Cutting Red Tape to Build More Homes Act, 2024

What happened · Dec 13, 2023

The government abandoned the dissolution before the Jan. 1, 2025 date and later amended the law to remove it.

Bill 112, the Hazel McCallion Act (Peel Dissolution), 2023, received Royal Assent on June 8, 2023 and set Jan. 1, 2025 as the date Peel Region would be dissolved. On Dec. 13, 2023, Clark's successor as housing minister, Paul Calandra, announced the province would no longer dissolve the region. He said municipal leaders had made it clear that full dissolution would bring significant tax hikes and disrupt critical services. Bill 185, the Cutting Red Tape to Build More Homes Act, 2024, received Royal Assent on June 6, 2024. It amended the act, renamed it the Hazel McCallion Act (Peel Restructuring), and limited the transition board to recommending transfers of specific services such as land-use planning, water and roads.

Who was hurt

• Region of Peel · $4.4 million in costs (as of May 2024)

  The Region of Peel says it spent $2.7 million dealing with the fallout of the abandoned dissolution and was billed about $1.5 million by the provincially appointed Transition Board. FOI briefing notes reported by Global News say it could not borrow in 2023 or 2024 because of uncertainty over the restructuring, and about 300 staff, including the treasurer, left after the announcement. The sources do not say whether the province ultimately reimbursed it.

  Source: Peel Region split costs grow to $4.4M as council demands reimbursement — Global News (May 9, 2024), Province suggest it will cover bill to Region of Peel for work on dissolving the upper-tier government — The Pointer (Jun 29, 2024), Peel Region paused borrowing because of 'perceived uncertainty' from Ontario policies — Global News (Jun 19, 2025)

What happened · Jun 6, 2024

The province cancelled the audits meant to measure losses and never paid dollar-for-dollar compensation; in 2024 it reversed part of the Bill 23 fee cuts, which municipalities said helped but did not make them whole.

Clark's November 30, 2022 letter promised audits of select municipalities and said there should be no infrastructure funding shortfall 'provided municipalities achieve and exceed their housing pledge levels and growth targets.' Audits of six municipalities began in summer 2023, but the province cancelled them without releasing the results and refused a freedom-of-information request for them. Bill 185 (Royal Assent June 6, 2024) eliminated Bill 23's five-year phase-in of development charge rates and restored studies as chargeable costs. Mississauga, Newmarket and Peel Region told Global News in May 2024 that the changes did not fully make them whole. Housing Minister Paul Calandra cited the $1.8-billion infrastructure fund and the $1.2-billion Building Faster Fund as addressing municipal needs.