The City of Hamilton (and all other Ontario municipalities) will only be permitted to require up to five percent affordable units in new developments along Hamilton’s planning B-Line LRT corridor and near the city’s three GO train stations.
On Tuesday (May 12), the Province posted new inclusionary zoning (IZ) regulations, which state the maximum IZ units required will now be “5% of the total number of units or 5% of the total gross floor area of the total residential units, not including common areas.”
The new rules state that municipalities must use the “affordable residential unit” definition set in the Development Charges Act.
In the case of rental housing, this definition is “a unit for which the rent does not exceed 30 percent of gross annual household income for low and moderate income households; or a unit for which the rent is at or below the average market rent of a unit in the municipality.”
In recent months, Hamilton has begun securing new affordable units in planning applications and OLT settlements. An OLT settlement for a 1850 resident unit redevelopment at 499 Mohawk Road East included “17 affordable dwelling units” and Council approval for a 20-storey 250-unit residential building at 1600 Upper James included three affordable rental units.
Hamilton is presently drafting an inclusionary zoning bylaw, which is scheduled to be considered by Council in mid-2026.
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Published: May 15, 2025
Last updated: May 15, 2025
Author: Joey Coleman
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