Ontario Regulation 462/24 and ADUs (Additional Dwelling Units) – Key Points for Homeowners

Ontario Regulation 462/24, which came into effect in 2024, represents a significant shift in housing policy for the province. By making it easier for homeowners to add Accessory Dwelling Units (ADUs) or secondary suites to their residential properties, the regulation aims to increase the availability of affordable rental housing and help accommodate Ontario's growing population. This change has important implications for urban densification, affordable housing, and the practicalities of homeownership.

This article will break down the key points of Ontario Regulation 462/24 and how it impacts the creation of ADUs on residential properties.

What are ADUs (Accessory Dwelling Units)?

Before diving into the specifics of Ontario Regulation 462/24, it's important to understand what ADUs are. An ADU, also known as a secondary suite, is a self-contained residential unit located on the same lot as a principal dwelling. It can be within the existing home, such as a basement apartment or an attic suite, or in a detached structure on the property, such as a laneway house or a garden suite. ADUs are typically used for rental purposes, providing an additional source of income for homeowners or offering affordable housing options for tenants.

The Need for ADUs in Ontario

Ontario is experiencing significant population growth, particularly in major urban areas like Toronto, Ottawa, and Hamilton. With this growth comes the increasing need for more housing units. However, new construction of multi-family residential buildings is often costly and time-consuming, and land for new development in urban areas is limited. As a result, ADUs present a unique solution to increasing the housing stock in a more efficient and less disruptive manner. By leveraging existing properties and vacant spaces, such as basements, garages, or backyard lots, homeowners can add much-needed rental units without significant new construction.

ADUs are also a key component of Ontario's broader strategy to promote urban densification. Densifying existing urban areas helps reduce sprawl, supports local businesses, and contributes to sustainability efforts by utilizing existing infrastructure. The regulation is therefore part of a larger effort to meet Ontario's housing needs while maintaining the character and livability of residential neighborhoods.

Key Changes in Ontario Regulation 462/24

Ontario Regulation 462/24 makes several important changes to the rules surrounding the creation of ADUs. These changes aim to streamline the process of adding secondary suites, reduce administrative hurdles, and promote more efficient use of residential properties.

1. Unit Limits: Maximum of Three Units per Lot

One of the most significant changes in Ontario Regulation 462/24 is the allowance for up to three residential units on a single lot. This can include the main dwelling and one or two ADUs. This new provision opens up more opportunities for homeowners to add secondary suites or convert existing spaces into rental units.

Previously, municipal zoning laws were more restrictive, limiting the number of units that could be legally added to a residential property. With the new regulation, homeowners can take advantage of previously underutilized spaces within their homes, such as basements, attics, or garages, or construct standalone ADUs like laneway houses or garden suites.

2. Setback Requirements: Minimum of 4 Meters

Another key provision of the regulation is the adjustment of setback requirements. Setbacks refer to the distance between a building or structure and the property line or other buildings. For ADUs, the new regulation mandates a minimum separation of 4 meters between an ADU and any other residential building. This change makes it easier to build additional units on smaller properties where space is more limited.

However, municipalities still retain the ability to enforce greater separation distances if they deem it necessary. For instance, cities like Toronto may opt to maintain larger setback requirements for certain types of ADUs, depending on the local urban planning context.

3. Lot Coverage: Increased to 45%

Lot coverage refers to the percentage of a property that can be covered by buildings and structures. Under the new regulation, a minimum of 45% lot coverage is allowed for properties with ADUs. This increases the flexibility for homeowners who want to add additional units, especially on smaller lots where space is already limited. In many urban centers, land is scarce, and the ability to use up to 45% of the lot for buildings provides homeowners with more room to work with when planning ADUs.

This provision overrides many existing zoning bylaws, which often restrict lot coverage to a lower percentage. However, municipalities still have the authority to impose their own rules and determine the maximum lot coverage for specific areas.

4. Waiving Minimum Lot Size Requirements

Previously, certain municipalities had minimum lot size requirements for properties where ADUs could be built. These requirements often made it difficult for homeowners in densely populated urban areas to add secondary suites. Ontario Regulation 462/24 removes these minimum lot size requirements, making it easier for homeowners in smaller lots to construct ADUs.

This change is particularly beneficial in urban areas where land is expensive, and smaller properties are common. With no minimum lot size requirement, homeowners in more compact areas can now legally add ADUs to their properties.

5. Removal of Floor Space Index (FSI) Requirements

Another important change brought by Ontario Regulation 462/24 is the removal of Floor Space Index (FSI) requirements for properties with ADUs. FSI is a ratio that determines the maximum allowable floor area relative to the size of the property. By eliminating FSI requirements, the regulation allows homeowners more flexibility in the size and layout of their ADUs.

This change helps ensure that homeowners are not unnecessarily limited in their ability to create functional and livable secondary suites. It also provides greater opportunity for homeowners to construct larger ADUs or convert existing spaces more efficiently.

6. Parking Requirements

The new regulation requires one parking space for each dwelling unit on the property, including both the primary dwelling and any ADUs. While this is in line with traditional zoning requirements, it’s important to note that parking can often be a challenge, particularly in urban areas where space is limited. Homeowners planning to add ADUs in more densely populated neighborhoods may need to ensure that they can accommodate the parking requirements.

7. Municipal Permissions and Local Zoning Bylaws

While Ontario Regulation 462/24 sets out these new rules at the provincial level, municipalities still have the authority to create and enforce their own zoning bylaws. This means that local governments can implement stricter rules if they believe it’s necessary for their communities. For instance, municipalities can impose higher setback requirements or regulate the height and design of ADUs to ensure they align with local neighborhood aesthetics.

Additionally, homeowners must still apply for building permits to ensure their ADUs comply with local zoning bylaws and the Ontario Building Code. This process ensures that ADUs meet safety and structural standards.

8. Building Code Requirements

ADUs must comply with the Ontario Building Code, which governs the construction standards for buildings and structures. However, there is some flexibility for existing buildings that are more than five years old. For new construction, such as detached garden suites, fire separation requirements are more stringent.

Conclusion

Ontario Regulation 462/24 represents a progressive step forward in addressing the province's housing shortage. By easing restrictions on the construction of ADUs, the regulation opens up opportunities for homeowners to add much-needed rental units to their properties, increasing the overall supply of affordable housing.

These changes are particularly impactful in urban areas, where land is at a premium, and housing demand is high. By removing barriers like minimum lot sizes, floor space index limits, and restrictive zoning bylaws, Ontario is making it easier for homeowners to contribute to the solution for housing shortages in their communities.

The regulation also reflects a broader trend in urban planning, where municipalities are increasingly encouraging densification to address growing populations and limited land. For homeowners, these changes mean greater flexibility and the potential for additional sources of income, while also supporting the province’s goal of promoting urban sustainability and affordability.

As Ontario continues to grapple with its housing challenges, the success of Regulation 462/24 will likely be an important factor in determining how well the province can meet the needs of its residents while ensuring that urban areas remain vibrant, sustainable, and livable.