Ottawa Eyes Public Housing Developer Model - Comité des finances et des services organisationnels et du Comité de la planification et du logement - 06 May 26

Ottawa City Council spent much of the meeting on how to build more housing in a market staff and consultants described as financially difficult. Councillors heard from Bloomberg Associates that “the market as we assess it is quite challenging,” with few development scenarios currently meeting feasibility thresholds. Council also approved a motion aimed at better aligning infrastructure delivery with housing growth, with Vice Chair Laine Johnson Kits warning that “we still aren't delivering infrastructure at the speed that the city is growing.”

Topics Discussed

HOUSING MARKET FEASIBILITY: Bloomberg Associates presented a year-long analysis of Ottawa’s housing market and said current conditions are limiting what can be built. Simon Metler told council, “Overall, the market as we assess it is quite challenging with very few scenarios meeting a feasibility threshold right now in a typical scenario and no scenarios meeting our thresholds for being most feasible.” Staff also pointed to affordability problems in the rental market, saying newly built units are sitting vacant because “the cost to develop new units requires rents to be set at levels that people cannot afford.” Councillor Riley Brockington cautioned against relying on development charge cuts as a solution, saying waiving charges “is very dangerous from a financial perspective” and would make it harder to fund infrastructure.

INFRASTRUCTURE ALIGNMENT: Council approved a motion directing staff to better coordinate infrastructure planning with growth in high-development areas. Vice Chair Kits said the issue is not only funding or prioritization, but delivery speed: “Even when the funding is identified, even when the projects are prioritized, we still aren't delivering infrastructure at the speed that the city is growing.” She said the city lacks the same tools to delay development over transportation shortfalls that it has for water and sewer capacity, even “when a road is operating over capacity or an intersection is failing or the mobility conditions are unsafe.” Councillor Tim Tierney Luloff supported the motion, saying, “If we're serious about accelerating home building, then we need to be just as serious about accelerating the infrastructure that supports it.”

PUBLIC DEVELOPER MODEL: Council discussed whether Ottawa should take a larger direct role in housing delivery through a municipal public developer model. The proposal would use public land and a city-led development structure to advance mixed-income housing projects and support nonprofit builders. Staff said they will report back in 2027 on how such a model could work. The discussion focused on moving beyond policy incentives alone and creating a delivery structure that can manage projects from planning through construction.

FAMILY-SIZED HOUSING: Councillors also discussed the shortage of larger homes and apartments suitable for families. Staff said the city is already trying to encourage family-sized units through several programs. In response to questions, staff said, “we continue to look at opportunities to incentivize family sized units,” including through the downtown revitalization strategy, the Build Canada Homes Partnership agreement and the housing acceleration plan. The discussion centered on whether incentives alone can close the gap when larger units are more expensive to build and harder for families to afford.

MUNICIPAL COMPETITIVENESS AND GROWTH PRESSURES: Councillors raised concerns about whether Ottawa is losing households to surrounding municipalities where housing may be cheaper. Bloomberg said market conditions differ across regions because investors look at how quickly units can be absorbed, adding that if capital believes homes “can be absorbed more quickly, they are going to be produced” in that market. Staff said municipalities across Ontario are trying to speed up planning and permitting, and noted that faster approvals improve project viability because “time is money.”

Motions

Passed: - Housing Acceleration Plan Progress Update - Infrastructure Delivery in High-Growth Areas - Special Economic Zone clause within the infrastructure motion (passed separately, 13-4) - Tree Protection Bylaw Amendment

Rejected: - Housing Acquisition Fund

Attendees

• Mayor Mark Sutcliffe
• Vice Chair Laine Johnson Kits
• Councillor Riley Brockington
• Councillor Glen Gower
• Councillor Marty Carr Curry
• Councillor Ariel Troster
• Councillor Jeff Leiper
• Councillor Shawn Menard
• Councillor Cathy Curry
• Councillor Clarke Kelly Deash
• Councillor David Hill Johnson
• Councillor Tim Tierney Luloff
• Councillor Theresa Kavanagh