Exploring Inclusionary Zoning
Inclusionary Zoning (IZ) is a means of requiring private developers to include a percentage of below-market rate units within new, multi-unit housing developments. Provincial legislation limits IZ to:
- Major Transit Station Areas (lands around ION streetcar stops) in which the requirement would not stifle development,
- residential developments of 10 units or more,
- a maximum of 5% of the constructed units,
- a maximum required discount of 20% off average market rental rates, and
- a maximum period of 25 years after the development is built
and prohibits regions and municipalities from collecting Development Charges, Parkland Dedication Fees and Community Benefits Charges on the IZ units.
Within these limitations, the cities of Kitchener, Waterloo and Cambridge and the Region of Waterloo are exploring IZ as a means to support affordable housing. Their Discussion Paper was released on June 12, 2023 (see graphic summary below), and staff are accepting comments. For more details, visit the IZ Project Page at Engage Kitchener.