Ottawa Construction News staff writer
A major overhaul of Ottawa’s development landscape moved closer to reality last Wednesday as two key municipal committees recommended the approval of a new comprehensive Zoning By-law designed to accelerate home construction and stimulate economic growth.
In a joint meeting on Dec. 17, the Planning and Housing Committee and the Agriculture and Rural Affairs Committee voted to send the final draft of the by-law to City Council. The decision follows five years of consultation and serves as the legal mechanism to enact the city’s 2021 Official Plan.
The new regulations represent a fundamental shift in how Ottawa manages growth, moving away from “typology-based” zoning—which restricted lots to specific building types like duplexes or semis—toward “form-based” zoning. This new approach focuses on building size and location, a change city officials say will minimize barriers for developers and homeowners alike.
Unlocking the “Missing Middle”
A central pillar of the new by-law is the promotion of “missing middle” housing, typically defined in Ottawa as multi-unit residential buildings containing eight to 16 units. Existing rules have long made these projects difficult to build as-of-right, often requiring lengthy and expensive rezoning applications.
Key housing provisions in the new by-law include:
- Increased density: New permissions for larger, family-sized units in four-to-six-unit buildings.
- Building heights: Increased maximum heights in strategic growth areas and a standardized three-storey (11-metre) limit in many suburban neighbourhood zones to support multi-unit floor plans.
- Transit-oriented growth: Streamlined permissions for mid-rise and high-rise developments located near transit hubs.
- Seniors and prefabricated housing: New rules to encourage specialized residential development for seniors and fewer restrictions on modular construction.
Slashing development application hurdles
In a move specifically targeting the “Housing Acceleration Plan” objectives, the committees also approved a significant reduction in the paperwork required for new developments.
Currently, the City of Ottawa can require as many as 49 separate studies before a development application is even considered “complete.” Under the approved changes, 13 of those studies will be eliminated entirely, while another 13 will be simplified in scope.
The city says these 26 changes will provide developers with greater cost certainty and help avoid redundant requirements that align with recent provincial directives to speed up the planning process.
Economic and rural impact
Beyond residential growth, the by-law introduces a simplified framework for commercial zones. This is intended to reduce restrictions on small businesses and expand the types of businesses permitted on busy streets and near transit.
For the rural sector, the by-law expands permissions for home-based businesses, a move aimed at supporting local entrepreneurs and fostering economic resilience outside the urban core.
The committees also received an update on the streamlining of legal agreements. The city has recently added resources to its legal services department—funded through the federal Housing Accelerator Fund—to improve file tracking and ensure that the delivery of housing is not delayed by administrative bottlenecks.
What’s next
The recommendation now heads to Ottawa City Council for a final vote, scheduled for Jan. 28, 2026. If approved, the by-law will serve as the primary tool for the city to meet its provincial housing pledge of enabling 151,000 new homes by 2031.
