Housing Strategy

On November 19, 2024, Vaughan City Council ratified several reports related to the City’s Development Charge (DC) policies. DCs are fees charged by a municipality to developers to help fund the initial capital costs required to support growth. From 2009 to 2021, the City’s DC rates increased by 229 per cent, and, since 2018, rates have increased another 66 per cent. Changes to the DC policies include a DC Rate Reduction and Deferral for Residential Policy, Surety Bond Policy pilot and a DC Reimbursement and Credit Policy which revises the DC rates on all residential development applications to the rates in effect on Sept. 21, 2018, until Nov. 19, 2029, through the use of Section 27 agreements.

The City has also committed to the Provincial Government’s Housing Pledge to increase the supply of new residential housing units in Vaughan. A Community Improvement Plan Study is underway to identify the incentives necessary to support the development of complete communities, including greater production of affordable and accessible housing, as well as addressing last mile solutions. The Housing Strategy will serve to coordinate the different housing initiatives underway at the City, in an effort to facilitate the development of different types and forms of housing in Vaughan, including affordable housing.  

As established by current Provincial policy contained in the Provincial Planning Statement 2024, affordable housing is defined as follows: 

a. In the case of ownership housing, the least expensive of: 

1. housing for which the purchase price results in annual accommodation costs which do not exceed 30 percent of gross annual household income for low-and-moderate income households.
2. housing for which the purchase price is at least 10 percent below the average purchase price of a resale unit in the municipality.

b. In the case of rental housing, the least expensive of: 

1. a unit for which the rent does not exceed 30 percent of gross annual household income for low-and-moderate income households.

2. a unit for which the rent is at or below the average market rent of a unit in the municipality.

    

Affordable Housing can include any residential units that meet the threshold above produced by private developers or non-profit housing providers, which includes community housing developed by York Region (Housing York, Inc.)

On an annual basis, York Region monitors the production of affordable ownership and purpose-built rental housing units across the Region. 

The City plays the following roles in delivering housing in Vaughan:

• Develops Official Plan policies and Zoning By-Laws which manage development and direct growth to specific areas of the City.
• Reviews development applications and issues building permits for approved residential development that contributes to meeting the City’s housing targets.
• Applies to funding programs offered by senior level governments that support the delivery of different types and forms of housing development, including affordable housing. 

Provincially designated Service Manager for York Region with the following responsibilities:

• Develops and approves Housing and Homelessness Plans to promote the availability of affordable housing and prevent homelessness.
• Releases annual monitoring reports of affordable housing production.
• Administers funding from Provincial/Federal housing and homelessness programs.
• Develops and manages Community Housing, which offers subsidized housing units to eligible households through Housing York, Inc. 

• Senior level government sets direction for housing on a National and Provincial basis and acts as the primary funders of community housing programs in Canada. 
• Provincial government sets policy direction through legislation and regulations that impact Service Managers (i.e. York Region) and Municipalities (i.e. City of Vaughan).
• The Provincial and Federal governments in Canada implement taxes (e.g. capital gains tax, land transfer taxes, etc.) which can have significant impacts on the housing market.
• Canada Mortgage and Housing Corporation provides mortgage insurance, education and information as well as other services including administering housing funding programs.

Phase 1 includes the finalization of the Study Work Plan and Schedule. The project team will also identify and collect the necessary data to complete the background research for the Study, primarily concerning demographic and housing information.

As part of the initial phases of the Study, Phase 2 focuses on conducting background research on relevant housing policies and programs. 

Building on the background analysis conducted through the Official Plan Review, the Housing Strategy Study will include a Housing Needs Assessment. Based on demographic and housing market data, the Housing Needs Assessment will identify any gaps in the housing market regarding the supply of specific housing types. The results of the Housing Needs Assessment will help identify the appropriate policies, tools and incentives necessary to produce more housing options in Vaughan. 

The engagement phase of the Housing Strategy will include consideration of the feedback collected through the public engagement conducted through the Official Plan Review. To supplement this feedback on general housing themes, the Housing Strategy will also include focused consultation with key stakeholders in the development and non-profit housing sectors. The focused consultation sessions will provide input on potential tools, incentives and partnerships to be included in the draft Housing Strategy. 

The final phase of the Study will focus on the development of a draft Housing Strategy that will be presented to Vaughan Council for approval.