January 19, 2026
Introduction
The Ontario Human Rights Commission (OHRC) welcomes the opportunity to provide this submission on the proposed amendment under O. Reg. 232/18 – Inclusionary Zoning, made under the Planning Act, to pause the implementation of Inclusionary zoning (IZ) in three municipalities until July 1, 2027.
The Ontario Government is proposing to amend the inclusionary zoning (“IZ”) regulation (O. Reg. 232/18). The proposal aims to pause implementation of IZ by-law requirements so that proposed new developments would not be subject to them until July 1, 2027. IZ is currently only in effect in the cities of Toronto, Kitchener, and Mississauga.
The proposed amendment, if enacted as drafted, may impact the availability of much needed, centrally located, affordable housing units in high growth municipalities which already lack affordable housing options and are experiencing a severe housing and homelessness crisis.
Housing and Human Rights
Under the Ontario Human Rights Code (the Code), every person has a right to equal treatment with respect to the occupancy of accommodation, without discrimination because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, gender identity, gender expression, age, marital status, family status, disability or the receipt of public assistance.[1]
The Code has primacy over all other laws in Ontario. This means that other laws cannot result in discrimination (unless they say they are exempted from the Code), and that human rights take priority.
The Code prohibits discrimination in the services provided by municipalities, such as zoning and land use planning, as well as in provincial regulations governing these municipal services.[2] Discrimination occurs when people are excluded from services or housing accommodation based on a characteristic protected under the Code. However, neutral policies or programs that have an adverse effect on people based on protected characteristics are also discriminatory and can create or contribute to systemic inequality.
The Code’s prohibition on discrimination “with respect to occupancy of accommodation” covers discrimination that leads to the loss of accommodation or the discriminatory denial of access to accommodation. It may include actions that limit the supply of housing for vulnerable individuals protected by Code grounds, such as persons with disabilities.[3]
In its work on housing, the OHRC has repeatedly heard that people who identify with certain Code grounds or combinations of grounds are more likely to be tenants and are more likely to experience poverty or to have lower average incomes than the general population.[4] The Code may be found to apply when barriers to housing options based on low income are connected to grounds such as age, ancestry, disability, ethnic origin, family status, gender identity, place of origin, race, or being in receipt of public assistance.[5]
Adequate housing is essential to health and well-being. It is a critical component of addressing the impacts of discrimination and improving access to health care, education, and employment. Regulatory changes which decrease the supply of accessible affordable housing around transit hubs will have a direct, diminishing impact on all these crucial areas of well-being.
Housing is essential to human dignity and recognized as a human right in international law and Canadian obligations, including the International Covenant on Economic, Social and Cultural Rights.[6] Many individuals with Code-protected characteristics are more likely to face precarious housing and require affordable housing options.
Affordable housing shortages, especially near transit and employment hubs, disproportionately affect people with certain Code-protected characteristics who are over-represented including:
- Persons with disabilities, including those with mental health and addictions disabilities who may face accessibility challenges and disproportionate eviction risks. Locating affordable housing near transit hubs also directly decreases barriers to accessing health care services.
- Public assistance recipients, who may struggle to meet tight rental deadlines due to administrative delays, are more likely to be denied housing, or only offered housing at higher rents.
- Racialized individuals and newcomers, who may face systemic bias or discrimination in landlord-tenant interactions.
- Indigenous peoples, who may encounter culturally insensitive policies and fewer community supports.
- Students and younger adults, often with lower income and precarious tenancy arrangements.
- Older adults and seniors, who may have limited income and mobility constraints.
- Women who rely on affordable housing because they are more likely to receive a lower wage than men and, on average, pay higher rates for rental housing[7]
- Single-parent families, who often encounter challenges finding and securing adequate and affordable housing.
Regulatory changes which lower the supply of housing, with a disproportionate effect on these individuals, directly or indirectly, may create or contribute to systemic discrimination.
OHRC’s Work in Housing
In addition to the OHRC’s Policy on human rights and rental housing[8] and report entitled In the zone: housing, human rights and municipal planning,[9] the OHRC has previously provided commentary and guidance on housing issues and proposed changes in Ontario. This includes commentary on zoning issues which would affect the human rights of those facing extreme housing insecurity,[10] proposed changes to rules governing rental properties,[11] and proposed rules which would impact the ability to assert human rights and access to justice for vulnerable tenants.[12]
The OHRC has also filed submissions on the More Homes Built Faster Act, 2022 (Bill 23), regarding changes to inclusionary zoning among other housing-related regulatory changes.[13]
Background on Inclusionary Zoning
Inclusionary zoning (IZ) is a land-use planning tool that was enabled in Ontario in 2018. Authorized under the Planning Act and its associated regulation, O. Reg. 232/18, IZ allows municipalities to require that residential developments of 10 or more units include affordable housing within designated Protected Major Transit Station Areas (PMTSAs) or in Community Planning Permit System (CPPS) areas established by the Ministerial order. The Minister also has the authority to direct municipalities to adopt official plan policies permitting the use of IZ. When applied effectively, inclusionary zoning can be a useful tool to increase the supply of affordable housing in areas experiencing growth pressures, high housing demand and availability of higher-order transit.
In response to changing market conditions that could negatively impact the housing industry and to provide greater certainty for the development sector, the Government of Ontario made changes to the IZ regulation in May 2025. These changes included setting a maximum 25-year affordability period and a 5% cap on the number of affordable units (or residential gross floor area) that can be required through IZ in PMTSAs (previous to this change, municipalities could establish their own set-aside rates and affordability periods, at their discretion as long as they complete an assessment report and economic study).
The OHRC has previously recommended establishing rates for affordable units at 10% (to align with most other IZ policies in North America).[14] The 5% cap on affordability requirements overrode previously higher targets that had been adopted and passed by certain municipalities.[15]
The Government of Ontario has indicated that development industry stakeholders are concerned that under current market conditions, implementing any IZ could slow housing development and lead to project delays or cancellations. The proposed amendment seeks to pause IZ implementation for new developments until July 1, 2027.
Concerns Regarding Proposed Changes
The proposed amendment to O. Reg.232/18 was posted on the Regulatory Registry for feedback on January 12, 2026 and the deadline for submissions is January 19, 2026. This very short timeline for submissions means that people with lived experience including people in need of affordable housing, people experiencing homelessness and people working in the homelessness and housing sector have not had an opportunity to provide feedback and input on a change to a regulation that will impact the availability of affordable housing options in their communities. The OHRC believes these limitations create a risk that potential human rights impacts will go unidentified and unaddressed and will exacerbate the deepening housing and homelessness crisis.
IZ is an important tool in helping to create mixed-income communities and increase access to affordable housing. While the government’s rationale to pause IZ implementation is to provide certainty and reduce risk for the development industry to build housing, the change will:
- Reduce the number of future affordable housing units especially in high-demand areas near transit.
- Exclude lower-income households from transit-oriented communities and entrench spatial exclusion by building only market-rate housing near transit. Low-income households will be pushed to areas farther from transit, employment and services thus limiting their opportunities for employment, education and social participation.
- Disproportionately impact vulnerable individuals with Code-protected characteristics that are in critical need of affordable housing.
- Remove a small, but guaranteed quantity of affordable units in high demand, transit accessible new developments, which in the long-term will exacerbate the housing and homelessness crisis.
The OHRC’s Recommendations
The OHRC recommends against pausing the IZ implementation as pausing IZ risks worsening systemic discrimination in housing by reducing the supply of affordable housing in high-opportunity areas such as PMTSAs.
The OHRC recommends maintaining that new developments have 5% of their units designated as affordable units, especially in PMTSAs.
The OHRC recommends the Government of Ontario reconsider the proposed amendment and adopt a human rights-based approach. This includes meaningful engagement with impacted communities, research and analysis grounded in human rights obligations, and development of recommendations that respond to the rights, needs and perspectives of impacted communities. These steps are essential when amending any legislation, regulations or zoning by-laws that have the potential to impact the supply of affordable housing.
[1] Ontario Human Rights Code, R.S.O. 1990, c. H.19 s 2 (1).
[2] See for example, Ivancicevic v. Ontario (Consumer Services), 2011 HRTO 1714, at paras 143, 212 and 217; Wheaton v. Ottawa (City), 2013 HRTO 1597 at paras 8-9.
[3] Dream Team v. Toronto (City), 2012 HRTO 25; Kitchener (City) Official Plan Amendment No. 58, [2010] O.M.B.D. No. 666, 64 O.M.B.R. 283 at pages 41-42.
[4] Ontario Human Rights Commission, “The Ontario Human Rights Code and licensing,” Room for Everyone: Human rights and rental housing licensing. (Toronto: OHRC, 2013) online: https://www.ohrc.on.ca/en/room-everyone-human-rights-and-rental-housing-licensing/ontario-human-rights-code-and-licensing.
[5] Ontario Human Rights Commission, Poverty POV – What We Are Hearing. (Toronto: OHRC, 2023) online: https://www.ohrc.on.ca/en/poverty-pov-what-we-are-hearing.
[6] International Covenant on Economic, Social and Cultural Rights, 19 December 1966, 999 UNTS 171, art. 11 (entered into force 23 March 1976, accession by Canada 19 May 1976).
[7] Kaitlin Schawan, et al. The State of Women’s Housing Need and Homelessness in Canada (Toronto: Canadian Observatory on Homelessness Press, 2020) at p 71.
[8] Ontario Human Rights Commission, Policy on human rights and rental housing. (Toronto: OHRC, 2009) online: https://www.ohrc.on.ca/en/policy-human-rights-and-rental-housing.
[9] Ontario Human Rights Commission, In the Zone: Housing, human rights and municipal planning. (Toronto: OHRC, 2012) online: https://www.ohrc.on.ca/sites/default/files/In%20the%20zone_housing_human%20rights%20and%20municipal%20planning_0.pdf.
[10] Ontario Human Rights Commission, OHRC letter to City of Kingston regarding encampments. (Toronto: OHRC, 2024) online: https://www.ohrc.on.ca/en/ohrc-letter-city-kingston-regarding-encampments; Ontario Human Rights Commission, Emergency Care Establishment By-law (000-2024). (Toronto: OHRC, 2024) online: https://www.ohrc.on.ca/en/news-center/emergency-care-establishment-law-000-2024; Ontario Human Rights Commission, Letter to the Town of Aurora on proposed emergency and transitional housing project. (Toronto, OHRC, 2023) online: https://www3.ohrc.on.ca/en/news-center/letter-town-aurora-proposed-emergency-and-transitional-housing-project; Ontario Human Rights Commission, Follow up to proposed emergency and transitional housing project at 14452 Yonge St., (Toronto: OHRC, 2025) online: https://www.ohrc.on.ca/en/follow-proposed-emergency-and-transitional-housing-project-14452-yonge-st; Ontario Human Rights Commission. OHRC statement on human rights and access to cold weather services. (Toronto: OHRC, 2023) online: https://www.ohrc.on.ca/en/news-center/ohrc-statement-human-rights-and-access-cold-weather-services.
[11] Ontario Human Rights Commission, Proposed Amendments to Clarify and Enhance Rental Rules Related to Air Conditioning. (Toronto: OHRC, 2023) online: https://www.ohrc.on.ca/en/news-center/proposed-amendments-clarify-and-enhance-rental-rules-related-air-conditioning; Ontario Human Rights Commission, OHRC statement on human rights, extreme heat waves and air conditioning. (Toronto: OHRC, 2022) online: https://www.ohrc.on.ca/en/news-center/ohrc-statement-human-rights-extreme-heat-waves-and-air-conditioning.
[12] Ontario Human Rights Commission, Submissions on Bill 60. (Toronto: OHRC, 2025) online: https://www.ohrc.on.ca/en/news-center/submissions-bill-60.
[13] Ontario Human Rights Commission, More Homes Built Faster Act – OHRC submissions. (Toronto: OHRC, 2022) online: https://www.ohrc.on.ca/en/more-homes-built-faster-act-ohrc-submissions.
[14] Ontario Human Rights Commission, OHRC submission on the More Homes Built Faster Act: Inclusionary zoning. (Toronto: OHRC, 2022) online: https://www.ohrc.on.ca/en/more-homes-built-faster-act-ohrc-submissions/ohrc-submission-more-homes-built-faster-act.
[15] Social Planning Toronto, “City of Toronto’s Inclusionary Zoning Bylaw Finally Takes Effect After Years of Provincial Delay and Interference in Local Democracy” (7 October 2025), online: https://www.socialplanningtoronto.org/inclusionary_zoning_2025.