Ford's plan to speed housing builds would leave London with $97M budget hole, staff report says

London city staff and council are raising red flags about provincial legislation that's designed to speed up home construction in the province, saying it would leave the city facing a major cash crunch.

Bill 23 — or the More Homes Built Faster Act — aims to streamline rules around development applications, which the Ford government has said amounts to unnecessary red tape slowing down new home construction as Ontario faces a housing shortage. 

However, on Tuesday, London's new city council took the unusual move of calling a special committee meeting to highlight potential problems the proposed changes could create for the city.

Mayor Josh Morgan said the special meeting was needed to get a staff report and council resolution passed in time to be included in the bill's consultation process at Queen's Park. 

"We were under a time crunch here," said Morgan. "And that's why our ask is for the province to slow down, take more time and do some proper consultation with municipalities on these impacts." 

Among the impacts laid out in a city staff report is a potential $97-million hole in the city's budget over five years if the changes go ahead.

The report says the funding gap would be created by proposed changes to the development charges (DCs), which are the fees builders pay to cities. One change would create a staggered, five-year phase-in period for new DC rates council approves.

• Read the full staff report here.

Anna Lisa Barbon, the deputy city manager in charge of finances, told council the phase-in period would put the city in a funding pinch to pay for infrastructure that supports the growth. She said the cash is needed to pay for everything from roads and bridges to new sewer and water lines.

"These service impacts are still being examined, but we do know that they will create cost pressures on the city to maintain the existing service levels," she said.

Barbon said Bill 23 would leave the city to face "difficult choices" — likely in the form of higher property taxes or reduced services — and undermine policies built on the principle that growth should pay for growth. 

Heritage designation also affected

The staff report says Bill 23 would also bring drastic changes to how the city approves properties for heritage designation. Right now, there are more than 2,200 London properties on a list for potential heritage designation. The legislation would limit the amount of time the properties can spend on the registry to two years before being removed. 

Scott Mathers of the city's planning department said the two-year limit would not give enough time for the city to give "even a portion of those properties" full designation.

Morgan said he supports the main intent of the bill: To speed up housing construction. However, he said the province just needs to slow down and consult with municipalities. 

"I certainly understand any government that wants to move quickly on its priorities," said Morgan. "We just need to ensure the implications of moving quickly don't outweigh the benefits, and I believe, in this case, that they do." 

A motion calling on the province to give Bill 23 more study was unanimously approved by the new council. The motion also endorses a list of concerns outlined by the Association of Municipalities Ontario.