Ontario Construction News staff writer
Guelph – The City of Guelph has approved a strict seven-year timeline to move approved housing projects from application to construction.
Council unanimously supported a new “use it or lose it” policy at its Feb. 24 meeting, to ensure limited water and wastewater resources are used efficiently and to prevent long-delayed projects from tying up servicing capacity.
Under new rules, developers have 48 months from the date of an application to submit a site plan and an additional 36 months to start construction. A process for extensions is still being finalized.

“This is really prudent to do,” Coun. Erin Caton said at a committee of the whole meeting Feb. 4. “I also like how it encourages groups that do have permits out to get shovels in the ground because it’s kind of a first-come-first-served. We have a max capacity.
“Get your stuff built because if someone else builds faster you may not get to.”
According to a staff report, approvals and project permits for more than 2,000 housing units have been pending for over a decade, with some dating back to 1987 and about 6,000 units of approved housing are expected to move forward within the next few years.
“It’s been profoundly disturbing as a citizen to see the Ford government roll out the red carpet to developers.
Ford has reduced development fees, eliminated heritage protection, weakened environmental laws, opened up land, reduced parkland dedication and eliminated parking minimums,” Susan Watson said in a presentation to council prior to the vote. “The city provides water and wastewater servicing to support development. This should not be exploited for speculation.
“If a given developer is not willing to move ahead with development for whatever reason, that servicing allocation should be liberated and allocated elsewhere.”
Under the new policy, council will receive annual reports on available water and wastewater capacities, including data on extensions requested, granted, or denied, and cumulative extensions per developer. City officials noted that full transparency will gradually improve over the first few years of the program.
According to a 2022 Water Supply Master Plan update, the city currently has a “firm water supply” capacity ranging from 65,447 m³ to 79,422 m³ per day, while projected demand by 2051 could reach 68,306–91,530 m³ per day, highlighting the importance of careful resource management.
The policy also provides developers greater certainty that capacity will not be arbitrarily withheld once a project is underway.
The policy’s detailed provisions include:
- Releasing servicing capacity if a project exceeds 48 months from application without site plan or subdivision approval, or 36 months from site plan approval without substantial site servicing.
- Allowing developers to request extensions up to 60 days before expiry, which are considered based on project feasibility, contribution to housing and job creation, alignment with the city’s strategic objectives, and conformity with the Official Plan.
- Providing an appeal route to the Deputy CAO of Infrastructure, Development and Environment, whose decisions on extensions are final.
The council-approved policy marks a significant step in ensuring Guelph’s growth is sustainable, accountable, and aligned with the city’s long-term infrastructure capacity.
