Capital Gains Rate Increase Delay

On January 31, the federal government announced a deferral in the implementation of a change to the capital gains inclusion rate. The date on which the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized annually above $250,000 has been deferred from June 25, 2024, to January 1, 2026.

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2025 Residential Rent Increase Guideline  

Ontario has capped its 2025 rent increase guideline at 2.5%, keeping it below the inflation rate for the third year in a row. While the standard formula would have resulted in a 3.1% increase, provincial legislation limits it to 2.5%. This is the maximum most landlords can increase rent without Landlord and Tenant Board approval.

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Mayor’s Housing Task Force

The Mayor’s Housing Task Force outlines Mississauga’s urgent need to address its growing housing crisis, focusing on skyrocketing home prices, declining affordability, and stalled new developments. Mayor Parrish created a task force of over 30 experts to propose bold solutions, including reforming development charges and zoning laws, streamlining approval processes, and creating financial incentives to encourage construction. The report highlights key barriers, such as high development costs, taxes, regulatory delays, and a lack of government funding, while advocating for collaborative efforts between municipal, provincial, and federal governments. This report highlights Mississauga’s dedication to increasing homebuilding using policies that aim to lower costs, increase housing supply and create sustainable programs for affordable housing to ensure the city is a welcoming place for all residents. 

On January 29, Mississauga approved a motion from the Mayor to implement significant measures aimed at increasing housing and affordability, including the following: 

1. Reduction of residential development charges by 50 per cent for all residential developments with permits issued before November 13, 2026. 

2. Offer a 100 per cent reduction in residential development charges for three-bedroom units in purpose-built rental apartment developments with permits issued before November 13, 2026. 

3. Defer collection of City residential development charges until the first occupancy permit is issued for qualifying developments.  

4. Request the Region of Peel to implement a new purpose-built rental housing tax subclass that will reduce property taxes by up to 35% for 35 years for new purpose-built rental housing developments.  

5. Request the Region of Peel to consider matching incentives to development charges, where applicable.  

To view Cornerstone’s letter of support for the Mayor’s report submitted to Council on January 29, click here.

Official Plan Amendment

Mississauga’s Official Plan (OP) aims to address new challenges and opportunities. Key changes include integrating climate change as a core principle to protect buildings, shifting a scale-based approach for land use, introducing mid-rise development policies, strengthening protections for non-residential spaces, and prioritizing mixed-use, walkable communities. The updated OP reflects Mississauga’s new single-tier municipality status and aligns with recent provincial planning updates. The plan could support up to 370,000 new housing units, with 30% designated as affordable housing.

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Federal Funding for Future Homes

The Honourable Nathaniel Erskine-Smith, Minister of Housing, Infrastructure and Communities, alongside Minister Rechie Valdez and Mayor Carolyn Parrish, recently announced the second installment of the Housing Accelerator Fund (HAF), providing over $28.2 million to support housing incentives, including 2,700 market condo units and 400 affordable rental units. Additionally, Mississauga is set to receive $112 million over ten years from the Canada Public Transit Fund (CPTF) to modernize transit infrastructure, with $10.9 million assigned to introducing hydrogen fuel cell buses. This investment will make Mississauga the first Ontario city to pilot this technology.  

Extending Hazel McCallion Line

The Ontario Government has announced plans to extend the Hazel McCallion Line into downtown Brampton and Mississauga. The extension will involve an underground tunnel beneath Brampton’s core, providing fast, affordable, and reliable transit for thousands of commuters and connecting them to regional transit networks. Planning and design work has already started, and environmental studies are set to begin in 2025. The extension will also integrate GO Transit, Brampton Transit, Züm, and MiWay routes to reduce congestion and improve commute times. The initiative is part of Ontario’s broader $70 billion investment in public transit infrastructure across the province. 

New Developments in Mississauga

A 125-unit senior apartment building has been approved for vacant land at 7211 and 7233 Airport Rd., south of Morning Star Drive in Mississauga, providing much-needed homes for seniors in the community. Additionally, a new development proposal in Mississauga’s historic Streetsville area plans to construct 18- and 22-story residential buildings between Tannery and Thomas Street on the east side of Joymar Drive. Ward 11 Councilor Brad Butt has described the project as “unprecedented” in terms of its size and density for the neighbourhood.  

Improving Residential Unit Licensing in Mississauga

Mississauga is introducing a new Additional Residential Units (ARU) Licensing By-law or improving the existing Registration By-law to make basement apartments and other rental units safer and more affordable. The city council approved this change to address the high number of illegal and unsafe rental units. Key challenges include a lack of awareness about registration requirements, limited enforcement power, an education gap for landlords and tenants, high renovation costs, and conflicting housing supply regulations. The goal is to legalize more units, educate property owners and tenants, and implement a 3-year renewal system (or renewal upon ownership change) to ensure compliance while avoiding unnecessary costs or red tape. This new approach will focus on awareness, financial incentives, and streamlined regulations to encourage legal conversions. The city will also review related by-laws, such as short-term rental rules, to protect affordable housing and advocate for faster landlord-tenant dispute resolutions. 

Details Here

Short-Term Rental Licensing

The City of Waterloo has recently approved amendments to the Residential Rental Licensing By-law, allowing short-term rentals only in an owner’s principal residence. This interim measure aims to address challenges such as reduced housing availability and potential neighborhood disruptions, while still supporting supplemental income for homeowners. The City estimates that the changes could free up around 100 units for long-term rental and improve property maintenance with on-site owners. Additionally, the City can now apply for the Federal Government’s Short-Term Rental Enforcement Fund (STREF) grant to support enhanced enforcement of these regulations.  

Details Here

Cornerstone Leaders Meet with Ontario NDP Leader and Ontario Liberal Leader to talk about solving the Housing Crisis

Cornerstone has been proud to sponsor the Greater Kitchener-Waterloo Provincial Leadership series leading up to election day on February 27.  

In recent roundtable discussions on February 3 and February 11, respectively, Cornerstone Directors and Government Relations Committee members Jason Van Amelsvoort and Andrea Fedy met with each party leader.  

At each roundtable discussion, Van Amelsvoort and Fedy discussed crucial housing concerns with each party leader. At yesterday’s event, Fedy highlighted a growing challenge faced by some of the senior clients she works with, who are caught in a housing bottleneck and unable to find suitable downsizing options. This situation directly impacts housing availability for younger generations of homebuyers.  

Last week, when pressed about solutions to Ontario’s housing crisis by GKWCC CEO Ian McLean, Crombie highlighted lowering development charges to encourage housing and business expansion, boosting the supply of diverse housing options, including family homes, stacked townhouses, and accessible units for seniors; and addressing the Landlord and Tenant Board backlog.  

Yesterday, Stiles talked about returning to the recommendations outlined in the Ontario Housing Affordability Task Force Report, enabling fourplex development as a right, expanding transit-oriented housing, and reducing bureaucratic red tape and fees. She emphasized that she believes that the province needs to get back into the business of building deeply affordable housing through partnerships with non-profits, municipalities, and developers.  

At Tuesday’s event with Marit Stiles, Cornerstone representatives were also pleased to say hello to MPP Catherine Fife, who was also in attendance.  

Tomorrow, Cornerstone Director and Government Relations Committee member Christal Moura will meet with Ontario PC member Mike Harris Jr., Minister of Red Tape Reduction, in the final event for the Chamber’s Provincial Leadership Series.

To view the recordings of the Chamber’s event series to date, click here.  

To learn more about the upcoming election and Cornerstone’s provincial election priorities, please visit the Cornerstone Provincial Election Site.