Major Transit Station Areas and Protected Major Transit Stations Areas and Inclusionary Zoning Implementation - Status Update and Work Plan

The Minister's decision is final and does not require Council approval or endorsement. The Minister withheld issuing a decision on 10 PMTSAs and 4 MTSAs. PMTSA and MTSA policies will not be in effect in these areas until the Minister issues a decision. The Planning Act allows municipalities to apply Inclusionary Zoning within PMTSAs. As of August 15, 2025, Inclusionary Zoning is in effect in certain PMTSAs at the provincially maximum set rate of 5% affordable units for up to 25 years. Zoning implementation of P/MTSAs is one of 54 initiatives in Toronto's 2023 Housing Action Plan (HAP), which seeks to increase housing supply within complete, inclusive, and sustainable communities. The new homes enabled by the HAP will contribute to the provincial housing target of 285,000 new homes in Toronto by 2031. In recognition of the urgent action needed to address Toronto's housing needs, the City of Toronto has partnered with other orders of government to pursue all possible approaches toward increasing housing supply and to supporting growth. Zoning implementation of P/MTSAs is also one of eight initiatives approved by Council under the federal Housing Accelerator Fund (HAF), through which the Canada Mortgage and Housing Corporation (CMHC) has committed $471.1 million in funding to support the City's efforts to eliminate barriers to building new housing, make a generational transformation of Toronto's housing system, and increase housing affordability for residents. This report outlines the Minister's modifications to the Council-adopted P/MTSA policies, a workplan for zoning implementation, and next steps on the implementation of Inclusionary Zoning. The Planning Act requires that no later than one year after the Official Plan policies for P/MTSAs come into effect, the council of the local municipality shall amend all zoning by-laws that are in effect in the municipality to ensure that they conform with relevant policies. Implementing zoning by-laws adopted within one year are sheltered from appeal to the Ontario Land Tribunal (OLT). Staff will bring forward a final report and zoning by-law(s) in Q2 2026 to implement the zoning.