Summary#
Bill 98, the Building Homes and Improving Transportation Infrastructure Act, 2026, is an Ontario bill that changes housing, planning, transit, and water system rules. Its goals are to speed housing, make transit fares simpler across regions, and set clearer rules for public water and wastewater services.
Key changes include:
- Limits on how cities can set minimum lot sizes and some site plan design rules, and removal of required climate sections from official plans.
- Cities and Toronto cannot require electric-vehicle (EV) chargers through zoning or site plan approvals.
- Non-profit retirement homes would not pay development charges.
- A new law to align fares across transit systems, require a single payment method, set shared service rules, and expand specialized transit booking and cross-boundary trips.
- New powers and processes for Metrolinx on building inspections for provincial transit projects, with some legal immunity.
- Stricter rules to keep water and wastewater corporations publicly owned, and a process that can require municipal consent for new water or sewage utilities if provincial criteria are met.
What it means for you#
- Homebuyers and renters
- More small-lot housing could be allowed in urban areas outside the Greenbelt because cities are limited in how large they can make minimum lot sizes and frontages.
- Faster approvals may be possible where fewer design rules apply at the site plan stage.
- Homeowners and builders
- Cities cannot force you to install EV charging equipment through zoning or site plan approval for new parking areas.
- If you are building a non-profit retirement home, you would be exempt from development charges.
- Parkland rules change: owners can secure park use through easements, and there’s a clearer appeal path if a city does not respond within 90 days when you offer land for park purposes.
- Transit riders
- A province-set fare structure could make prices and transfers more consistent across systems.
- You would be able to use a single, unified payment system across participating transit agencies.
- The province can set “priority routes” with minimum service standards and require agencies to coordinate service.
- Riders with disabilities
- Specialized transit systems must join a unified trip booking platform approved by the Minister of Transportation.
- Specialized transit must provide trips a set distance beyond their usual service area, helping with cross-boundary travel.
- Toronto residents and businesses
- The City’s site plan rules lose references to “sustainable design,” and it cannot require EV charging in off-street parking through approvals.
- The City cannot impose requirements about certain matters the province prescribes.
- Residents in Simcoe County
- The County’s planning role can change in steps by area, which may affect who makes local planning decisions over time.
- Water and wastewater customers and workers
- Water and wastewater public corporations must remain publicly owned (only governments can hold shares).
- Assets used to deliver water and sewage services cannot be sold unless declared not needed.
- Employees moved to a public water corporation keep continuity of employment.
- New or existing water or sewage utilities need municipal consent; if provincial rules set criteria, municipalities must consent when those criteria are met.
- Property owners near provincial transit projects
- Metrolinx gets a defined process with local chief building officials for inspections and occupancy opinions on buildings tied to provincial transit. Officials have legal protection for actions done in good faith.
Expenses#
Estimated fiscal impact: likely mixed, with some new provincial and municipal costs and some revenue reductions for municipalities.
- Transit agencies and the province would likely face costs to adopt unified fares, a single payment system, shared data systems, and service upgrades on priority routes.
- Municipalities would lose some revenue from exempting non-profit retirement homes from development charges.
- Specialized transit providers may face higher costs to deliver trips outside their service area and to join a unified booking system.
- Changes to parkland processes and site plan limits may shift municipal costs and staff workload but are hard to quantify.
- Water and wastewater provisions mainly protect public ownership; administrative costs may rise during transfers and compliance.
- No clear public estimate of net costs or savings.
Proponents' View#
- Makes transit easier to use by aligning fares, transfers, and payment across regions, which can boost ridership.
- Speeds up and broadens housing options by capping minimum lot sizes, trimming site plan design demands, and clarifying planning rules.
- Lowers building costs for non-profit retirement homes by removing development charges, helping add seniors’ housing.
- Improves cross-boundary travel for people with disabilities through unified booking and required out-of-area trips.
- Protects public control of water and wastewater systems by blocking privatization of shares and key assets.
- Sets clearer, faster processes for provincial transit construction with appropriate safety checks.
Opponents' View#
- Reduces local control and weakens climate action by removing required climate goals from official plans and cutting “sustainable design” tools.
- Banning city requirements for EV chargers could slow charger growth in new buildings and undermine EV adoption.
- Centralizes power with the province on fares, route standards, and planning limits, which may not fit local needs.
- Cuts municipal revenues through development charge exemptions and may add costs from parkland and planning rule changes.
- Legal immunity and limits on lawsuits related to transit provisions may reduce accountability when problems occur.
- New rules letting the province require municipal consent for certain water or sewage utilities could pressure municipalities and complicate local decision-making.