RESCON: New ruling on 'sixplexes' is both good and bad
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City of Toronto misses opportunity to have ‘sixplexes’ fill a housing need
Recent deliberations by Toronto city council over whether to legalize sixplexes as-of-right in neighbourhoods across the city yielded both good and bad news.
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On one hand, owners of detached residential properties in nine wards were given the right to have six separate units within a single structure, without having to seek special approval.
On the other, council did not extend the approval to include all wards, a move which could put $471 million in much-needed federal funding through the Housing Accelerator Fund (HAF) at risk.
Toronto’s chief planner and executive director of the city planning division had suggested in a report to council that the Official Plan and Zoning By-law be amended to permit multiplexes of up to six units as-of-right in low-rise residential neighbourhoods across the entire municipality.
Staff were of the view that raising the level to six from four units within a multiplex would encourage gentle densification and could be accommodated in detached residential buildings city-wide.
Expanding multiplex permissions, the report indicated, would increase new low-rise housing options. Adding new residents in low-rise neighbourhoods could also help stabilize declining populations, optimize the use of existing infrastructure, and support local retail establishments.
Meanwhile, the new permissions could unlock additional opportunities for individuals to access funding and low-interest rate loans for housing projects through the CMHC, the report stated.
The issue was discussed at a workshop earlier this year by developers, architects, planners and others who have experience delivering multiplex projects in the city. According to the report, there were some objections, but many were supportive as sixplexes provide homeowners with options to lower their mortgage payments and allow multi-generational families to live together.
The addition of two additional dwelling units within a multiplex was considered by staff to be a balanced and incremental increase that could help address housing challenges and encourage gentle densification.
Allowing sixplexes city-wide would only contribute to Toronto’s housing supply – something that we so desperately need just now. Modeling shows that sixplexes can generally be accommodated in detached three-storey residential buildings on many residential lots across the city.
Council did the right thing by allowing sixplexes in the nine wards but fell short in excluding the rest of the city. In the end, those opposed to the city-wide change apparently had more sway.
The decision may have ramifications for the funding the city receives via the HAF. CMHC and the city entered into a contribution agreement and to date Toronto has received two of four installments totalling $235.6 million from the federal government.
The investments are providing Toronto with a predictable funding stream until 2027, which is pivotal to unlocking projects and accelerating the delivery of new homes, particularly affordable rental homes near transit.
However, part of the agreement was a commitment to increase density, such as looking into ways to implement sixplexes city-wide by June 2025.
Earlier, Housing, Infrastructure and Communities Minister Nate Erskin-Smith sent a letter to Toronto Mayor Olivia Chow, noting the city is behind schedule on the changes proposed by the deal and if the milestones are not met, 25 per cent of the annual HAF payment could be cut.
Toronto has to pull out all the stops to increase density and make homes more affordable in the city. Individuals and families are leaving because they can’t afford to live and work in the municipality.
A survey done by Ipsos for the Toronto Region Board of Trade found that two-thirds of residents in the GTHA 18 and older are not confident that they’ll be able to afford to live and work there. Meanwhile, 52 per cent of residents disagree that they are confident in their ability to live a comfortable life in the Toronto region long-term, compared to 40 per cent who agree.
The writing is on the wall.
We must increase supply and build housing that’s affordable. The city is changing. Allowing sixplexes as-of-right across the entire municipality is one way to get more housing in the works.
In this instance, city council has missed an opportunity.
Richard Lyall is president of the Residential Construction Council of Ontario (RESCON). He has represented the building industry in Ontario since 1991. Contact him at media@rescon.com.
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