and purpose of the official plan is maintained; (2) the general intent and purpose of the zoning by-law is maintained; (3) the variance is desirable for the appropriate development or use of land; and (4) the variance is minor.

CoA decisions on minor variances may be appealed to the OLT within 20 days of the decision. Merits review at the OLT applies the same four-part test. Residents who received notice of the application and who appeared at the hearing have standing to appeal.

Consent to Sever

Consent to sever (land severance) under Planning Act s.53 is required to divide a parcel of land into two or more parcels, create an easement or right-of-way, or add land to an abutting parcel where the result would be a new lot. The CoA acts as consent authority for most municipalities. Conditions may be imposed on a consent — including registration of a deposit of a plan of survey, the provision of municipal services, and conformity with zoning and official plan requirements.

Development Charges

The Development Charges Act SO 1997 c 27 (DCA) allows municipalities to impose development charges (DCs) on new development to recover the capital costs of new or expanded municipal services needed to accommodate growth. Development charges are calculated based on a municipal development charge background study and by-law, and are payable before building permit issuance.

Bill 23 (2022) introduced significant changes to the DCA including discounts on development charges for purpose-built rentals, non-profit housing, and intensification, as well as changes to the timing of DC payment and exemptions. Development charges are a major cost component in Ontario residential development and are the subject of ongoing litigation and OLT proceedings.

Ontario Land Tribunal

The Ontario Land Tribunal (OLT) was established in June 2021, consolidating the Local Planning Appeal Tribunal (LPAT), Conservation Review Board, Environmental Review Tribunal (environmental matters), Assessment Review Board, and Mining and Lands Tribunal. The OLT hears appeals under the Planning Act, Building Code Act, Assessment Act, and other statutes. OLT proceedings are governed by the OLT's Practice Directions and the SPPA RSO 1990 c S.22.

Bill 23 and subsequent legislation significantly narrowed appeal rights to the OLT for housing-supportive applications (residential as-of-right, Minister's Zoning Orders, OPAs for housing). The purpose was to reduce delays in housing approvals. Ontario real estate and municipal lawyers advising on development matters must navigate the evolving appeal rights framework carefully.