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Cottage Life

2023 Federal and provincial legislation that cottagers should pay attention to

In the new year, key pieces of legislation will come into play that may impact everyone from cottage owners to environmental advocates. Here’s a rundown of what to expect.

Non-Resident Speculation Tax 

What it entails: Also called the Foreign Buyers tax, the NRST has existed since 2017 and applies to non-residents purchasing property in Ontario. In October 2022, the provincial government bumped it up from 20 to 25 per cent.

Who is impacted: Non-residents (outside of Canada) buying property in Ontario; it’s relevant to the second home/vacation property market. 

Issues and concerns: Some real-estate experts are concerned it may deter tourism dollars that contribute to local economies, especially in vacation regions close to the U.S.

When: The increase from 20 to 25 per cent happened in October, but if you purchased property before that date, you’ll still pay the 20 per cent rate when taxes are due in 2023. Any property purchased after October 25 of this year will fall under the 25 per cent rate.

Bill 23

What it entails: The Ontario government has said they plan to build 1.5 million homes over the next 10 years. There are many stipulations in Bill 23, such as waiving the need to apply for re-zoning permits if you want to alter or add to an existing unit.

Who it impacts: Current or prospective homeowners, developers, and in particular, those who live in cottage country and/or in close proximity to conservation areas. 

Issues and concerns: Some conservation authorities are concerned the bill will strip away their ability to advocate for environmentally sensitive regions and areas at risk for flooding.

When: Bill 23 was made law on November 28, but some portions of it are expected to come into effect early in the new year, as announced by the province’s Lieutenant Governor. Public consultation for the proposed regulation of conservation authorities closed on December 30.

Bill 109

What it entails: This bill amends five major pieces of existing legislation regarding infrastructure. Since local municipalities handle most building processes, this act aims to remove barriers (the cities of Toronto and Ottawa have detailed information on the bill).

Who it impacts: Developers or home builders; those looking to change, add onto or renovate their home. Since this bill is looped in with Bill 23, it’s also of interest to cottagers and those near conservation areas.

Issues and concerns: With the similar desire to strip away “red tape” as in Bill 23, the same concerns have been raised about inadvertent harm to the environment, especially ecologically sensitive areas.

When: The bill took effect on Jan. 1, 2023

Bill 39

What it entails: This bill gives the mayors of Toronto and Ottawa increased power. It will see those mayors able to move forward on some initiatives with only one-third of councillors on board, as opposed to the previous requirement of a majority (it specifically targets infrastructure). 

Who it impacts: Residents of both Toronto and Ottawa and surrounding areas, home builders, developers, and prospective buyers. 

Issues and controversies: Some city councillors have expressed concern that this bill would give sweeping powers to mayors to pass bills that would usually require more support. The Association of Municipalities of Ontario has spoken out against the bill, echoing similar concerns.

When: The bill technically passed on December 8, but further consultations and any material use of it is not expected until the new year.

Underused Housing Tax 

What it entails: This tax targets housing considered to be “underused” stands at one per cent of the total value of the property and applies to non-resident, non-Canadian-owned property. While this tax was brought forth at the end of 2021, the deadline to file and pay it is April 2023—for the year 2022—which is why it’s relevant now.

Who it impacts: Anyone who is a non-resident, non-Canadian owner of a property considered underused or vacant housing. It may be relevant to owners in cottage country/vacation regions; depending on several factors, properties there may fall into that category (the consulting firm Ernst & Young provides a thorough explainer here).

Issues and concerns: Similar to the non-resident tax, some financial experts have expressed concern that this will deter foreign buyers from investing in Canada and bringing in tourism dollars.

When: Anyone who needs to pay the tax will have to do so by April 23, 2023, for the 2022 calendar year.

Prohibition on the Purchase of Residential Property by Non-Canadians Act

What it entails: The federal government has banned foreign buyers and corporations from purchasing specific residential property in Canada for the next two years, with some exceptions. This does not apply to residential property located within municipalities with a core population of less than 10,000 people.

Any non-Canadian or anyone who knowingly assists a non-Canadian and is convicted of violating the Act faces a fine of $10,000, and they may be forced to sell the property.

Who it impacts: Foreign citizens without a permanent resident card and corporations controlled by foreign individuals or entities. Recreational properties are not included in the ban and neither are some cottage country areas.

Issues and controversies: CREA has criticized the bill saying it will hinder Canada’s ability to attract foreign talent to its labour force.

When: The ban took effect on Jan. 1, 2023.

This article includes amendments by Megan McPhaden. 

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Cottage Life

Toronto Zoo, Parks Canada voice concerns over planned development of the Greenbelt

The public consultation period for a controversial proposal from the Ontario government has come to an end. In early November, the province announced plans to open 15 sections of protected land within Ontario’s Greenbelt, totaling 7,400 acres, for housing.

In an attempt to tackle Ontario’s housing crisis, the proposal would expand the amount of land available for development in the Greater Golden Horseshoe Region. Premier Doug Ford has committed to building 1.5 million new homes in the next 10 years, and the government says 50,000 new homes would be built on the Greenbelt land.

The government has also stated that it would replace the developed land with 9,400 acres, consisting of 13 urban river valley areas and a section of the Paris Galt Moraine, approximately an hour’s drive east of Toronto.

The proposal, however, has been met with opposition. Protests have erupted around the province as stakeholders voice concerns about the environmental impacts of developing the Greenbelt and point out that Ford promised he wouldn’t touch the Greenbelt during his re-election campaign.

It’s also been revealed that developing the Greenbelt could thrust the provincial government into a series of legal complications.

Parks Canada issues letter in response to removal of Greenbelt lands

As part of its Greenbelt proposal, the Ford government plans to open a section of the Duffins Rouge Agricultural Preserve, an area of protected land in Pickering, for development. This section of land is adjacent to the Rouge National Urban Park, which falls under Parks Canada’s jurisdiction.

During the public consultation period for the Greenbelt amendment, Parks Canada submitted a letter to the Ontario government, pointing out that if the province developed this land without consulting Parks Canada, it would be breaking a Memorandum of Agreement between the provincial and federal governments.

The letter went on to say that a Parks Canada analysis found that developing the Duffins Rouge Agricultural Preserve could cause irreversible harm to the wildlife, natural ecosystems, and agricultural landscapes within the Rouge National Urban Park.

“Parks Canada looks forward to productive discussions on the issue with the province,” said a spokesperson for the agency in an email.

Toronto Zoo concerned about how developing the Greenbelt lands will affect endangered species

Developing so close to the Rouge National Urban Park could also endanger Blanding’s turtles, which are protected under the federal government’s Species at Risk Act. To help the species recover, the Toronto Zoo, in collaboration with Parks Canada, the Toronto and Region Conservation Authority (TRCA), and the Ontario Ministry of Natural Resources and Forestry (MNRF), has been raising Blanding’s turtles and then releasing them into the Rouge National Urban Park.

“Since 2012, 603 Blanding’s turtles have been released into the Rouge watershed,” said Dolf DeJong, CEO of the Toronto Zoo. “It’s a really challenging narrative for us because we usually don’t share the locations where these animals are put back publicly. We do that to reduce the threat of poaching and unintentional habitat damage from people trying to see them. But there are 149 of these animals that have been released adjacent to where they’re talking about developing with the proposed amendments to the Greenbelt Act.”

DeJong pointed out that the Rouge National Urban Park acts as a corridor for these at-risk species, connecting Lake Ontario to land north of Highway 407.

“Our research is suggesting home range lengths can be between just under a kilometer to over three kilometers, with maximums over seven,” he said. “Having linked spaces that connect wetlands and wild spaces, as well as underpasses and natural corridors that ravines, valleys, and rivers provide is so important for [the Blanding’s turtles] to connect and mix.”

The Rouge National Urban Park is also home to other at-risk species, including three types of bats: the northern myotis, the little brown bat, and the tricoloured bat.

According to the Species at Risk Act, a corporation that damages an at-risk species’ habitat could be fined up to $300,000.

Mississaugas of Scugog Island First Nation say they were not consulted

On December 5, Pickering held a city council meeting to discuss endorsing staff recommendations to support the province’s decision to remove the lands in Pickering from the Greenbelt under Bill 23. In 2019, Pickering’s former mayor, Dave Ryan, wrote a letter to the Minister of Municipal Affairs and Housing, asking them to repeal the Duffins Rouge Agricultural Preserve Act so that the city could develop on the land.

On November 16, 2022, newly elected Pickering mayor Kevin Ashe, communicated the same sentiment, writing a letter to the Minister of Municipal Affairs and Housing indicating support for the removal of the Duffins-Rouge Agricultural Preserve from the Greenbelt and the repeal of the Duffins Rouge Agricultural Preserve Act.

The December 5 city council meeting allowed Pickering residents to voice their opinions on whether the city should support the province’s removal of the Duffins-Rouge Agricultural Preserve from the Greenbelt. The meeting lasted approximately six hours, dragging into the early morning of December 6. A succession of 30 speakers stepped forward, the majority opposing the proposal.

One of the meeting’s biggest revelations came around the fifth hour when Chief Kelly LaRocca of the Mississaugas of Scugog Island First Nation (MSIFN), whose reserve is in Port Perry, northeast of Pickering, addressed council.

“Just for a bit of background,” she said. “It’s the province’s constitutional duty to provide informed and meaningful consultation to First Nations when its rights and land would be impacted by Crown decision-making. It must be noted that MSIFN were not consulted by the province in advance of its decision to pass Bill 23 or amend the Greenbelt and Duffins Rouge Agricultural Preserve Act. These legislative and regulatory changes are, therefore, in our view, unconstitutional.”

LaRocca went on to accuse both Pickering and the provincial government of pursuing symbolic gestures during “this time of reconciliation,” rather than engaging in meaningful action and consultation.

“We submit the city should not pursue any significant planning reforms until such time that the province addresses its consultation failures and the municipality engages in informed consultation,” she said.

In the end, Pickering’s council voted against supporting the removal of the Greenbelt lands and also repealing the Duffins Rouge Agricultural Preserve. However, the Province has since passed Bill 39, repealing the Duffins Rouge Agricultural Preserve Act and effectively leaving the lands without legislative protection.

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Cottage Life

Pending amendments to the Conservation Authorities Act would allow developers to build on floodplains without permits

On November 28, the Ontario government passed Bill 23 dubbed the More Homes Built Faster Act, a far-reaching piece of legislation that eliminates development fees and downloads a lot of the permitting responsibilities to the municipalities. The objective of the bill is to speed up the development planning process and create affordable housing.

Ontario Premier Doug Ford has committed to building 1.5 million new homes in the next 10 years.

In hand with Bill 23, the Ford government is also looking to open sections of Ontario’s Greenbelt for development—with some of those sections located in wetlands and floodplains.

During an interview with the Canadian Press, Steven Guilbeault, Canada’s Minister of Environment and Climate Change, criticized the plan, saying that the federal government would not provide disaster compensation to developments built in floodplains.

Premier Ford responded to Guilbeault’s statement during a press conference in Clarington, Ont. on Dec. 2. by putting the onus on the developers.

“It’s the responsibility of any builder, no matter where we build, to make sure that they protect any floodplains,” the premier said.

Rhonda Bateman, the chief administrative officer for the Lower Trent Conservation Authority, confirms that as of right now, this is true. “Currently, everything is status quo as far as our permitting goes,” she says, meaning Ontario’s conservation authorities still have jurisdiction over natural hazards, such as floodplains, and have the power to prevent developers from building near these areas by denying them permits.

But that could change. The provincial government added two amendments to the Conservation Authorities Act, a set of regulations Ontario’s conservation authorities use to “maintain the vitality of our watersheds and protect people’s lives and properties from natural hazards such as flooding and erosion.”

The two amendments have yet to be enacted, requiring a proclamation from the Lieutenant Governor. But if they were enacted, Bateman says that developers would not need a permit from their conservation authority to build on a hazardous area, such as a floodplain or wetland.

“If [developers] don’t require a permit from us, it will end up causing a lot of extra responsibility and liability for development on the municipality,” she says, “and they count on us for expertise to be able to identify all of those hazards and how to mitigate them or prevent them from happening.”

Bill 23 has already stripped conservation authorities of the ability to partner with municipalities to review and comment on development applications. The Ford government has reasoned that by removing stakeholders from the planning process, more development will happen faster. But many municipalities have said that without the expertise of conservation authorities, the planning process could take longer to properly assess an application.

It’s also unclear who would be liable if a developer built in a floodplain and the development flooded. “I think lawyers are going to be competing over the answer to that,” Bateman says. “The municipalities will have limited mechanisms to ensure that outside compliance can be reached because we’re the compliance in the permitting process.”

The dangers associated with building in a natural hazard are obvious, Bateman says. Homes built on a wetland could see extensive property damage from flooded basements. “The other part of the wetland issue is that wetlands are flood attenuation. If they’re paved over or built over, then the water that’s normally stored in there has to go somewhere, and it could cause surface flooding.”

Building in a floodplain is even worse. “People’s homes can get washed away. Or people could die,” Bateman says.

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‘It won’t be immediate, but it is coming’: Municipalities say property taxes to increase as a result of Bill 23

On Monday, the Ontario government passed the controversial Bill 23. The bill is intended to spur development and address the province’s need for affordable housing. But critics are concerned that it will instead raise property taxes and threaten protected conservation areas.

The bill limits input from citizens and conservation authorities in the approval process for new housing and removes certain environmental protections, opening areas such as Ontario’s Greenbelt to development.

Bill 23 is tied to Premier Doug Ford’s commitment to building 1.5 million new homes by 2031. Although, high inflation and interest rates are already curbing that number, with experts predicting that fewer than 80,000 homes a year will be built over the next several years. While the bill is aimed at Ontario’s urban centres, particularly the Golden Horseshoe, many cottage country communities are concerned about its far-reaching effects.

“I think it is short sighted because the philosophy for decades has been that growth should pay for itself,” says John Boyko, a Selwyn Township councillor in Peterborough County.

Previously, when a company was building a development, it would have to pay additional fees to the municipality. Those fees would be used to build infrastructure that supported the new development, such as roads and sewer systems. But under Bill 23, the costs of that infrastructure now fall on the municipality rather than the developer.

The Association of Municipalities Ontario found that by transferring costs from developers to municipalities, the bill would reduce the municipal resources available to service new developments by more than $5.1 billion over the next 9 years.

“Once these areas are developed, there will not be enough money in the municipal coffers to pay for the enhancement and development of those services and the maintenance of the infrastructure,” Boyko says. “Therefore, taxes across the rest of the municipality will have to go up. I don’t know whether premier Ford realizes it or not, but what he’s done with Bill 23 is cause an enormous tax increase on the taxpayers of the province of Ontario. It won’t be immediate, but it is coming.”

Murray Fearrey, the mayor of Dysart et al in Haliburton County, says that this is not the time to dump a property-tax increase on citizens. “We need some stability here.”

Fearrey points out that property taxes have already seen a significant spike over the last several years as municipalities implemented necessary infrastructure and funding to combat COVID.

“It seems to me that the federal government is trying to run the province and the province is trying to run the counties and municipalities,” he says. “Everyone’s stepping down, and we’re at the bottom rung in the ladder.”

While both Fearrey and Boyko agree that further development is necessary, they’re clear that lack of public input, increased taxes, and expansion into environmentally sensitive areas, especially in cottage country where the natural landscape is intrinsically tied to the area’s appeal, is problematic.

“One of the existential questions of our generation is how we are going to deal with the mitigation of climate change,” Boyko says. “What Bill 23 has done is decrease the ability of municipalities and conservation authorities to determine what is safest and best for the environment with respect to development.”

The Municipality of Kawartha Lakes voiced similar environmental concerns in a recent council meeting. The area is home to Oak Ridges Moraine, an environmentally sensitive landform that, as part of Ontario’s Greenbelt, is being opened to development under Bill 23.

“We will not be allowed to reach out to Kawartha Conservation or other conservation authorities to comment on certain policies. We will have to have other reporting agencies do that for us. Bill 23 will be awful for conservation authorities across Ontario as they have power taken away from them for the second time in the last two years,” councillor Pat Warren said during the meeting.

“The bill asks conservation authorities to open up some of their land for development. It will aid the development community and not boost housing for those who really need it,” she continued. The Kawartha Lakes council resolved to oppose Bill 23 and support the Association of Municipalities Ontario in lobbying the government to rethink the bill.

However, Nelson Wiseman, a political science professor at the University of Toronto, says its unlikely the bill will be reigned in. “The Ford government feels confident they can forge ahead with the bill. It’s got a solid majority government, it recently won an election, and there isn’t another election on the horizon for years. So, they don’t feel threatened politically.”

Wiseman adds that the bill is partially a deflection. The Ontario government needs to build more houses, but as a conservative government, it doesn’t want to be seen raising taxes, so it downloads that responsibility on municipalities.

“Mike Harris did this one sterling example here in Toronto when all of a sudden, he yanked whatever provincial support there was for the TTC. Meaning that the TTC was the only subway service in North America that didn’t get any support from beyond the municipal level,” Wiseman says, equating it to the way the Ford government is transferring development fees to the municipalities.

Wiseman also points out the contradiction of Bill 23. During Ford’s bid for re-election, he promised not to touch the Greenbelt. “And now, he’s expanding into it. He’s saying, well, we’re just expanding a little and we’re going to add more Greenbelt,” Wiseman says.

“The problem isn’t a shortage of land. From what I can make out, the problem is how you use the land.”

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Cottage Life

How the Ontario gov.’s sweeping planning and development changes will play out in cottage country

For the past several years, Deborah Martin-Downs, who served as the chief administrative officer of the Credit Valley Conservation Authority, has been working closely with the Township of Muskoka Lakes to update the environmental protections in its land use policies. “The township has official plans that put the environment first,” says Martin-Downs, who also served for two years as the president of the Muskoka Lakes Association. The township’s latest official plan explicitly cites goals such as maintaining a “high level of protection” for lakes and natural heritage features. “Other cottage municipalities, such as Haliburton and Kawartha Lakes, have done similar things, because without the environment, they will have nothing to offer people.”

So, in late October, when the Ontario government tabled a far-reaching omnibus bill that not only scrambled much of the province’s land-use planning rules, but also struck at the heart of environmental protections—for natural features such as wetlands, as well as the clout of conservation authorities by removing their ability to weigh in on the impact of development proposals within watersheds—Martin-Downs’ radar began to ping. “What I read in this act is a total disregard for the environment,” she said about a week after it was tabled in the Ontario legislature. (Ontario’s 36 conservation authorities, many of which were established in the aftermath of Hurricane Hazel in 1954, are mandated to protect floodplains and block development on hazardous or ecologically sensitive areas within a watershed.)

The legislation, formally known as Bill 23, or the “More Homes Built Faster Act,” ostensibly aims to remove bureaucratic roadblocks that have, according to the government, allowed a housing shortage in the more built-up parts of Ontario to reach crisis proportions. House and condo prices have gone through the roof. New home starts aren’t keeping up with demographics. Rents have also skyrocketed. In order to close the gap and bring down the costs of ownership, Premier Doug Ford has said he wants to build 1.5 million new homes in a decade—an unprecedented pace of development. To accomplish this, his government has introduced legislation that effectively strip-mines the planning approvals system, removing conditions that have long rankled developers, such as consultation processes, high development charges and other fees, and regulatory requirements viewed as obstacles to growth. The problem? The new rules, mainly aimed at Ontario’s urbanized southern region, could also have far-reaching ecological consequences. The changes could affect the agricultural band surrounding the Greater Golden Horseshoe, as well as more rural regions, including the lake and recreational districts whose health depends on a range of environmental protections, from watershed conservation to rules governing phosphate loads in lakes.

In particular, the new bill removes barriers to sprawl, significantly curtails the ability of conservation authorities to protect watersheds, and eliminates third-party appeals of development applications, such as those from cottager groups. Municipalities across the province will find their planning departments facing increased pressure from the building industry to process development applications. And, as Martin-Down points out, the municipalities in rural areas are simply not equipped to handle the volumes; many don’t even have a professional planner on staff.

Planners and conservation authority officials have been studying the proposed laws since they dropped, and many say that it will be months before they have a firm understanding of what’s been put forward and how it fits into other reforms that have been set in motion, such as allowing more development in the Greenbelt around the GTA. But most agree that the act’s main impact will be a downloading of services onto ill-equipped municipalities, the neutering of the conservation authorities, the removal of opportunities for individuals to raise concerns about developments, and an erosion of standards that protect source water and limit flooding.

“I think it puts more of a burden on the municipality,” says Anthony Usher, a planning consultant who has advised many cottage associations, owners, and developers. He adds that the Bill 23 changes, as well as other planning policy reforms coming out of Queen’s Park, place a far greater onus on landowners and community associations to monitor what’s happening with their municipal councils. “Every one of those changes underlines the importance of local political action.”

Under the proposed new rules, the conservation authorities will no longer be allowed to provide municipalities with feedback on development applications, as has been common practice for almost two decades. Instead, it will fall to municipal planning departments to monitor any environmental risks.

Some conservation authorities have provided that kind of analysis to municipalities on a fee-for-service basis, often paid by the developer, so the fiscal burden for carrying out these kinds of studies now shifts to local councils—and by extension, taxpayers—which often don’t have the staff or in-house expertise to do environmental impact assessments. Furthermore, the government is proposing changes to wetland classification, and some may no longer qualify as provincially significant ecological zones. Nonetheless, they remain important environmental areas that could now face development pressure, says Tim Lanthier, the chief administrative officer of the Grey Sauble Conservation Authority. “They’ve put things into the act that expand the powers of a minister to override any regulations through a zoning order, so the stage has been set,” he says, adding that he knows of several wetlands and habitat zones within Grey Sauble’s catchment area that could be endangered. “Certainly there are some wetlands that are in contentious development areas that could be at risk.”

Usher points out that for wetlands, which help prevent or mitigate flooding and erosion, that are not designated as provincially significant, “the conservation authorities currently have some leverage to try to protect or influence their protection.” He says that if the changes pass, it will be solely on the municipalities to decide whether or not a wetland should be protected. “The conservation authorities will have little input on the planning process—they’ll be told they have to basically stick to protecting floodplains and pointing out hazard lands, and that’s it.”

The proposed changes will also significantly diminish the role of conservation authorities in protecting communities from flooding, agrees Terry Rees, the executive director of the Federation of Ontario Cottage Associations (FOCA), which has been working in recent years with Ministry of Natural Resources and Forestry officials on an improved flood strategy. “We know from the insurance industry and the financial sector that we need to be much more diligent about where we allow people to build, and that includes keeping people away from natural hazards and watercourses,” he says. “Having less oversight and having more permissive building may lead us to having buildings and communities and infrastructure that are going to be at risk.”

Mark Majchrowski, the chief administrative officer for Kawartha Conservation, agrees. He points out that all this is happening at a time when cottage and rural districts, as well as conservation authorities themselves, have seen increased tourism. That dynamic will only increase with urban intensification.

“Green spaces are pretty important for development, and a lot of people flock to conservation area property,” he observes. “So conservation areas are an important element of our infrastructure as a whole.” Martin-Downs agrees: “If the pandemic told us anything, it is that people need a place to go for a walk.”

Another element of Bill 23 involves the suspension of third-party appeals and the elimination of the requirement to hold a public meeting—a move that seems aimed at restricting the ability of homeowner groups to slow development applications with appeals to the Ontario Land Tribunal. Under the proposed law, the OLT will no longer hear third-party appeals; if residents have concerns about a development, they’ll have to persuade the municipality to make an appeal on its own (which may not happen).

In lake areas, says Usher, very few applications make it to the appeal stage, and fewer make it to the OLT; most are approved by municipalities or resolved through negotiations between the parties. But by removing the right of appeal, he predicts that developers—both large and small—will have far less incentive to try to work out some kind of compromise with their neighbours.

Usher adds that there will be an indirect impact with the removal of the right to appeal, which raises the stakes for the municipal planners. “What does that mean for cottagers and for cottage associations that have lake plans and so on? Now, the municipal council is really the only decision-making point and the only check in the system.”

From her vantage point, Deborah Martin-Downs says that the new rules— which come hot on the heels of previous waves of planning reform laws promulgated by the Ford government—will merely make planning less predictable for residents, more costly for the municipalities, and riskier for the environment. “Confusion,” she says, “will reign for quite a while.”

John Lorinc writes about cities, climate, and clean technology. Follow cottagelife.com for updates on this story as it develops.