OAA Study Highlights Urgent Need for Site Plan Approval Reform

The Ontario Association of Architects (OAA) has released an updated report that aims to put a spotlight on critical delays in the Site Plan Approval process and their costly impact on the province’s housing supply.

The OAA commissioned Altus Group for the study, updating previous reports in 2013 and 2018. The findings reflect the need for policy reform to reduce housing-related delays as well as related consumer costs amidst the backdrop of Bill 23, More Homes Built Faster Act, 2022 and other legislation.

The report revealed that municipalities in Ontario are taking an average of 23 months to review site plan applications. This far exceeds the provincially mandated 60-day timeline and the delays are having significant financial repercussions.

For a 100-unit apartment building, site plan holdups result in additional monthly costs which range from $230,000 to $299,000, and place further strain on developers and potential homeowners alike.

Estimates of the annual value of building permits requiring site plan approval across Ontario suggest that the broken Site Plan Approval process is costing approximately $3.5 billion annually in lost opportunities and inefficiencies. This marks a significant increase from the $900 million estimated in 2018.

“These findings highlight an urgent need to streamline the site plan application process across Ontario to address the province’s housing crisis,” said Ted Wilson, president of the OAA’s governing Council. “Meaningful policy changes are necessary to ensure municipalities adhere to timelines and build the housing supply Ontarians urgently need.”

The OAA will leverage these insights to inform discussions with government stakeholders, and advocate for targeted reforms that will expedite approvals, reduce costs, and encourage timely housing development.