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Inclusionary zoning

Inclusionary zoning is aimed at increasing affordable housing in the city. It works by requiring affordable housing units in all large developments in inclusionary zoning areas. These areas are located in protected major transit station areas.

Inclusionary zoning applies to residential developments and redevelopments:

  • With 50 or more ownership units or 3,600 square metres or more of applicable residential gross floor area
  • Located in 1 of 5 inclusionary zoning areas

Find inclusionary zoning areas

The City of Mississauga adopted inclusionary zoning on August 10, 2022. The by-law came into effect on January 1, 2023.

Inclusionary zoning units are exempt from:

How it works

Developers that want to build in an inclusionary zoning area must enter into a legal agreement with the City to secure their inclusionary zoning obligations. The agreement should be made when the site plan application is being processed.

The agreement will outline the percentage of residential gross floor area that must be set aside for affordable housing. That percentage will depend on:

  • The year the agreement is made
  • The inclusionary zoning area where the development is located
  • Whether the inclusionary zoning units are to be rented or owned (if the inclusionary zoning units are for rent, the percentage is lower)

Percentage of inclusionary zoning units by agreement year

Inclusionary zoning area Affordable unit tenure 2023 2024 2025
IZ-1 Ownership 4% 7% 10%
Rental 2% 3.5% 5%
IZ-2 Ownership 3% 5% 7%
Rental 1.5% 2.5% 3.5%
IZ-3A and IZ-3B Ownership 3% 4% 5%
Rental 1.5% 2% 2.5%
IZ-4 Ownership 10% 10% 10%
Rental 5% 5% 5%

How affordability is calculated

Affordable rental units must remain affordable for 30 years from when they’re first occupied. This includes a 5-year phase-out that begins after 25 years. If a tenant is living in the unit after 25 years, the unit will stay affordable until it’s vacated, for up to 5 years.

The maximum rent that can be charged on an inclusionary zoning rental unit for 2024 is:

  • $1,625 for 1-bedroom units
  • $1,855 for 2-bedroom units
  • $1,967 for 3-bedroom units

Rates are based on average market rent from the Canada Mortgage and Housing Corporation (CMHC) annual rental market survey. The cost of parking is not included in housing costs.

Affordable ownership units must remain affordable for 99 years from when they’re first occupied. If a unit is sold during that period, the sale price must be at or below the maximum set by the City for that year.

The maximum affordable purchase price that can be charged on inclusionary zoning ownership units for 2024 is:

  • $333,717 for 1-bedroom units
  • $400,461 for 2-bedroom units
  • $478,983 for 3-bedroom units

Rates are based on housing costs that are no greater than 30% of household income for Mississauga’s moderate-income households, determined from indexed 2021 census data. The cost of parking is not included in housing costs.

Exempt developments

The following developments are exempt from inclusionary zoning requirements:

  • Retirement and long-term care buildings
  • Hospices
  • Group homes
  • Staff or student residences
  • Region of Peel or Peel Housing Corporation projects
  • Some sites where affordable housing contributions were secured before January 1, 2023
  • Non-profit housing developments that meet Ontario Regulation 232/18 criteria

For detailed regulations and exemptions under the Planning Act, 1990, read Ontario Regulation 232/18.

To confirm a development’s exemption status and any conditions of the exemption, contact the City.

Contact us

For more information about inclusionary zoning or affordable units, call 311 (905‑615‑4311 outside city limits) or email zoning@mississauga.ca.

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