Protecting Ontario by ‘Building Faster’: key highlights of the new legislation
June 2025On 5 June 2025, the Protect Ontario by Building Faster and Smarter Act, 2025 (the “Act”) received Royal Assent.[1]
Introduced as part of Ontario’s broader strategy to foster economic resilience and fortify itself in the wake of unpredictable U.S. trade policies, the Act complements Ontario’s $200 billion investment in public projects over the next 10 years.[2] It also aligns with the federal government’s nation-building infrastructure development goals, such as making Canada a global energy superpower.[3]
The Act’s purpose is to accelerate public infrastructure development in Ontario. It amends eight (8) provincial statutes related to transit, roads, schools, and housing to expedite project delivery by cutting red tape and reducing costs. The amendments, now in force, give Ministries more decision-making authority, streamline processes, and remove some cost and time hurdles.
This article summarises the Act’s notable changes to the impacted legislation.
Building Code Act, 1992
The Act amends the Building Code Act, 1992 to support the housing development space in particular.
Changes include a clarification that municipalities are not authorised to pass by-laws respecting the construction or demolition of buildings. In other words, cities cannot have bespoke construction requirement standards, and the Building Code remains paramount. In practice, this means developers can reuse design work from one Ontario city to another, without concern for approval times that may have stemmed from municipal by-laws where the municipality in question was not aligned with the provincial requirements.
The Act also streamlines procedures by eliminating redundancy: where a federal review of proposed building innovations has been completed or is anticipated, a separate provincial review is no longer required.
Building Transit Faster Act, 2020
The purpose of the Building Transit Faster Act, 2020 (“BTFA”) is evident from the name, yet despite its implementation in 2020, challenges remain for transit project delays, land access issues, and lengthy approval and notification periods. To overcome this, the Minister of Transportation has been given authority to require information and data from municipalities that relate to, and could support, transit projects to eliminate obstacles.
Further, the Act widened the scope of what transit projects could be expedited by function of the BTFA. Before, the projects that benefitted from the BTFA were “priority transit projects” designated as such via regulation. Now, the BTFA applies to all provincial transit projects.
City of Toronto Act, 2006
To accommodate the urgent need for more classrooms, the Act changes some of the City of Toronto Act’s land use planning provisions. Portable classrooms were exempted from the definition of “development” if the relevant school was in existence prior to 1 January 2007. This time constraint has now been removed, meaning portable classrooms for all Toronto schools are exempted from municipal site plan control approvals.
Development Charges Act, 1997
Under the Development Charges Act, 1997, developers are able to recoup certain costs for eligible infrastructure they build by way of “credits” that can be applied towards their payable development charges. However, credits can only be used towards development charges within the same type of work; for example, credits for road infrastructure could only be applied to road infrastructure charges. Now, the regulation-making authority can merge related service categories so that credits are not applied as strictly which may incentivise developers (e.g., credits for road infrastructure might be applicable to transit development charges if they are deemed to be in the same service category).
Additional powers also allow the regulation-making authority to better define what qualifies as a “local service,” helping to clarify the division between municipal infrastructure responsibilities and those recoverable through development charges.
Other notable updates include allowing builders to defer development charge payments for residential projects from permit issuance to occupancy, and waiving interest on deferred charges for rental and institutional developments. Municipalities may now offer exemption or discount programs without needing to redo their background studies or follow certain procedural steps.
Also noteworthy, buildings and structures intended for use as long-term care homes are permanently exempt from development charges.
Lastly, developers will now benefit from paying the lower of either the frozen development charge rate at the time of a site plan or zoning application, or the rate in force at the time of payment so they can take advantage of any reductions that occur during the freeze period.
Metrolinx Act, 2006
Similar to amendments in the BTFA, a key change to the Metrolinx Act, 2006 is the Minister of Transportation’s new-found authority to require information and data from municipalities that relate to, and could support, transit projects or transit-oriented communities.
Ministry of Infrastructure Act, 2011
The amendments to this legislation also provide the Minister of Transportation with the authority to require information and data from municipalities that relate to, and could support, transit projects or transit-oriented communities.
Planning Act
The Protect Ontario by Building Faster and Smarter Act, 2025 made a number of notable changes to the Planning Act, all aimed at streamlining approvals and reducing red tape at the municipal level. Municipalities must now accept, without challenge or delay, studies and reports submitted by authorised professionals, with the list of prescribed professions to be set out in forthcoming regulations.
In support of more consistent planning rules, the Act introduces a new provision that requires the Minister’s written approval for any official plan amendment that changes the required information or materials, such as studies, for a “complete” planning application. Any such amendment made on or after 12May 2025 without the Minister’s approval is deemed void.
The Act also amends the Planning Act’s Inclusionary Zoning Regulation by capping mandatory affordable housing units at 5% and limiting the affordability period to 25 years within protected major transit station areas.
To increase accountability and align projects with provincial priorities, the Minister may now impose preconditions on municipalities or proponents that must be satisfied before a Minister’s Zoning Order takes effect.
Finally, there is a new regulation-making power that allows up to a 10% reduction in setback requirements for urban residential land without the need for a minor variance.
Transit-Oriented Communities Act, 2020
Responsibility for the Transit-Oriented Communities Act, 2020 has now been transferred from the Minister of Transportation to the Minister of Infrastructure. This shift signals a more centralised approach to coordinating land development around major transit lines, including GO rail and light rail transit (LRT) projects. The definition of “priority transit project” has also been broadened to include other provincially prescribed transit initiatives, reinforcing the intent to accelerate high-density, mixed-use development near transit corridors.
One of the more practical changes is the removal of the requirement for Lieutenant Governor in Council (“OIC”) approval in certain cases. Where the Minister – or a delegated authority such as Metrolinx or Infrastructure Ontario (“IO”) – enter into transactions with municipalities, First Nations, or other public bodies, OIC approval is no longer required. This applies not only to initial dealings but also to follow-up agreements that are directly related to previously approved transactions. Ancillary agreements are also now exempt from OIC oversight, further reducing administrative bottlenecks.
To reflect this new framework, the Minister’s delegation powers have been expanded. The Minister may now delegate decision-making authority to specific public entities, including Metrolinx, IO, or other prescribed bodies. These entities must follow an investment policy approved by the Minister of Finance when managing funds received from the Province.
Transit-oriented community lands are highlighted in Infrastructure Ontario’s pipeline of works. As such, the legislation now introduces new provisions supporting the registration and enforcement of agreements related to transit-oriented community lands. The Minister, or a delegated authority, may enter into agreements with landowners for lands considered necessary to support TOC projects. Municipalities and other third parties may also be party to such agreements. Once registered, these agreements can be enforced against current and future landowners, providing legal continuity across future conveyances of the land. Notably, previously registered agreements under earlier TOC regulations will be deemed valid under the new framework.
If you have any questions regarding how these changes may impact you or your organisation, please do not hesitate to contact the authors.
[1] Bill 17, Protect Ontario by Building Faster and Smarter Act, 2025 – Legislative Assembly of Ontario
[2] Ontario Building Critical Infrastructure Faster | Ontario Newsroom
[3] Canadian leaders outline plans to become energy ‘superpower’ – World Nuclear News
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