Ontario Introducing Legislation to Improve Transit and Build More Homes

March 30, 2026

Proposed measures will help fight gridlock and reduce barriers to home building

March 30, 2026

TORONTO — Today, the Ontario government introduced the Building Homes and Improving Transportation Infrastructure Act that would, if passed, protect Ontario’s economy and keep workers on the job by improving the way people and goods move across the province and speeding up the construction of new homes.

“The Building Homes and Improving Transportation Infrastructure Act is the latest step our government is taking to tackle red tape, reduce unnecessary costs, and streamline approvals,” said Rob Flack, Ontario Minister of Municipal Affairs and Housing. “Along with our recent announcements to expand HST relief to all new-home buyers and recognize municipalities that cut their development charges, we’re making it easier for more people in Ontario to afford a home.”

The proposed legislation and accompanying measures would reduce gridlock and make public transit more convenient by simplifying fares, opening High Occupancy Vehicle (HOV) lanes to more drivers and permitting rideshare services in communities along the Northlander corridor. The legislation would also help get more shovels in the ground on new housing projects by reducing barriers to homebuilding and clarifying and streamlining site plan rules.

“Our government is taking action to reduce gridlock and keep drivers moving across the province as we continue our work to protect Ontario,” said Prabmeet Sarkaria, Minister of Transportation. “The legislation we’re tabling today would improve transportation options in northern communities, support the future expansion of the One Fare program and make better use of existing highway capacity so people can spend less time in traffic.”

Building on the government’s work in the Protect Ontario by Building Faster and Smarter Act, 2025 and the Fighting Delays, Building Faster Act, 2025, the Building Homes and Improving Transportation Infrastructure Act and related actions would:

Support the expansion of rideshare services in communities along the Northlander corridor so northern communities have improved access to first- and last-mile or end-to-end connection transportation options.
Allow single-occupant vehicles to use high-occupancy vehicle (HOV) lanes during off-peak hours, giving drivers more choice.
Require on-road driving experience before prospective commercial drivers can obtain their Class A licence enhancing road safety.
Support efforts to eliminate red tape in the homebuilding process by simplifying planning and approval tools, including through municipal official plans, Ontario’s Building Code and site plan control:
- Municipal Official Plans, which set out long-term land-use rules to guide future community growth, have become lengthy, complicated and highly restrictive, with varying formats, rules and content. Proposed changes include establishing a standardized table of contents and limiting land use designations so they are easier to navigate.
- Over the years the Building Code has become overly complex and duplicative, with provisions that do not reflect the reality of building in Ontario. In response to this, the government is establishing an expert third-party advisory body consisting of engineering, construction, and code specialists to undertake a section-by-section review of the Code, which sets out the minimum standards that new construction must meet.
- Some municipalities leverage site plan control to impose costly enhanced development standards that go beyond what is required for health and safety reasons. The proposed legislation would remove municipal authority to require enhanced development standards. The government will also consult on major structural reforms to site plan control more broadly to deliver faster, more predictable approvals.
Increase public transparency by consulting on the disclosure of municipal development charges and other hidden fees in agreements of purchase and sale for new homes.
Remove development charges from non-profit retirement homes to expand affordable housing options for seniors.
Expand housing opportunities in hard-to-service remote and/or rural areas by creating a framework to support the adoption of communal water and wastewater systems.
Reinforce that the new public corporation for water and wastewater in Peel Region (enabled through the Fighting Delays, Building Faster Act) will remain in public sector ownership and promote continuity of service by clarifying rules and rights for agreements and employees that are transferred.

Collectively, the Building Homes and Improving Transportation Infrastructure Act builds on the government’s ongoing work to accelerate housing and transportation infrastructure for the province’s long-term stability, resiliency and prosperity. The proposed legislation would get shovels in the ground faster and help get people where they need to go, enhancing affordability and quality of life for Ontario residents and families.

Quick Facts

In 2025, the Ontario government extended the One Fare program for an additional two years to continue saving transit users in the GTHA up to $1,600 per year.
Work is underway to bring back Northlander passenger rail service this year, with more than $100 million worth of rail infrastructure investments nearly complete.
The Ontario government recently announced that it would expand HST relief for eligible buyers of new homes valued up to $1 million, for a maximum rebate of $130,000, as part of the recently released 2026 Budget.
The Ontario Association of Architects estimate that Ontario’s site plan approval process costs approximately $3.5 billion annually in lost opportunities and inefficiencies, with reviews taking far longer than the provincially mandated 60-day timeline.

Quotes

“Dependable water and wastewater infrastructure underpins thriving, expanding communities. By introducing a modern framework for communal systems, we’re accelerating project starts, sustaining jobs, and fueling economic growth in Ontario’s fastest-growing regions. Enhanced financial oversight ensures development is both responsible and sustainable—delivering long-term benefits for municipalities, families, and future generations.”

– Todd McCarthy
Minister of the Environment, Conservation and Parks and Acting Minister of Infrastructure

“Housing costs don’t start at the front door, they’re built in long before a family buys a home. By shining a light on development charges and other hidden fees, we’re giving homebuyers real clarity while holding the system accountable. Greater transparency, streamlined rules and faster approvals mean homes can get built sooner and more predictably.”

– Graydon Smith
Associate Minister of Municipal Affairs and Housing

“Last session, I brought forward a Private Member’s Motion calling on the government to modernize Ontario’s approach to wastewater systems. The motion received unanimous support from all parliamentarians at the Legislative Assembly of Ontario, in recognition of the tremendous potential it holds for small and rural communities. I am proud that our government is acting on this momentum. By providing flexible, safe, and financially sustainable options, we can help unlock new housing opportunities in communities that otherwise face barriers to growth—all the while maintaining the highest public health and environmental standards.”

– Dawn Gallagher Murphy
MPP for Newmarket-Aurora

“Purchasing a new home is one of the biggest decisions an individual or family can make. Breaking out municipal development charges as a separate line item on agreements of purchase and sale for new homes is a straightforward way to strengthen consumer transparency, which is why I introduced a Private Member’s Motion on this matter last session. I am happy to see that our government continuing to act on this issue. New homebuyers deserve to know what they are paying for so they can make informed decisions and proceed with confidence, fully understanding the costs involved.”

– Natalie Pierre
MPP for Burlington

“OPTA would like to thank the Government of Ontario for continuing to support One Fare, helping to make transit more affordable for commuters during a time of economic uncertainty. We are encouraged by their recognition of the importance of affordable, reliable, and frequent transit to millions of commuters.”

– Karen Cameron
CEO, Ontario Public Transit Association

“This Bill represents plain common sense. Less gridlock and more efficient roadways mean less accidents and safer highways. The HOV lanes specifically will save Ontario drivers a significant amount of time. PTAO is pleased to see this government take significant steps to meaningfully save time for and improve the safety of Ontario drivers. Whether you’re commuting, visiting family, or rely on our roadways for your livelihood, it’s clear that this government is moving in the right direction.”

– Gary Vandenheuvel
President, Professional Towing Association of Ontario

“Our industry has been clear about the need to reduce red tape and improve predictability in the planning process. Ontario’s continued action to streamline approvals and remove barriers is welcome and necessary. Measures like parkland dedication reform, further limiting mandatory imposition of enhanced development standards, and site plan process improvements, together with the recently announced HST relief off of all new homes, demonstrate a clear commitment to getting housing moving again and supporting both new home construction and the renovation sector.”

– Scott Andison
CEO, Ontario Home Builders Association

“The Building Industry and Land Development Association welcomes the introduction of the Building Homes and Transportation Infrastructure Act. The Ontario Government’s continued focus on addressing systemic barriers to housing affordability, supply and jobs comes at a critical juncture for the province and the industry. Measures in the Act will continue the government’s efforts to bring back the dream of home ownership for Ontario families, support jobs and economic growth, and protect Ontario.”

– Dave Wilkes
President & CEO, Building Industry & Land Development Association

“The Building Homes and Improving Transportation Infrastructure Act is another strong signal that Ontario is taking action to make it easier to build housing. Measures that streamline processes, modernize planning frameworks, and reduce unnecessary costs and delays are critical to getting new homes, including rental homes, to market. This kind of progress is essential to improving affordability and giving Ontarians more options. FRPO supports these efforts and looks forward to continued collaboration to increase supply across the province.”

– Tony Irwin
President & CEO, Federation of Rental-housing Providers of Ontario

“The Building Homes and Improving Transportation Infrastructure Act is another bold step in addressing many well-entrenched barriers to attainable housing supply and correcting a stubborn, complex crisis. Housing is a vital need central to economic development and well-being. This Bill, under Minister Flack’s determined leadership, nails it again.”

– Richard Lyall
President & CEO, Residential Construction Council of Ontario

“We’re at a critical time for housing in Ontario. Economic uncertainties and rising cost of living are impacting the province’s housing market, from new construction to buyers and sellers on the sidelines. We need our leaders to take charge and steer us in the right direction to get housing starts and sales back on track. Today’s announcement features a wide suite of REALTOR®-led solutions, and the Ontario Real Estate Association (OREA) and our nearly 100,000 Members commend the Ford Government for listening and standing up for the next generation of homeowners. This is the kind of bold action we need to drive economic growth, support jobs, and keep the dream of homeownership alive. We look forward to continued collaboration to create a strong and resilient housing market in Ontario.”

– Kim Fairley
2026 Ontario Real Estate Association President

“As part of our mandate to protect the public interest, the Ontario Association of Architects has long called for a review of the site plan approval process. We know there have been lengthy delays, lost opportunities, and needless inefficiencies when it comes to new housing, ultimately impacting the affordability of homes for Ontarians. A 2024 Altus Group report commissioned by the OAA, “Cost of Site Plan Delays,” shows exponentially growing financial repercussions—as much as $3.5 billion annually. Changes to streamline site plan approvals and offer more consistency, without impacting quality or safety or lessening environmental protections, will help designers, builders, developers, and homeowners alike.”

– Lara McKendrick
Ontario Association of Architects Council President

“OPPI and its members are essential housing enablers, working with government and homebuilders to create vibrant, healthy communities. We are pleased to see the introduction of simplified and consistent Official Plans leading to streamlined approval times for municipalities and home builders. We commend the Minister of Municipal Affairs and Housing, the Honourable Rob Flack, and the Ontario government for working with OPPI to introduce these critical reforms.”

– Susan Wiggins
Executive Director, Ontario Professional Planners Institute

“RCCAO commends the Government of Ontario for tabling the Building Homes and Improving Transportation Infrastructure Act, which continues the province’s focus on improving transportation options, supporting the efficient use of existing highway capacity, and accelerating and streamlining the construction of housing across Ontario. This legislation builds on the government’s ongoing commitment to strengthening infrastructure, reducing congestion, and supporting the timely delivery of much-needed housing for communities across the province.”

– Nadia Todorova
Executive Director, Residential and Civil Construction Alliance of Ontario

“Ontario’s aggregate industry supports efforts to reduce red tape and bring greater clarity and consistency to the planning process, as well as measures that help ease gridlock and keep people and goods moving. Standardizing and simplifying municipal official plans will help make approvals more predictable, reduce unnecessary delays, and ensure that essential resources like stone, sand and gravel can continue to be available close to where they are needed. These changes are an important step toward building the infrastructure and housing Ontario requires.”

– Sharon Armstrong
Executive Director, Ontario Stone Sand & Gravel Association

“For the construction industry, success is measured by how quickly we can move from planning to building. Cutting red tape and improving approval timelines means we can get more projects out the door, keep crews working, and deliver the transportation infrastructure that supports housing, mobility and economic growth.”

– Raly Chakarova
Executive Director, Toronto and Area Road Builders Association

Ontario Introducing Legislation to Improve Transit and Build More Homes

Table of Contents

Quick Facts

Quotes

Additional Resources