Ford government scrapped Toronto affordable housing requirements after pushback from three REITs, documents show

The Ontario government led by Premier Doug Ford quietly removed Toronto’s plan to require affordable housing in new developments after pressure from at least three real estate investment trusts (REITs), documents show. In 2023, Toronto city council approved changing nearly 70 pieces of former employment land into housing zones—but insisted a share of new units be affordable for long-term, lower-income residents. The province later approved the zoning changes but weakened the affordability clause, replacing mandatory language with a suggestion that affordable housing be “encouraged” rather than required.

REITs such as CT REIT, Choice REIT, and the group tied to Crossroads Shopping Centre in North York pushed back hard during the consultation. They warned that Toronto’s quotas could make projects impossible to finance or even stop redevelopment entirely. Legal filings described the city’s rules as “unauthorized,” “premature,” and inconsistent with existing planning law. One argument was that strict affordability targets might lead to “no redevelopment” at those sites.

Another submission, from landowners tied to Choice REIT, echoed concerns that redevelopment could be delayed or blocked under the affordability terms. Planners working for those REITs said the rules could “sterilize a site from residential redevelopment” if costs became too high, especially where existing commercial leases limited flexibility. A third group, connected to Weston401 Inc. and the Crossroads property, urged Ontario to drop fixed quotas altogether, arguing their development plan already included some affordable homes but did not need binding rules.

Toronto city staff had explicitly linked council’s support for the land conversions to the affordable housing criteria. A memo from the city’s chief planner warned elected officials that shifting from requirements to encouragement could put as many as 5,000 affordable units at risk. That warning came after the province had already altered the wording in late January, just ahead of Ontario’s 2025 election call—more than a year after the city first submitted the plan.

Planning experts stressed that the province can legally override city decisions at any time. One urban planning professor noted that municipalities only have the powers delegated to them—and Ontario’s housing ministry quietly shifted the trade-off balance without public explanation. Residents and housing advocates say the move shows how provincial power can override local planning goals, especially when large property owners make their voices heard.

The province has defended its actions, arguing that Ontario must reduce red tape and deliver more homes quickly. Premier Ford has said his government’s priority is to create conditions where developers can build, and that mandatory affordability rules might discourage new construction. But critics argue that without firm requirements, affordable units may never get built—leaving vulnerable residents without housing while profits remain private.