Affordability Strategy and Innovative Community Planning Permit System – Guelph, ON

The City of Guelph is confronting a critical housing affordability crisis, characterized by a shortage of affordable rental units and a rapidly growing population that is outpacing housing supply. Projections estimate a need for 29,200 new homes by 2051, with 8,700 units required to be affordable to support the city’s most vulnerable populations.

The City of Guelph, in collaboration with Dillon Consulting, and with valued contributions from Watson & Associates Economists Ltd., Tim Welch Consulting, and SGL Planning & Design Inc., developed the forward-thinking framework that not only identifies the significant housing needs of this growing community but also implements actionable, creative, and integrated solutions. The HAS, dated December, 2024, sets a clear vision and tangible targets for increasing the supply of affordable housing across the continuum, with a particular focus on the “missing middle” – those who cannot afford market rates but do not qualify for deeply subsidized housing.

Integral to the HAS is the Community Planning Permit System (CPPS), an innovative planning tool that streamlines approvals by consolidating zoning bylaw amendments, site plan approvals, and minor variances into a single permit process. The CPPS accelerates development timelines, offers flexibility in design standards, and provides density and height increases in exchange for affordable housing units. Piloted in two of Guelph’s Strategic Growth Areas, the CPPS aims to deliver 35 affordable units by 2026.

Together, the HAS and CPPS is the cohesive, data-driven framework that will guide the City in addressing its immediate housing needs while growing in a sustainable way. With extensive public and stakeholder collaboration being a key component of both the HAS and CPPS, it encourages inclusivity and shared ownership of these tools, as well as a transparent commitment to a Housing First approach; this exemplifies innovative, equity-focused planning that advances the public interest and sets a replicable model for other municipalities in Ontario.

Innovation

This project is fundamentally innovative, most notably with Guelph implementing the first Community Planning Permit System (CPPS) in Ontario that is specifically tailored to accelerate affordable housing development in an urban strategic growth area. This CPPS is a groundbreaking tool. It fundamentally changes the way land is regulated and development is approved by providing a framework for staff delegations (opening up council time to focus on the most critical issues facing communities), allowing flexibility and multiple matters to be addressed in a single process and approval, broadens the range of housing choices that can be built while providing a framework for community benefits where additional height and density is provided. This approach significantly reduces administrative hurdles and enhances predictability for delivering diverse housing options in designated areas like the Stone Road / Edinburgh Road Community Planning Permit Area.

The HAS creatively adapts financial incentives and regulatory tools to Guelph’s urban context. Actions such as developing an affordable housing Community Improvement Plan (CIP), reducing parking requirements for affordable housing, and strategically using City-owned land are key innovations. The HAS’s commitment to exploring and supporting emerging housing models like co-housing, modular construction, and Community Land Trusts further diversifies affordable housing options within an urban setting.

Awards

• PlanON Vision Award of Excellence, Ontario Professional Planners Institute, 2025

Project Details

Project Partner: City of Guelph
Business Unit: Community Planning & Infrastructure
Service Offering: Community Planning