COVID-19 Economic Recovery Act

On July 8, 2020, the Ontario government provided further clarification on their proposed plan for economic recovery. The COVID-19 Economic Recovery Act outlines several initiatives related to the ICI construction sector that will impact the way that municipalities build infrastructure in the coming months as construction is used to drive the economy forward. Included in this proposal is a new community benefits charge that will enable municipalities to fund growth-related capital costs of services due to higher density developments that aren't supported by other tools.

If passed, the COVID-19 Economic Recovery Act will impact the following:

Building Code Act
The proposed changes will make it easier and faster to update the Building Code by allowing the Minister of Municipal Affairs and Housing to make regulations that will streamline the Building Code development process, aligning it with National Construction Codes. These changes should reduce inter-provincial trade barriers, make Ontario more competitive and support economic growth.

Environmental Assessment Act
The proposed legislation will update the environmental assessment program to build a modern, practical process that supports strong environmental oversight and a strong economy. The government claims that this will reduce timeliness by half, from six to three years, for the most significant projects and match the level of assessment requirements with their associated environmental impact.

Ministry of Municipal Affairs and Housing Act
The Ontario government proposes changes to permanently establish the Office of the Provincial Land and Development Facilitator and give the Minister of Municipal Affairs and Housing the authority to appoint the facilitator.

Occupational Health and Safety Act
The proposed legislation will amend the Occupational Health and Safety Act to allow nationally and internationally recognized standards to be updated regularly. These standards should make updating regulations easier and improve access to CSA-approved PPE. Updating standards without requiring regulatory amendments will also allow access to more current information on workplace standards.

Planning Act and Development Charges Act
Ontario is proposing changes that will give municipalities flexibility to fund community services for new developments through modified development charges and a new community benefits charge. The revised development charges will allow municipalities to recover 100 percent of the cost to build critical community services like long-term care, child care, public health facilities, playgrounds, libraries and affordable housing. A separate community benefits charge will enable municipalities to fund growth-related capital costs of services due to higher density developments that aren't supported by other tools. Municipalities will continue to fund parkland with the existing mechanisms and added accountability.

Development charges and the community benefits charge will work together to ensure municipalities can pay for the infrastructure and services growing communities need.

More information:
For a full explanation of the proposed COVID-19 Economic Recovery Act, please click here.