Orillia changes zoning rules to allow more housing options to unlock $4.5M in funding

Graphic / Steve Wishart

The City of Orillia is clearing the way for more homes to be built by allowing up to four residential units on a single lot across the city and opening parts of commercially-zones areas to new housing options.

The changes are aimed at securing up to $4.5 million in federal funding through the Canada Mortgage and Housing Corporation’s (CMHC) Housing Accelerator Fund. Orillia has already received $1.1 million, but will need to meet specific goals by 2027 to receive the full amount, including issuing 908 residential building permits and constructing at least 100 affordable housing units.

“As a council, we are committed to increasing housing in our community, and this funding from CMHC gives us the opportunity to take meaningful steps to fast-track new housing initiatives and boost supply,” said Mayor Don McIsaac. “By updating key policies, we’re making real progress in supporting more housing options, especially affordable ones, right here in Orillia.”

Previously, the City permitted a maximum of three units per residential lot. The new rules increase that number to four, allowing property owners to add additional living spaces. While the zoning has been updated, all new construction must still meet building code and property standards.

To help residents navigate the process, the City has published a guide on its website, outlining steps and requirements for adding additional units to existing properties.

In addition to residential changes in neighbourhoods, Orillia has also amended its policies to allow a mix of residential uses on some commercially-zoned properties in the city’s west end, such as areas near big-box retail stores. City staff say this will help transform underused commercial land into sites for housing development.

“We are committed to keeping our planning policies current and taking opportunities that increase our supply of housing,” said Katy Modaressi, Orillia’s director of development and infrastructure planning. “This is a smart way to make better use of existing land and bring more homes to Orillia.”

The changes are part of a broader strategy by the City to address the housing shortage, particularly when it comes to affordability.