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
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 required
Inclusionary zoning area
Affordable Ownership Housing Units
Affordable Rental Housing Units
IZ-1
5%
3.5%
IZ-2
5%
2.5%
IZ-3A and IZ-3B
4%
2%
IZ-4
5%
5%
How affordability is calculated
Affordable rental units must remain affordable for 25 years from when they’re first occupied.
The maximum rent that can be charged on an inclusionary zoning rental unit for 2025 is:
$1,752 for 1-bedroom units
$1,941 for 2-bedroom units
$2,046 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 25 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 2025 is:
$374,227 for 1-bedroom units
$435,043 for 2-bedroom units
$491,773 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 inclusionary.zoning@mississauga.ca.