AECO, RESCON receive CMHC funding for residential-development approvals technology
CAMBRIDGE, Ontario, October 19th, 2023
The Residential Construction Council of Ontario (RESCON) is part of a group that has received funding from Canada Mortgage and Housing Corporation (CMHC) to pilot test a new municipal residential-development approvals process.
RESCON, alongside AECO Innovation Lab, was awarded $2.35 million from CMHC to implement technology that they say will create a one-window digital platform for the approvals of residential developments. The project will be tested in Simcoe County and, “could be used as a model for a more streamlined development review process across Ontario.”
“This funding will enable us to move forward with a technology solution to streamline pre-construction processes and help get housing and affordable housing built faster,” said AECO CEO Arash Shahi. “The blueprint that we have developed will remove barriers, eliminate data silos, and ensure applications can be processed more quickly to improve housing affordability in the region.”
The platform, which was developed by AECO in conjunction with municipalities, conservation authorities and other key agencies, will include a portal for submission, a data exchange platform to enable transfer of information between groups, and application tracking to support applicants and inform policy decisions. A workflow engine has also been included to improve efficiency, reduce errors and improve communication.
AECO and RESCON say processes for residential projects are presently lengthy and complex. This, in turn, results in delays and increased costs that lead to higher housing prices, lower supply, and fewer affordable housing units. Streamlining communications will make things easier to process for all parties and provide certainty for developers.
The groups chose Simcoe County for their pilot test as it has a mix of urban, rural and Indigenous perspectives.
The platform has three major parts.
A standardized one-window portal allows applicants to submit one set of drawings and documents and be used to communicate the status of the application with the applicant.
An intelligent data exchange platform ensures applications are complete and accessible to relevant staff within municipalities, the county and applicable agencies. The system can track when submissions have been made, documents have been uploaded, communications have occurred, or approvals have been granted.
Finally, a regional development application manager will be used for the county’s workflows for document control, drawing reviews, and other application management tools to track the applications.
“This proof-of-concept pilot will set the stage for a more efficient development review process across Ontario and help tackle the housing supply crisis by streamlining the approvals system and reducing costs,” says RESCON president Richard Lyall. “We have been backing this initiative because lack of standardized processes makes development applications more complicated, time consuming and fragmented, resulting in delays that impact housing affordability and supply.”
According to AECO and RESCON, for every month a project is delayed, a 125-home, low-rise development and a 125-unit high-rise incur $456,000 and $276,000, respectively, in extra cost due to loan-carrying charges, increased municipal charges, and inflation.
A more efficient system will result in municipalities seeing property taxes and other fees from projects earlier. As a result, the additional revenues can be spent on initiatives such as creating inclusive places within communities or supporting more affordable housing projects.
Once implemented in Simcoe County, the groups will look to expand the initiative to other regions across the country.
For more information:
Kristen Tam
Marketing and Communications Manager
AECO Innovation Lab
kristen.tam@aecoinnovationlab.com
