ontario regulation 73/25

made under the

Assessment Act

Made: May 22, 2025
Filed: May 26, 2025
Published on e-Laws: May 26, 2025
Published in The Ontario Gazette: June 14, 2025

Amending O. Reg. 282/98

(GENERAL)

1. (1) Subsection 22.1 (3) of Ontario Regulation 282/98 is amended by adding “Subject to subsection (4)” at the beginning.

(2) Subsections 22.1 (4) and (5) of the Regulation are revoked and the following substituted:

(4) If the affordable rental housing subclass for the new multi-residential property class applies in the municipality, the subclass mentioned in subsection (1) does not include land that is included in the affordable rental housing subclass.

(5) If the council of a single-tier or an upper-tier municipality passes a by-law opting to have the subclass mentioned in subsection (1) cease to apply within the municipality, the by-law shall not affect the classification of land for which a building permit was issued before the by-law came into force.

2. The Regulation is amended by adding the following section:

Affordable Rental Housing Subclass

22.1.1 (1) A subclass for affordable rental housing is prescribed for each of the following property classes:

1. The multi-residential property class.

2. The new multi-residential property class.

(2) This section applies with respect to the 2026 and subsequent taxation years.

(3) A subclass mentioned in subsection (1) applies in respect of a property class within a single-tier or upper-tier municipality only if the council of the single-tier or upper-tier municipality has passed a by-law opting to have the subclass apply in respect of that property class in the municipality.

(4) For a subclass mentioned in subsection (1) to apply with respect to the 2026 taxation year, the by-law under subsection (3) must be passed by September 30, 2025.

(5) The subclasses mentioned in subsection (1) consist of land that meets the following conditions:

1. The land is a self-contained residential unit.

2. The residential unit meets the criteria for being an affordable residential unit set out in subsection 4.1 (2) of the Development Charges Act, 1997.

3. The owner of the residential unit or the operator of the building in which the residential unit is located is,

i. required by an Act or a federal statute to provide affordable rental housing, or

ii. required to offer the residential unit at a rent that is governed by an agreement entered into with one of the following entities:

A. The Crown in right of Canada.

B. The Crown in right of Ontario.

C. An agency of the Crown in right of Canada or of Ontario.

D. The local or upper-tier municipality in which the residential unit is located or a local board of either of them.

E. A service manager as defined in the Housing Services Act, 2011.

4. In the case of the subclass for the new multi-residential property class and only if the single-tier or upper-tier municipality opts to have this condition apply, the residential unit must have been built, or converted from a non-residential use, pursuant to a building permit that was issued after the by-law opting to have the subclass apply within the municipality came into force.

(6) For the purposes of subparagraph 3 i of subsection (5), compliance with the limits imposed by the Residential Tenancies Act, 2006 on the amount of rent that a landlord is permitted to charge a tenant does not constitute the provision of affordable rental housing.

(7) If the council of a single-tier or an upper-tier municipality passes a by-law opting to have the subclass for the new multi-residential property class cease to apply within the municipality, the by-law shall not affect the classification of land that is a residential unit that was built, or converted from a non-residential use, pursuant to a building permit that was issued before the by-law came into force.

(8) For the purposes of subsection 19 (2.1) of the Act, the current value of land shall not be adjusted on the basis of any reduction in taxes for municipal or school purposes that results from land being classified in a subclass mentioned in subsection (1)

Commencement

3. This Regulation comes into force on the day it is filed.

Made by:
Pris par :

Le ministre des Finances,

Peter Bethlenfalvy

Minister of Finance

Date made: May 22, 2025
Pris le : 22 mai 2025