Ontario Enacts The Building Homes And Improving Transportation Infrastructure Act, 2026 To Streamline Planning Processes And Accelerate Housing Delivery

The provincial government enacted significant changes to the province’s land use planning framework with an eye to standardizing the planning process across municipalities. On June 2, 2026, Bill 98, Building Homes and Improving Transportation Infrastructure Act, 2026 (the Act), received Royal Assent.

The Act represents another omnibus piece of legislation intended, in the Province’s view, to increase housing supply, streamline and consolidate municipal planning documents, and support infrastructure delivery, including planned transit services. The legislation follows consultation with the federal government and other stakeholders and reflects a continued focus on reducing approval timelines and modernizing planning tools across Ontario.

Not all provisions of the Act are currently in force, with several key elements to be implemented through future regulations. These amendments reflect an increased centralization of planning authority at the provincial level.

This alert provides an overview of key legislative changes arising from the Act and highlights practical implications for developers and municipalities.

1. Changes to the Planning Act and City of Toronto Act

The Act introduces a standardized framework for official plans for local municipalities and planning boards.

The new framework sets out a prescribed structure for official plans, which also includes a statutorily prescribed list of land use designations.

• Clear direction on settlement area structure and growth management
• Defined sections addressing residential and mixed use areas
• Policies relating to rural lands and agricultural systems
• Requirements respecting infrastructure, facilities and community services
• Implementation and interpretation provisions

The framework also standardizes official plan schedules, including:

• Settlement boundaries and urban and rural structure
• Public service facilities, parks and open space
• Transportation and infrastructure systems
• Natural environment and resource potential

In addition, the Act establishes a standardized set of land use designations to be used across all lower-tier and single-tier municipalities. The standardized official plan framework is not yet in force and will be implemented through future regulations. Municipalities will be required to conform to the new framework by January 1, 2028 or January 1, 2029, depending on the municipality. In the interim, existing official plans remain in effect, but the transition to a prescribed structure may introduce uncertainty for municipalities and applicants managing ongoing planning processes.

These changes are intended to improve consistency and clarity across municipal planning documents and are expected to support more predictable development approvals. The proposal will require municipalities to undertake significant updates to existing official plans which will require significant municipal resources and may create uncertainty during the transition period when these changes are being implemented.

Complementary amendments to the Planning Act include:

• Repealing the requirement for municipalities to include climate change policies (goals, objectives and actions to mitigate greenhouse gas emissions and provide for adaptation) within their official plans
• Providing that, for protected major transit station areas, only official plan amendments relating to boundaries or planned population and employment require ministerial approval
• Allowing the Minister to provide direction on implementation of the standardized framework

These amendments further reinforce the Province’s broader objective of narrowing areas of municipal discretion that, in its view, may constrain housing delivery. By removing prescribed policy requirements, limiting the scope of ministerial approvals in key growth areas, and centralizing direction over the implementation of standardized official plans, the Province continues to shift planning authority toward a more uniform, provincially directed framework intended to support increased housing supply and reduce barriers to residential development.

2. Site plan control and enhanced development standards

The Act introduces new restrictions on site plan control and related municipal tools.

Amendments to the Planning Act, City of Toronto Act, 2006, Municipal Act, 2001 and Building Code Act, 1992:

• Remove references to “sustainable design” from site plan control
• Prohibit municipalities from requiring enhanced development standards that are not necessary for health or safety
• Clarify that municipalities cannot require electric vehicle charging infrastructure through zoning or site plan control
• Confirm that enhanced building and construction standards are voluntary and cannot be imposed

These changes represent a shift in the balance between provincial and municipal authority, particularly for municipalities that have implemented green development standards through their planning approvals process. Certain sustainability measures will no longer be secured through the development approvals process and may instead depend on market uptake. The new site plan limitations may lead municipalities to address certain items at earlier stages of the approval process, particularly at the rezoning stage.

The Province is also considering further reforms to the site plan process through ongoing consultation, including potential changes to circulation requirements, timelines, and the scope of site plan review.

3. Minimum lot sizes

The Act introduces a new framework that allows the Province to regulate minimum lot sizes for urban residential lands.

Key elements include:

• Authority for the Minister to prescribe minimum lot size standards by regulation
• Application to parcels of urban residential land that are fully serviced and located outside the Greenbelt Area
• Inapplicability of municipal zoning standards that would require larger lot sizes than those prescribed

These changes are intended to support more compact forms of development and increase housing supply. While detailed standards will be set through future regulation, the framework signals a shift away from municipal control over lot sizing and built form.

The impact of these changes is expected to be most pronounced in suburban and exurban areas, where existing zoning standards often require larger lots. By allowing greater provincial control over lot sizes, the changes may facilitate more intensification over time.

4. Minister’s Zoning Orders

The Act amends the Planning Act to remove the notice requirement when the Minister proposes to amend or revoke a Minister’s Zoning Order. This change streamlines the process for modifying MZOs by eliminating a procedural step that previously provided advance notice of proposed changes. However, the removal of the notice requirement may raise concerns regarding transparency and reduce opportunities for municipalities, landowners and other stakeholders to become aware of and respond to proposed amendments or revocations.

5. Parkland dedication and section 42 framework

The Act introduces further changes to the parkland dedication regime under section 42 of the Planning Act.
Key features include:

• Recognition of certain lands identified by owners for park or recreational purposes, including interests in land such as easements, toward parkland dedication requirements
• A credit framework providing that qualifying lands count toward parkland requirements at a factor of at least 0.7 (with municipalities able to apply a higher factor)
• A new 90-day timeframe for municipal decisions on proposed parkland conveyances
• A right of appeal to the Ontario Land Tribunal where a municipality fails to make a decision within that timeframe

The Act also introduces a new right of appeal to the Ontario Land Tribunal where a municipality fails to make a decision within the prescribed 90-day timeframe, reinforcing a more time-bound approach to parkland dedication decisions. In parallel, the Province indicated through related Environmental Registry of Ontario postings that regulations are anticipated to prescribe criteria for lands that may be ineligible for parkland dedication, including lands with functional, safety or environmental constraints. Together, these changes signal a move toward greater certainty and standardization in the parkland dedication regime, while narrowing municipal discretion.

The Act also validates easements for parkland purposes even where the municipality does not own appurtenant land, addressing a technical barrier that previously limited flexibility in parkland arrangements. These changes are intended to provide greater certainty for developers and facilitate more efficient use of land in urban contexts. At the same time, they may limit municipal discretion in securing parkland and raise considerations regarding the quality and functionality of accepted lands.

6. Development Charges Act changes

The Act amends the Development Charges Act, 1997 to exempt non-profit retirement home developments from development charges.

This exemption is intended to encourage housing options for seniors and support overall housing supply.

The amendments are relatively narrow in scope but form part of a broader policy approach aimed at reducing development-related costs.

7. Changes to the Municipal Act

The Act expands provincial authority over private water and wastewater servicing.

The Minister is authorized to establish:

• Criteria that municipalities must apply when reviewing applications for private servicing
• Requirements respecting agreements, conditions and financial securities

Where prescribed criteria are met, municipalities may be required to approve proposals for private servicing systems. These changes are intended to address servicing constraints and enable development in rural and under-serviced areas.

8. Fare alignment and transit integration

The Act enacts the Fare Alignment and Seamless Transit Act, 2026, establishing a provincial framework for transit fare integration across the Greater Toronto and Hamilton Area.

Key elements of the new framework include ministerial authority to set fare structures and discount policies, mandatory participation in a unified fare payment system, fare apportionment among designated transit systems, and service integration requirements for priority routes. Specialized transit systems will also be required to participate in a unified trip booking system and provide cross-boundary services for persons with disabilities.

These changes are intended to improve the convenience, consistency and accessibility of transit services across municipal boundaries. The framework will require transit systems to report to the Minister and comply with provincial directives.

9. Metrolinx Act amendments

The Act amends the Metrolinx Act, 2006 to establish a streamlined building approval process for provincial transit projects.

Under the new framework, Metrolinx may notify the chief building official of a proposal to construct or demolish a building associated with a provincial transit project. The chief building official must then provide a report assessing compliance with the Building Code Act, 1992. The framework provides immunity from liability for building officials acting in good faith.

These amendments are intended to expedite transit infrastructure delivery while maintaining appropriate oversight of building safety.

10. Conclusion

As the Province continues with its omnibus planning legislation, many changes in Bill 98 will require regulations to fully enact the Province’s vision. Several aspects of the Act require a future regulation to enable the policy to be in place.

The Province continues to take steps to update Ontario’s land use planning regime, with the intention of streamlining construction of new homes and infrastructure and addressing barriers to building.

We will continue to monitor implementation of the Act and related regulatory initiatives and provide updates on developments. If you have any questions about the Act or any related legislative and regulatory changes, please contact Katarzyna Sliwa, Isaiah Banach, Max Reedijk, Doug Pateman or any member of our Municipal Planning, Land Use and Development Law group.