Ontario Construction News staff writer
While the City of Ottawa has successfully reduced its internal processing times for many development applications, crippling delays in the post-approval stage are creating significant bottlenecks, with timelines for legal agreements stretching into years, a new audit has found.
The report from Auditor General Nathalie Gougeon, tabled at the city’s Audit Committee on Friday (Sept. 12) reveals a system struggling with “inconsistent expectations across City departments,” a lack of clear decision-making authority, and poor file tracking.
The audit found that for applications requiring post-approval agreements, such as plans of subdivision, the overall review timelines have actually increased, creating uncertainty and adding costs in a city facing a housing crisis.
“This audit provides insights into existing challenges in the development application review process and our recommendations support further efficiency and transparency,” said Gougeon in a statement. She acknowledged the difficult position the city is in, caught between provincial mandates to build more homes and its fundamental duties. “The audit recognizes the challenging position that the City is in; being both a regulator of housing and steward of municipal assets, while also working to reach its housing targets.”
Post-approval delays a “Significant Pain Point”
While the audit notes that city staff have made progress in speeding up the initial review of applications before they receive draft approval, the process slows dramatically once legal agreements and conditions must be finalized. These agreements, which are necessary before construction can begin, often involve multiple city departments, including planning, legal services, and infrastructure.
The data presented in the audit is stark:
- Site Plan Control: While the city’s review time for these applications has decreased, the process of finalizing legal agreements after approval took an average of 204 business days in 2023.
- Plans of Subdivision: The situation is even more pronounced for subdivisions. The average time to finalize legal agreements ballooned to 555 business days in 2023, up from an already high 391 days in 2022. That means builders are waiting, on average, more than two years for final sign-off after their projects have already been draft approved.
The audit identified “bottlenecks and inconsistent expectations across City departments” as key reasons for the delays. It also found that the city needs to “clearly define decision-making authorities for reviewing and approving applications” and improve its tracking of files to ensure departments are providing timely feedback.
Industry applauds findings, urges swift action
The report’s findings were immediately praised by the city’s home-building industry, which said the audit validates its long-standing concerns.
The Greater Ottawa Home Builders’ Association (GOHBA) issued a statement expressing its “strong support for the recent findings and recommendations,” commending the Auditor General for identifying “systemic gaps and deficiencies.”
GOHBA said its members are directly impacted by the issues flagged in the report, including “process inefficiencies and inconsistencies that contribute to delays, uncertainty, and unpredictability for applicants.”
The association strongly endorsed all seven of the Auditor General’s recommendations, particularly those calling for clearer timelines, improved file tracking, and the adoption of modern performance metrics to increase accountability.
“A predictable, transparent approvals process is critical to delivering the housing supply Ottawa urgently needs,” GOHBA stated, noting that reducing uncertainty lowers costs for builders and buyers alike.
GOHBA urged City Council to “act swiftly” to implement the recommendations and to provide the necessary resources to the planning and legal departments to ensure their success.
“GOHBA stands ready to work with the city to advance these reforms,” the statement continued, adding that it anticipates the upcoming recommendations from the Mayor’s Housing Innovation Taskforce will build upon the Auditor General’s findings.
Call for better public reporting
Finally, the audit calls for more transparent and relevant public reporting. It found that the city’s current methods for reporting development application timelines do not provide a complete picture, as they often exclude the lengthy post-approval stage.
This lack of comprehensive data makes it difficult for Council and the public to hold the city accountable and to understand the true extent of the delays impacting housing construction.
The city’s management has agreed to all seven of the audit’s recommendations.
A full copy of the audit is available here.