Province of Ontario Bill 17 2026

Effective November 3, 2025, Bill 17 (Protect Ontario by Building Faster and Smarter Act, 2025) legislated the deferral of DC payments until occupancy, meaning this specific incentive became provincial law rather than a local discretionary program.  Highlights of the changes include:

• most non-rental residential developments benefit from a deferral of development charges from the building permit stage until occupancy.
• Municipalities are generally prohibited from charging interest on legislatively deferred development charges, except for interest that accrued prior to June 5, 2025.
• As-of-Right Setback Variations: The Act allows for a 10% variation in minimum setback requirements for urban residential lands “as-of-right,” meaning developers often do not need to apply for a minor variance if they stay within this 10% limit.
• Complete Application Rules: Municipalities are restricted in what studies they can require for a “complete” application. Specific reports—such as sun/shadow, wind, urban design, and lighting studies—are increasingly prohibited as mandatory requirements at the initial filing stage.
• Minister’s Zoning Orders (MZO): The Minister of Municipal Affairs and Housing now has expanded authority to impose reasonable conditions on land use or building construction within an MZO. 

1)  https://www.ola.org/en/legislative-business/bills/parliament-44/session-1/bill-17