Montreal Shifts Strategy on Housing Crisis with Regulatory Easing
In a significant policy shift aimed at tackling the city's persistent housing shortage, Montreal Mayor Soraya Martinez Ferrada has announced plans to ease development requirements to accelerate the construction of social and affordable housing. The mayor emphasized moving away from what she described as a "coercive approach" toward a more collaborative partnership model with developers, non-profits, and the private sector.
Regulatory Changes to Mixed Metropolis Bylaw
The city is temporarily loosening its mixed metropolis bylaw while a committee works on a comprehensive replacement, fulfilling a campaign promise made by Martinez Ferrada. The existing regulation, commonly known as the 20–20–20 requirement, was implemented in 2021 under former Mayor Valérie Plante's administration. It mandated that large residential projects include:
- 20 percent social housing
- 20 percent affordable housing
- 20 percent family housing with three or more bedrooms
Developers who failed to comply faced financial contributions to a city fund.
Revised Requirements and Project Thresholds
Under the new framework announced on Friday, the social and affordable housing components will be consolidated into a single 20 percent requirement for off-market housing. Additionally, the regulation's applicability has been substantially modified. Previously covering all residential projects exceeding 450 square metres, the bylaw will now only apply to developments of 1,800 square metres or larger.
Mayor Martinez Ferrada explained the philosophical shift at a city hall announcement, stating, "We're breaking down the silos. We're moving from a coercive approach to a partnership-based approach with the city, nonprofits and the private sector."
City-Owned Land and Financial Commitments
Complementing the regulatory changes, Montreal is making 40 city-owned lots available for off-market and mixed-use housing projects. The municipal government has committed $30 million to facilitate lower-cost access to these properties and an additional $50 million for necessary site preparation work, including decontamination and demolition.
City officials cited concerning demographic trends as motivation for the policy adjustments, noting that Montreal has lost approximately 300,000 residents in recent years with further population declines projected by 2030. Outremont borough mayor Caroline Braun, who oversees housing for the executive committee, emphasized the urgency, stating, "It's not normal that families can't find housing in Montreal right now. And it's not acceptable that people are in the streets because they can't access housing."
Housing Advocates Express Concerns
Reaction to the announcement included significant concerns from housing advocacy organizations. The Front d'action populaire en réaménagement urbain (FRAPRU) warned that combining social housing requirements with broader off-market housing provisions could result in "even fewer guarantees for the most disadvantaged tenants."
The advocacy group expressed particular apprehension about the potential for mixed-use development on city-owned land to prioritize private projects over non-profit housing initiatives. FRAPRU also urged the city to include tenant and housing-rights organizations in the working committee tasked with developing a permanent replacement for the current bylaw.
Political Opposition and Implementation Questions
The official opposition party, Projet Montréal, characterized the announcement as a "complete reversal" of campaign promises. During her election campaign, Mayor Martinez Ferrada had pledged to repeal the 20-20-20 bylaw within her first 100 days in office.
Élise Tanguay, Sud-Ouest city councillor and housing critic for Projet Montréal, noted that her party had planned similar modifications to the regulation. However, she criticized the administration for creating uncertainty in the development community over the past three months by initially promising complete repeal. "If there is one thing that developers dislike even more than development constraints, it is uncertainty and lack of predictability," Tanguay observed.
Existing Bylaw Impact and Future Directions
According to municipal data, the current bylaw has generated substantial contributions from developers, including:
- Over $66 million in payments or committed contributions to city funds
- Agreements to construct 1,202 social housing units
- Commitments for 159 affordable housing units
- Plans for 1,422 family housing units
The regulatory adjustments represent Montreal's latest attempt to balance development incentives with housing affordability objectives as the city confronts a deepening housing crisis. The working committee's recommendations for a permanent replacement to the mixed metropolis bylaw will determine whether this partnership-based approach can deliver the accelerated housing construction that city officials envision.
