September 23, 2025
| Highlights: Density Boost: Taller and denser buildings now permitted near transit hubs in Toronto. Affordable Housing: Big projects must set aside up to 5% of units as affordable for 25 years. Parking Minimums Gone: There are no more mandatory parking requirements near transit hubs. Higher Property Potential: Homes near stations may be more attractive to developers and may yield more in value. Final Decision: These zoning rules took effect on August 15, 2025, and cannot be appealed |
On August 15, 2025, Ontario’s Minister of Municipal Affairs and Housing approved, with modifications, six major Official Plan Amendments (OPAs) for the City of Toronto. These amendments have wide-ranging implications for property owners, developers, and communities located in certain areas. The Minister’s decisions are final, not subject to appeal, and mark one of the most significant changes to Toronto’s land use planning framework in recent years.
For homeowners, the changes may sound like nuanced technicalities, but it is very important to understand their significant implications. These policies affect where density will be built, what kinds of housing can be approved, how much parking must be provided, and the affordability of future housing inventory in Toronto. In this article, we will explore the changes and their implications in a straightforward manner and highlight what they mean for property owners across the city of Toronto.
What Were the Zoning Requirements Before The Minister’s Approval?
Prior to the Minister’s approval of these amendments, Toronto’s zoning rules near transit stations were more restrictive and inconsistent between areas. In most residential neighbourhood designations, only low-density housing forms such as detached, semi-detached, and in limited cases multiplexes of up to four units were permitted. Apartment neighbourhoods and mixed-use areas allowed mid-rise and high-rise buildings. However, the City of Toronto had no uniform minimum density standards tied directly to proximity to transit stations. Building height permissions were often capped through zoning by-laws or Secondary Plans, which required lengthy amendment processes to increase density.
Parking minimums also applied broadly across the city, even near subway and GO stations, often requiring one or more parking spaces per residential unit. Developers therefore faced higher costs, delays, and less predictable outcomes when trying to intensify land use near transit. The new framework replaces this patchwork system with city-wide, as-of-right density requirements tied directly to transit accessibility.
What Changed on August 15, 2025?
The approvals provided by Ontario’s Minister of Municipal Affairs reshape the boundaries of where and how Toronto can grow and how housing develops around transit hubs
The Minister approved six OPAs: OPA 524, 537, 540, 544, 570, and 575. These all work to:
What Are MTSAs and PMTSAs?
Major Transit Station Areas (MTSAs) and Protected Major Transit Station Areas (PMTSAs) are lands within a 500–800 metre radius of existing or planned higher-order transit stations (like subways, LRT stops, or GO stations).
The Planning Act requires municipalities to identify these zones, set minimum density standards, and receive ministerial approval before they come into effect. For homeowners, being inside an MTSA or PMTSA boundary means your property may now be subject to new density and housing policies that were not in consideration before.
The Official Plan Amendments (OPAs)
The six OPAs approved by the Minister, OPA 524, 537, 540, 544, 570, and 575, delineate specific MTSAs and PMTSAs across Toronto:
Together, these approvals bring into effect 120 MTSAs/PMTSAs, with 12 still under consideration.
Minimum Density Requirements Established for MTSAs and PMTSAs
One of the immediate effects of the Minister’s decision is the establishment of minimum density permissions in delineated MTSAs and PMTSAs. The density permission for multiplexes and small apartments across Toronto’s transit hubs has expanded its horizons.
For Apartment Neighbourhoods, Mixed Use Areas, and Regeneration Areas:
For Neighbourhood-Designated Lands:
In addition to these minimums, the Minister confirmed that growth shall be directed to MTSAs and PMTSAs, alongside Toronto’s already identified growing areas such as the Downtown, Centres, and Employment Areas. Where Secondary Plans or Site and Area Specific Policies conflict, the policy granting greater density prevails, giving developers and homeowners clarity on which rules govern
Special Policy Areas:
The Minister carved out certain lands as “Special Policy Areas,” where minimum density requirements are reduced to 0 FSI. In these areas, existing land use rules continue to apply, and any changes to policies or development permissions require special ministerial approval.
Inclusionary Zoning: Affordable Housing Now Required in PMTSAs
The approval of PMTSAs has another important effect: Toronto’s inclusionary zoning (IZ) by-law is now active within these areas. IZ applies to larger developments (100+ dwelling units or 8,000 m²+ of residential floor area). As per Toronto’s IZ by-law, developers must dedicate up to 5% of units (or floor area) as affordable housing. Units must remain affordable for 25 years. This was reduced from the City’s original 99-year requirement by provincial regulation. Smaller buildings, purpose-built rentals, or projects that fall within transition provisions may be exempt from the IZ by-law.
This means that if your property is inside a Projected Major Transit Station Area (PMTSA) and you plan to redevelop, the profitability of your project may be affected by the IZ rules. Conversely, for homeowners in areas affected by the IZ by-law, this policy is designed to ensure that future development includes some level of affordable housing.
No More Parking Minimums in PMTSAs and MTSAs
Another impactful change that comes from the approval is the removal of parking minimums in PMTSAs and MTSAs. Amendments to the Planning Act now prohibit official plan policies or zoning that require developers to provide parking in these areas. This means that developers are no longer required to include a set number of parking spaces in new projects near transit hubs. The existing parking requirements in by-laws are void effective August 15th in these areas. Unfortunately, for homeowners, this could mean fewer parking spaces in new buildings nearby, which could require changing expectations around car use and street parking availability. However, it could also positively reduce traffic congestion in high-traffic areas surrounding transit hubs.
Development Charges and Financial Impacts
Another important impact to note is how development charges apply under the new framework. Inclusionary zoning units are exempt from development charges. For projects that include IZ units, the City’s development charge by-law applies the August 15, 2022 rates (plus indexing) to the rest of the building. This may make it more financially attractive for developers to include IZ units in their projects, as it lowers their overall costs going towards developmental charges.
What Does This Mean for Homeowners?
If you own a home in Toronto near a, here’s what to keep in mind:
What This Means for Developers
For developers:
Conclusion: Why Legal Advice Matters
The Minister’s new approvals fundamentally reshape the City of Toronto’s planning framework. For homeowners, the changes bring both opportunities and uncertainties as higher density permissions can increase property value, but inclusionary zoning and reduced parking standards may face increased redevelopment pressures. For developers, the new requirements help gain certainty and flexibility.
Because each property is affected differently, understanding the new rules is critical before making decisions about selling, redeveloping, or investing.
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