On October 9, the Province introduced the Housing and Municipal Affairs Statutes Amendment Act, 2025 (Bill 25) that includes legislative amendments addressing both small-scale multi-unit housing (SSMUH) and short-term rentals. While the changes to the Short-Term Rental Accommodations Act are largely administrative in nature, the changes relating to SSMUH are more substantial.
The SSMUH related changes include amendments to both the Local Government Act and the Community Charter to:
- Expand the definition of “restricted zones” (those zones currently restricted to single-family or duplexes) to capture additional zones within which the province would require small-scale multi-unit housing.
- Expand regulation making power to include:
- the amount of buildable area and number of buildings on a lot,
- housing forms – to allow triplexes, row homes and townhouses, and
- parking requirements – to ensure that parking requirements that mandate several parking spaces per unit are not limiting housing development.
On the latter point, the Province notes that it will monitor site standards and off-street parking requirements for impacts on viability of SSMUH, and if they deem it to be necessary, may regulate standards that are currently articulated as recommendations.
When the original SSMUH legislation (Bill 44) was introduced, it was one element of a broader suite of legislation that addressed transit-oriented areas, development finance, housing targets and more. In its engagement with the Province, UBCM has continued to emphasize the significant cumulative impacts for local government finance and capacity that have resulted from the rapid implementation of these far-reaching changes to local planning.
Many local governments are still grappling with the implications of these changes as they implement the legislative framework in its current form. Further amendments will add to the challenges faced by impacted municipalities as they are required to make additional adjustments and will likely divert staff resources away from approvals and streamlining activities. In addition, the proposed changes may result in significant new infrastructure implications for impacted local governments. UBCM would also note that when the Province originally introduced the new legislative framework, local governments were frequently advised in public webinars to “consult your lawyer” when posing questions pertaining to significant areas of ambiguity. The proposed changes could likely have been avoided through improved local government engagement and by providing more clarity in the original legislation.
UBCM recognizes the urgent need to address the housing crisis and will continue to advocate for action on local government housing priorities, including increased funding for the infrastructure necessary to support provincially mandated housing growth and greater Provincial investment to address gaps in affordable and supportive housing.